Intelligent Virtual Assistant (IVA) Market Size, Share & Trends Analysis Report By Product (Chatbots, Smart Speakers), By Technology (Speech Recognition, Text-to-Speech), By Application, And Regional Forecasts, 2019 - 2025

Industry Insights

The global Intelligent Virtual Assistant market size was valued at USD 2.39 billion in 2018 and is expected to expand at a CAGR of 40.4% over the forecast period. Demand for automation in service based companies and Integration of Artificial Intelligence (AI) and Internet of Things (IoT) coupled with the hyper usage of smartphones is anticipated to drive the growth. Moreover, automation technologies such as Robotic Process Automation (RPA) and AI are proliferating in the healthcare sector. Thus, intelligent virtual assistants are expected to witness high demand over the next five years.

Usage of modern technology products, specifically chatbots and smart speakers are increasing in automotive, retail, travel and hospitality, and media and entertainment, among other sectors. In the last few years, consumer product brands have adopted intelligent virtual assistants. Furthermore, continuous advancements and innovation with virtual assistant products designed for healthcare clients using AI and Natural Language Processing (NLP) are anticipated to entice the end-user for enhancing the customer experience, thereby propelling market growth.

Increasing penetration of smartphones and tablets is resulting in high growth in mobile banking, which has become a crucial differentiator in consumer services. Banks benefit from the virtual agents by providing round the clock services and automating routine services boosting consumer satisfaction and reducing inbound calls, thereby influencing the BFSI sector over the forecast period.

Virtual assistant technology provides features such as conversing in natural language, lifelike avatar, understanding different language, and responding in text or voice. The IVAs offer personalized services and experiences and can also be configured to give more information on offers and promotions, which reduces the need of support team and helps build brand image and customer satisfaction. Organizations can improve customer service functions including meeting reminders, front desk activities, and other personalized services by leveraging the virtual assistant solutions. Moreover, they generate report showing trends of frequently asked questions and level of consumer satisfaction based on the response to those questions. This proves to be advantageous in improving the quality of response and achieving customer satisfaction.

Products Insights

Smart speakers segment is expected to expand at the fastest CAGR over the forecast period. Smart speakers are used in residential as well as commercial sectors. There has been a remarkable rise in demand for the adoption of smart speakers in smart offices, smart homes, and automotive applications. Moreover, growing smartphone usage has proliferated the smart speakers market. Increasing urban population, industrialization, and need for 24*7 efficiency have generated the need to integrate a smart home appliance. These smart homes are well equipped with an advanced automation system that controls devices and appliances such as HVAC, smart thermostats, and security systems through an internet connection. These smart appliances when connected with smart speakers reduce the amount of work done.

Chatbots held the largest market share in 2018. Chatbots are widely adopted in banking, insurance, retail, and consumer goods segments. They are widely used in banking operations as telecallers. Chatbots communicate with the customers with the help of Automated Speech Recognition (ASR), Text to Speech, and text based technologies

Application Insights

Automotive is emerging as the fastest growing segment in the Intelligent Virtual Assistant (IVA) market, which is expected to witness continuous growth in near future. Automotive manufacturers are integrating emerging technologies such as automatic parking, adaptive cruise control, lane assistance, and other ADAS technologies. Combining these features with a virtual assistant not only provides personalized content to the driver but also delivers a smart connected and safer driving experience. Several companies are investing in developing the advanced virtual assistant for the automotive platform to tap the full potential of the segment.

Retailers are also increasingly indulging in providing website support to market their offerings and meet their consumer demand. Retail segment is anticipated to register huge adoption of virtual assistants, owing to the features such as answering consumer queries and issues in an efficient and cost effective manner. Moreover, they can understand and respond to customers using natural language. Virtual assistant in retail industry provide platform to engage with customers and drive positive changes in their behavior by initiatives such as highlighting products relevant to their previous browsing. They provide personalized and expert service to customers regardless of time, geography, and channel without the presence of actual sales person. This increases consumer satisfaction and lowers cost, which is expected to drive the demand for IVA in retail.

Virtual assistant in healthcare enables connectivity and interaction between the providers and patients, resulting in increasing demand across the segment. It provides continuous tracking of patient condition through their smartphones and capturing data through their voices. Moreover, it uses natural language processing to understand the need and condition of the patient and reports with meaningful data. Furthermore, hospitals use IVR to perform tasks such as scheduling appointments and requesting lab results. This improves the patient engagement and reduces the healthcare inefficiencies. Moreover, they provide round the clock assistance which is anticipated to fuel the market.

Technology Insights

Over the years, the popularity of speech recognition has steadily increased owing to adoption of mobile computing technology. Speech recognition makes interaction with smartphone and its application easy and is the prime factor for developers to adopt this technology. Owing to its hands free computing, transcription and translation features, automatic speech recognition is expected to expand at the fastest CAGR of 39.5% over the forecast period.

Text to Speech recognition was valued at USD 1.42 billion in 2018 and is expected to expand at a steady CAGR, owing to versatile application of the technology that benefit businesses, consumers, educational institute, and personal users. Furthermore, it allows content owners to respond to different needs and desires of users and the way they interact with the content.

Regional Insights

North America held the largest market share in 2018. Increasing number of wireless and mobile subscribers is expected to fuel the demand from individual users. Furthermore, changing Bring Your Own Device (BYOD) trends have led to the emergence of working remotely. Technological advancements over the years have resulted in increased usage of cloud-based tools such as Skype and MS Office Online. Rising usage of these cloud-based tools represents increasing number of people working remotely, which in turn offers huge opportunity for market growth.

Asia Pacific is expected to expand at the fastest CAGR over the forecast period owing to the growing retail and consumer electronics sectors in China. In addition, to cater the needs of increasing population, banking and insurance have registered increased demand for virtual assistants.

Intelligent Virtual Assistant (IVA) Market Share Insights

Nuance Communications, Inc.; Oracle Corporation; Apple Inc.; Microsoft; eGain Corporation; Amazon; Verint; IBM Corporation; Google Inc.; CodeBaby Corporation; MedRespond; Next IT Corporation; CSS Corporation; Welltok Inc.; and True Image Interactive Inc.; among others are the key market players. These companies are aggressive with the R&D activities and are heading towards innovation. The IVAs integrated with AI have created a massive storm of opportunities in terms of application across various business and services.

Companies are actively working on the development of equipment and an app to act as an AI agent. These IVAs provide assistance to various sectors such as hospitals, pharmacy, travel agencies, hotels, bookings, and other related areas to handle more customers and to convey higher customer practice.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global Intelligent Virtual Assistant (IVA) market report on the basis of product, technology, application, and region:

• Product Outlook (Revenue, USD Million, 2015 - 2025)

  • Chatbots

  • Smart Speakers

• Technology Outlook (Revenue, USD Million, 2015 - 2025)

  • Automatic Speech Recognition

  • Text-to-Speech

  • Text based

• Application Outlook (Revenue, USD Million, 2015 - 2025)

  • BFSI

  • Consumer Electronics

  • Automotive

  • Healthcare

  • Education

  • Retail

  • Government

  • Travel & Hospitality

  • Others

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa