How Essential is Voice Recognition to Cars?

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Ru Chen
Updated on Apr 27, 2022 · 3 min read
Say hello to Siri, Google, and Alexa. These are just a few of the virtual assistance voices that help people in their day-to-day life.
Voice recognition used to only be a luxury vehicle’s
high-tech feature
, but it’s finding its way into mainstream vehicles now. 
Tech giants and automakers are scrambling to situate themselves at the top of the connected cars market. 
voice recognition technology
could become essential to all future vehicles.
Many new cars are utilizing voice recognition technology.

The opportunity of voice recognition 

The big brands out there are bound to flock towards lucrative opportunities, and this is one of them.
struggles with regulations and design
, autonomous vehicles (AVs) are already predicted to be the future of the car world. 
According to
, the market is expected to have significant growth potential and opportunities for investors everywhere. 
Why is this related to voice recognition? 
Voice recognition requires in-car connected services. The share of cars featuring those services has risen greatly since 2018. It’s predicted to reach 60% by 2024. 
These profitable opportunities combined mean that voice recognition will become a strong, common feature in cars.
So far, it seems like this is a growing space. A lot of consumers, according to
J.D. Power surveys
, complain about voice recognition software that is currently available. 
According to Greg Basich, associate director of Strategy Analytics’ global automotive practice, there won’t be just one dominant voice recognition system used by automakers. 
Startups will have to contend with tech behemoths like Google and Amazon, but they will exist. There are always niches to be filled and creative innovations to be had. 
In fact, some startups have a drastically larger share of the market than you might expect.

Small companies in a big market

TechCrunch estimates that Cerence, a company spun off from Nuance Communications, actually controls 87% of the embedded virtual personal assistant market.
Cerence Drive, the company’s new cloud-based platform for voice recognition, allows for multilingual language support and complex query comprehension. 
You and your passenger could be speaking in different languages, asking for a Starbucks and to be linked to a phone call, and Cerence Drive would facilitate that. 
That being said, Cerence’s success will certainly not be ubiquitous. In the next few years, niches will be discovered and filled. 
The earlier a company decides to dedicate itself to voice recognition/some sort of virtual assistant technology, the better it will probably do.
Creating good virtual assistants requires a lot of investment and time. In the end, it will be interesting to see whether any virtual car assistant will overtake Alexa and Google.

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