Intelligent Virtual Assistant Market Growth & Trends

The global intelligent virtual assistant market size is expected to reach USD 51.90 billion by 2028, according to a new report by Grand View Research, Inc. The market is anticipated to expand at a CAGR of 28.5% from 2021 to 2028. The growing use of smart speaker-based technologies for home automation and digitization in the retail sector has led to the implementation of conversational e-commerce. This factor is anticipated to drive market growth. The Intelligent Virtual Assistants (IVAs) help the consumers to find relevant information and perform tasks with actionable advice. The inputs received from IVAs assist the organizations in designing and developing various marketing strategies and implementing those in real-time. Many retail stores have implemented virtual assistants in their processes, adding a new dimension to their customer engagement, further enhancing the customer shopping experience. For instance, Walmart customers can shop for groceries just by talking to the virtual assistant on their smartphones. Development in voice recognition and speech technologies has been the driving factor behind the proliferating growth of the IVA market.

Chatbots and smart speakers listen, recognize, and respond to the individuals’ requirements and assist them in various tasks. Thus, are gaining popularity among the consumers for a variety of use cases such as calling, shopping, reminders, setting the alarm, music streaming, consulting, and others. Amazon Alexa and Google Home account for the majority of the market share of the smart speaker segment in 2020. Chatbot has enabled ease of accessibility in banking, retail, education, e-commerce, travel, and hospitality sectors.

IVA assists in simplifying human efforts in making processes efficient, which is highly beneficial for all organizations. The IVA implementation has resulted in achieving productivity, work quality, and has reduced the risk in scaling operations. Thus, there has been an increased adoption across several applications, including retail, BFSI, healthcare, automotive, among others. IVA providers are engaged in executing organic and inorganic growth strategies such as new product launches, expansion, collaborations, partnerships, and others. For instance, in 2018, Transcom and Creative Virtual entered into a partnership to provide virtual agents and chatbot solutions in the artificial intelligence domain.

Intelligent Virtual Assistant Market Report Highlights

  • The smart speaker segment is anticipated to register the fastest CAGR over the forecast period. Moreover, constant innovation within the virtual assistant solution intended for various end-use industries increase the growth in the demand for smart speakers over the forecast period
  • Text to speech technology emerged as the largest segment in 2020 and is estimated to generate revenue over USD 31.19 billion by 2028
  • The North America market held the largest share in 2020, whereas the Asia Pacific region is anticipated to expand at the highest CAGR of 29.7% over the forecast period
  • The key market players including Google Inc.; IBM Corporation; Kognito; Microsoft Corporation; MedRespond; Next IT Corp.; Nuance Communications, Inc.; and Oracle Corporation accounted for the majority share of the overall market in 2020