Intelligent Virtual Assistant Market

The global intelligent virtual assistant market size was valued at USD 5.80 billion in 2020 and is projected to reach USD 51.89 billion by 2028, expanding at a CAGR of 28.3% during the forecast period, 2021-2028. The growth of the market is attributed to the need of enhanced efficacy among service-based businesses with the help of Artificial Intelligence (AI) driven virtual assistant in gadgets such as smartphones, tablets, computers, and others.

On an AI-based system, intelligent virtual assistant (IVA) software is developed that provides response similar to human interaction and perform particular task such as customer service. In customer services, an IVA performs various tasks such as assist consumer in paying bills, ease to navigate, complete forms or carry out transfers, and offer product information. It also generates personalized response by combining analytics, user’s location, past conversation, and customer information. Deep neural networks and Machine Learning (ML) technology integrated with an IVA indicates the capability for learning, understanding, and reasoning. These are three important factors that emulate a customer service agent’s ability to respond to queries.

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The COVID-19 pandemic outbreak had positive impact on the market growth. During the pandemic; various marketing agencies and especially financial organizations have adopted and implemented IVA for better customer services. Moreover, many public health institutions and medical insurance companies started quick installation of IVAs to assist users or patients to give proper advice about COVID-19.

Market Trends, Drivers, Restraints, and Opportunities

• Rising implementation of an IVA by large enterprises due to its cost-effectiveness nature is a key factor driving the market growth.
• Increasing number of people working remotely result in high dependency on virtual assistant for executing their assigned tasks is projected to drive the market expansion during the forecast period.
• Lack of accuracy in chatbots acts as a major challenge that can restrict the market growth during the projected period.
• Reluctance to comprehend in smart speakers is another restraining factor, which is likely to hamper the market growth during projected timeline.
• Technology advancement such as integrating of gesture recognition technology with an IVA is projected to create significant growth opportunities for the market.

Scope of Intelligent Virtual Assistant Market Report

The report on the global intelligent virtual assistant market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Intelligent Virtual Assistant Market Segment Insights

Automotive segment is expected to grow at a rapid pace

Based on applications, the market is divided into education, BFSI, IT & telecom, consumer electronics, travel & hospitality, healthcare, retail, automotive, and others. The automotive segment is expected to grow at a rapid pace during the forecast period attributed to integration of an IVA with infotainment system by key market players for improving convenience and delivering personalized service. However, the healthcare segment is anticipated to expand at a substantial CAGR during the forecast period in the coming years due to an IVA helps in continuous tracking of patients through smartphones. It enables interaction and connectivity between patients and health service providers as well as wide used of the technology in hospitals for uploading lab results and scheduling patient’s appointments.

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Chatbot segment is projected to expand at a considerable CAGR

In terms of products, the global intelligent virtual assistant market is bifurcated into smart speakers and chatbot. The smart speakers segment is expected to account for a major market share during the projected timeline owing to high use of smart speakers by residential consumers for their day-to-day tasks. Moreover, smart speakers are extensively used in smart offices, smart homes, and in the automotive sector due to rising popularity. On the other hand, the chatbot segment is projected to expand at a considerable CAGR during the forecast period as it helps to access the required information and facilitate the end-users with ease of operation. Additionally, the chatbot offers several other advantages as it helps in understanding customer behavior and increasing use of social media platforms.

Automatic speech recognition segment to account for a large market share

On the basis of technologies, the market is segregated into text-based, automatic speech recognition, and text to speech. The automatic speech recognition segment is estimated to account for a significant market share during the forecast period owing to increase in use of smart speakers and mobile computing technology. It makes easier for consumers to interact with smartphones and speakers. However, the text to speech segment is anticipated to grow at high CAGR during the projected period attributed to the diverse uses of the technology that benefits educational institutes, businesses, personal users, and consumers. Furthermore, it helps content owners in the way they interact with the content and to respond to different needs and desires of users.

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North America is anticipated to constitute a key market share

In terms of region, the global intelligent virtual assistant market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key share of the market during the projected period owing to adoption of an IVA by the healthcare sector in the region. However, the Asia Pacific market is anticipated to expand at a rapid growth pace during the forecast period due to innovation in an IVA resulted in adoption of an IVA across various industries in the region for improving users’ experience.

Segments

The global intelligent virtual assistant market has been segmented on the basis of

Applications

• Education
• BFSI
• IT & Telecom
• Consumer Electronics
• Travel & Hospitality
• Healthcare
• Retail
• Automotive
• Others

Products

• Smart Speakers
• Chatbot

Technologies

• Text-based
• Automatic Speech Recognition
• Text To Speech

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Amazon.com, Inc.
• Baidu, Inc.
• CSS Corp.
• CodeBaby Corp.
• Google Inc.
• Kognito
• MedRespond LLC
• Nuance Communications, Inc.
• True Image Interactive, Inc.
• Welltok, Inc.
• [24]7 Customer Inc.
• Apple Inc.
• Clara Labs
• eGain Corp.
• IBM Corp.
• Microsoft Corp.
• Next IT Corp.
• Oracle Corp.
• Verint Systems
• Creative Virtual

Competitive Landscape

Key players competing in the global intelligent virtual assistant market are Amazon.com, Inc.; Baidu, Inc.; CSS Corp.; CodeBaby Corp.; Google Inc.; Kognito; MedRespond LLC; Nuance Communications, Inc.; True Image Interactive, Inc.; Welltok, Inc.; [24]7 Customer Inc.; Apple Inc.; Clara Labs; eGain Corp.; IBM Corp.; Microsoft Corp.; Next IT Corp.; Oracle Corp.; Verint Systems; and Creative Virtual.

Companies are focusing on innovation, business expansion, partnerships, and new product launch. Additionally, companies are providing an IVA software in handheld devices such as tabs and smartphones along with desktops. In July 2018, Google Inc. was working with partners including Genesys and Cisco to replace the work in call centers with the help of AI technology. In January 2020, Amazon.com, Inc. launched Echo Auto, a voice assistant device which aimed at enhancing driving experience of vehicles.