Intelligent Virtual Assistant Market

Market Outlook of Intelligent Virtual Assistant

The global intelligent virtual assistant market is predicted to rise at a CAGR of 28.2% during 2022-2032. The intelligent virtual assistant market is estimated to reach US$ 62 Bn by 2032 from US$ 3.9 Bn in 2021.

In the near future, growth in enterprise need for effective customer engagement is expected to lead to more use of intelligent virtual assistant solutions in these verticals. The BFSI industry vertical is currently driving the intelligent virtual assistant market, owing to growing adoption and increased IT expenditure.

Market Analysis	Values
Intelligent Virtual Assistant Market Value (2021)	US$ 3.9 Bn
Estimated Market Value (2022)	US$ 5.2 Bn
Projected Market Value (2032)	US$ 62 Bn
Global Market Growth Rate (2022-2032)	28.2%
Key Market Players	VoiceVault Inc. Voicebox Technologies Corp. Uniphore Software Solutions Pvt Ltd Sony Corporation Samsung Electronics Next IT Corporation Nuance Communications Inc. Inbenta Technologies CX Company Creative Virtual Limited CodeBaby Corp. Baidu Apple Inc Amazon Web Services Anboto Group Alphabet Inc.

However, the most profitable vertical industries are automotive and healthcare and this tendency is expected to continue during the forecast period changing the intelligent virtual assistant market outlook.

An intelligent virtual assistant (IVA) can perform a variety of customer service functions, including making it easier to browse, providing product information, assisting consumers with bill payments, completing transfers or paperwork, and directing problem concerns to human customer service agents. As a result of these considerations, banks and financial institutions all over the world are integrating virtual assistants, resulting in the intelligent virtual assistant industry growth.

Impact of COVID-19 on the Intelligent Virtual Assistant Systems Industry

The pandemic wreaked havoc on a variety of businesses, including the technological sector. COVID-19 is likely to have a substantial impact on the technology industry's service area.

Meanwhile, sophisticated technology solutions are expected to make a significant contribution to combating COVID-19 and addressing ever-changing issues.

The current circumstance, as a result of the pandemic's spread, would encourage pharmaceutical companies and healthcare institutions to increase their R&D investments in AI, which is projected to serve as a core technology for supporting numerous projects and improving the intelligent virtual assistant market adoption trends.

With the development of the coronavirus pandemic, a number of marketing firms, banking institutions, and grocery stores have begun to use intelligent virtual assistants and conversational AI solutions to improve customer experience throughout the crisis. Businesses are eager to attempt new technical routes such as virtual assistants to help them survive the pandemic.

In addition, in these trying times, virtual internet assistants have aided a variety of industry verticals. Chatbots have been adopted by a number of medical insurance firms and public health organisations across the world to aid users/patients in receiving correct COVID-19 guidance. This has led to a great surge in demand for intelligent virtual assistant.

Sales Analysis of Intelligent Virtual Assistant Market for 2022 to 2032

"The changing role of virtual assistants as a customer service agent is leading to new trends for the intelligent virtual assistant market."

One of the leading reasons for the global intelligent virtual assistants industry is the rising use of intelligent virtual assistants. Quick response, improved data collecting, and less reliance on customer assistance are just a few of the advantages of using an intelligent virtual assistant. An intelligent virtual assistant provides a digital avatar that can respond in different languages. The advent of large, mid, and small-scale businesses has aided this quick acceptance.

Furthermore, the BFSI sector favors intelligent virtual assistants primarily for enabling mobile apps. Intelligent virtual assistants are also being used by the insurance, hospitality, and travel industries to improve their entire client experience and capital management. Furthermore, banking clients who incorporated intelligent virtual assistants in their processes saw a 46 percent increase in customer service. As a result, increased client acceptance is fuelling the worldwide intelligent virtual assistant market share's overall growth.

As per the global intelligent virtual assistant market study, the rise in automation uses across many industries, including BFSI, retail, residential, and others, has pushed the intelligent virtual assistant industry forward. Intelligent virtual assistant is widely used in customer service automation for acquiring client information, conducting conversations, and analysing customer satisfaction survey responses. Sales of intelligent virtual assistant are being fuelled by rising demand for customer service automation.

The demand for intelligent virtual assistant in the healthcare industry has risen dramatically, and this aspect is expected to fuel market expansion. Value is derived from intelligent virtual assistant (IVAs), which provide pertinent support and general advice. Based on real-time data analysis, the IVA inputs aid businesses in designing and implementing diverse marketing and advertisement approaches. As a result, the adoption of intelligent virtual assistant is increasing.

What are the Emerging Trends in the Intelligent Virtual Assistant Market?

An intelligent virtual assistant (IVAs) are the most human-like and intelligent digital avatars that can read, understand, and answer online client enquiries dynamically.

Providing better customer inquiry response with an intelligent virtual assistant, immediately leads to lower staffing costs for businesses. Large-scale businesses are currently integrating intelligent virtual assistant because they help reduce infrastructure setup costs. As a result, IVA's cost-effectiveness is a crucial reason driving its quick acceptance in businesses, which supports the worldwide intelligent virtual assistant market share's growth.

The key intelligent virtual assistant market trends indicate that one of the major growth drivers in the global intelligent virtual assistant market is the increase in smart phone usage.

Companies are attempting to incorporate advanced and distinctive features into their products in order to attract more customers as the demand for smartphones grows.

Intelligent virtual assistant – enabled apps and improved performance are two of the standout benefits. When compared to older technologies, intelligent virtual help provides convenience as well as other benefits such as voice recognition, natural language understanding, and cost-effectiveness.

Comparative View of Adjacent Intelligent Virtual Assistant Market

Attributes	Intelligent Virtual Assistant Market	Smart Speaker Market	Conversational AI Market
CAGR (2022-2032)	28.2%	17.1%	21.8%
Market Value (2026)	US$ 5.2 Bn	US$ 15.6 Bn	US$ 18.4 Bn
Growth Factor	Virtual assistants are projected to be integrated into banking and financial institutions around the world, resulting in industry growth.	An increase in the number of smart homes, and a growing demand for smart speaker displays	Customer assistance services driven by AI are becoming increasingly popular.
Opportunity	Intelligent virtual assistant market expansion is being fuelled by rising demand for customer service automation.	The growing disposable income of the world population especially in the developing regions is driving the smart speaker market.	Unification of advanced AI features to improve the value of existing conversational AI products is opening up new horizons in the conversational AI market.
Key Trends	North America is the most developed market for intelligent virtual assistants, with a number of large companies offering superior intelligent virtual assistant solutions. Additionally, in the following years, the Asia-Pacific area is expected to have a greater CAGR.	Customers' readiness to accept and employ new technology has prompted regional producers to develop new and innovative items.	The conversational AI market's main restraints are a lack of awareness regarding conversational AI solutions and the difficulty to accurately understand client intent and respond.

The recent intelligent virtual assistant market outlook has changed as working from afar has become more common as a result of Bring Your Own Device (BYOD) trends and technical improvements. Increased use of cloud-based products such as Skype and MS Office Online has resulted from advancements over time. Because of the widespread use of cloud-based applications, an increasing number of people are working remotely and relying heavily on virtual assistants to complete their jobs. As a result, it presents significant prospects for the growth of demand for intelligent virtual assistants.

Owing to various infotainment commands may be completed using voice-enabled virtual assistants, the intelligent virtual assistant plays an important role in reducing driver distraction. Companies are putting AI-based virtual assistants in cars to do things like recommend destinations based on the calendar and boost driver productivity by giving news, reading emails, and messages, among other things.

Segment-wise Insights

What is the Segmentation Outlook for the Intelligent Virtual Assistant Market?

The speech recognition segment of the intelligent virtual assistant market is projected to rise at a CAGR of 29.1% through the forecast period. Due to the widespread implementation of smart speakers in many industries, automatic voice recognition technology is predicted to grow at the fastest CAGR of 30.0 percent throughout the projection period.

Smart speakers can recognise and reply to speech created by customers in a predetermined way. The automatic voice recognition market is predicted to grow in demand as mobile computing technology becomes more widely adopted around the world. It allows customers to interact more easily with their cell phones and applications.

Because the majority of smart speaker manufacturers are situated in the United States, such as Amazon-Alexa, Google Home, and Bose, most of the products are introduced and distributed first in the region, and the regional demand for intelligent virtual assistants is also high.

The text-to-speech recognition segment of the intelligent virtual assistant market is predicted to grow at a steady CAGR due to the technology's diverse applications, which benefit businesses, consumers, educational institutions, and individual users. It also enables content owners to adapt to a variety of user wants and wishes, as well as how they interact with the content. Meanwhile, internet virtual assistants are used for marketing, customer service, order placement, and sales, among other things.

Which Segment is Likely to Lead the Intelligent Virtual Assistant Market by Application?

With a revenue share of 18.5 percent in 2020, the consumer electronics category dominated the industry in terms of market size. Automotive is emerging as one of the fastest-growing areas in the intelligent virtual assistant market, with continued expansion projected in the future.

Virtual assistant integration with the infotainment system aids in the delivery of personalised material while also improving comfort and convenience. Several manufacturers, including Daimler, BMW, and Hyundai, have integrated voice-activated infotainment systems into their vehicles. This is influencing the global intelligent virtual assistant adoption trends.

Region-wise Outlook

What is the Regional Demand Analysis in the Intelligent Virtual Assistant Market?

Regions	CAGR (2022-2032)
US Market	27.9%
Brazil Market	28.2%
China Market	30.2%
Japan Market	29.7%
India Market	30.2%

Individuals who work from home have greater flexibility and can utilise a virtual assistant to help them complete things faster. This boosts overall productivity and efficiency at work. Similarly, the healthcare industry in North America has recognised the benefits of intelligent virtual assistant and is working to improve healthcare system efficiency. The usage of intelligent virtual assistant in the healthcare business is expected to fill the gap and provide effective and trustworthy health monitoring solutions.

Due to the rising retail and consumer electronics sectors in China, Asia Pacific is predicted to develop at the quickest CAGR throughout the projection period. In a variety of industries, AI-powered virtual assistants for professional interaction have shown to be highly good at giving solutions and carrying out business operations such as booking systems and advice. Companies are releasing devices that allow an app or gadget to operate as an artificial intelligence agent.

Competitive Landscape

Virtual help has been implemented in smartphones, PCs, tablets, and other mobile devices by the companies. Amazon Inc. and Baidu, for example, have created virtual assistants for their devices and give customised solutions that work across different platforms. The primary strategies used by the participants in the intelligent virtual assistant market are new product launches and alliances.

Recent Developments in the Intelligent Virtual Assistant Market:

• Google said in June 2020 that it would provide new features to its artificial intelligence-based voice assistant, Google Assistant, across a variety of new devices. The most essential of these functions is voice match, which allows smart speakers to recognise a single user's voice and tailor replies to that individual.

Key Segments

• By Product

  • Chatbots
  • Smart Speakers

• By Technology

  • Text-to-Speech
  • Speech Recognition
  • Text-Based

• By Industry Vertical

  • Consumer Electronics
  • BFSI
  • Healthcare
  • Education
  • Retail
  • Government
  • Utilities
  • Travel & Hospitality
  • Others

• By Region

  • North America 
  • Europe
  • APAC    
  • Middle East and Africa (MEA)    
  • Latin America