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Voice Markets
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- Strategic Machines
What is the Voice Agent Market?
We closed out 2025 with a 3-part series on Voice, including a look at the business opportunities that would be attractive to most organizations. In this post, we thought it prudent to try and define the voice market, knowing there are many moving parts to what makes up this market. But a crisp definition is critical, to focus our attention on the parts that are wide-open for new players, while leveraging capabilities being delivered (perpetually it seems) by the major infrastructure providers.
The voice agent market refers to AI-driven systems that enable natural, conversational interactions primarily through voice as the user interface (UI). These systems leverage advanced technologies like speech-to-text (STT), text-to-speech (TTS), natural language processing (NLP), and large language models (LLMs) to simulate human-like dialogue. The market can be segmented into two main layers:
Infrastructure/Platform Layer: This includes foundational services and APIs that provide the building blocks for voice interactions, such as real-time voice processing, voice synthesis, and recognition. Examples include OpenAI's Realtime API for low-latency conversations, ElevenLabs for high-quality TTS, Deepgram or AssemblyAI for STT, and platforms like Cartesia for specialized voice models. This layer is indicative of overall market interest, as growth here (e.g., cost reductions and adoption) fuels upstream opportunities. However, it primarily serves as an enabler rather than the end product.
Application Layer: This is where the primary opportunity lies for building and selling voice agent applications. These are end-user solutions that "ride on top" of infrastructure, using voice as the core UI to deliver value in specific contexts. Examples include enterprise tools for customer service (e.g., AI phone agents handling inquiries or bookings), sales automation (e.g., outbound calling bots), personal companions (e.g., AI coaches or therapists), or industry-specific apps (e.g., healthcare triage or financial advising). These applications often integrate with broader workflows, replacing or augmenting human labor, and can be monetized via SaaS models, per-call pricing, or enterprise subscriptions. The focus here is on scalability, customization, and vertical specialization, where voice provides a natural, hands-free interface that's more efficient than text-based alternatives for many use cases.
The total market (including both layers) is growing rapidly due to falling costs (e.g., API prices dropping almost 90% in the last few years), lower latency (enabling real-time conversations), and multimodal capabilities (combining voice with text or vision). While platform growth reflects underlying demand, the application layer represents the larger total addressable market (TAM) for developers, as it captures value from high-cost sectors like customer service (where voice agents can reduce operational expenses by 30% through automation). This aligns with your interest in apps built on others' infrastructure, similar to how mobile apps exploded on iOS/Android platforms.
Current Market Size and Projections
The voice agent market is in an explosive growth phase, driven by enterprise adoption for cost savings and consumer demand for seamless interactions. Estimates vary by scope (e.g., pure voice agents vs. broader conversational AI), but projections consistently show CAGRs of 20-35%, with the application layer outpacing infrastructure as startups verticalize and scale.
Here's a summary of key market size data from reputable sources, focusing on segments most relevant to voice applications:
| Market Segment | Current Size (2024/2025) | Projected Size | CAGR | Timeframe | Notes/Source |
|---|---|---|---|---|---|
| Voice AI Agents (Primarily Applications) | $2.4B (2024) | $47.5B | 34.8% | By 2034 | Focuses on agentic apps for industries like BFSI, healthcare, and retail; North America holds 40% share. |
| Voicebot Market (Application-Focused) | $8.7B (2025) | $54B | 22% | By 2034 | Emphasizes conversational agents for business transformation; 25% of app interactions voice-based by 2026. |
| Voice Assistant Applications | $8.1B (2025) | $153.5B | ~30% (implied) | By 2035 | Broad apps including smart devices and enterprise tools; high growth from IoT integration. |
| AI Agents (Broader, Includes Voice) | $3.7B (2023) | $103.6B | ~45% (implied) | By 2032 | Enterprise agents for customer service; 85% of leaders piloting GenAI solutions in 2025. |
| Conversational AI (Includes Voice Platforms & Apps) | $12.24B (2024) | $61.69B | 22.6% | By 2032 | Healthcare segment growing fastest; saves $80B in contact center labor by 2026. |
| Agentic AI in Enterprise Software (Revenue Share) | 2% of total (~$30B implied for 2025) | 30% of total (>$450B) | N/A | By 2035 | Best-case scenario; 40% of enterprise apps feature task-specific agents by 2026 (up from 5% in 2025). |
These figures indicate a current market (2025) of 10-20B USD for voice-specific applications, with projections reaching $50-150B+ by 2030-2035. The high CAGRs reflect maturation from hype to deployment, with voice agents outperforming humans in areas like patience, multilingual support, and 24/7 availability.
Insights from Key Sources (a16z and Gartner)
a16z Perspective: The voice AI market surged in H2 2024, with voice-focused startups making up 22% of the latest Y Combinator class (69% B2B-oriented, e.g., 17% in fintech, 12% in customer support). Investment is accelerating across layers, but the biggest opportunity is in applications: startups use voice as a "wedge" to enter markets, starting with simple tasks (e.g., 10% of calls) and expanding to full workflows. B2B examples include debt collection, insurance claims, and staffing (e.g., AI interviewers advancing 90% of candidates vs. 50% human rate). B2C focuses on companions democratizing services like coaching. Since 2020, 90 voice agent companies have emerged, with acceleration in recent cohorts (e.g., 10 in W25). Costs dropping (e.g., OpenAI API reductions) make apps more viable, shifting from infra commoditization to app-layer innovation.
Gartner Perspective: Agentic AI (autonomous agents, often voice-enabled) will resolve 80% of common customer service issues without humans by 2029, cutting costs by 30%. This signals massive opportunity for voice apps in service-heavy sectors. By 2026, 40% of enterprise apps will include task-specific agents (up from 5% in 2025), with agentic AI potentially driving 30% of software revenue ($450B+) by 2035. While not voice-exclusive, these trends underscore voice's role in human-agent collaboration and automation.
Opportunity for Voice Agent Applications
The platform layer's growth (e.g., OpenAI, ElevenLabs) is a strong proxy for demand, but the real TAM expansion comes from applications: they target 13T USD in U.S. labor spend (vs. 400B USD in software), automating roles in call centers ($80B savings by 2026) and beyond. Key opportunities include:
- Enterprise B2B: Start with high-volume, repetitive tasks (e.g., support, sales) in verticals like healthcare (11% of YC voice startups), finance, and retail. ROI is quick—e.g., 90-day payback via 24/7 scaling.
- Consumer B2C: Voice companions for education, wellness, or entertainment, leveraging always-on access.
- Trends: Multimodal integration (voice + text/vision), vertical specialization, and "agentwashing" avoidance through proven ROI.
Overall, the market's trajectory suggests a multibillion-dollar opportunity for app builders, with infrastructure enabling rapid iteration and deployment. If you're planning to enter, focus on niches with high human labor costs and clear voice advantages.
At Strategic Machines, we are actively deploying these agents for reservation desks, sales concierge, and customer support. We invite you to try test agents we deployed. (All you need to do is request a 'one time password' and then select the 'people icon' at the bottom of iPhone to activate an agent. With the Cypress Agents, for example, you can plan a menu with a private chef, find a villa, inquire about amenities, and even reserve a room.)
We are combining the best design, the fastest tech, and the strongest business logic to build the future of conversational commerce.
Give us a call. We'd enjoy chatting about what the markets may hold for you!
SOURCES AND REFERENCES
Grandview Market Report on Call Center AI Market