Indian Voice AI on Course to Becoming a Billion-Dollar Industry by 2030, Predicts NASSCOM
In India, voice AI is rapidly emerging as a key component of digital infrastructure, particularly in the banking, finance, and insurance (BFSI) sector. This transformation is driven by the country's vast linguistic diversity and rising demand for high-quality, real-time voice translation.
The BFSI sector has seen the most traction in voice AI applications. Communication Platform as a Service (CPaaS) solutions are increasingly integrated with voice AI, enhancing customer engagement, real-time transaction alerts, fraud detection, and automated AI chatbots. The CPaaS market in India is projected to reach USD 3.43 billion by 2031, growing at a CAGR of 22.2%.
One example of this transformation is banking services like those from Bank of Maharashtra, which utilise AI-powered WhatsApp-based interactions. This demonstrates how voice AI and CPaaS are transforming secure customer communication.
The market for voice AI in India is projected to grow significantly, with the sector estimated to reach USD 1.82 billion by 2030. This growth is underpinned by the need for engaging, human-like, multilingual voice interactions that cater beyond English-speaking urban centers, addressing over 400 spoken languages.
Arjun Malhotra, General Partner at Good Capital, believes that in the next 24 months, voice AI will become deeply embedded in workflows rather than remaining a standalone tool. Companies that demonstrate workflow integration will command premium valuations. Malhotra also predicts the rise of foundational voice AI infrastructure startups that provide the "picks and shovels" enabling the entire voice AI ecosystem in India.
Technical differentiation is crucial for voice AI startups, according to Malhotra. Companies that focus on the core mechanics of voice AI rather than just the application layer have stronger moats. Ganesh Gopalan, Co-founder & CEO of Gnani AI, explains that the rush towards voice tech startups in India is due to the country's linguistic diversity and rising demand for high-quality, real-time voice translation.
Voice-led AI startups are disrupting the trend of emerging tech catering only to metro markets and English-speaking audiences. They are tapping deeper into Tier 2/3 markets, targeting vernacular language speakers. This alignment with India's socio-economic landscape makes voice AI a pivotal enabler of digital inclusion and transformation.
In summary:
- The BFSI sector is a major adopter of voice AI, with the CPaaS market projected to reach USD 3.43 billion by 2031.
- Voice AI is expected to become foundational digital infrastructure in India, providing accessible, multilingual, and real-time digital interfaces.
- The overall AI market in India is expected to triple in value to around USD 17 billion by 2027, with voice AI as a core component of wider AI-driven digital transformation.
- ElevenLabs, a global Voice AI firm, recorded a 50% growth in usage in India between November and January, making it the fastest-growing market globally for the company.
- Voice AI is being used for customer support, lead qualification, EMI collections, policy renewals, and reminders in India.
- Malhotra suggests that the broader voice AI ecosystem in India is still evolving, with consumer applications mainly in the discovery phase.
- Malhotra emphasizes the importance of domain expertise in voice AI, as it requires a combination of deep technical expertise and understanding of specific market needs.
- The BFSI sector, driven by India's linguistic diversity and demand for real-time voice translation, has seen the most traction in voice AI applications, with the CPaaS market projected to reach USD 3.43 billion by 2031.
- Voice AI is expected to become the foundation for digital infrastructure in India, providing accessible, multilingual, and real-time digital interfaces across various sectors, beyond English-speaking urban centers.
- Arjun Malhotra predicts that in the next 24 months, voice AI will become deeply embedded in workflows, with companies demonstrating workflow integration likely to command premium valuations.
- ElevenLabs, a global Voice AI firm, observed a 50% growth in usage in India between November and January, making it the fastest-growing market globally for the company, indicating the rising demand for voice AI solutions across customer support, lead qualification, EMI collections, policy renewals, and reminders in India.
