Voice Assistant Application Market Size, Global Industry Forecast
The global voice assistant application market is anticipated to develop at a CAGR of 32.4% from 2021 to 2026, from an estimated $2.8 billion in sales in 2021 to $11.2 billion in 2026. Advances in voice-based AI technologies, expanding acceptance of voice-enabled devices, a greater emphasis on customer engagement, and the advent of low-code platforms for voice-assistant applications are some of the major reasons propelling the voice assistant application market.
Voice Assistant Application Market Growth Dynamics
Driver: Rising adoption of voice-enabled devices
Due to the voice assistant industry’s explosive expansion, more people are using voice assistants in their daily lives, and this trend is expected to continue. By 2022, more than half (55%) of US households are predicted to have voice-enabled smart speakers, according to a Juniper Research analysis from 2017. According to the Adobe Digital Insights 2018 poll, 44% of consumers who own smart speakers like the Google Home and Amazon Echo engage with the voice assistant more than once each day. 71% of smart speaker owners do the same. According to Capgemini’s 2017 Conversational Commerce Survey, which included more than 5,000 consumers from Germany, France, the UK, and the US, 24% of those polled said they prefer using voice assistants to interact with brands over websites. Customers find voice-enabled platforms and devices useful for a variety of tasks, including online shopping, banking, scheduling appointments, and paying bills.
Restraint: Inability to recognize customer intent and respond effectively
Only when clients ask queries that are preprogrammed for the answers they can provide, voice assistants supplied with precise data can help. As a result, if a consumer asks a question about which the voice assistant is unaware, it will be unable to comprehend what they are asking and will fail to provide an answer. People prefer their regional languages above English for daily communications in nations like Indonesia and India where there are numerous regional languages. The knowledge of Indian regional languages has improved because to developments in speech recognition in IndiaVoice assistants, on the other hand, are unable to respond appropriately because of the wide variety of dialects, accents, and speech that combines more than one language, such as English and Hindi. Market expansion would be constrained by an inability to discern client intent. To create a voice assistant that can satisfy the end-user requirements, a lot of customization is required. When fed with the most data possible, artificial intelligence technologies produce and show better results. As a result, a number of businesses are attempting to improve the voice assistant application technologies currently in use by adding cutting-edge features that will enable a variety of use cases and help deliver personalised experiences.
Opportunity: Increase in online purchasing
Consumer habits in both developed and developing nations are evolving. Online shopping is becoming more popular. Customers can shop, inquire about prices and features of products from the convenience of their homes, and even receive recommendations based on their past purchases. Voice assistants have the potential to make this process even more participatory and effortless. A voice assistant, rather than a website or app, is preferred by 41% of consumers while buying online, according to Capgemini’s Conversational Commerce Survey performed in 2017. This is because it makes their typical purchasing processes more automated. Voice assistants can be effectively used at a number of customer touchpoints, such as when a customer is looking for goods and services, making a shopping list, adding items to a cart, checking the status of an order’s delivery, making a purchase, giving feedback on goods and services, using customer support, and recommending goods and services to other potential buyers. Voice assistant application solutions and service providers have an opportunity due to the rise in online commerce and the faster acceptance and use of voice assistants by consumers.
Challenge: Lack of awareness about the effect of implementing voice assistant technologies in various application area
Voice assistant application solutions are being adopted more widely across industries that support a range of productive engagements, such as content consumption, customer service, and other. Consumers, however, are not well-informed about the advantages of virtual assistants and digital personal assistants. For instance, India and Brazil are among the countries with the highest smartphone consumption, according to Statista, as of May 2021. However, these nations are less aware of the advantages of voice-based technologies than developed nations like Europe and North America. Voice assistant solutions may not be widely adopted in poor nations like Latin America and Africa due to issues with effective utilisation and a lack of knowledge about the advantages offered by AI-powered voice assistant programmes. Large organisations are leading the way in implementing voice assistant application solutions; SMEs, on the other hand, have only adopted a small number of these due to the maintenance costs and the scarcity of experienced personnel. But as SMEs become more aware of voice assistant application solutions and services, the adoption of voice assistant solutions is anticipated to increase in the years to come.
Solutions segment to lead the voice assistant application market in 2021
The two types of voice assistant application solutions that voice assistant application solution providers offer are standalone and integrated. In order to enable deeper personalisation, voice assistant application solutions may easily interact with third-party databases and back-end data since they are able to comprehend the context and sentiments of the discussion. Voice assistant application solutions will become more popular on the market as a result of the expanding requirement for consumer involvement across numerous channels.
Cloud segment to lead the voice assistant application market in 2021
According to the expected deployment mode, the cloud segment will dominate the market from 2021 to 2026. Cloud-based voice assistant application solutions will become more popular as a result of advantages like cost effectiveness and scalability.
SMEs segment to grow at a higher CAGR during the forecast period
According to end user, the SMEs category is anticipated to expand more quickly during the forecast period. SMEs are essential in boosting the economy’s overall development potential and creating high-quality jobs. The majority of enterprises in all regions, including North America, Europe, Asia-Pacific, and the RoW, are primarily supported by SMEs. SMEs must effectively manage their processes, communications, and operations due to the limited resources available to them. This will allow them to effectively satisfy business demands. Applications for voice assistants have variable pricing, enabling businesses to serve both the public and private sectors.
Smart retail and eCommerce application area to lead the voice assistant application market in 2021
According to projections, the smart retail and eCommerce application area will dominate the industry in 2021. The market for smart retail and eCommerce is anticipated to develop as a result of the use of voice assistant applications in brick-and-mortar stores and online shopping platforms.
Voice Assistant Application Market – Key Players
The voice assistant application market is dominated by major solution and service providers, including [24]7.ai (US), Aivo (Argentina), AWS (US), Apple (US), Avaamo (US), Avaya (US), Baidu (China), Cisco (US), Clinc (US), Creative Virtual (UK), Google (US), Inbenta (US), IBM (US), Haptik (India), Kata.ai (Indonesia), Microsoft (US),