"Rapid adoption of smartphone devices will spur the market revenue growth"
The global intelligent virtual assistant (IVA) market was valued at US$ 5.9 Bn in 2021 and is projected to expand at a CAGR of 40.9% during the forecast period from 2023 to 2030.
The developments made recently in the field of natural language processing, conversation interfaces, machine learning, and automation are factors proliferating the demand for intelligent virtual assistants. The increasing adoption of smart speakers and Chatbots among various industries including BFSI, automotive, media, and entertainment among others are factors having a positive impact on the growth of the intelligent virtual assistant market. Cost-effectiveness coupled with cost efficiencies is the main focus of service-based industries. For instance, IBM Corporation which offers AI solutions for call centers reported that bot interaction in BFSI industry is anticipated to hit 90% by 2023. Instant response to customers, accurate and improved data collection are factors attracting companies to adopt intelligent virtual assistants.
Intelligent virtual assistants assist in automation, natural conversation, recommending, smart learning, and integration among others. Owing to this, these assistants are integrated with most gadgets including, smartphones, smart speakers, smartwatches, and tablets among others. Some of the most popular intelligent virtual assistants include Amazon’s Alexa, Google Assistant, and Apple’s Siri among others. According to a recent report, 42% of the customers are using digital assistants and 72% of business executives are using intelligent virtual assistants. Organizations can improve customer experience including, front desk activities, personalized services, and meeting reminders by adopting the virtual assistant solutions.
"Smart speakers segment anticipated to register the highest growth during the forecast period"
Based on product type, the global intelligent virtual assistant (IVA) market is classified into Chatbots and Smart speakers segment. Chatbots segment led the global intelligent virtual assistant market and accounted for a revenue share of more than 50% of the total market revenue generated worldwide. This can be associated with the wide adoption of Chatbots in various application industries including, BFSI, insurance, and retail among others. These assistants are widely used as telesales in the banking industry and communicate with the customers with the help of text-based, text to speech and automated speech recognition technologies. For instance, according to a recent survey, in 2018, 67% of consumers worldwide used a chatbot for customer support to resolve their problems.
In contrast, the smart speaker segment is anticipated to register the fastest growth during the forecast period. Owing to the increasing adoption of home automation systems, especially in North America and Europe. Smart speakers come for both residential and commercial applications and the demand for intelligent virtual assistants in smart offices and automotive is increasing rapidly. Additionally, industry 4.0, increasing urbanization, and rising smartphone usage are factors further influencing the demand of the smart speaker segment. Thus bolstering the growth of the intelligent virtual assistant market.
"BFSI segment is leading the market during the forecast period"
Based on application, the global intelligent virtual assistant (IVA) market is segmented into BFSI, consumer electronics, healthcare, automotive, retail, education, others (government, travel & hospitality, etc.). BFSI, a segment dominated the market with a revenue share of more than 20% of the total market. This can be attributed to the rising demand for automated customer support services, and the technological dependence of people on online transactions among others. The banking sector is one of the early adopters of digital technologies, growing inclination towards adopting artificial intelligence and the internet of things in the industry to automate processes are factors further propelling the market growth of the segment. Prominent players in the banking sector such as JP Morgan Chase, Bank of America, and Goldman Sachs among others have already implemented the technology and have streamlined their operations.
In comparison, the automotive segment is anticipated to register the highest growth during the forecast period. This can be attributed to the integration of emerging technologies such as AI and IoT for automatic parking, ADAS technologies, and lane assistance among others. For instance, in September 2019, European car manufacturer Skoda announced that it will be adding a virtual assistant in its vehicles which will be accessible through voice commands (Okay, Laura).
"Increasing consumer electronics industry to bolster the growth in the Asia Pacific region"
In 2021, North America led the global intelligent virtual assistant (IVA) market with a revenue contribution of more than 35%. North America is trailed by Europe and the Asia Pacific. Owing to the region being one of the early adopters of digital technology, an increasing number of smartphone users and rising trends of bringing your own device (BYOD) in industries such as consumer electronics, BFSI, and healthcare among others. Technological advancements have led to an increased usage of cloud-based tools which in turn is propelling the intelligent virtual assistant market growth in the region.
In contrast, the Asia Pacific region is anticipated to grow at a significant rate throughout the forecast period. This can be associated with the rapidly increasing consumer electronics sector and adoption of emerging technologies such as artificial intelligence, and the internet of things in the developing economies of India, and China among others.
List of Companies Covered:
Key Industry Development:
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Intelligent Virtual Assistant (IVA) market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
