The world is treading rapidly toward the path of artificial intelligence, paving the way for intelligent virtual assistant (IVA) market growth. With the advent of cutting edge technologies, software companies are striving toward enhancing virtual assistance, which involves the deployment of an expert-concocted character that is engineered to answer numerous questions put forth by customers. One of most famous examples of a virtual assistant is Apple’s Siri, deployed on the company’s mobile platform as well as operating system, which has become a legacy in itself. Companies are striving to further enhance the features of such programmed entities, which is sure to spur global intelligent virtual assistant market over the next few years.
IVA technology is embedded with features such as language recognition, voice recognition, speech identification, and personalized embodiment to help solve queries related to numerous topics. In short, intelligent virtual assistants function as sales agents, customer service executives, help guides, and the like. The proliferation of advanced software technologies in AI will augment intelligent virtual assistant industry, set to cross a valuation of USD 11 billion by 2024, with a CAGR estimation of nearly 35% over 2016-2024. The penetration of IVA technology in the BFSI, healthcare, retail, and IT will also contribute to the business expansion. Owing to the rapid propagation of smartphones, tablets, and other potable consumer electronic devices, the aforesaid professional domains are increasing the number of their communication platforms to enable the deployment of virtual assistants. This progress will further stimulate global intelligent virtual assistant market.
U.S. Intelligent Virtual Assistant (IVA) Market size, by application, 2013-2024 (USD Million)
IVAs can be used for providing customer services and are also enabled to function as marketing assistants. The latter is especially utilized across SMBs, as they reduce the need to recruit administrative staff, office spaces, sales workforce, or full time employees, which will augment intelligent virtual assistant market from end-use sectors such as SMBs as well as marketing assistant services. In fact, the rising innovations in AI technology and the benefits of IVAs such as enhanced business productiveness and reduced operational costs are prompting more and more SMBs to adopt IVAs, thereby stimulating intelligent virtual assistant industry from SMBs, slated to grow at a CAGR of 37% over 2016-2024.
IVAs are also being increasingly used for customer services. To enable a consumer-centric approach and satisfy the ever-growing list of customer queries, companies are adopting IVAs for serving their customers, which will enable intelligent virtual assistant market from customer services to grow at a rate of 35% over 2016-2024.
IVAs function mainly on the premise of voice recognition, speech recognition and text-to-speech. The growing need for security and authentication by converting a user’s voice to data patterns , especially across the BFSI sector, will propel global biometrics market, which will further lead voice recognition based intelligent virtual assistant industry to grow at significant rate over the next few years. Speech recognition technology, on the other hand, will hit a revenue of USD 7.5 billion by 2024, growing at a CAGR of 37% over 2016-2024, powered by the increasing deployment of this technology across mobile phones.
IVAs find massive applications across the BFSI, IT, healthcare, telecommunications, retail, education, and automotive sectors. Increasing customer queries regarding sensitive medical topics pertaining to the causes, symptoms, diagnosis, and treatment of diseases will lead to the adoption of these devices by the medical fraternity, which will undeniably fuel intelligent virtual assistant market from healthcare applications over the years to come. In addition, the ever-growing need to enhance doctor-patient or staff-patient interaction rate, request for test results on time, schedule appointments, and minimize the disorganization in hospitals will impel intelligent virtual assistant industry share from hospitals.
The incorporation of artificial intelligence in the automotive sector is not hot off the press, it has been paramount ever since the advent of autonomous cars. Self-driving technology demands heavy implementation of virtual assistants for helping drivers park appropriately, drive efficiently, and avoid accidents and other mishaps. In short, connected cars enhance user experience and have prompted autonomous cars market players to develop highly innovative and advanced chatbots to personalize self-driving cars, thereby providing a huge impetus to global intelligent virtual assistant industry from automotive applications, set to surpass a revenue of USD 2.8 billion by 2024.
Intelligent virtual assistant market giants are striving to enhance IVA technology and develop highly automated and technically challenged IVAs to be deployed across numerous professional sectors. Nuance technologies recently introduced the Dragon Drive Automotive Assistant, the company’s flagship virtual assistant, which has already created a legacy as it enabled users to personalize their self-driving car experience. Industry players are involved in collaborations with third parties to improve the technology for enhanced consumer satisfaction. Major companies accumulating a share of global intelligent virtual assistant market include CX Company, IBM Corporation, Nuance, Anboto, eGain Communications, Clara Labs, Creative Virtual, InteliWISE, 24/7 Customer Inc., and Artificial Solutions.
IVA market has established its presence across various geographies. Asia Pacific intelligent virtual assistant industry, driven by the rising demand for automation and authentication across various application sectors, will observe a CAGR of more than 40% CAGR over 2016-2024. China and India will be the major revenue contributors for APAC intelligent virtual assistant market expansion. North America dominated global intelligent virtual assistant industry in 2015 and is anticipated to assert its dominance over 2016-2024. This preeminence can be credited to the high adoption of IVA technology and BYOD business models across various sectors.
The rapid advancements in AI technology will be a prime factor contributing to the extensive growth of intelligent virtual assistant market. Leading providers of IVA technology are investing in research and development activities to come up with cost-effective, highly efficient, and extremely sophisticated and methodological chatbots that are sure to revolutionize global intelligent virtual assistant market over the span of the next few years.