Intelligent Virtual Assistant (IVA) Market size exceeded USD 1 billion in 2017 and is projected to grow at 37% CAGR through 2024. Advanced features such as the ability to recognize different languages, interact in natural language, and respond via text or voice is likely to drive the industry demand. Increasing penetration of the technology in smartphones and the growing adoption of smartphones are propelling the IVA market growth.
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The technology allows consumers to perform simple tasks easily without any physical involvement of the customer. Furthermore, it also allows customers to gain necessary information effectively instead of waiting in queues for customer service. The technology is being deployed in mobile devices, enterprise websites, and social media that enable constant communication with clients. For instance, companies install virtual assistants to provide brands or product information to clients to increase the brand awareness. Additionally, it also helps in promotions by asking new users to sign into the company's loyalty account. Customer engagement solutions emphasize on providing enhanced direct experience and help companies in increasing revenue, expanding margin, and improving customer satisfaction and retention.
|Intelligent Virtual Assistant (IVA) Market Size in 2017:||1 Billion (USD)|
|Forecast Period:||2018 to 2024|
|Forecast Period 2018 to 2024 CAGR:||37%|
|2024 Value Projection:||11.5 Billion (USD)|
|Historical Data for:||2013 to 2017|
|No. of Pages:||300|
|Tables, Charts & Figures:||266|
|Segments covered:||Technology, Service, Application, End-Use and Region|
|Pitfalls & Challenges:|
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Speech recognition market is expected to cross USD 7.5 billion by 2024 due to the implementation of the technology on smartphones. The technology is allowing customers to easily interact and perform tasks with smartphones. The industry verticals, such as BFSI, retail, and education, are using the technology to improve the quality of operations and conduct business operations with ease, thus aiding the intelligent virtual assistant market growth.
Consumer service segment captured a majority market share and is poised to observe 37% CAGR through 2024. Exponentially increasing customer expectations and the growing need among companies to fulfill their demand are propelling the demand for these services. The technology allows companies to respond dynamically to satisfy customer demands and answer their queries. It also allows companies to handle large amounts of customer requests and respond effectively & efficiently.
The intelligent virtual assistant market demand in large enterprises is set to surpass USD 6 billion by 2024. An increasing number of large enterprises is adopting the technology to increase revenue and reduce the dependence on humans for customer service. Industry verticals including banking, IT & telecom, and retail are replacing traditional systems with these systems to improve the return on investment.
SMBs segment accounted for more than 30% of the IVA market revenue share. Advantages of the technology including reduced operating costs and improved business operations are encouraging SMBs to adopt these solutions. Reduced requirements of the human workforce to cater to customer service requirements are allowing SMBs to incorporate the technology into businesses.
The intelligent virtual assistant market in automotive applications is predicted to exceed USD 2.8 billion by 2024 on account of the increasing use of technology in connected cars.
The BFSI applications is estimated to expand at 20% CAGR till 2024. The adoption of technology in the BFSI sector is mainly due to benefits offered by the technology such as quickly finding answers to queries and reducing the response time. The technology responds to customer queries while making transfers and paying bills. The technology has enabled customers to gain customer service at all times and reduce the call waiting time.
The Germany IVA market surpassed USD 110 million in 2017 and is forecast to achieve exponential growth owing to the adoption of smart devices in the country. Technological adoption has resulted in an increased adoption of applications such as MS Office Online and Skype in enterprise applications. Furthermore, the adoption of voice assistants in consumer devices such as smart speakers has rapidly increased in the last five years. According to a report published by Federal Association for Information Technology of Germany, about 13% of people own voice-enabled devices.
The Asia Pacific intelligent virtual assistant market is growing significantly over the forecast timespan propelled by the increasing need to automate and fulfill tasks such as managing schedules, playing music, and answer questions.
Key players in the IVA market include
The industry is highly competitive and is driven by continuous innovations & technological advancements. These companies need to differentiate to gain a competitive edge and hence they invest heavily in R&D.
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Market, By Technology
Market, By Service
Market, By End-Use
Market, By Application
The above information is provided on the basis of the following regions and countries: