Intelligent Virtual Assistant (IVA) Market Size By Technology (Speech Recognition, Text-To-Speech, Voice Recognition), By Service (Customer Service, Marketing Assistant), By Application (Automotive, BFSI, Retail, IT & Telecom, Healthcare, Education), By End-Use (SMBs, Large Enterprises, Individual Users), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Mexico), Application Potential, Price Trends, Competitive Market Share & Forecast, 2016 – 2024
Published Date: December 2016 | 180 Pages | Report ID: GMI1094 Report Format: PDF
Intelligent Virtual Assistant (IVA) Market size was over USD 800 million in 2015 with 34.9% CAGR estimation from 2016 to 2024.
U.S. Intelligent Virtual Assistant (IVA) Market size, by application, 2013-2024 (USD Million)
Rising scope of applications including healthcare, BFSI, and retail will be a key driver for the Intelligent Virtual Assistant market in the coming years. An increasing number of handheld and mobile devices including smartphones and tablets have led to financial institutions providing an increasing number of communication platforms. High demand for self-service in addition to strong customer service across the BFSI sector will provide ample opportunities to the intelligent virtual assistant market size.
IVA technology provides features such as interaction in natural language, lifelike avatar, ability to recognize different languages and respond via text or voice. For example, DigitalCX by CX Company understands the questions posed by the user and provides step-by-step activities and cross sell opportunities depending on the customer interest. In addition, it also offers personalized experience to reduce the need of being in touch with the support team, which in turn increases the customer satisfaction.
Increase in the affordability of smartphones and tablets along with growing acceptance of corporate BYOD programs is expected to drive the intelligent virtual assistant market size. The technology provides personalized experience by analyzing employees’ needs and delivers services and information whenever they require through mobile devices. For instance, Digital Employee by Artificial Solutions works on helpdesk and assists sales teams to reach their target.
Speech recognition is expected to cross USD 7.5 billion by 2024 owing to the expansion of the technology on mobile devices. Increasing global mobile device adoption will boost the segment demand over the future. Moreover, rising penetration of the technology in applications such as automotive and healthcare is expected to propel segment growth.
Voice recognition is projected to witness significant growth over the future owing to high demand for the technology across biometric identification and voiceprints for authentication applications.
Customer service segment is expected to observe substantial growth at over 35% CAGR from 2016 to 2024. Rising customer expectations have led organizations to embrace a strategy of continuous customer-centric adaptation. Advanced IVAs respond in a dynamically refined and improved way to best satisfy the customer’s needs. Moreover, the technology is able to handle a large volume of requests, allowing organizations to focus on their core competencies. Such factors are expected to fuel the demand for intelligent virtual assistant market share in the customer service segment.
Automotive applications will rapidly gain share to exceed USD 2.8 billion by 2024. Several industry players are developing advanced virtual assistants for the automotive sector to leverage the full potential. Recently, in 2016, Nuance announced the release of its latest virtual assistant platform, Dragon Drive Automotive Assistant for connected cars, which enables drivers to personalize their in-car experience. The incorporation of the technology helps ensure driving assistance to mitigate risks, which is expected to fuel intelligent virtual assistant market share.
The healthcare segment may witness high adoption over the next few years. Rising demand in hospitals to perform tasks such as scheduling appointments and requesting lab results propels the industry adoption across the segment. It improves the patient engagement and reduces the healthcare system inefficiencies.
SMBs segment is expected to grow at over 37% CAGR over the forecast period. Increasing advantages of the technology such as improved business quality and reduced operating cost are encouraging the SMBs to adopt the technology at a considerable rate, fueling the industry growth. Moreover, minimized need to hire full time employees and office space, administrative service and marketing assistant are the factors contributing to the industry growth.
North America led the global revenue in 2015 and is expected to continue dominating the industry due to high smartphones adoption and demand along with the implementation of the enterprise mobility and BYOD business model. Asia Pacific intelligent virtual assistant market size will witness significant growth at over 40% CAGR from 2016 to 2024. Considerable self-reliance demand is forecast to be the chief driver. Attractive India and China intelligent virtual assistant market share will also be responsible for driving growth across the region.
Competitive Market Share
Key industry players include Nuance, IBM Corporation, Clara Labs, Creative Virtual and eGain Communications. Other notable players include InteliWISE, CX Company, Artificial Solutions, 24/7 Customer Inc., Anboto, etc. Companies operating in the industry enter cooperative relationships and agreements with third party providers. This helps them improve the technology base along with anticipating and fulfilling potential customer requirements.
The global industry is driven by innovation and technological advancements. Companies invest immensely in R&D operations to offer differentiated solutions to gain market share. For instance, in 2015, Amazon launched Alexa, a voice stimulated device that answers to the user’s voice and act on requests. However, to differentiate Alexa from other virtual assistants such as Apple’s Siri and Samsung’s S Voice, it offers advanced features and operates as a speaker that can hear the user from anywhere in the room.
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