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The virtual assistant market is estimated to grow at a CAGR of 37.29% between 2022 and 2027. The size of the market is forecast to increase by USD 26,945.07 million. The growth of the market depends on several factors, including demand for enhanced customer service, benefits offered to content consumers, owners, and publishers, and smartphones with intelligent virtual assistants supporting human interactions
This report extensively covers market segmentation by type (spoken commands and text-to-speech), end-user (automotive, BFSI, government, retail, and others), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Virtual Assistant Market Driver
The demand for enhanced customer service is notably driving the virtual assistant market growth. Businesses and enterprises are demanding enhanced software and technology to offer enriched and high-quality customer support. This is mainly to improve the market value of the enterprises by improving the overall customer experience with their business operations. 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 intelligent virtual assistants as they improve customer and brand experience using a customer-friendly approach. This, in turn, is driving the overall intelligent virtual assistant market.
Significant Virtual Assistant Market Trend
The popularity of chatbots is the key market trend driving the virtual assistant market growth. Chatbots are increasingly being used as the applications can communicate and perform basic chats such as answering questions or purchasing a product. Chatbots can streamline interactions between services and people. It is highly beneficial as it is cheaper to develop a chatbot than to train and hire human customer service agents for an enterprise. Furthermore, customers prefer mobile interactions over talking to someone in person or interacting with call centers. As more and more artificial intelligence is deployed in various businesses in offering customer relationships, more than 80% of customer relationships are estimated to be handled using artificial intelligence technology, where virtual assistants and chatbots will play significant roles.
Chatbots are highly used by enterprises as a marketing tool for engagement. It not only provides content but also facilitates purchases and improves relationships with customers. Chatbots have the ability to scale, personalize, and eliminate expensive traditional customer interactions and service representations. Chatbots are leveraged into platforms, such as Facebook Messenger, Kik, and WhatsApp, which have combined a user base of around a billion users. Some of the chatbots are CoverGirl, Sephora, Nordstrom, and Charity Water. Thus, the increasing popularity of chatbots will augment the growth of the intelligent virtual assistant market during the forecast period.
Major Virtual Assistant Market Challenge
Technical concerns are the major challenge impeding the virtual assistant market growth. Despite the obvious benefits of using intelligent virtual assistants, the technical challenges that virtual assistants face limiting their success. Virtual assistants face a lack of accuracy and personalization issues as they use rigorous optimization, which involves both human and machine learning.
To overcome this problem, a virtual assistant must allow customers to use natural language, which includes the use of slang, typos, unstructured content, and complex grammar. It should also be able to guide customers through a step-by-step process. Some of the virtual assistants in the market also face a lack of behavioural targeting issues and have difficulty engaging consumers. Such factors will hinder the intelligent virtual assistant market growth during the forecast period.
Key Virtual Assistant Market Customer Landscape
The report includes the adoption lifecycle of the intelligent virtual assistant market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Virtual Assistant Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the intelligent virtual assistant market.
Anbotogroup - The company offers a virtual assistant namely Anboto Virtual Assistant. Also, this segment focuses on providing web customer service and e-Commerce technology based on semantics and Natural Language Processing to reduce costs and increase sales.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the spoken commands segment will be significant during the forecast period. Spoken commands were the largest segment of the market in 2022 and will continue to be the largest segment of the market during the forecast period. A machine or a program should be able to receive and interpret a spoken language while carrying out the spoken commands. This type uses two components such as speech recognition and voice recognition to understand and respond to the user command. Both speed and voice recognition are progressing technologies offering numerous applications, which can provide enhanced convenience and security.
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The spoken commands segment was valued at USD 1,076.22 million in 2017 and continue to grow by 2021. The adoption of voice search is increasing, and around 25% of mobile queries were voice searches in 2020. By the end of 2023, the global smartphone penetration rate is expected to reach 85%, which is expected to increase the number of voice search queries. Various virtual assistants, such as Siri, Cortana, Google Voice Search, Amazon Alexa, and Google Home, are encouraging people to search for information on their mobile devices using their voices. The increasing adoption of smartphones across the world, along with the integration of advanced technology, is expected to drive the growth of the global virtual assistant market through the spoken commands segment 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 was the largest geographical segment of the global virtual assistant market in 2022 and will continue to remain the largest segment during the forecast period. North America has a higher inclination toward the use of high-end technology products and services because of the availability of high-end services and higher disposable incomes in the region. Hence, it can easily adapt to technological changes. North America is home to the best artificial intelligence technologies in the world, and hence the region has easy access to these technologies. Many vendors in this region support the development of these technologies. Therefore, North America holds a major share in the global virtual assistant market.
In 2020, the adoption of virtual assistants increased in customer care centers in the region, owing to the outbreak of COVID-19. However, with large-scale vaccination drives and the resumption of operations in end-user industries such as automotive and retail revived the demand for virtual assistants. Such factors are expected to continue, which will foster the growth of the regional virtual assistant market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Virtual Assistant Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 37.29% |
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Market growth 2023-2027 |
USD 26,945.07 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
35.47 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 39% |
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Key countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
247.ai Inc., Alphabet Inc., Amazon.com Inc., Anboto Europe SL Co., Apple Inc., Artificial Solutions International AB, Baidu Inc., Creative Virtual Ltd., CSS Corp., CX Co., eGain Corp., GAVS Technologies NA Inc., Inbenta Holdings Inc., International Business Machines Corp., Microsoft Corp., Oracle Corp., Synthetix Ltd., True Image Interactive Inc., VA Company LLC, and Verint Systems Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
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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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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