Global Intelligent Virtual Assistant Market by Technology (Text to Speech, Automatic Speech Recognition), by Product (Chatbot, Smart Speakers) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

In 2020, the global market for intelligent virtual assistants was valued at USD 5.82 million. The market is expected to grow at a compound annual rate (CAGR), of 28.5% between 2021 and 2028. Market growth is expected to be driven by the need to improve efficiency within service-based businesses and the integration AI virtual assistants between various devices, such as smartphones, tablets, computers, or laptops. Intelligent Virtual Assistants (IVAs) can perform a variety of customer service functions, including ease of navigation, product information, customer billing, transferring or completing forms, and directing customer queries to human agents. These factors have prompted financial institutions around the globe to incorporate virtual assistants to increase industry growth.

IVAs can be efficient and serve many functions in retail, IT banking, automotive and other industries. They also provide better customer service by delivering more conversational responses. IVA vendors are working hard to accommodate regional languages and offer customized virtual assistants that allow customers from different regions to communicate easily. Smart virtual assistants improve security and smart home systems. Amazon.com, Inc. has completed the acquisition Ring (U.S.), which is a company that provides solutions for home security using a variety of smart cameras, video doorbells, and other technologies. Amazon.com, Inc. will benefit from the integration voice-based technology into its home security products.

Bring your Own Device (BYOD). Technological advancements and trends have allowed for remote working. Cloud-based tools like Skype and MS Office Online have seen a rise in usage over the years. This cloud-based tool usage indicates that more people work remotely and are dependent on virtual assistants for their tasks. It offers huge market potential.

As many infotainment commands are possible through voice-enabled virtual assistants, the IVA plays a critical role in reducing driver distraction. Many companies are using AI-based virtual assistants to automate tasks such as suggesting destinations based upon the calendar. They also optimize driver productivity by reading emails and providing news. Automakers: Skoda, for instance, announced in September 2019 the integration of virtual assistants into its vehicles. These assistants can be accessed via vocal commands and support six languages.

COVID-19 Impact insights

The pandemic caused major disruptions in many industries, including the technology sector. COVID-19 is predicted to have a significant effect on the technology industry's service sector. The advanced technology solutions will be able to significantly contribute to the COVID-19 response and to address the constantly evolving challenges. Due to the current situation, pharmaceutical vendors and healthcare institutions will be motivated to increase their R&D investments into AI as a core technology to enable various initiatives.

Many marketing agencies, financial institutions, and grocery stores have initiated full-fledged implementations of intelligent virtual assistants as well as conversational AI tools in order to improve customer service during the crisis. Businesses are facing challenges with sustaining their operations during the pandemic and are open to exploring new technologies such as virtual assistants. Virtual assistants on the internet have helped many industries in difficult times. Many medical insurance companies and public hospitals around the world have implemented chatbots to help patients/users with providing COVID-19-adequate advice.

Product Insights

The market was dominated by the chatbot segment with a market share of 68.9% in 2020. The smart speakers segment will grow at a 29.0% CAGR over the forecast period. Smart speakers are used primarily by residential consumers for their day-to-day tasks. There has been a significant demand for smart speakers in smart office as well as automotive applications. Alexa (Amazon), for example, can be used to turn lights on/off, control smart appliances such HVAC system, and music systems. It can also stream music and set alarms. Smart speakers are expected to grow in popularity due to their convenience.

Chatbot is widely used in the banking, insurance, retail and education industries. They make it easy for end-users to find the information they need and provide a user interface that is intuitive. Chatbots have been highly popularized in healthcare and are the most widely used. These bots can be used to assist patients, doctors, nurses and their families at all levels of life. In the coming years, the segment will grow due to the increasing number of social media platforms as well as the need to understand customer behaviour.

Technology Insights

With a market share of 59.7%, the text to speech segment was the dominant segment in intelligent virtual assistants. The rapid adoption of smart speakers across various industries is driving automatic speech recognition technology to grow at a 30.0% CAGR over the forecast period. Smart speakers can recognize speech and respond in a predefined way to speech from consumers. Automatic speech recognition is expected to grow in demand due to the increasing adoption of mobile computing technology around the globe. Customers can interact with their smartphones and apps much easier thanks to this feature. The U.S. is home to major smart speaker manufacturers like Amazon-Alexa and Google Home. Therefore, many of their products are launched in the US and shipped out early.

Due to the versatility of the technology's application, the text-to-speech segment is expected to grow at a steady rate. This is due to its benefits for consumers, businesses, educational institutions, and individual users. It allows content owners to adapt to the different needs and wants of their users, as well as the way they interact and interact with the content. Virtual assistants on the internet are used to offer support, marketing, order placement, sales, and other customer services.

Application Insights

The market was dominated by the consumer electronic segment with an 18.5% revenue share in 2020. Automotive is the fastest growing segment in the IVA market and is expected to continue its growth. The integration of virtual assistants into the infotainment system allows for personalized content, as well as improved comfort and convenience. Many companies, such as Daimler and BMW, have integrated voice-enabled infotainment system. Amazon's Echo Auto voice assistant device, which enhances the driving experience, was launched in January 2020 by Amazon. To tap into the potential of this segment, several companies have invested in the development of an advanced virtual assistant for automotive platforms.

The increasing demand for virtual assistants in healthcare is due to the increased connectivity and interaction between providers and patients. It allows patients to keep track of their condition via their smartphones, and also captures data using their voices. It also uses natural language processing to determine the needs and conditions of patients and generate meaningful data. IVR is also used by hospitals to schedule appointments and request lab results. This increases patient engagement and reduces healthcare inefficiencies. They also provide 24/7 assistance, which helps to fuel the market demand.

Regional Insights

North America was the largest market for intelligent virtual assistants in terms of size with a 43.94% revenue share in 2020. Remote working has become a popular option due to changing BYOD trends. Remote working allows employees flexibility and allows for virtual assistants to help speed up work. This increases productivity and efficiency, which in turn drives overall work efficiency. The North American healthcare sector has also recognized the value of IVAs, and is now focusing on improving efficiency in healthcare systems. According to the American Medical Association of Medical Colleges, there will be a shortage of 40,000 primary care doctors. IVAs are expected to fill the gap and provide reliable and efficient solutions for monitoring health.

Asia Pacific is projected to grow at the fastest rate of CAGR during the forecast period due to China's growing consumer electronics and retail sectors. AI-powered IVAs have proven to be highly efficient in providing professional services and performing business functions, such as appointment scheduling, consulting, and other tasks across many industries. Products that allow an app or device act as an AI agent are being launched by companies. In July 2018, SBI Card (India), announced the launch of "ELA" (Electronic Live Assistant), which is a virtual assistant that provides customer support and services. It's powered by artificial intelligence (AI) and Machine Learning(ML). It provides immediate and appropriate answers to customer questions and improves customer experience.

Market Share Insights & Key Companies

Key players in the market are focused on product launches, business expansions, and innovation. IBM Corporation offers a virtual assistant called Watson Assistant that can provide solutions for automotive, healthcare, travel, hospitality, and other industries. Nuance Communications provides Nina, an IVA, to assist with automotive, healthcare and other applications. IVAs that integrate AI have created a storm and displayed many businesses and services around the world. A Virtual Agent with Emotional Intelligence was launched by [24]7 Customer Inc. in August 2018. Similar to the above, in November 2018, [24]7 Customer Inc. created a virtual agent called [24]7 AIVA.

Virtual assistance has been introduced by the companies to smartphones, desktops, tablets, and other handheld devices. Baidu and Amazon Inc. are two of the most prominent companies to have virtual assistants that work on multiple platforms. The market's major players are embracing partnerships and new product launches. In July 2018, Google Inc. partnered with Genesys and Cisco to develop artificial intelligence technology that will replace the work of call centers. Contact Center AI is the software that will enable virtual agents to pick up the phone from customers when they call a call center. The following are some of the major players in the intelligent virtual assistant market:

• [24]7 Customer Inc.

• Amazon.com, Inc.

• Apple Inc.

• Baidu, Inc.

• Clara Labs

• CSS Corp.

• Creative Virtual

• CodeBaby Corporation

• eGain Corporation

• Google Inc.

• IBM Corporation

• Kognito

• Microsoft Corporation

• MedRespond

• Next IT Corp.

• Nuance Communications, Inc.

• Oracle Corporation

• True Image Interactive, Inc.

• Verint

• Welltok, Inc.

Up Market Research published a new report titled “Intelligent Virtual Assistant Market research report which is segmented by Technology (Text to Speech, Automatic Speech Recognition), by Product (Chatbot, Smart Speakers), By Players/Companies Creative Virtual, Amazoncom Inc, Welltok Inc, Oracle Corporation, IBM Corporation, Microsoft Corporation, Clara Labs, Apple Inc, Nuance Communications Inc, eGain Corporation, CodeBaby Corporation, Next IT Corp, Baidu Inc, [24]7 Customer Inc, CSS Corp, MedRespond, Google Inc, Verint, True Image Interactive Inc, Kognito”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Intelligent Virtual Assistant Market Report Segments:

The market is segmented by Technology (Text to Speech, Automatic Speech Recognition), by Product (Chatbot, Smart Speakers).

Intelligent Virtual Assistant Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Intelligent Virtual Assistant Market

Overview of the regional outlook of the Intelligent Virtual Assistant Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Intelligent Virtual Assistant Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Intelligent Virtual Assistant Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Text to Speech

                2. Automatic Speech Recognition

                1. Chatbot

                2. Smart Speakers

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Intelligent Virtual Assistant Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Intelligent Virtual Assistant Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.