Virtual Assistant Market

Market Definition

The global Virtual Assistants Market size was valued at USD 7.2 billion in 2022 and is predicted to reach USD 33.4 billion by 2030 with a CAGR of 21.1% from 2023-2030. Virtual assistant is artificial intelligence (AI) enabled applications and software that are designed to help users with various tasks based on commands or questions. They can be used to automate tasks such as scheduling appointments, finding information, setting reminders, booking travel, and controlling home automation devices among others.

Virtual assistants can be accessed from a number of devices with active internet connection and are useful for all types and sizes of businesses. They provide data safety, minimize errors, and reduce operational & labor costs by replacing full-time staff along with increased efficiency and accuracy in performing various tasks. They are enabled through voice-based and chat-based interfaces such as Amazon’s Alexa, Google Assistant, and Microsoft's Cortana.

Market Dynamics and Trends

The virtual assistant market is driven by expanding digitalization coupled with the growing penetration of smartphones and smart devices with pre-installed virtual assistants such as Microsoft's Cortana, Google Assistant, Apple’s Siri, and others. For instance, in December 2022, Xiaomi launched Xiao AI 6.0 virtual assistants for suggestions, voice support, call, and translation in the latest version of the company’s mobile software MIUI 14. 

Also, the rapid adoption of virtual assistant that supports voice and natural language processing (NLP) technologies in smart homes and smart appliances for homes is further driving the growth of the market. Moreover, the increasing usage of virtual assistants in IT and telecommunication sectors for customer support through chatbots and voice commands are further boosting the growth of the market.

For instance, in May 2020, telecom operator Vodafone launched a virtual assistant AI chatbot for customer support and queries. The Ai-bot performs a number of tasks including bill payments, recharges, value-added services, plan activation, new connection, data balance, and bill requests.

However, limitations in understanding complex queries and potential data security issues related to personal data are the major factors restraining the growth of the virtual assistant market. On the contrary, the introduction of 5G along with web 4.0 will enhance the speed and low latency, allowing AI assistants to interpret emotions and respond with no delay is expected to create ample opportunities in the coming year.

Market Segmentations and Scope of the Study

The virtual assistant market is segmented on the basis of product type, user interface, end-user and geography. On the basis of product type, the market is divided into chatbots and smart speakers. On the basis of user interface, the market is classified into text-based, text-to-speech-based, and automatic speech recognition.

On the basis of end-users, the market is divided into BFSI, IT & telecommunications, consumer electronics, defense & government, retail, healthcare, traveling & hospitality, automotive, and media & entertainment. Geographic breakdown and analysis of each of the aforesaid segments include regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America holds the dominant  share of the virtual assistant market and is expected to continue its dominance during the forecast period. This is attributed to factors such as the growing adoption of virtual assistants in industries including consumer electronics, BFSI, healthcare, education, retail, government, utilities, travel, and hospitality. For instance, in October 2022, AtlantiCare, a healthcare service provider based in the US, implemented Orbita's healthcare virtual assistants to enhance access to healthcare services using natural language processing including self-scheduling and ambulatory services. 

Also, in July 2022, Glia Technologies Inc. launched Gila virtual assistants for banks and credit unions, developed specifically for digital banking. The assistant is pre-loaded with 800+ digital banking scenarios to help reduce operational costs and provide enhanced customer services. 

Moreover, the presence of key market players such as Google, IBM Corporation, Amazon Inc., and others play a major role in the growth of the virtual assistant market in this region. For instance, in February 2022, IBM Corporation launched a new AI-based virtual assistant powered by IBM Watson Assistant for TD Precious Metals, an online marketplace for buying silver, gold, and platinum. The assistant is designed to help customers in answering crucial questions to digital purchase of physical gold, silver, platinum bullion, and coins from TD Precious Metals.

On the other hand, Asia Pacific is expected to show a steady rise in the virtual assistant market due to the rising penetration of the smartphone and internet along with the growing popularity of voice-enabled virtual assistant in smartphones in this region. According to Global System for Mobile communications Association, in 2021, the number of mobile internet users exceeded 1.2 billion in Asia pacific region. 

Moreover, the growing investment by financial sectors and banks in virtual assistant enabled technologies is further driving the market growth. For instance, in March 2022, Chinese banks such as Bank of Ningbo, China Zheshang Bank, and Citic Ai Bank invested in metaverse with virtual assistants. The investment was aimed to change the conventional banking system by creating digital transaction platform for clients in a virtual world. 

Also, in January 2022, ByteDance invested in the development of an AI-powered female virtual assistant ‘LI Weike’ to compete with Apple’s Siri and Amazon’s Alexa. The virtual assistant Li Weike uses VR that combines real and virtual environments through computers glasses.

Competitive Landscape

Various market players operating in the virtual assistant industry include Amazon 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., Alphabet Inc., Artificial Solutions, Samsung Electronics Co. Ltd, and others. These market players are adopting various strategies such as collaboration and product launches to remain dominant in the market. 

For instance, in October 2022, Google collaborated with Wells Fargo and  launched a new virtual assistant using Google Cloud’s artificial intelligence (AI) to offer personalized, easy, and simple banking experiences for customers. Also, in October 2022, Google collaborated with Toyota and Lexus to enhance the voice assistant in Toyota and Lexus cars with Google Cloud’s AI-based speech services such as improved voice AI features, even when the car is unable to access the internet. 

Moreover, in September 2022, Amazon Inc. collaborated with BMW to launch a next-generation voice assistant for BMW, using the technology used in Amazon’s Alexa. Furthermore, in September 2021, Amazon launched a dog-like household virtual assistant robot. The robot is designed to monitor home, set up routines and reminders, and can play music and TV shows moving around the house.

KEY BENEFITS

• The report provides quantitative analysis and estimations of the virtual assistant market from 2023 to 2030, which assists in identifying the prevailing industry opportunities.

• The study comprises a deep-dive analysis of the virtual assistant market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the virtual assistant market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

VIRTUAL ASSISTANT MARKET KEY SEGMENTS 

By Product Type

• Chatbots

• Smart Speakers

By User Interface

• Text-based

• Text-to-speech based

• Automatic Speech Recognition

By End-Users

• BFSI 

• IT & Telecommunications 

• Consumer Electronics

• Defense & Government 

• Retail 

• Healthcare 

• Travelling & Hospitality 

• Automotive 

• Media & Entertainment

By Region

• North America

  • The U.S

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France    

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

KEY PLAYERS

• Amazon 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.

• Alphabet Inc.

• Artificial Solutions

• Samsung Electronics Co. Ltd