Intelligent Virtual Assistant Market

Intelligent Virtual Assistant Market Insights- 2027

The intelligent virtual assistant market size was valued at $ 3,442 billion in 2019, and is projected to reach $ 44,255 million by 2027, growing at a CAGR of 37.7% from 2020 to 2027. Increase in demand for effective customer engagement by enterprises would lead to higher adoption of IVA solutions in these verticals in the near future. Currently, the intelligent virtual assistant market is majorly driven by the BFSI industry vertical, owing to its higher adoption and increasing IT investment. However, automotive & healthcare are the most lucrative vertical segments and are likely to maintain this trend during the forecast period.

An intelligent virtual assistant (IVA) is a software that is developed on artificial intelligence system. It stimulates or provides responses assimilar to human interactions and perform particular tasks such as customer service. Virtual assistants are widely being adopted across industry verticals due to machine learning, deep neural networks, and other advancements in artificial intelligence technologies. The intelligence technology integrated into these systems indicates the capacity for understanding, reasoning, and learning. These three are primary key elements that emulate a customer service agent’s ability to response to queries. IVA systems use various interaction methods, which include text-to-text, speech-to-text, text-to-speech, and speech-to-speech, among others to assist users in executing their respective tasks. The global IVA market forecast has exhibited notable growth in the recent past. However, it is poised to demonstrate an even more robust intelligent virtual assistant market opportunities during the forecast period.
Intelligent virtual assistant increases company revenue by reducing the efforts in customer handling. It also reduces live chat volume, offers quick response, and saves time. In addition, IVA collects customer information andanalyzes conversation & customer satisfaction survey responses;thereby, helping organizations improvethe customer and company communication.

Intelligent virtual assistants are the most human like and intelligent digital avatars, which can dynamically read, understand, and respond to online customer queries. It automatically leads to reduced manpower cost of enterprises by offering better customer query response through IVA. Currently, large-scale enterprises are also implementing intelligent virtual assistants since they help eliminate the infrastructure setup cost. Hence, cost-effectiveness of IVA is the key factor that drivesits rapid adoption in enterprises which in turn support the global intelligent virtual assistant market growth.
Growth in smart phone penetration is one of the key growth drivers of the global intelligent virtual assistant market. With increasing demand of smartphones, companies are trying to integrate advanced and unique features in their product to attract more users. These unique features include IVA enabled apps and enhanced performance. Intelligent virtual assistance offers ease of conveyance as compared to old technology along with other features such as voice recognition, natural language understanding, and affordability.
North America is a dominant market for intelligent virtual assistantand has major players offering advanced intelligent virtual assistant solutions. Moreover, Asia-Pacific region is anticipated to register higher CAGR in the coming years, owing to increase in smartphone penetration and increasing customer’s demand for speech recognition technology among individuals in the region. Furthermore, speech recognition technology offers features such as interactive and intuitive communication, which is expected to propel its adoption in the LAMEA region in the coming years.
The report focuses on the growth prospects, restraints, and market analysis. The study provides Porter’s five forces analysis of the intelligent virtual assistant industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the market.

Segment review

The global intelligent virtual assistant market is segmented on the basis of product, technology, industry vertical, and region. Depending on product, the market is bifurcated into chatbots and smart speakers. On the basis of technology, it is classified into text-to-speech, speech recognition, and text based. By industry vertical, the market is categorized into BFSI, IT & telecommunications, defense & government, retail, healthcare, travelling & hospitality, automotive, media & entertainment, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The market players operating in the intelligent virtual assistant market analysis include Alphabet Inc., Amazon.com, Inc., Apple Inc., Artificial Solutions, EGain Corporation, International Business Machines Corporation, IPsoft Inc., Nuance Communications, Inc., Verint Systems Inc., and Samsung Electronics Co., Ltd.

Top impacting factors

Rise in need for exquisite customer experience, increasein demand for automation in customer service, and proliferating smartphone adoption are top impacting factors that drive the growth of the intelligent virtual assistant market. However, reluctance to comprehend in smart speakers and lack of accuracy in chatbots are some of the restringing factor that could hamper the growth of the market. furthermore, increase in R&D to integrate gesture recognition technology into intelligent virtual assistants is anticipated to generate significant revenue growth opportunities for players operating in the market.

Rise in need for exquisite customer experience

The rapid adoption of intelligent virtual assistant is one of the major drivers for the global virtual assistant market. Intelligent virtual assistant offers several benefits such as quick response, improved data collection, and less dependency on customer support. Intelligent virtual assistant provides a digital avatar that can communicate in various languages. This rapid adoption is supported by the emergence of large-, mid-, and small-scale enterprises. 

Moreover, the BFSI sector is also preferring IVA mainly for supporting mobile applications. Insurance, hospitality, and travel industries are also adopting IVA for enhancing their overall customer experience and capital management. In addition, banking clients who have implemented intelligent virtual assistant in their operations have affected a 46% improvement in customer handling. Therefore, improved customer adoption is fostering the overall growth of the global intelligent virtual assistant market.

Key Benefits For Stakeholders

• This study includes the intelligent virtual assistant market trends, opportunity, analysis, and future estimations to determine the imminent investment pockets.
• The report presents information related to key drivers, restraints, and opportunities of the intelligent virtual assistant industry.
• The intelligent virtual assistant market shareis quantitatively analyzed from 2018 to 2026 to highlight the financial competency of the industry.
• Porter’s five forces analysis illustrates the potency of the buyers & suppliers in the intelligent virtual assistant market.

 Intelligent Virtual Assistant Market Report Highlights