Voice Assistant Application Market Size, Share & Trends Analysis Report By Component (Software, Service), By Deployment Mode (On-Premise, Cloud), By Enterprise Size (Large Enterprises, SMEs), By Applications (Mobile Application, Web Application, Smart Devices, Others), By technology (Natural Language Processing, Speech Recognition, Other Technologies (Text to Speech Conversion, Edge Computing)), By End-user Verticals (IT & Telecommunication, BFSI, Healthcare, Retail, Automotive, Other End-use Verticals (Media and Entertainment, Educational Institutions)) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global voice assistant application market size was valued at USD 2.9 billion in 2022. It is projected to reach USD 29.70 billion by 2031, growing at a CAGR of 29.5% during the forecast period (2023–2031).

Voice assistants recognize, synthesize, and process user voice commands. Voice assistants are intelligent personal assistants or connected speakers. Smart devices use software-based voice assistants. Due to the rapid growth of voice assistant technologies, customers are using them more. Voice assistant apps can help you order online, schedule an appointment, and more. Many voice assistant vendors support AI, speech conversion, and edge computing. Siri, Cortana, Alexa, and Assistant are popular voice assistants worldwide. End-users high internet and smart device usage boost the voice assistant application market. Voice Assistant Applications are intelligent personal assistants that help with simple tasks by accessing much information on a device or online. These technologies enable voice assistants to convert speech into text. Voice assistants can order online and schedule appointments. Intelligent personal assistants can help with basic tasks. Digitization and smart device use drive voice assistant app adoption. The app controls music, smart home, and devices. Cloud platforms enable voice assistants in millions of homes. Since 2017, the voice assistant app popularity has increased. Customers worldwide will demand voice assistant applications as natural language processing, and automated speech recognition technologies are adopted.

Market Dynamics

What Are The Key Factors Driving Industry Growth?

Growing Use of Voice-Enabled Devices

Voice-enabled devices are driving voice assistant application growth. Voice-activated devices use text-to-speech to respond to spoken commands. Voice activation technology has improved assistance, customer experience, and productivity. An app with Alexa, Siri, Google Assistant, and Cortana provides more customer support. Due to the rapid growth in voice assistant technologies, more people are using them daily. Juniper Research estimates that 55% of US households have voice-enabled smart speakers. According to Adobe Digital Insights, 71% of smart speaker owners like Google Home and Amazon Echo use the voice assistant at least once a day, and 44% use it several times a day. 24% of Capgemini's Conversational Commerce Survey of more than 5,000 consumers in Germany, France, the UK, and the US preferred voice assistants to websites. Voice-enabled platforms and devices simplify listening to music, booking appointments, online shopping, banking, and paying bills.

Why Are Voice Assistant Applications Limiting the Market?

Inability To Understand Customer Intent and Respond

Voice assistants fed specific data can only help customers with programmed questions. Thus, if a customer asks a question about which the voice assistant doesn't know, it won't understand and won't be able to answer. People in Indonesia and India prefer their regional languages over English for daily communication. Speech recognition has improved Indian vernacular language comprehension. Voice assistants cannot respond appropriately to dialects, accents, and mixed languages like English and Hindi. The inability to recognize customer intent would limit the market growth. To meet end-user needs, voice assistants must be customized. Al technologies produce better results with more data. Thus, companies are integrating advanced capabilities into voice assistant application technologies to deliver personalized experiences and support multiple use cases.

What Are The Future Prospects Of Voice Assistant Application?

The rise in Online Purchase

People in developed and developing countries are buying differently. Online shopping is growing. Customers can browse products, ask about prices and features, and get personalized recommendations based on their shopping history from home. Voice assistants enhance this experience. According to Capgemini's Conversational Commerce Survey, 41% of online shoppers prefer voice assistants over websites or apps because they automate their shopping tasks. Voice assistants can search for products and services, create a shopping list, add items to a shopping cart, make a purchase, check delivery status, provide feedback, use customer support, and recommend the product or service to potential customers. Voice assistant application solutions and service providers benefit from rising online shopping and customer adoption of voice assistants.

Regional Analysis

North America Dominates the Global Market.

The global voice assistant application market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.

North America is the most significant shareholder in the global voice assistant application market and is expected to grow at a CAGR of 24.5% during the forecast period. The U.S. and Canada are included in the analysis of the voice assistant application market in North America. Because it is home to tech behemoths like Google, Amazon Web Services (AWS), IBM, Apple, and Microsoft, North America is anticipated to experience dynamic growth in the voice assistant application market during the forecast period. With extensive voice assistant application solution implementations by businesses over the past few years, North America is predicted to hold the largest share. The latest technological innovations, including mobile devices, cloud computing, and many others, have been quickly adopted by businesses in this region. As a result of ongoing innovation and the adoption of new technologies, the US market has been the most significant contributor to North America as a whole. The voice assistant application is heavily used in the BFSI, media and entertainment, healthcare, and retail sectors. It is anticipated that voice assistant application solutions and services will be integrated and made available to businesses by virtual assistant solution providers across North America.

Europe is expected to grow at a CAGR of 32.4% during the forecast period. The UK, Germany, France, Italy, Spain, and the rest of Europe are all included in the analysis of Europe's voice assistant application market. Bright contact centers and a personalized customer experience are increasingly in demand in European nations like the UK, Germany, France, Italy, and Spain. Additionally, the UK and Germany held the highest market shares with 25,1% and 22,1%, respectively. The industrial and IT sectors in the region are anticipated to adopt voice assistant-based solutions to make voice automation while developing new solutions for complex use case scenarios. Due to the quick adoption of new flanged technological approaches among retailers over brick and mortar, Europe is predicted to experience significant growth in the voice assistant application market. To make it easier for customers to browse through its selection of products, ASOS, an online fashion retailer, launched a voice shopping service on Google Assistant called Enki. The voice command "Hey Google, talk to ASOS" can access it through Google Assistant or Google Home.

Segmental Analysis

The market is segmented by component, deployment mode, enterprise size, and application.

Based on components, the global voice assistant application market is bifurcated into solutions and services.

The solutions segment is the highest contributor to the market and is expected to grow at a CAGR of 30.95% during the forecast period. Voice assistant application providers offer standalone and integrated solutions. Voice assistant application solutions can understand context and sentiment to seamlessly integrate with back-end data and third-party databases for deeper personalization. Voice assistant application solutions will be adopted as customer engagement across channels increases. Younger consumers and families with children are increasing voice-based searching. Voice shopping is driven by omnichannel environments and AI. Voice-assistant technology lets customers track orders, returns, and product questions.

Based on deployment mode, the global voice assistant application market is bifurcated into on-premise and cloud.

The cloud segment is the highest contributor to the market and is expected to grow at a CAGR of 27.58% during the forecast period. Cloud-based voice assistant applications would be adopted due to cost-effectiveness and scalability. This deployment method reduces costs and allows for more innovation and differentiation. IT teams can help businesses create more value. Cloud analytics simplifies scalability because businesses can quickly add servers. Cloud computing simplifies data organization, cleaning, and analysis for future-scale enterprises. Google Assistant and Amazon Alexa want to boil all user data in one pot. They believe cloud data should constantly improve AI and perfect it. This mindset leads to sharing user data without understanding the reasons or consequences.

Based on enterprise size, the global voice assistant application market is bifurcated into SMEs and large enterprises.

The SMEs segment is the highest contributor to the market and is expected to grow at a CAGR of 31.2% during the forecast period. SMEs boost growth and create good jobs. SMEs drive most businesses in North America, Europe, Asia-Pacific, and the ROW. Due to limited resources, SMEs must manage processes, communications, and operations to meet business needs. Voice assistant applications help organizations reach public and private markets with flexible pricing. Siri, Alexa, Google Assistant, and Cortana can schedule meetings and events by voice and notify participants when connected to your email and calendar. Voice assistants help manage small business finances too.

Based on application, the global voice assistant application market is bifurcated into mobile applications, web applications, smart devices, and others.

The mobile applications segment is the highest contributor to the market and is expected to grow at a CAGR of 28.7% during the forecast period—a native-language question-and-answer app. Smartphones became helpful electronic companions when virtual assistants were added. Google, Microsoft, Siri, Google Assistant, and Cortana are famously used voice assistants. Speech assistants in mobile banking simplify menu browsing, search, and virtual bank teller interactions. A personalized voice assistant provides the fastest branding experience. Third-party platform providers help businesses connect with customers. However, a personalized voice assistant with a wake phrase quickly connects customers to the brand and provides a consistent experience. Personalization strengthens the brand and expresses its values. The voice assistant can have a brand persona, like a company's style guide with colors, typefaces, and tones.

Impact of covid-19

As part of steps to control the transmission of the COVID-19 pandemic, governments in several nations have limited the movement of commodities and people and suspended the functioning of manufacturing facilities. It has impacted power usage throughout the world. As per the short-term forecast of the United States Energy Information Administration (EIA), electricity consumption in the United States is expected to fall by a record 4.5% by the end of 2020, as businesses have temporarily shut down due to the government lockdowns to stop the prevalence of the coronavirus. As a result, global demand for and manufacturing instrument transformers is expected to fall.

Recent Developments

• November 2022, Apple intends to replace "Hey Siri" with the simple phrase "Siri.” The company's current two-phrase voice assistant trigger, "Hey Siri," occasionally inadvertently activates the assistant on another device, such as the HomePods. The company anticipates a decline in these accidents following this change. It would also expedite the user's subsequent requests.

• November 2022, More kid-friendly updates to Google Assistant. Parental controls, an age-appropriate dictionary, and four new gender-neutral voices have all been added to the voice assistant.