REPORTVOICE ASSISTANTCONSUMER ADOPTIONJANUARY 2019GIVING VOICE TO A REVOLUTIONIN-CARSPONSORED BY:1. INTRODUCTION / 32. CONSUMERS, VOICE & CARS / 63. HOW VOICE IS USED IN CAR TODAY / 124. CAR OWNER & BUYER SENTIMENT / 155. AUTOMAKERS, PLATFORMS & APPS / 206. ADDITIONAL RESOURCES / 33Table of Contents About VoicebotVoicebot produces the leading online publication, newsletter and podcast focused on the voice and AI industries. Thousands of entrepreneurs, developers, investors, analysts and other industry leaders look to Voicebot each week for the latest news, data, analysis and insights defining the trajectory of the next great computing platform. At Voicebot, we give voice to a revolution.METHODOLOGYThe survey was conducted online during the first week of September 2018 and was completed by 1,040 U.S. adults age 18 or older that were representative of U.S. Census demographic averages. Because we reached only online adults which represent 89% of the population according to Pew Research Center, some totals are adjusted downward to provide device and usage numbers relevant to the entire adult population. Other findings are relative to device ownership and do not require adjustment. About Drivetime.fmDrivetime is the worlds first (and so far only) company developing games and other interactive entertainment specifically for the driver of the car. Americans spend as much time commuting to and from work in their cars as they do playing mobile games why not play games while you drive? Drivetime.fmAbout Voice of the Car SummitThe Voice of the Car Summit is a one-day event, taking place Tuesday, April 9, in Mountain View, Californias Computer History Museum, which will examine the rapidly-growing intersection of voice-first technology and the modern connected car. Keynoted by Katie McMahon of SoundHound Inc. whose technology is being used in cars ranging from Hyundai to Mercedes-Benz, The Voice of the Car Summit will feature a wide variety of market-leading speakers and companies sharing best practices on deploying voice in vehicles.VoiceofthecarSmart speakers had another big holiday season as the top selling consumer electronics items in many channels. However, few people realize that voice use in the car is far more prevalent. Nearly twice as many U.S. adults have used voice assistants in the car (114 million) as through a smart speaker (57.8 million). The car also claims far more monthly active voice users at 77 million compared to 45.7 million. The monthly active voice assistant usage rate is actually higher for car owners than for smartphone users. Despite the numbers, the car is often overlooked when it comes to voice. These findings are unsurprising if you take a moment to consider three facts. Speech recognition arrived in cars in 2004 so it has had a long time to build up a user base. There are many more car owners than smart speaker owners A drivers hands and eyes are occupied with a task so there is a greater premium on voices hands free interaction capabilities.However, voice usage in-car to date has focused primarily on three tasks: controlling in-car features, accessing navigation information, and initiating phone calls. Voice assistants can perform a far greater number of functions today for communicating, answering questions, and accessing entertainment. The segment is ripe for the introduction of new applications that can improve consumers in-car experience. Voice Assistant Use In-Car is Higher Than Smart Speakers© VOICEBOT.AI - All Rights Reserved 2018252 MILLIONU.S. Adult Population77 MILLIONIn-Car45.7 MILLIONOn smart speakersMonthly Active Voice Assistant U.S. Adult UsersPAGE 3PAGE 4© VOICEBOT.AI - All Rights Reserved 2018IN-CAR VOICE ASSISTANT CONSUMER ADOPTION REPORTHalf of Car Owners Have Used a Voice Assistant While DrivingNot only is in-car voice assistant usage high, there is also room for growth. Half of car owners claim to have used a voice assistant in the car and 67.5% of those use them monthly. Both factors show a significant opportunity to grow the user base and frequency of use. Some of this growth will occur naturally as consumers become more accustomed to using voice on smart speakers and smartphones and those habits transition to the car. However, the bigger impact could be voice apps that are tailored to the in-car context. One example is quick service restaurants (QSR) providing tools for voice ordering while on-the-go. This is a natural extension of mobile app ordering but allows drivers to keep their eyes on the road and hands on the wheel. This could be implemented with voice capabilities inside a mobile app or through a dashboard-accessible voice assistant. Other app ideas are locating items that a driver needs and navigating them automatically to a store with the product in stock or a service opening. And, there is entertainment like the interactive voice quiz offered by report co-sponsor Drivetime.fm or pulling up a Spotify playlist with a simple spoken request. Few app publishers have thought much about tailoring their user experiences for the driving context. This is a clear opportunity as consumers are using voice in the car despite a lack of apps targeting the driving experience. Voice is moving across surfaces quickly and the car will be one of the top three access points for several years to come. The report is divided into two sections: consumers and automakers/platforms/app publishers. The first segment brings the demand and the other supplies new capabilities. In automotive, it definitely takes two to tango. Own Device and Have Used Voice Assistant93.3%50.1%11.4%7.4%7.3%27.5%65.8%CONSUMERS, VOICE & CARSThe U.S. Census Bureau estimates that average commute time in the U.S. is just about 27 minutes each way. All car travel exceeds 80 billion hours annually. Americans spend a lot of time in the car. At the same time, Americans have also become accustomed to constant connectivity. Since your hands and eyes are fully occupied while driving (or should be), connectivity that we take for granted becomes inconveniently inaccessible. In-car voice assistants make connectivity accessible in the car. You can stay in touch by voice dialing and voice texting. You can request directions and ask questions by speaking. You can open apps and select specific entertainment options while maintaining focus on the road. It is no surprise given the driving numbers and consumer expectations that in-car voice assistant use is second only to smartphones. The number of U.S. adults that have tried a voice assistants in the car (114 million) is double those with access to smart speakers (57.8 million). Monthly users are also over 60% higher in the car (77 million) than on smart speakers (47 million). Smart speaker adoption may be growing quickly, but voice is already a habit for a far greater number of drivers today. Anyone publishing a voice assistant app should have have a plan for the car or they are missing a lot of potential users. Cars Are One of the Big Three Voice Access PointsIn-Car Voice Assistant Total Audience ReachTotal US AdultPopulation252 MILLIONTotal In-Car Voice Assistant Users114.1 MILLIONMonthly Active In-CarVoice Assistant Users77 MILLIONIN-CAR VOICE ASSISTANT CONSUMER ADOPTION REPORTPAGE 6© VOICEBOT.AI - All Rights Reserved 2018Source: In-Car Voice Assistant Consumer Adoption Report 2019PAGE 7© VOICEBOT.AI - All Rights Reserved 2018Total Monthly Voice Assistant User Conversion Rate by Auto Brand90%83%81%80% 80%78% 78%75%74%89%86%83%DODGE71%56%50%70% 70%68% 68%64%INFINITIVOLVOGMC BMWCHRYSLERLEXUS FORDNISSAN MERCEDESJEEPTOYOTAACURAKIA CHEVR0LETVOLKSWAGENHONDANONE OF THESEHYUNDAITESLABest Conversion Rates of Voice Assistant Trial to Monthly Use by Auto Brand In the introduction, we pointed out that 114 million U.S. auto owners had tried using a voice assistant in the car and 77 million reported being monthly users. Dodge, Infiniti, and Volvo car owners were the most likely to convert initial use of a voice assistant while driving into a monthly habit. Owners of all three brands did so at a rate of more than 85%. The lowest conversion to regular voice usage were Tesla and Hyun-dai. Every other major brand was able to covert at least two-thirds of drivers that tried the voice assistant into regular users. It may be that Teslas manual controls are so easy to use and the presence of auto-pilot which takes over some of the driving responsibility makes voice a less potent utility. It may also be related to Teslas refusal to support Apple CarPlay and Android Auto as options. Over half of the brands show a 75% or higher conversion rate to monthly use after car owners try a voice assistant while driving. Its not clear that specific auto brands have an advantage in voice assis-tants today, but the high conversion rates speak directly to the utility of voice in the car.Source: In-Car Voice Assistant Consumer Adoption Report 2019IN-CAR VOICE ASSISTANT CONSUMER ADOPTION REPORT© VOICEBOT.AI - All Rights Reserved 2018In-Car Voice Assistant Preferences and UseThere are many voice assistant options available to most drivers. Consumers say that they are equally likely to have used voice through a smartphone connected to the car via Bluetooth and the voice assistant native to the car. Both were used by about one-third of car owners that have used a voice assistant. Apple CarPlay with Siri was third with about one in five in-car voice assistant users having used it. However, many of the Bluetooth users also likely used Siri adding to Apples total. Android Auto with Google Assistant was a distant fourth with only about 1 in 10 consumers having tried it. Keep in mind that this is of consumers that have used a voice assistant in the car. When including consumers that have not tried an in-car voice assistant, only about 1 in 20 consumers have tried an Android Auto voice interaction despite availability in over 400 auto brands. The auto brands with the most in-car voice assistant users largely reflects their market share in the U.S. However, Toyota and Ford slightly over-index their nominal market share in terms of in-car voice users while GM and Chrysler slightly under-index.© VOICEBOT.AI - All Rights Reserved 2018© VOICEBOT.AI - All Rights Reserved 2018PAGE 8Voice Assistant Used In Car by U.S. AdultsFrom a smartphonethrough Bluetooth32.1%The one thatcame withthe car32.0%Apple CarPlay20.7%Android Auto9.5%Other4.1%Amazon Alexafrom dashboard1.5%© VOICEBOT.AI - All Rights Reserved 2018IN-CAR VOICE ASSISTANT CONSUMER ADOPTION REPORTPAGE 9Where Android Auto did overperform was with 18-29 year-olds. This is the same age cohort that also over-indexed for Apple CarPlay use. These younger drivers significantly under-indexed for use of the fac-tory installed voice assistant offered by the automaker. By contrast, drivers over 60 over-indexed for use of the installed voice assistant and severely under-indexed for use of CarPlay or Android Auto. This group also under-indexed for voice assistant use overall which was balanced out by a higher likelihood of 18-29 and 30-44 year-olds using voice assistants in the car. The 45-60 age group showed the least variability.One in four car owners that have tried a voice assistant while driv-ing say they have used more than one connectivity option. The auto brand owners most likely to have tried multiple assistant options were Acura, Mercedes, and Tesla. Relative Use of Voice Assistants In-Car by Age GroupINSTALLED5.4%-3.1%-2.2%-0.1%7.7%OVERALL-5.7%-0.2%3.0%2.9%OTHER-2.2%-0.2%4.3%-1.9%BLUETOOTH0.5%-0.2%-1.8%1.5%ANDROID AUTO-8.5%-1.6%0.4%6.4%-8.5%APPLE CARPLAY-1.7%2.5%= 18 - 29= > 60= 45 - 60= 30 - 441 in 4 Have Tried More Than One In-Car Voice AssistantIn-Car Voice Assistant DemographicsIn-car voice assistant users skew toward upper income drivers. Less than half of car owners earning less than $100,000 annually have used a voice assistant in the car while at least 55% of those over that income have done so. The use is most prevalent in the $150,000 - $200,000 income range where 69% report having used a voice assistant with the least likely users falling in the under $50,000 annual earnings group. The largest concentration of in-car voice assistant users by age is the 30-44 group. The over 60 and 45-60 groups are roughly equivalent at 2325% with the smallest group being 18-29. This is influenced by the age group only accounting for a 12-year versus a 15 or more year cohort size. In reality, we have over-indexing in the 30-44 age group and in-car voice assistant users roughly equivalent in the other cohorts when also adjusting for population size. Voice is a feature that interests all generations of drivers. Use Voice Assistant In-car by Age Group Use Voice Assistant In-car by Income GroupAges18 - 2918.6%24.9%33.5%23.0%Ages30 - 44Ages45 - 60Ages> 60$200K69.2%48.1%55.2%57.1%IN-CAR VOICE ASSISTANT CONSUMER ADOPTION REPORT© VOICEBOT.AI - All Rights Reserved 2018PAGE 10