INTELLIGENT VIRTUAL ASSISTANT MARKET ANALYSIS

Market Overview

A virtual assistant is an intelligent system that supports users whenever users seek information. Virtual assistants act as a real system, in order to avoid users waiting for a long time in getting the information they need. An intelligent virtual assistant not only aims to answer user queries but also offers recommendations in order to keep the user communication going. A virtual assistant helps to establish brand loyalty through a persona. A virtual assistant solves customer queries as well as help to advertise products. Furthermore, the virtual assistant has become popular due to its ability to personalize customer service experience.

The global intelligent virtual assistant market is estimated to account for US$ 47,259.2 Mn in terms of value by the end of 2027.

Market Dynamics- Drivers

1. Increasing data explosion is expected to drive growth of the global intelligent virtual assistant market during the forecast period

Production of data is increasing at a rampant pace, owing to switch from analog to digital technologies. According to Coherent Market Insights’ analysis, around 20% of the global population is expected to come online using wireless devices in the near future. The usage of internet is expected to increase from level to high during the forecast period, owing to rising consumer awareness and increase in usage of smartphones. Furthermore, the introduction of the digital era has led to storage of more and more information in the digital medium and displaying them on internet. This is due to varied nature of internet where there are millions of websites with different information and each website differing from the other. This leads to a decrease in user’s interest in surfing the company’s website which in turn leads to potential loss of customers for the company. Therefore, these factors are expected to drive growth of the global intelligent virtual assistant market during the forecast period.

2. Growing emphasis on improving alignment between customers is expected to propel the global intelligent virtual market growth over the forecast period

The major challenge faced by customers who interact with the website of an organization is the inability to find answer to queries. However, organizations are more focused on delivering their core capabilities with little focus on answering customer questions online and guiding them to right products. Virtual assistant helps the organization to serve customers by providing alternative way to interact. Virtual assistants provide guidance to customers on everything related to a particular organization. According to survey conducted by PayPal around 22% of shoppers abandon their shopping carts due to inability to find answers to common support issues during purchasing. Thus, these factors are expected to propel the global intelligent virtual market growth over the forecast period.

Statistics:

North America held dominant position in the global intelligent virtual assistant market in 2019, accounting for 37.8% share in terms of value, followed by Europe, and APAC respectively.

Figure 1: Global Intelligent Virtual Assistant Market Share (%), in terms of Value, By Region, 2019

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Market Dynamics- Restraint

1. High cost and complexity associated with virtual assistant is expected to hamper the global intelligent virtual assistant market growth over the forecast period

Virtual assistants cannot be built with singular technology. As a matter of fact, it is built using a collection of technologies. The primary aim of a virtual assistant is to integrate with various platforms such as fax, email, webchat, video, voice, and social feeds such as Facebook, and Twitter. Customers are expecting a human-like experience. Providing such experiences require significant investment and is extremely complex to make. Therefore, these factors are expected to hamper the global intelligent virtual assistant market growth in the near future.  

2. Lack of skilled personnel is expected to restrain growth of the global intelligent virtual assistant market during the forecast period

Building an intelligent virtual assistant is highly complex and skillful procedure. It needs to be programmed in such a way that it could interact with the user and offer adequate information. The virtual assistant needs to understand social situation and context of language when having a conversation. Such complex computer programming requires highly skilled personnel, which are scarcely available. Therefore, these factors are expected to hinder the global intelligent virtual assistant market growth in the near future.

Market Opportunity

1. Growing application area of virtual assistant can provide major business opportunities in the global intelligent virtual assistant market

Artificial intelligence has become mainstream over the years due to increasing application. It has been used in various sectors from users seek information to drivers asking cars to play music and find directions. For instance, in January 2013, Honda Motor Company added Apple’s Siri Eye Free virtual assistant to their cars. This virtual assistant enables drivers to interact with their iPad and iPhone without taking their hands off the steering. Over the period of time, such virtual assistants will be available to patients where the patients can do initial assessment followed by practitioner assessment. This will reduce the time of doctors thereby making healthcare cheaper.

2. Research and development activities by market players can present lucrative growth opportunities in the global intelligent virtual assistant market

Major companies in the market are focused on research and development activities, in order to expand the product portfolio. For instance, in October 2013, Next IT launched a new virtual assistant for the healthcare platform. In September 2013, NextIT launched its next generation of virtual assistants called Alme for Chat. Furthermore, in June 2013, the company launched a new virtual assistant for TAM airlines.

Figure 2: Global Intelligent Virtual Assistant Market Value (US$ Mn), 2017 - 2027

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The global intelligent virtual assistant market was valued at US$ 2,126.4 Mn in 2019 and is forecast to reach a value of US$ 47,259.2 Mn by 2027 at a CAGR of 47.4% between 2020 and 2027.

Market Trends

1. Rising use of virtual assistant

Artificial intelligence acts as a necessary extension to the universe with respect to virtual reality. The idea of virtual assistants is expected to provide endless possibilities. Apart from intelligent web browsing, virtual assistants are expected to improve call centers, banking sectors, and healthcare centers among others. In today’s fast-paced world, filling out the paperwork can be a time-consuming practice. Nuance Communication Inc. is expected to launch virtual assistants for doctors by late 2014. Intelligent virtual assistants are expected to provide endless possibilities with various interactive electronic devices such as TVs and mobile devices.

2. Partnerships and agreements among market players

Major companies are focused on partnerships and collaborations, in order to gain a competitive edge in the market. For instance, in June 2013, CodeBaby partnered with Three-Sixty Advisory Group LLC. In June 2013, CodeBaby partnered with Benefitfocus, wherein Benefitfocus is expected to provide on-demand customer support and insurance carriers to the healthcare sector.

Global Intelligent Virtual Assistant Market - Impact of Coronavirus (Covid-19) Pandemic

Due to Covid-19 pandemic, many industries witnessed significant shift in their business. There is significant impact on intelligent virtual assistant market, as intelligent virtual assistant(IVA) is used to offer wide range of customer services such as providing product information, assist in paying bills, handle query related to human agents and many others.  These system are increasingly adopted by BFSI sectors to avoid human interaction and to contain the spread of coronavirus pandemic. Banks are also providing voice to chat service in which customer can interact with live agent instead of waiting in a queue or on a phone call. For instance, in April 2020, TSB Bank plc., a U.K. based retail and commercial bank has launched smart agent in order to provide immediate response to the queries related to applying personal and business loan for customers during coronavirus pandemic. Such factors are propelling banking and financial institutions to integrate virtual assistant in order to increase market growth during COVID-19, which has positively impacted the intelligent virtual assistant market.

Competitive Section

Key players operating in the global intelligent virtual assistant market are NextIT Corp., eGain Communications Corp., Creative Virtual Ltd., Artificial Solutions Ltd., Creative Virtual Ltd., SpeakToit Inc., Anboto Group., IntelliResponse Systems Inc., Nuance Communications Inc., Five9 Inc., and CodeBaby Corp.

Key Development

1. Major market players are focused on product launches, in order to expand the product portfolio. For instance, in April 2020, Artificial Solutions Ltd. introduced, a business-focused artificial intelligent virtual assistant for private and public sector.
2. Key players are involved in product launches, in order to gain a competitive edge in the market. For instance, in June 2020, Five9 Inc. introduced Five9 Intelligent Virtual Assistant (IVA), powered by Inference, so as to automate tasks and answer questions.