"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.
Recent developments in natural language processing, conversation interfaces, machine learning, and automation are factors proliferating the demand for intelligent virtual assistants. The increasing adoption of smart speakers and Chatbots in various industries, including BFSI, automotive, media, and entertainment, among others, positively impacts the growth of the intelligent virtual assistant market. Cost-effectiveness coupled with cost efficiencies is the main focus of service-based industries. For instance, IBM Corporation, which offers AI solutions for call centers, reported that bot interaction in the BFSI industry is anticipated to hit 90% by 2022. Instant response to customers and accurate and improved data collection are factors attracting companies to adopt intelligent virtual assistants.
Intelligent virtual assistants assist in automation, natural conversation, recommending, smart learning, and integration. Owing to this, these assistants are integrated with most gadgets, including smartphones, smart speakers, smartwatches, and tablets. 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 customers use digital assistants, and 72% of business executives use intelligent virtual assistants. By adopting virtual assistant solutions, organizations can improve customer experience, including front desk activities, personalized services, and meeting reminders.
Market Synopsis
Product Analysis
"Smart speakers segment anticipated to register the highest growth during the forecast period."
The global intelligent virtual assistant (IVA) market is classified into Chatbots and Smart speakers segments based on product type. The 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. In addition, these assistants are widely used as telesales in the banking industry. They communicate 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 problems.
In contrast, the smart speaker segment is anticipated to register the fastest growth during the forecast period. They are owing to the increasing adoption of home automation systems, especially in North America and Europe. Smart speakers come for both residential and commercial applications, and the demand for intelligent virtual assistants in smart offices and automotive is increasing rapidly. Additionally, industry 4.0, increasing urbanization, and rising smartphone usage further influence the demand for the smart speaker segment. Thus bolstering the growth of the intelligent virtual assistant market.
Application Analysis
"BFSI segment is leading the market during the forecast period."
Based on application, the global intelligent virtual assistant (IVA) market is segmented into BFSI, consumer electronics, healthcare, automotive, retail, education, and others (government, travel & hospitality, etc.). BFSI is a segment that dominated the market with a revenue share of more than 20% of the total market. This can be attributed to the rising demand for automated customer support services and the technological dependence of people on online transactions, among others. The banking sector is one of the early adopters of digital technologies. Growing inclination toward adopting artificial intelligence and the internet of things in the industry to automate processes further propelling the segment's market growth. Prominent players in the banking sector, such as JP Morgan Chase, Bank of America, and Goldman Sachs, have already implemented the technology and have streamlined their operations.
In comparison, the automotive segment is anticipated to register the highest growth during the forecast period. This can be attributed to the 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 would be adding a virtual assistant in its vehicles, which will be accessible through voice commands (Okay, Laura).
Regional Analysis
"Increasing consumer electronics industry to bolster the growth in the Asia Pacific region."
In 2018, North America led the global intelligent virtual assistant (IVA) market with more than 35% revenue contribution. Europe and the Asia Pacific trail north America. Owing to the region being one of the early adopters of digital technology, the increasing number of smartphone users and the rising trend of bringing your device (BYOD) in industries such as consumer electronics, BFSI, and healthcare, among others. In addition, technological advancements have led to an increased usage of cloud-based tools, which in turn is propelling the intelligent virtual assistant market growth in the region.
In contrast, the Asia Pacific region is anticipated to grow significantly throughout the forecast period. This can be associated with the rapidly increasing consumer electronics sector and the adoption of emerging technologies such as artificial intelligence and the 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 a 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.
SegmentationProduct 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 (the 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 (the 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 give a better market understanding of the overall Intelligent Virtual Assistant (IVA) market. In addition, the global report also represents the competitive landscape based on market initiatives and strategies, product portfolio, and business strengths.
Frequentlky Asked Questions
The market for Intelligent Virtual Assistant (IVA) is expected to reach US$ 2.65 Bn in 2028.
The Intelligent Virtual Assistant (IVA) market is expected to see significant CAGR growth over the coming years, at 40.9%.
The report is forcasted from 2019-2027.
The base year of this report is 2021.
Amazon.com Inc., Microsoft Corporation, Nuance Communications Inc., Apple Inc., Google Inc., Oracle Corporation, IBM Corporation, Samsung Electronics, Baidu are some of the major players in the global market.
