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The intelligent virtual assistant (IVA) market size is projected to increase by USD 5,000.82 million at a CAGR of 23.05% between 2023 and 2028. The growth rate of the market depends on several factors, including the increasing demand for enhanced customer service in businesses, the benefits offered to content consumers, owners, and publishers, and the integration of IVAs with IoT and smart devices. An intelligent virtual assistant (IVA) refers to cutting-edge IT technology that allows people and gadgets, including smartphones, PCs, and laptops, to communicate more effectively. IVA assists in making the process of gathering and maintaining data more accessible.
The report provides market forecasts, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
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Increasing demand for enhanced customer service in businesses is the key factor driving market growth. These are being adopted in many organizations to deliver an intuitive and automated experience for all the enterprise's digital channels while engaging the customers over natural conversations using text or voice. These provide customers with a consistent experience of using any digital channel, including a website, an app, or a text messaging application. Furthermore, capturing the experience of each customer to analyze and deliver real-time insights helps enterprises and businesses optimize their operations while improving the accuracy of their responses.
Therefore, it helps in strengthening the bond between the company and its customers. Hence, more and more organizations are adopting these assistants as they improve customer and brand experience using a customer-friendly approach. Thus, the increasing demand for enhanced customer services in businesses drives market growth during the forecast period.
The increasing application of intelligent virtual assistants in healthcare is one of the market trends shaping market growth. Health assistants offer numerous benefits with the advent of smartphones and the increasing penetration of the Internet across the world. Health assistants like chatbots simplify the delivery of healthcare services and also help in easy and secure patient data management. Moreover, it creates new streams of revenue generation for stakeholders.
Furthermore, the increase in digitalization of healthcare has also led to medical tourism, with the help of advanced solutions such as remote monitoring, precision medicine, and digitalized record handling. Medical professionals are using these assistants to deliver personalized treatment and diagnostics. Thus, such factors are expected to increase the demand for these in the healthcare industry, which will drive market growth during the forecast period.
Concerns about data security is a major challenge that impedes market growth. Concerns have been raised about how much data these devices might accidentally be exposed to. These systems collect a substantial amount of user data, which is more vulnerable to data breaches. These systems are particularly attractive targets for data theft as they are likely to contain both personal and corporate information of the user. Furthermore, the data can be in various forms, such as video, audio, or text forms.
Moreover, the lines of communication between the user and the mobile app face a high possibility of being a prime target for an eavesdropping attack by a cyber attacker. The systems can also face security issues because the protective mechanisms are not in place. However, as a protection against security threats, the conversations are recorded to help companies find the cyber attacker. Therefore, such factors may hinder market growth during the forecast period.
The market share growth by the chatbots segment will be significant during the forecast period. Chatbots play a key role in various businesses, including retail, by helping them create a strong brand image and offer better customer service. Advancements in technology and machine learning have fostered the demand for chatbots. Moreover, the adoption of chatbots also helps businesses minimize the costs of addressing customer requests efficiently. AI-powered chatbots became the center of attraction as they can offer personalized experiences to clients and customers.
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The chatbots segment showed a gradual increase in the market share of USD 922.88 million in 2018. In addition, chatbots, along with predictive analytics, anticipate customers' needs and guide customers through complex banking procedures such as making payments, checking balances, and saving money. Such factors will lead to drive the growth of the chatbot segment. Moreover, Chatbots are gaining traction in a variety of business sectors. In addition to native bots, such as Apple Siri, third-party companies are now assisting businesses in interacting with their customers. Therefore, the chatbot segment is expected to grow in the global market during the forecast period.
Text-to-speech is a type of computer-generated simulation of human speech that can translate written information to aural information. Text-to-speech enables a visually challenged person to read computer display information. Text-to-speech helps in reading out all formats of text files, such as Word and online web pages. In addition, text-to-speech enables high-quality speech output by enriching the user experience with enhanced expressiveness, multilingual support, and optimized read-out of long texts. These assistant apps are undergoing huge deployment of text-to-speech software with voice notifications, which is expected to drive the growth of the text-to-speech segment in the global market during the forecast period.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America is home to the best artificial intelligence technologies in the world, and consequently, the region has easy access to these technologies. Many market players in this region support the development of these technologies. Therefore, North America holds a major share in the global market.
Moreover, the US is the major contributor to the market in North America. This is mainly because it is home to many companies providing artificial intelligence services and solutions to customers across the globe. Furthermore, as North America has a greater adoption rate of smartphones, the use of mobile apps is also very popular in the region. Therefore, the market in the region is expected to grow significantly during the forecast period.
Market forecasts include the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth analysis and information about 20 market companies, including:
Market market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest market growth and trends from 2018-2028
The market is witnessing significant growth, driven by increasing product demand and the adoption of cloud-based tools across various industries. In the Asia Pacific region, financial institutions and automotive companies are leveraging IVAs to enhance customer service and provide conversational responses in regional languages.
Specialized IVAs are gaining traction in sectors like smart home and security solutions, improving customer experience. The market is also witnessing growth in BYOD environments, with IVAs integrated into popular tools like Skype and M.S. Office Online. In the automotive sector, IVAs are used to reduce driver distraction by enabling infotainment commands. Healthcare and pharmaceutical vendors are investing in IVAs to streamline operations and enhance patient engagement. Overall, the IVA market is poised for continued growth, driven by advancements in AI and NLP technologies across various industries.
Intelligent Virtual Assistant Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 23.05% |
Market Growth 2024-2028 |
USD 5,000.82 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
21.28 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, Canada, China, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ada Health GmbH, Alphabet Inc., Amazon.com Inc., Anboto Europe SL Co., Apple Inc., Baidu Inc., Creative Virtual Ltd., eGain Corp., Inbenta Holdings Inc., Infermedica Sp. z o.o., Interactions LLC, International Business Machines Corp., Microsoft Corp., Nuance Communications Inc., Oracle Corp., Orbita Inc., Samsung Electronics Co. Ltd., Sense.ly Corp., True Image Interactive Inc., and Verint Systems Inc. |
Market dynamics |
Parent market analysis, market trends and analysis and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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