Intelligent Virtual Assistant Market Information By Technology (Speech recognition, Text-to-speech, and Voice recognition), By Service (Customer Service and Marketing Assistance) By Application (BFSI, Automotive, IT &telecom, Retail, Healthcare, and Education), and By Region (Asia-Pacific, North America, Europe, and Rest of the World)—Forecast till 2030

Global Intelligent Virtual Assistant Market Research (MRFR Insights)

The intelligent virtual assistant market is expected to register a CAGR of 25.30% from 2022 to 2030. The demand for increased efficiency among service-based businesses and the incorporation of virtual assistants powered by artificial intelligence (AI) across various devices, including tablets, desktops, and smartphones, is expected to drive market expansion. According to forecasts, the intelligent virtual assistant market size will grow to approximately USD 58.2 billion by 2030. An Intelligent Virtual Assistant (IVA) can perform various customer service tasks, including making a website easy to use, providing product information, assisting customers with bill payments, completing transfers or forms, and directing problem inquiries to customer service agents who can help in person. These incentives are pushing financial institutions and banks worldwide to incorporate virtual assistants, fueling the intelligent virtual assistant industry expansion. In addition to this, due to the growing need for automation in customer support services, the market is expanding. Additionally, IVA demand is being stimulated ly by the expanding use of IVAs among the younger generation and the continually bettering user experience.

COVID-19 Impact Analysis

The Covid-19 pandemic caused significant changes in the business of many ventures. The market for intelligent virtual assistants is severely impacted. A knowledgeable virtual assistant (IVA) provides a wide range of client services, including providing product information, assisting with bills, addressing inquiries related to human specialists, and many more. BFSI areas are gradually adopting these frameworks to keep a safe distance from human interaction and to slow the growth of the Covid-19 pandemic. These circumstances are causing banking and financial institutions to coordinate with menial workers to foster market growth during COVID-19, which has significantly altered the market for observant distant workers.

Intelligent Virtual Assistant Market Dynamics

The rising use of digital and intelligent speaker-based technologies in the retail industry is mostly to blame for expanding the market for intelligent virtual assistants. IVA market acceptance has been spurred by the rise in automation use across many industries, including BFSI, retail, residential, and others. The market is expanding due to rising consumer demand for automated customer support. The demand for IVA in the healthcare industry has increased during COVID times. This element is projected to fuel market expansion.

Market Key Drivers

• Increasing smartphone adoption

Smartphones are now an essential part of consumers' life. Consumers are now using their technologically advanced smartphones with installed virtual assistant apps in addition to the more conventional methods of communication, making their work somewhat easier. IVA is a practical form of assistance because it connects a customer's mobile device to their bank, doctor, and other services, allowing them to perform various tasks like mobile transactions, appointment scheduling, quick query resolution, and other things. As a result, the market for IVA technology would benefit from the increasing demand for smartphones.

Market Key Restraints:

• Lack of willingness to understand

An artificially intelligent virtual assistant's efficiency depends most on its recognition ability. Customers, therefore, prefer a quick, responsive system, but an intelligent virtual assistant takes time to become used to the particular speech patterns of its users. Depending on the underlying complex software, integrated hardware capabilities, and the intensity and speed of internet access, this period can range from a few seconds to a few hours or even days. Consequently, it is anticipated that this aspect will somewhat restrain market expansion.

Market Key Opportunities:

• Growing demand for customer service automation

One of the major factors boosting the market is the quick uptake of intelligent virtual assistants. A virtual assistant with intelligence can help with data collecting, quick responses, and reducing reliance on customer service, among other things. With the help of an intelligent virtual assistant, users can create a multilingual digital avatar. Creating large-, mid-, and small-scale firms supports this quick implementation. As a result, increased consumer adoption promotes the market for artificially intelligent virtual assistants.

Intelligent Virtual Assistant Market Segmentation Overview

Technology Insights

The intelligent virtual assistant market segmentation, based on technology, is speech recognition, text-to-speech, and voice recognition. Through the forecast period, the market's speech recognition sector is anticipated to register a major CAGR. The adoption of smart speakers across a wide range of businesses is expected to increase demand for automatic voice recognition technologies. The text-to-speech recognition segment of the market is anticipated to expand at a consistent CAGR due to the technology's numerous applications that help organizations, consumers, educational institutions, and individual users.

Service Insights

Based on service, the market is categorized into customer service and marketing assistance. The intelligent virtual assistant market growth was prominently high in the customer service sector. The segment will probably see a rise in the proportion of work completed using digital engagement models based on platforms and collaborative tools. However, in 2021, marketing assistance also experienced significant growth. The sector is expanding due to people's increasing desire for mobile devices for on-the-go information access and the concomitant acceleration of the shift from desktop PCs to smartphones.

Application Insights

The intelligent virtual assistant market segmentation, based on application, is BFSI, automotive, IT & Telecom, retail, healthcare, and education. BFSI currently holds the top spot in the market and is anticipated to expand at a CAGR of 30.6% throughout the forecast. It offers 24/7 individualized financial counseling to all of its clients. Throughout the projected timeframe, the automotive industry is predicted to increase at the quickest rate. The market is expanding due to rising demand for intelligent virtual assistant systems in the automotive industry, speech recognition technology, and internet penetration.

Global Intelligent Virtual Assistant Market Share by Region, 2021 (%)

Intelligent Virtual Assistant Market Overview by Region

By region, the intelligent virtual assistant market has been categorized into Asia-Pacific, Europe, North America, and the Rest of the World. The fastest CAGR is anticipated for Asia-Pacific during the review period. The largest share of the market was in North America.

North America Analysis

With a revenue share of 43.94% in 2021, North America topped the market for digital assistants in terms of size. Working remotely has become more common as a result of evolving BYOD tendencies. Working from home gives employees flexibility and makes it possible to use a virtual assistant to complete tasks quickly. This increases overall productivity and job efficiency. Similarly, the healthcare sector in North America has acknowledged the advantages of IVAs and is concentrating on enhancing the effectiveness of healthcare systems. Additionally, businesses are increasing their efforts in creating better IVA technology with machine learning and artificial intelligence to assist automated decision-making systems, which is anticipated to drive the market throughout the area.

Asia-Pacific Analysis

Over the projected period, the Asia-Pacific region is predicted to see the fastest CAGR growth due to China's expanding retail and consumer electronics industries. The development of AI-powered IVAs for business interaction has shown that they are quite competent at business tasks like booking appointments and consulting across various industries. Businesses introduce products that allow an app or gadget to function as an AI agent.

Intelligent Virtual Assistant Market Competitive Landscape

There are tier-1, tier-2, and local companies in the market for an intelligent virtual assistant. The primary market participants concentrate on introducing new products, company growth, and innovation. For instance, in March 2022, Nuance Communications, Inc. expanded its next-generation ambient AI capabilities for diagnostic imaging. Improved AI-powered reporting features in the Nuance PowerScribe platform will enable radiologists to write highly accurate reports in less time and with more clinically valuable structured data.

Prominent intelligent virtual assistant market research players include Apple Inc., Oracle Corporation, Google LLC, IBM Corporation, Nuance Communications, Microsoft Corporation, Clara Labs, InteliWISE, eGain Communications, Artificial Solutions, 24/7 Customer Inc., Creative Virtual, and Anboto.

Scope of Intelligent Virtual Assistant Market Report

Technology Outlook (Revenue, USD Billion, 2022-2030)

• Speech recognition


• Text-to-speech


• Voice recognition

Service Outlook (Revenue, USD Billion, 2022-2030)

• Customer Service


• Marketing Assistance

Application Outlook (Revenue, USD Billion, 2022-2030)

• BFSI


• Automotive


• IT &telecom


• Retail


• Healthcare


• Education

Region Outlook (Revenue, USD Billion, 2022-2030)

• 
  North America
  
  
  
  • Canada
  
  
  • Mexico
  
  
  • US
  
  
  
  


• 
  Asia-Pacific
  
  
  
  • India
  
  
  • China
  
  
  • Australia and New Zealand
  
  
  • Japan
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  Europe
  
  
  
  • Germany
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • France
  
  
  • Rest of Europe
  
  
  
  


• 
  Rest of the World
  
  
  
  • Africa
  
  
  • South America
  
  
  • Middle East
  
  
  
  

Objectives of the Study

The study's objectives are outlined in five stages. They are as mentioned below:

Intelligent Virtual Assistant Market Forecast & Size:

To determine and evaluate the market's size for the intelligent virtual assistant market report is categorized by technology, end-user, service, and application by value (in US dollars). Additionally, to comprehend the need for and consumption by consumers  intelligent virtual assistant market forecast between 2022 and 2030

Market Landscape and Trends:

To determine and infer the drivers, restraints, opportunities, and challenges in the  intelligent virtual assistant market growth

Market Influencing Factors:

To find out the factors which are impacting the  intelligent virtual assistant market size among the consumers

Impact of COVID-19:

To determine and understand the various factors involved in the market affected by the pandemic

Company Profiling:

To provide detailed information into the leading market players operating in the market. The company's financial performance during the last two to three years will be described, along with product offers, recent developments, SWOT assessments, and significant business efforts.

Intended Audience

• Intelligent virtual assistant manufacturers


• Raw material suppliers


• Retailers, wholesalers, and distributors


• Governments, associations, and industrial bodies


• IT and Automation Sector