Market Overview
The
Global Intelligent Virtual Assistant Market is expected to reach a value of
USD 3.3 billion in 2023, and it is further anticipated to reach a market value of
USD 24.7 billion by 2032 at a
CAGR of 25.2%. The market has seen significant growth over the past few years and is predicted to grow significantly during the forecasted period as well.
An Intelligent Virtual Assistant also known as IVA is an advanced software application that incorporates
artificial intelligence (AI) &
natural language processing (NLP) technologies to interact with users & provide them with information, & assistance, and perform tasks in a conversational manner. IVAs are designed to replicate human-like interactions, making them capable of understanding & responding to spoken or written language.
Market Dynamic
Smartphones have become an essential part of consumers' lives, serving as a hub for communication & more. With virtual assistant apps onboard, they simplify numerous tasks. Intelligent Virtual Assistants (IVAs) connect users to services such as banking & healthcare, allowing mobile transactions, appointment scheduling, & quick problem resolution, which are supported by the rise in the smartphone market.
The automotive industry is anticipated to notice high growth, driven by IVAs in in-car entertainment systems, allowing voice-controlled internet browsing, navigation, & calls. This growth is driven by the quick growth in the in-car entertainment systems. Overall, the global intelligent virtual assistant market is on the rise, driven by increased demand in the automotive sector, speech recognition tech, & global internet access expansion.
However, the intelligent virtual assistant market could face challenges in the upcoming period due to limited awareness, incorrect responses, compatibility problems, along concerns regarding security & the protection of personal data.
Research Scope and Analysis
By Product
In 2023, the
chatbot segment established its dominance within the industry, by having a significant share of the total revenue. Further, the smart speaker segment is forecasted to experience rapid growth throughout the projected period. Smart speakers find main use among residential consumers for their day-to-day tasks. Moreover, a major growth in demand for integrating smart speakers into smart office setups & automotive applications has been seen. A prime example is Amazon's Alexa, which can execute functions such as controlling lighting, smart appliances like
HVAC systems & music players, streaming music, along setting alarms & reminders.
Further, the growth in the desire for convenience in day-to-day life has resulted in a large adoption of smart speakers, which is anticipated to be a driving force behind the market's growth in the coming years. Meanwhile, chatbots have noticed a wide adoption across sectors like banking, insurance, retail, & education. They serve as efficient tools for retrieving essential information, giving users an easy operational experience.
By Technology
The text-to-speech segment asserted its dominance within the industry landscape in 2023, capturing the majority share of the total revenue. In addition, the automatic speech recognition technology segment is anticipated to see the highest growth rate throughout the forecasted period, driven by the large integration of smart speakers across a variety of sectors. These smart speakers possess the ability to understand spoken language & respond in predefined manners. The growth in the adoption of mobile computing technology on a global scale is anticipated to increase the demand for automatic speech recognition technology, enhancing consumer interactions with smartphones & applications.
Further, the text-to-speech recognition segment is anticipated for steady growth, fueled by its diverse applications that present benefits to educational institutions, individual consumers, personal users, & businesses alike. Moreover, it empowers owners to look into the diverse preferences & requirements of users, adapting to their distinct interaction styles with content.
By Application
In 2023, the consumer electronics sector holds a dominant position within the industry, accounting for the largest share of the total revenue in the overall global IVA market. Also, the automotive application is emerging as one of the industry's fastest-growing segments. The integration of virtual assistants into vehicle infotainment systems provides significance to offer personalized content, improve comfort, & provide convenience. Daimler, BMW, & Hyundai are some of the companies that have effectively integrated voice-enabled infotainment systems.
Further, IVAs are employed to give quick responses & assistance to customer inquiries, whether it's concerning account information, transaction history, or general inquiries. They can hold routine tasks such as balance inquiries, fund transfers, bill payments, & more, freeing up human agents for more complex issues.
Additionally, hospitals as a part of the healthcare sector employ Interactive Voice Response (IVR) systems to carry out tasks like appointment scheduling & lab result requests, which not only improves patient engagement but also reduces healthcare inefficiencies.
The Intelligent Virtual Assistant Market Report is segmented on the basis of the following:
By Product
By Technology
- Automatic Speech Recognition
- Text-to-speech
- Text-based
By Application
- BFSI
- Consumer Electronics
- Automotive
- Healthcare
- Education
- Retail
- IT & Telecom
- Travel & Hospitality
- Others
Regional Analysis
North America dominates the IVA market, commanding the biggest share of revenue at 30.2% in 2023, as the switching trends toward Bring Your Own Device (BYOD) have precipitated the growth of remote work practices. Remote work provides employees flexibility & pairs well with the ability of Virtual Assistants (VAs) to ease tasks, which, in turn, grows the total work efficiency & productivity. In addition, the healthcare sector within North America recognizes the great potential of IVAs, directing efforts toward enhancing the effectiveness of healthcare systems.
Moreover, the Asia-Pacific region is anticipated to have a high growth rate throughout the forecast period, driven by China's expansion of retail & consumer electronics industries. The development of AI-powered IVAs for professional interactions has enhanced their efficiency in service provision & business functions such as appointment scheduling & consultations across different sectors. All these factors and trends will be driving the future of the market in the region.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The intelligent virtual assistant market experiences moderate competitiveness, featuring various key players. Some of these established companies currently hold a significant share of the market. However, the introduction of integrated speech & gesture recognition technologies has created a way for new entrants to gain traction & extend their market reach, especially in emerging economies. The market has seen significant developments, like the integration of these advanced technologies, which are reshaping the market's competitive nature.
In September, eGain Corporation, a company specializing in customer interaction automation, announced a new pre-built connector designed for seamless integration with IBM Watson Assistant, a partnership-driven development. This connector allows the eGain innovative Bring Your Own Bot (BYOBTM) framework, easing the integration process of Watson Assistant into the eGain platform without the requirement for coding expertise, making it user-friendly for business professionals.
Some of the prominent players in the Global Intelligent Virtual Assistant Market are:
- [24]7 Customer Inc.
- Amazon.com, Inc.
- eGain Corp.
- Apple Inc.
- Baidu, Inc.
- Clara Labs
- CSS Corporation
- Google Inc.
- IBM Corporation
- Microsoft Corporation
- Intel
- Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global Intelligent Virtual Assistant Market:
The global Intelligent Virtual Assistant (IVA) market noticed a mixed impact from the COVID-19 pandemic & the following economic recession. Many businesses, struggled with financial uncertainties, and temporary limitations in their investments in IVA technology to preserve resources. However, the pandemic prompted the shift towards remote work & online customer service, an increase in the demand for IVAs to streamline operations & enhance customer interactions.
Further, industries like healthcare & e-commerce saw a growth in IVA adoption to cope with growing demand. As economies slowly recovered, businesses revised IVA investments for long-term efficiency gains & cost savings. As, the IVA market was guided through a complex landscape during the pandemic and recession, with fluctuations influenced by specific industry needs & economic conditions.
| Report Characteristics |
| Market Size (2023) |
USD 3.3 Bn |
| Forecast Value (2032) |
USD 24.7 Bn |
| CAGR (2023-2032) |
25.2% |
| Historical Data |
2017 - 2022 |
| Forecast Data |
2023 - 2032 |
| Base Year |
2022 |
| Estimate Year |
2023 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Product (Chatbot and Smart Speaker), By
Technology (Automatic Speech Recognition, Text to
Speech, and Text-based), By Application (BFSI,
Consumer Electronics, Automotive, Healthcare,
Education, Retail, IT & Telecom, Travel & Hospitality,
and Others) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
[27]7 Customer Inc., Amazon.com, Inc., eGain Corp,
Apple Inc. Baidu, Inc. Clara Labs, CSS Corporation,
Google Inc., IBM Corporation, Microsoft Corporation,
Intel, and Other Key Players. |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Intelligent Virtual Assistant Market size is estimated to have a value of USD 3.3 billion in 2023 and is expected to reach USD 24.7 billion by the end of 2032.
North America dominates the Global Intelligent Virtual Assistant Market with a share of 30.2% in 2023.
Some of the key players in the Global Intelligent Virtual Assistant Market are Amazon, IBM Corp, Intel, and many others.
The market is growing at a CAGR of 25.2 percent over the forecasted period.