Intelligent Virtual Assistant Market Size:
Intelligent Virtual Assistant Market size is estimated to reach over USD 98,436.99 Million by 2031 from a value of USD 14,141.18 Million in 2023 and is projected to grow by USD 17,770.65 Million in 2024, growing at a CAGR of 27.4% from 2023 to 2031.
Intelligent Virtual Assistant Market Scope & Overview:
Intelligent Virtual Assistant (IVA) is an AI-powered conversational software that utilizes analytics and machine learning to interact with users and assist in locating information, performing tasks, or taking action. It generates personalized responses by combining analytics and cognitive computing based on individual customer information, past conversations, and location, leveraging corporate knowledge and human insight. Furthermore, intelligent virtual assistants provide a variety of advantages including enhanced customer service, boosted productivity, and customer contentment. The aforementioned benefits of intelligent virtual assistants are major determinants for increasing adoption in education, businesses, organizations, health care, real estate, and others.
Intelligent Virtual Assistant Market Insights:
Intelligent Virtual Assistant Market Dynamics - (DRO) :
![Intelligent Virtual Assistant Market Dynamics](https://www.consegicbusinessintelligence.com/assets/images/uploads/intelligent-virtual-assistant-market-dynamics.webp)
Key Drivers:
Increasing Need for Automation in Industries is Fueling the Market
The intelligent virtual assistant industry is expanding as businesses seek to automate customer service operations. Automation helps businesses work more efficiently by enabling virtual assistants to handle repetitive tasks including data entry, scheduling meetings, and providing customer service by answering customer queries. Moreover, they release human agents for higher-level duties, enhancing productivity and providing 24/7 support.
- In January 2021, Amazon, revealed Alexa Custom Assistant which enables manufacturers and service providers to develop smart assistants customized to their brand identity and consumer requirements, offering customers the advantages of a knowledgeable assistant for the products and services.
Therefore, the increasing need for automation in industries to provide enhanced customer service is proliferating the global intelligent virtual assistant market growth.
Adoption of Voice-Controlled Virtual Assistants Spurs Market Growth
Virtual Assistants provide a seamless and intuitive interface for the user to interact with devices, enabling voice control over various functions including smart home appliances, smartphones, automotive electronics, and others. Using voice control allows users to operate devices hands-free, reducing the need for physical input. This enhances convenience and accessibility.
- In January 2023, Samsung introduced SmartThings Station, enabling users to manage various smart home devices with voice commands and customize home settings based on user preferences. This smart home system is designed to make daily tasks easier by offering customization.
Thus, this adoption is expanding the reach of smart technologies, collectively driving the intelligent virtual assistant market trend.
Key Restraints :
Data Breaches Hinder the Market Expansion
Data Breach is an occurrence that leads to unauthorized access to confidential, private, protected, or sensitive information. Companies that experience data breaches suffer reputational damage, causing current and prospective customers to avoid using virtual assistants. Additionally, the financial consequences of data breaches, such as expenses related to addressing breaches, legal costs, and restitution, are significant.
- According to the analysis of IBM, the global average cost of a data breach in 2023 was USD 4.45 million, a 15% increase over 3 years and 51% of companies intend to boost security spending due to a security breach, focusing on incident response planning and testing, training employees, and implementing threat detection and response tools.
Hence, due to the impact on user trust, regulatory compliance, financial cost, and technical challenges, data breaches are critical restraints of the intelligent virtual assistant market trend.
Future Opportunities :
Incorporation with Virtual Reality Promotes Potential Opportunities
Integrating intelligent virtual assistants with emerging technologies including virtual reality (VR) environments, significantly enhances user experiences and functionality. In VR environments virtual assistants act as an interactive guide with immersive digital spaces, managing tasks and providing information seamlessly as users navigate virtual environments. Additionally, this integration can transform how users interact with virtual worlds, enabling control over digital tools and applications to create a more intuitive and immersive experience.
- In June 2023, Apple launched Apple Vision Pro, a virtual reality headset with an ultra-high-resolution display, integrated with Siri to enhance user interaction with virtual elements and control the virtual environment using voice commands.
Hence, the integration of IVA with virtual reality enhances the immersive user experience by providing control over the virtual environment and is expected to promote opportunities for the intelligent virtual assistant market during the forecast period.
Intelligent Virtual Assistant Market Segmental Analysis :
By Product:
Based on the product, the market is bifurcated into Chatbot and Smart Speaker.
Trends in the product:
- Advancements in Natural Language Processing (NLP) are enhancing chatbots for contextual understanding and responding to complex queries, facilitating effective conversations.
- The demand for voice commerce, where consumers buy products using voice instructions, is leading to the expansion and improvement of smart speakers in the retail space.
The chatbot segment accounted for the largest revenue share in 2023.
- Chatbot is a computer program that simulates conversation with human end users. Frequently, it utilizes Natural Language Processing (NLP) for analyzing inputs and employs generative AI for automating responses.
- These self-learning generative AI chatbots, built on a conversational AI platform are continually and automatically improving by learning from past conversations with users to provide enhanced and customized responses.
- Determinants including efficient customer service, 24/7 availability, assistance in coding, and other workspaces for improved productivity.
- In May 2023, Google , launched Duet AI integrated with Google Workspace products, leveraging advanced NLP and machine learning to assist users in coding, generating content, drafting emails, and creating documents.
- Thus, the self-learning property of chatbots provides customized responses to the user, enhancing their experiences and, in turn driving the global intelligent virtual assistant market growth.
The smart speaker segment is anticipated to register the fastest CAGR growth during the forecast period.
- Consumers are increasingly seeking hands-free, voice-controlled assistance for tasks such as setting reminders, playing music, and getting news updates, which smart speakers provide efficiently.
- Advancement in voice recognition, natural language processing, active sensors, and gesture controls is enhancing the accuracy and responsiveness of smart speakers, improving user experiences, and increasing adoption rates.
- Additionally, the use of smart speakers has become common in controlling a range of smart home gadgets such as lights, thermostats, security systems, and more.
- In March 2023, Amazon launched the Echo Dot 5th Gen with improved audio, ultrasound motion detection, temperature sensor, and tap gesture controls. Equipped with built-in sensors, users can create convenient smart home schedules with compatible devices.
- Hence, as per analysis the demand for the smart speaker segment is anticipated to grow intelligent virtual assistant market demand in the forecast period.
By Type:
Based on type the market is segmented into Text-based IVA, Voice-based IVA, Hybrid IVA, Task-specific IVA, and Others.
Trends in the type:
- Improvements to personalization features allow text-based IVAs to provide customized responses depending on user behavior and preferences, ultimately boosting engagement and user satisfaction.
- Task-specific IVAs are being developed by various industries such as healthcare, finance, and retail, offering specialized functionalities tailored to industry needs, such as patient management, financial advisory, and personalized shopping assistance.
The text-based segment accounted for the largest revenue share of 33.07% in 2023.
- Text-based IVAs are extensively used in customer service to handle a large volume of queries through chat interfaces on websites, apps, and messaging platforms.
- Features including enhanced customer service, easy implementation, cost-effectiveness, and scalability drive the users.
- Moreover, these IVAs are used for internal business communications, helping automate workflows, schedule meetings, and manage tasks within platforms like Microsoft Teams and Slack.
- In September 2023, Microsoft , introduced Copilot text-based AI assistance, Integrated with popular Microsoft 365 apps like Word, Excel, PowerPoint, Outlook, and Teams. This helps in coding using natural language prompts, boosts creativity, and empowers employees across functions.
- Hence, text-based IVAs currently dominate the industry trend due to their widespread use in customer service, ease of implementation, and versatility across various digital platforms.
The voice-based segment is anticipated to register the fastest CAGR growth during the forecast period.
- Voice-based IVAs are crucial for managing smart home devices, offering users hands-free control over lighting, thermostats, security systems, and more, enhancing convenience and efficiency.
- These IVAs are being integrated into a growing range of devices, including smartphones, wearables, automobiles, and home appliances, broadening their application and user base.
- Moreover, voice-based IVAs integrated with smartphones allow users to make use of the device more efficiently with voice commands, enhancing their productivity and customer engagement.
- In November 2023, Samsung launched the Bixby Text call voice-based assistant integrated into smartphones, enabling users to answer and respond to phone calls and generate quick responses.
- Thus, the analysis shows that the rise of innovation in the voice-based assistants segment is anticipated to boost the global intelligent virtual assistant market opportunities.
![Intelligent Virtual Assistant Market By End-User](https://www.consegicbusinessintelligence.com/assets/images/uploads/intelligent-virtual-assistant-market-by-type.webp)
Download Sample
By Application:
Based on application the market is segmented into Customer Service, Health Care, E-Commerce, Education, Banking, Real Estate, Travel, Hospitality, and Others.
Trends in the application:
- IVA facilitates telemedicine by helping patients book virtual consultations, manage prescriptions, and follow up on treatments.
- It provides personalized learning experiences by offering tailored content, quizzes, and study recommendations based on student performance and preferences in the education sector.
The customer service segment accounted for the largest revenue share in 2023.
- Businesses across various industries including finances, education, banking, and others, are increasingly adopting IVAs to handle customer inquiries, provide support, and improve customer satisfaction by offering timely and accurate assistance.
- Additionally, IVAs are easily integrated into various customer touchpoints, including websites, mobile apps, social media platforms, and messaging apps, ensuring consistent and seamless customer service.
- In October 2022, Wells Fargo, & Company introduced Fargo, a virtual assistant app integrated with Google Cloud's AI to provide a more personalized, convenient, and simple banking experience, enhancing customer service and meeting individual financial needs.
- Therefore, the market analysis concludes that the customer-service segment is propelling the intelligent virtual assistant market share.
The healthcare segment is anticipated to register the fastest CAGR growth during the forecast period.
- The increasing adoption of telehealth services is driving the need for IVAs to assist with virtual consultations, remote patient monitoring, and telemedicine appointments.
- They are used to monitor chronic conditions, remind patients to take medications and provide personalized health advice leading to better healthcare.
- According to an analysis of the National Center for Biotechnology Information ,76% of healthcare professionals observed improvement in the health of patients, virtual assistants in healthcare provide potential benefits for supporting patients, streamlining tasks, and acting as nonmedical caregivers.
- Hence, virtual assistant in healthcare is anticipated to show substantial growth in the intelligent virtual assistant industry during the forecast period.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
![Intelligent Virtual Assistant Market By Region](https://www.consegicbusinessintelligence.com/assets/images/uploads/intelligent-virtual-assistant-market-by-region.webp)
Download Sample
North America is estimated to reach over USD 34,078.89 Million by 2031 from a value of USD 4,894.38 Million in 2023 and is projected to grow by USD 6,150.71 Million in 2024. The demand for the intelligent virtual assistant market is driven by technological advancements, high adoption rates of smart devices, and significant investment in AI and machine learning.
- In April 2023, Google (California, US) workspace launched Google Vids AI-powered video creation app for work. This enables real-time collaboration for immersive storytelling in videos and generates an editable storyboard based on the content to work on projects securely and seamlessly.
The Asia-Pacific region's market was valued at USD 3,608.95 Million in 2023. Moreover, it is projected to grow by USD 4,548.39 Million in 2024 and reach over USD 25,997.21 Million by 2031. Out of this, China accounted for the maximum revenue share of 33.1%.
The Asia-Pacific region's increasing industrialization and development present lucrative opportunities for market growth. Additionally, high demand in the burgeoning e-commerce sector and customer service applications drive the intelligent virtual assistant market expansion.
- In January 2024, Samsung (Suwon, South Korea), unveiled the Galaxy S24 Ultra, Galaxy S24+, and Galaxy S24, with integrated virtual AI assistant including a chat assistant for messaging, a note assistant featuring AI-generated summaries for template creation, and transcript assistant to transcribe speech-to-text.
![Intelligent Virtual Assistant Market By Country](https://www.consegicbusinessintelligence.com/assets/images/uploads/intelligent-virtual-assistant-market-by-country.webp)
Download Sample
As per intelligent virtual assistant market analysis, Europe is anticipated to witness substantial growth in IVA adoption across customer service, healthcare, and e-commerce sectors. Strict data privacy regulations influence the development and deployment of IVA ensuring data protection.
The market in the Middle East and Africa is growing due to the expansion of healthcare and automotive industries, as well as increased use of advanced technology. Prominent nations such as the UAE, Saudi Arabia, and South Africa are at the forefront, reaping the rewards of rising investments in technological advancements in artificial intelligence.
Latin America is an emerging market trend for IVAs with growing adoption across various industries. Countries such as Brazil and Argentina are leading the way in this progression, emphasizing technological evolution and investment.
Top Key Players & Market Share Insights:
The intelligent virtual assistant market is highly competitive with major players providing high-performance computation to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the intelligent virtual assistant market. Key players in the intelligent virtual assistant industry include-
- Google (U.S)
- Naunce Communication (US)
- Baidu Inc (China)
- Alphabet (US)
- Ibenta technologies (US)
Intelligent Virtual Assistant Market Ecosystem:
![Intelligent Virtual Assistant Market Ecosystem](https://www.consegicbusinessintelligence.com/assets/images/uploads/intelligent-virtual-assistant-market-ecosystem.webp)
Download Sample
Recent Industry Developments :
Product Launchs
- In June 2024, Apple introduced Apple Intelligence, a personal intelligence system for iPhone, iPad, and Mac. It utilizes generative models and personal context to understand and create language and images, take action across apps, and use personal context to streamline and speed up daily tasks.
- In June 2024, IBM unveiled an AI assistant designed to help businesses modernize their operations through the adoption of AI. The assistant is customized for specific use cases, streamlines workflows from start to finish, and seamlessly integrates with enterprise processes, data, and applications.
- In March 2024, BrainBox AI introduced ARIA (Artificial Responsive Intelligent Assistant), a virtual assistant for buildings. Utilizing advanced AI technology from Amazon Bedrock, ARIA is engineered to improve building efficiency by seamlessly integrating into daily building management operations.
Collaboration and Partnership
- In May 2024, Wipro partnered with Microsoft to introduce a range of cognitive virtual assistants for financial services that utilize generative artificial intelligence (GenAI). Utilizing GenAI technology, Wipro's cognitive assistants will offer financial experts extensive market insights and up-to-date data on investment products and investor trends.
- In October 2023, Samsung Electronics America, Inc. and SoundHound AI, Inc. announced a collaboration with White Castle to implement cutting-edge voice-enabled outdoor digital signage, changing how brands engage with consumers, this innovative partnership will offer White Castle restaurants voice AI-enabled dynamic drive-thru menu boards.
Funding
- In June 2024, Amazon Web Services, Inc., a subsidiary of Amazon.com, Inc. revealed a commitment of USD 230 million for startups globally, aiming to speed up the development of generative AI applications, to enhance IVA utilization of artificial intelligence (AI) and machine learning (ML) technologies.
Intelligent Virtual Assistant Market Report Insights :
Report Attributes |
Report Details |
Study Timeline |
2018-2031 |
Market Size in 2031 |
USD 98,436.99 Million |
CAGR (2024-2031) |
27.4% |
By Product |
|
By Type |
- Text-based IVA
- Voice-based IVA
- Hybrid IVA
- Task-specific IVA
- Others
|
By Application |
- Customer Service
- Health Care
- E-Commerce
- Education
- Banking
- Real Estate
- Travel
- Hospitality
- Others
|
By End-User |
- Gaming Professionals
- Content Creators
- Others
|
By Region |
- Asia-Pacific
- Europe
- North America
- Latin America
- Middle East
- Africa
|
Key Players |
- IBM Corporation (US)
- Apple Inc (US)
- Google (US)
- Microsoft
- Corporation(US)
- Amazon (US)
- Samsung Electronics (South Korea)
- Naunce Communication (US)
- Baidu Inc (China)
- Alphabet (US)
- Ibenta technologies (US)
|
North America |
U.S. Canada Mexico |
Europe |
U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
APAC |
China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
Middle East and Africa |
GCC Turkey South Africa Rest of MEA |
LATAM |
Brazil Argentina Chile Rest of LATAM |
Report Coverage |
- Revenue Forecast
- Competitive Landscape
- Growth Factors
- Restraint or Challenges
- Opportunities
- Environment
- Regulatory Landscape
- PESTLE Analysis
- PORTER Analysis
- Key Technology Landscape
- Value Chain Analysis
- Cost Analysis
- Regional Trends
- Forecast
|
Key Questions Answered in the Report
How big is the Intelligent Virtual Assistant market? +
Global Intelligent Virtual Assistant Market size is estimated to reach over USD 98,436.99 Million by 2031 from a value of USD 14,141.18 Million in 2023 and is projected to grow by USD 17,770.65 Million in 2024, growing at a CAGR of 27.4% from 2023 to 2031.
What is the key market trend? +
Task-specific IVAs are being developed for various industries such as healthcare, finance, and retail, offering specialized functionalities tailored to industry needs, such as patient management, financial advisory, and personalized shopping assistance.
Who are the major players in the intelligent virtual assistant market? +
The key players in the intelligent virtual assistant market include IBM Corporation (US), Apple Inc (US), Google (US), Microsoft Corporation(US), Amazon (US), Samsung Electronics (South Korea), Nuance Communication (US), Baidu Inc (China), Alphabet (US), Ibenta technologies (US) and others.