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, Growth Potential, Competitive Market Share & Forecast, 2018 – 2024
Published Date: Dec 2018 | Report ID: GMI1094 | Authors: Preeti Wadhwani, Saloni Gankar
Intelligent Virtual Assistant Market size surpassed USD 1 billion in 2017 and is anticipated to grow at over 37% CAGR between 2018 and 2024. Advanced features such as the ability to recognize different languages, interact in natural language, and respond via text or voice will drive the market demand.
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Increasing penetration of the technology in smartphones and the growing adoption of smartphones are propelling the market growth. The IVA 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 intelligent virtual assistant 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.
|Base Year:||2017||Historical Data for:||2013 to 2017|
|Market Size in 2017:||1 Billion (USD)||Forecast Period:||2018 to 2024|
|Forecast Period 2018 to 2024 CAGR:||37%||No. of Pages:||300|
|2024 Value Projection:||11.5 Billion (USD)||Tables, Charts & Figures:||266|
|Geographies covered (17):||U.S., Canada, UK, Germany, France, Italy, Spain, Russia, China, Japan, South Korea, India, Brazil, Mexico, Saudi Arabia, UAE, South Africa|
|Segments covered:||Technology, Service, Application, End-Use and Region|
|Pitfalls & Challenges:|
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In addition, 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.
Market by Technology
Speech recognition technology segment in the market is expected to exceed USD 7.5 billion by 2024 driven by implementation of the IVAs on smartphones. The intelligent virtual assistant 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 (IVA) market size.
Market by Service
Consumer service segment holds majority market share and is poised to witness around 36% growth through 2024. Exponentially increasing customer expectations and the growing need among companies to fulfill their demand are propelling the demand for these services.
The intelligent virtual assistant 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.
Market by End-Use
The intelligent virtual assistant market demand from large enterprises is set to reach USD 6 billion valuation by 2024. An increasing number of large enterprises is adopting the IVA 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 accounted for over 30% market revenue share in 2017. Advantages of the IVA 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, thus propelling the market revenue.
Market by Application
The automotive application segment in the market will grow significantly, exceeding a revenue of USD 2.8 billion by 2024. The industry is being driven by increasing use of intelligent virtual assistant technology in connected cars.
The BFSI applications are expected to expand at more than 20% CAGR during the forecast timeframe. The adoption of the IVA 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, hence enabling customers to gain service and reduce the call waiting time.
Market by Region
The Germany intelligent virtual assistant market size valued at over USD 110 million in 2017 and is predicted to grow exponentially during the forecast period owing to 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 over 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, thus fueling the market growth.
The Asia Pacific market value is slated to register high gains till 2024 impelled by increasing need to automate and fulfill tasks such as managing schedules, playing music, and answer questions. The industry is expected to grow in countries including China and India with a high focus on offering self-service to customers.
Competitive Market Share
Key players in the market include Clara Labs, IBM, Nuance Communications, Creative Virtual, InteliWISE, Artificial Solutions, eGain Communications, 24/7 Customer, Inc., and Anboto.
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.
For instance, in 2015, Amazon launched its voice simulated software, Alexa that answers questions and responds to user requests. The company offers advanced features to differentiate the technology from competitors such as Siri by Apply and Bixby by Samsung.
The intelligent virtual assistant market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2013 to 2024, for the following segments:
- Speech recognition
- Voice recognition
- Customer service
- Marketing assistant
- Large enterprises
- Individual users
- IT & telecom
The above information is provided on the basis of the following regions and countries:
- North America
- Asia Pacific
- South Korea
- Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
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