According to the new Strategy Analytics Insight, “Nuance – Maintaining Leadership by Focusing on Complete Auto Solutions and Avoiding Too Much Music,” the automotive voice technology market is forecast to reach 78 Million units by 2013. Driven by the need for enhanced safety and convenience, opportunities for automotive voice control will expand to encompass digital music files and a wider set of new automotive Human-Machine Interface (HMI) applications, such as those that Nuance introduced at the Mercedes-Benz World conference in the UK.
There will be strong growth in the demand for voice technology from the auto industry as a result of increasing legal, car maker and consumer requirements to reduce driver distraction. Automotive voice control opportunities are primarily for handling phone calls via hands-free systems and supporting the surge in demand for using portable music devices. The technical issues and investment required to enable natural speech commands, develop strong voice recognition in a noisy environment, and to voice-enable music content will continue to present major challenges.
According to the author of this Insight, Kevin Mak, Industry Analyst of the Strategy Analytics Automotive Practice, “We expect significant opportunities and strong growth in automotive voice control applications. Hands-free communications systems, for example, are expected to penetrate 85 percent of new cars produced in Europe and North America by 2013. To achieve this, suppliers will have to work closely with their clients to develop more consumer friendly voice systems, adding voice systems to other applications such as HMI, and making these systems more affordable, especially for economy and mid-range car segments.”
Mak adds, “While there are greater volumes to be had in voice enabling portable music devices and content in the vehicle, suppliers must be careful not to remain too focused on those applications that are dictated by fast moving consumer market trends. Despite the lower volumes, far higher margins can be found in widening the HMI applications that can be voice enabled particularly for SMS messaging, or operating ventilation systems and electric windows.”
About Strategy Analytics
Strategy Analytics, Inc focuses on market opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless and Intelligent Systems Implementation Strategies.