Virtual Humans Market Expected to Reach $440.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Virtual Humans Market," The virtual humans market was valued at $11.30 billion in 2021, and is estimated to reach $440.3 billion by 2031, growing at a CAGR of 44.7% from 2022 to 2031.

Virtual humans are human-like characters that may be heard through speakers, shown on computer screens, or accessible in other ways. It might be difficult to define exactly what a virtual person or even "artificial intelligence" (AI) is. In a similar vein, it is unclear how virtual humans connect to robots and androids, or how to distinguish between various forms of virtual people, such as a chatbot, conversational agent, autonomous agent, or pedagogic agent.

Furthermore these advanced technologies has fueled the emergence of digital avatars and advanced video streaming experiences along with OTT service providers to bring their presence to an infinite digital reality space the metaverse. The metaverse was then opened to the viewers and fans so that they could experience the world of Rudra. Such technological advancements and trends in the metaverse have driven the growth of the virtual humans market.

According to virtual humans market research, the virtual humans market for avatars was valued at $8 billion in 2021, and is projected to reach positively grow, during the forecast period. U.S. was the highest revenue contributor to the avatars segment. Japan and the South Korea are expected to witness considerable CAGRs of 50%, respectively, during the forecast period.

During the pandemic, several significant elements saw an increase, including the adoption of many sales channels by various firms, technology developments in various sectors, increased smartphone penetration internationally, increased internet users, and technological breakthroughs in various industries. The aforementioned factors contributed to propelling the virtual humans industry. With the change to internet-related business, retailers swiftly began incorporating cutting-edge technologies like big data analytics, cloud computing, and digital stores.

Region-wise, Asia Pacific held a significant global virtual humans market share, due to the region’s expanding wireless connectivity penetration and growing digitalization, China, Japan, and South Korea currently dominates the regional market for the Asian region. The main drivers of the growth of the virtual humans market in this region are the rapid advancements in artificial and internet of things (IoT) technology. Moreover, rapid urbanization and an increase in digital content creation and acceptance are the primary factors that drive the growth of the virtual humans market in Asia-Pacific, North America, Europe, and LAMEA.

Virtual Human Government Regulations

All well-governed IT industries should be able to demonstrate due diligence to ensure regulatory compliance in applicable fields, including IT. Organizations are adopting virtual human which is an artificial intelligent character (AIC) trained to talk about specific content to help learners to interact with these characters through interactive simulations by listening, responding, and engaging in dialogue. Governments of many countries helps to laid out promoting the innovation and development of the digital human industry. For Instance, in September 2022, Beijing set standards for digital assistants, virtual influencers and gaming avatars and wants to develop a $7.5 billion virtual human industry within three years, incorporating the use of Web3 technologies that are currently under a regulatory cloud in China.

Regulators and lawmakers around the world have formulated new laws to shape how companies use artificial intelligence, 5G, and miniaturization, extended reality (XR) technologies and how they can access the data and many governments of countries implementing new digital initiatives. For instance, in March 2020, French government launches digital virtual program to help history students on lockdown. In addition, in April 2021, federal and state governments are improving their track plans for various privacy laws, which are applicable for data that AR/VR devices collect. For instance, the Massachusetts Data Security regulations are majorly focused on security purpose and increasing the privacy of big data analytics. Europe is set to take the advantage of AI for providing data protection facilities to different organizations. For instance, the European Government adopted the new General Data Protection Regulation (GDPR). The act seeks to regulate the collection, storage, and processing of information about individuals. The key aim of GDPR is to protect critical data of business sectors of the European nation.

Key Findings of the Study

• By type, in 2021, the avatars segment was the highest revenue contributor to the market, with 45% impressive CAGR. However, the autonomous virtual humans segment is estimated to reach $90 billion by 2031, during the forecast period.

• By industry vertical, the gaming & entertainment segment is estimated to reach $75 billion by 2031, with an impressive CAGR, during the forecast period. However, BFSI and retail segments are expected to witness approximately 50% and 45% CAGRs, respectively, during the forecast period respectively, during the forecast period.

• Region-wise, the virtual human market growth was dominated by Asia-Paific. However, North America and Europe are expected to witness a significant growth rate during the forecasted period.

• This study comprises an analytical depiction of the virtual humans market size along with the current trends and future estimations to depict the imminent investment pockets.

• The overall virtual humans market analysis is determined to understand the profitable trends to gain a stronger foothold.

• The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.

• The current virtual humans market forecast is quantitatively analyzed from 2021 to 2031 to benchmark financial competency.

• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the virtual humans industry

Key players profiled in the report include Alibaba Group Holding Limited, Datagen, Epic Games, Inc., iFLYTEK Corporation, Inworld AI, Meta Platforms, Inc., Microsoft Corporation, Offbeat Media Group, Soul Machines and Ziva Dynamics (Unity). Market players have adopted various strategies, such as product launches, collaboration & partnership, joint ventures, and acquisition to expand their foothold in the virtual humans market.