VIRTUAL SHOPPING ASSISTANT MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Virtual Shopping Assistant Market Size and Trends

The Global Virtual Shopping Assistant Market is estimated to be valued at US$ 624.7 million in 2023 and is expected to reach US$ 4,575.9 million by 2030, growing at a compound annual growth rate (CAGR) of 32.9% from 2023 to 2030. Virtual shopping assistants are AI-powered conversational agents that provide customized assistance to shoppers for products and services. They engage with customers through chat, voice, and avatar interfaces across platforms like websites, mobile apps, messaging platforms, and IoT devices. These assistants help shoppers navigate product selections, provide personalized recommendations, answer questions, simplify payments, and deliver post-purchase customer support.

The key advantages of virtual shopping assistants include 24x7 availability, the ability to handle high volumes of customer queries, and deliver personalized shopping experiences. The growth in this market is driven by factors like the increasing use of conversational commerce, rising demand for personalized shopping, and the growing adoption of AI and NLP.

Virtual Shopping Assistant Market Trends:

• Advancing Conversational AI: Natural language processing, speech recognition and generation underlying conversational AI assistants are advancing rapidly. Solutions can understand complex intent, have multi-turn conversations and handle domain-specific vocabularies. Contextual awareness and personalization are improving. Advances like sentiment analysis, intent prediction, dialogue management and code-free customization will expand virtual assistant capabilities and drive wider adoption. Conversational AI can be used to provide financial advice and handle transactions. For instance, in 2022 according to Consumer Financial Protection Bureau (CFPB), around 37% of the U.S. population is believed to have engaged with a bank's chatbot, and this number is expected to increase. The evolution of chatbot technology has prompted banks to shift from basic, rule-based chatbots to more advanced technologies, including large language models (LLMs) and those marketed as "artificial intelligence
• Integration of Voice Commerce: Voice-based interfaces are gaining prominence across consumer devices. Virtual assistants that support voice interactions enable hands-free shopping by answering customer queries, recommending products, comparing options and assisting purchases. Voice makes the experience more natural with multi-turn conversations that can use contextual cues. Voice commerce integration will make virtual shopping assistants more ubiquitous. Customers can simply use voice commands to order products from Amazon through Alexa, without having to manually search and select products. For instance, in August 2023, Amazon reported a 21% rise in the utilization of multilingual mode on Alexa in India, with nearly half of Echo users taking advantage of this feature.