Global Intelligent Virtual Assistant Market By Product (Smart Speakers and Chatbot), By Technology (Automatic Speech Recognition, Text-based, and Text to Speech), By Application, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2022-2032

Intelligent Virtual Assistant Market Overview

In 2021, the global intelligent virtual assistant market was valued at USD 7.43 Billion. It is projected to expand at a CAGR of 27.8% between 2023 and 2032.

It is expected that the market will grow because of the increased efficiency in service-based organizations and the integration of AI-powered virtual assistance across various devices like smartphones, computers, tablets, etc.

Intelligent Virtual Assistant (IVA), is capable of performing a wide variety of customer service roles, such as helping customers navigate the site, paying their bills, providing product information, filling out forms, and making transfers. It can also direct customer questions to human agents. This is driving financial institutions and banks around the world to use virtual assistants to grow their businesses.

Global Intelligent Virtual Assistant Market Scope:

Product Analysis

With a revenue share of 67.6%, the chatbot market was the largest in terms of market size. The smart speaker market is expected to grow at a CAGR of 28.6% during the forecast period. Smart speakers are mainly used by residential customers for everyday tasks. Smart speakers are also being used in smart workplaces, and for automotive applications. Alexa (Amazon), can be used to control lights, music systems, and smart appliances as well as set reminders and alarms. The growing demand for convenience has led to the widespread adoption of smart speakers. This trend is expected to continue in the future.

Chatbots are widely used in the banking, retail, insurance, and educational industries. They allow end-users to quickly access required information and make their lives easier. Chatbots are gaining popularity and have the highest adoption rate in the healthcare sector. These bots are able to help physicians, patients, and their families at different levels of life with the use of audio/text/speech. Segment growth will be driven by the growing use of social media platforms and the need for understanding customer behavior.

Technology Analysis

The intelligent virtual assistant market was dominated by the text-to-speech segment, which had a revenue share in excess of 58.2% for 2021. Due to the widespread adoption of smart speakers in different sectors, automatic speech recognition technology will grow at a rapid CAGR of 29.6% over the forecast period. Smart speakers are able to recognize speech and react in a predefined fashion to it.

Mobile computing technology is gaining popularity around the world, which will increase the demand for automatic speech recognition. This makes it easier for customers to interact with smartphones and their apps. Many of the major smart speaker companies, such as Amazon-Alexa or Google Home, are based in the U.S. and therefore most of their products are launched and delivered early to the region. Because of the flexibility of the technology, which benefits consumers, businesses, educators, and individuals, the segment of text-to-speech recognition is expected to grow at a steady CAGR. This technology allows content owners the ability to respond to users’ different needs and preferences and to change the way they interact. The internet virtual assistants can be used to support customers, provide order placing and marketing services, as well as to assist with other customer service needs.

Application Analysis

With a market share of 17.8%, the consumer electronic segment was the dominant market. Automotive is expected to grow in future years and will be one of the fastest-growing IVA segments. Virtual assistants can be integrated with infotainment systems to deliver personalized content and improve comfort and ease. Many companies like Hyundai, Daimler, and BMW have implemented voice-enabled infotainment technology. Amazon Echo Auto, a voice-enabled assistant device, was launched in January 2020. Many companies have invested in developing an advanced virtual assistant for the automotive platform to unlock the full potential of this market.

Virtual assistants in healthcare enable connectivity and interaction between patients and providers, which is driving the growing demand in this segment. It tracks the condition of patients through their smartphones and records data via their voices. Natural language processing is used to interpret the patient’s needs and provide meaningful data. IVR can also be used by hospitals for tasks like scheduling appointments or requesting laboratory results. This increases patient engagement and decreases healthcare inefficiencies. They provide assistance around-the-clock, which is a boom for the market.

Key Market Segments

Product

• Smart Speakers
• Chatbot

Technology

• Automatic Speech Recognition
• Text-based
• Text to Speech

Application

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

Market Dynamics

IVAs are highly efficient and can perform many functions for businesses in IT, banking, and automotive. IVAs also deliver more human-like responses which can improve customer service. IVA vendors are committed to ensuring that regional languages are supported and customized virtual assistants are available for customers in different countries. Intelligent virtual assistants increase security and smart home solutions. Amazon.com Inc. acquired Ring (U.S.), an American company that offers home security solutions with a variety of smart cameras and video doorbells. Amazon.com Inc. can now integrate voice-based technologies into Ring’s home security products.

The rise of the Bring Your Own Device (BYOD), and technological innovations have made it possible to work remotely. As a result of technological advancements over the years, cloud-based tools like Skype or MS Office Online are more popular. It is clear that more people are working remotely, and are dependent on virtual assistants to complete their tasks. This opens up huge opportunities for market growth.

Driver distraction can be reduced by the IVA as many infotainment commands can now be performed via voice-enabled virtual assistances. Vehicles are being equipped with AI-based virtual assistants that can suggest destinations based on the calendar. These assistants also improve driver productivity by providing news and reading out messages. Automakers: Skoda has announced that it will integrate virtual assistants into its vehicles in September 2019. These virtual assistants can be accessed by vocal commands and are currently supported in six languages.

The virtual assistant reduces operating costs and streamlines business activities. It also helps to save money on interviewing, hiring, and training new employees. The virtual assistant can handle business correspondence, manage company emails, schedule and confirm appointments, as well as assist in bookkeeping and invoicing. Amy by x.ai, for example, performs many of the above functions. Nuance’s Nina virtual assistant reduces call center volume and improves customer service. Kaspersky Labs, a security company, uses Nina-powered virtual Assistant Lena to reduce its call volume and scale up customer service.

A virtual call center can be set up to answer calls or handle follow-ups. The virtual assistant can handle marketing campaigns such as email, blog, and social media promotions. They can monitor and plan campaigns, as well as research content. This helps to build a business network, such as Social Media Virtual Assistant from TaskBullet. This gives more flexibility and allows us to balance work and life. It has also led to an increase in entrepreneurs’ outsourcing. Over the forecast period, this trend will continue to drive the market.

According to the American Medical Association (AMA), primary care physicians spend approximately 27% of their time dealing with patient concerns directly and 49% analyzing electronic health records or desk work. This has led to increased demand for medical virtual assistants that integrate artificial intelligence to reduce administrative burdens resulting from excessive clinical documentation.

Medical record navigation, medical transcript, and medical information searching are some of the new applications for AI-driven virtual assistants. Nuance launched “The Dragon medical virtual assistant” in September 2017. This AI-driven virtual assistant is designed to improve patient-clinician interactions, enhance the patient experience, and reduce clinician administrative burden.

The pandemic caused significant disruption across many industries, including in the technology industry. COVID-19 will have a significant impact on the service industry in the technology sector. Advanced technology solutions are expected to make a significant contribution to the COVID-19 epidemic response. They will also address constantly changing challenges. The current situation due to the epidemic will motivate pharmaceutical vendors to invest in AI to enhance their R&D investments. This technology acts as a key technology for various initiatives.

Different marketing agencies, grocery shops, and financial firms have begun to implement intelligent virtual assistants and conversational AI tools to help customers in crisis situations. Virtual assistants are a viable option for businesses that face difficulties in maintaining their business during the pandemic. Many industries have found virtual assistants to be valuable resources in these challenging times. Numerous medical insurance companies worldwide and public health institutions around the globe have deployed chatbots for patients/users to receive proper COVID-19 advice.

Regional Analysis

North America held the market share for intelligent virtual assistants at 42.5% in 2021. Working remotely has been a growing trend due to BYOD changes. Remote work allows employees to be flexible and allows virtual assistants to accelerate the work. This improves productivity and increases work efficiency. Similar to IVAs, the North American healthcare industry has begun to recognize the benefits and is focusing on improving the efficiency of its healthcare systems. According to the American Medical Association of Medical Colleges (AMAC), there is a shortage of 40,000 primary-care physicians. IVAs will therefore be used in the healthcare industry to meet this need and provide efficient and reliable health monitoring solutions.

Asia Pacific is expected to expand at the fastest CAGR in the forecast period, due to China’s expanding retail and consumer electronics industries. AI-powered IVAs that can be used for professional conversations have shown their effectiveness in providing services and performing business functions like appointment scheduling, consulting, etc. Many companies are now launching products that allow apps or devices to act as AI agents. SBI Card (India), for instance, announced in July 2018 the launch of “ELA” (“Electronic Live Assistant”), a virtual assistant to provide customer support and other services. It is powered by artificial intelligence and Machine Learning. This virtual assistant is intended to enhance customer service by responding to customers’ queries promptly and efficiently.

The European market is heavily influenced by automobile manufacturers in Germany, France, and Italy. Germany produced 25% of Europe’s motor vehicle production. It is home to many of the world’s leading motor vehicle manufacturing companies, such as BMW, Audi, Mercedes, Ford, Opel, and Volkswagen. AI-based IVAs have been implemented in cars and other vehicles by many companies. The IVAs are expected to be able to perform tasks such as suggesting destinations based on the calendar and offering remote car- and smart-home control using voice commands. The UK government is encouraging the adoption IVAs within the education and telecom industry. Virtual Assistant is also growing and improving. A number of UK virtual assistant agencies are now looking to expand to the U.S.

Key Regions and Countries covered іn thе rероrt:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share Analysis

Market leaders focus on new product launches, expansions of businesses, and innovation. IBM Corporation is a provider of intelligent virtual assistants named Watson Assistant. It offers solutions in automotive, healthcare travel, hospitality, and retail. Nuance Communications offers Nina, an IVA to help with healthcare and automotive applications. IVAs integrating AI have caused a huge storm and have been used to showcase various services and businesses around the globe. One example is the launch of a Virtual Agent with emotional intelligence by 24/7 Customer Inc., August 2018. The same thing happened with the virtual agent [24]7 Customer Inc. in November 2018.

These companies offer virtual assistance for smartphones, tablets, desktops, as well as handheld devices. Baidu and Amazon Inc. have both introduced virtual assistants to their devices. They offer customized solutions that can be used on multiple platforms and are well-known companies like Baidu and Amazon Inc. Major strategies of the market players include new product launches and partnerships. In July 2018, Google Inc. joined forces with Cisco, and Genesys in order to create artificial intelligence technology. This will replace the work done in call centers. Contact Center AI, which is a virtual agent software, will be installed to answer the phone first when a customer calls a call center.

Key Market Players

These are the top players in the global market for intelligent virtual assistants:

• 24/7 Customer Inc.
• Apple Inc.
• Amazon.com Inc.
• Google Inc.
• Baidu Inc.
• Microsoft Corporation
• IBM Corporation
• Oracle Corporation
• Nuance Communications Inc.
• Other Key Players

For the Intelligent Virtual Assistant Market research study, the following years have been considered to estimate the market size: