Key Market Insights
"Rapid adoption of smartphone devices will spur the market revenue growth"
The global intelligent virtual assistant (IVA) market was valued at US$ 2.65 Bn in 2018 and is projected to expand at a CAGR of 40.9% during the forecast period from 2019 to 2027.
The developments made in recently in the field of natural language processing, conversation interfaces, machine learning and automation, are factors proliferating the demand of intelligent virtual assistants. The increasing adoption of smartspeakers and Chatbots among various industries including BFSI, automotive, media and entertainment among others are factors having a positive impact on growth of the intelligent virtual assistant market. Cost effectiveness coupled with cost efficiencies are main focus of service based industries. For instance, IBM Corporation which offers AI solutions for call centers, reported that bot interaction in BFSI industry is anticipated to hit 90% by 2022. Instant response to customers, accurate and improved data collection are factors attracting companies to adopt intelligent virtual assistants.
Intelligent virtual assistants assists in automation, natural conversation, recommending, smart learning, and integration among others. Owing to this, these assistants are integrated with most gadgets including, smartphones, smartspeakers, smartwatches, and tablets among others. Some of the most popular intelligent virtual assistants include Amazon’s Alexa, Google Assistant, and Apple’s Siri among others. According to a recent report, 42% of the customers are using digital assistants and 72% business executives are using intelligent virtual assistants. Organizations can improve customer experience including, front desk activities, personalized services, and meeting reminders by adopting the virtual assistant solutions.
Market Synopsis
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Product Analysis
"Smartspeakers segment anticipated to register highest growth during the forecast period"
Based on product type, the global intelligent virtual assistant (IVA) market is classified into Chatbots and Smartspeakers segment. Chatbots segment led the global intelligent virtual assistant market and accounted for a revenue share of more than 50% of the total market revenue generated worldwide. This can be associated with the wide adoption of Chatbots in various application industries including, BFSI, insurance, and retail among others. These assistants are widely used as telesales in the banking industry and communicates with the customers with the help of text based, text to speech and automated speech recognition technologies. For instance, according to a recent survey, in 2018, 67% of consumers worldwide used a chatbot for customer support to resolve their problem.
In contrast, smartspeakers segment is anticipated to register fastest growth during the forecast period. Owing to the increasing adoption of home automation systems, especially in North America and Europe. Smartspeakers comes for both residential and commercial applications and the demand for intelligent virtual assistants in smart offices and automotive are increasing rapidly. Additionally, industry 4.0, increasing urbanization, and rising smartphone usage are factors further influencing the demand of smartspeakers segment. Thus bolstering the growth of intelligent virtual assistant market.
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Application Analysis
"BFSI segment is leads the market during the forecast period"
Based on application, the global intelligent virtual assistant (IVA) market is segmented into BFSI, consumer electronic, healthcare, automotive, retail, education, others (government, travel & hospitality, etc.). BFSI, segment dominated the market with a revenue share of more than 20% of total market. This can be attributed to rising demand of automated customer support services, and technological dependence of people on online transaction among others. The banking sector is one of the early adopters of digital technologies, growing inclination towards adopting artificial intelligence and internet of things in the industry to automate processes are factors further propelling the market growth of the segment. Prominent players in the banking sector such as JP Morgan Chase, Bank of America, and Goldman Sachs among others have already implemented the technology and have streamlined their operations.
In comparison, automotive segment is anticipated to register highest growth during the forecast period. This can be attributed to integration of emerging technologies such as AI and IoT for automatic parking, ADAS technologies and lane assistance among others. For instance, in September 2019, European car manufacturer Skoda announced that it will be adding a virtual assistant in its vehicles which will be accessible through voice commands (Okay, Laura).
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Regional Analysis
"Increasing consumer electronics industry to bolster the growth in Asia Pacific region"
In 2018, North America led the global intelligent virtual assistant (IVA) market with a revenue contribution of more than 35%. North America is trailed by Europe and Asia Pacific. Owing to the region being one of the early adopter of digital technology, increasing number of smartphone users and rising trend of bring your own device (BYOD) in industries such as consumer electronic, BFSI, and healthcare among others. Technological advancements have led to increased usage of cloud based tools which in turn is propelling the intelligent virtual assistant market growth in the region.
In contrast, Asia Pacific region is anticipated to grow at a significant rate throughout the forecast period. This can be associated to the rapidly increasing consumer electronics sector and adoption of emerging technologies such as artificial intelligence, and internet of things in the developing economies of India, and China among others.
List of Companies Covered:
- Amazon.com Inc.
- Microsoft Corporation
- Nuance Communications Inc.
- Apple Inc.
- Google Inc.
- Oracle Corporation
- IBM Corporation
- Samsung Electronics
- Baidu
- Inbenta Technologies
Key Industry Development:
- In September 2019, BMW, launched its digital personal assistant for its cars named BMW intelligent personal assistant. This assistant can be activated with user preferential voice command. BMW previously announced its integration with Amazon Alexa.
Historical & Forecast Period
This study report represents analysis for each segment from 2017 to 2027 considering 2018 to be the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period from 2019 to 2027.
Market Segmentation
| ATTRIBUTE |
DETAILS |
| Research Period |
2017-2027 |
| Base Year |
2018 |
| Forecast Period |
2019-2027 |
| Historical Year |
2017 |
| Unit |
USD Billion |
| Segmentation |
Product Segment (2017–2027; US$ Bn)
• Smart Speakers
• Chatbots
|
|
Technology Segment (2017–2027; US$ Bn)
• Text-to-speech
• Text based
• Automatic Speech Recognition
|
|
Application Segment (2017–2027; US$ Bn)
• BFSI
• Consumer Electronics
• Healthcare
• Automotive
• Retail
• Education
• Others (Government, Travel & Hospitality, etc.)
|
|
Geography Segment (2017–2027; US$ Bn)
• North America (U.S., Rest of North America)
• Europe (U.K., Germany, Russia, Rest of Europe)
• Asia Pacific (Japan, China, India, Rest of Asia Pacific)
• Rest of the World (Middle East & Africa, Latin America)
|
The current report also comprehends qualitative and qualitative market valuation factors such as key market drivers, market trends, restraints and opportunities that gives a better market understanding of the overall big data analytics market. Additionally, the global report also comprises graphical representation of competitive landscape based on their market initiatives and strategies, product portfolio and business strengths.
Key questions answered in this report
- What are the current market trends and dynamics in the intelligent virtual assistant market and valuable opportunities for emerging players?
- Estimated forecast and market projections up to 2027
- Which segment accounts for the fastest CAGR during the forecast period?
- Which product type segment holds a larger market share and why?
- Are low and middle-income economies investing in the intelligent virtual assistant market?
- Which is largest regional market for intelligent virtual assistant?
- What is the market trend and dynamics in emerging markets such as Asia Pacific, Latin America and Middle East & Africa?
- Worldwide market value of the intelligent virtual assistant market in 2017 and 2018.
- Which are the key trends driving the global intelligent virtual assistant market growth?
- Who are the leading service providers in the intelligent virtual assistant market worldwide?
