Virtual Influencer Market Size, Share & Trends Analysis Report By Type (Non-human, Human), By Offering (Solution, Services), By End-use, By Region, And Segment Forecasts, 2023 - 2030

Virtual Influencer Market Size & Trends

The global virtual influencer market size was estimated at USD 3.60 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 38.9% from 2023 to 2030. The factors, such as continuously evolving digital landscape and rising usage of social media worldwide are fueling the market’s growth. Increasing numbers of virtual influencers are offering brands a higher degree of creative freedom.

The evolution of the fashion industry has emerged as a major market driver due to the remarkable creative freedom and cost-effective scalability offered by virtual influencer solutions. Marketers within the fashion sector leverage virtual influencers to tailor their interests, content style, and appearance, aligning them precisely with their campaign objectives while expressing both personality and brand values. This adaptable approach enables fashion brands to effectively target their desired customer segments while maintaining flexibility in their marketing strategies, which is augmenting market growth.

Furthermore, key organizations are continuously supporting the evolution of the market by launching new avatars and technologies, which are expected to enhance end-user experience. For instance, in December 2022, TopSocial India, a provider of influencer marketing platforms, launched a virtual influencer named Sravya, specially designed for the South Indian market, and can speak in Tamil, Telugu, Kannada, and Malayalam. This virtual influencer is aimed at supporting the marketing efforts of Key Opinion Leaders (KoLs) and customer engagement managers from South India.

The COVID-19 pandemic resulted in lockdowns and the temporary closure of manufacturing facilities and factories. This had a global impact on the demand and supply chain, causing disruptions in various industries. However, the pandemic had a positive impact on the market for virtual influencers as more people were using social media and online platforms due to lockdowns, which meant virtual influencers had a bigger and more interested audience. Moreover, the ongoing innovation and development in the market are anticipated to propel the market growth over the forecast period.

Moreover, the ongoing advancements in virtual influencer technology are driving the market forward by enabling the creation of increasingly realistic and engaging virtual influencers. As consumer preferences evolve, there is a growing demand for authenticity and transparency in brand interactions. Virtual influencers offer brands a strong resource to establish genuine and authentic connections with consumers, which is expected to propel the market growth over the forecast period.

Type Insights

The non-human type segment is expected to register the fastest CAGR of over 40% over the forecast period. The emergence and popularity of non-human avatars is driving this growth. Their limitless and unique designs capture attention in the crowded online space, allowing brands to differentiate themselves and forge a distinctive identity.Moreover, the flexibility and adaptability of non-human avatars make them suitable for various marketing campaigns, which is fueling the segment growth.

The human avatar type segment held the largest market share of over 68% in 2022 due to the increasing demand for more realistic and relatable virtual influencers, as human avatars can connect with consumers on an emotional level. Furthermore, the use of Artificial Intelligence (AI) to create more realistic and lifelike human avatars is fueling the segment growth over the forecast period.

Offering Insights

The solution segment held the largest market share of over 69% in 2022. The growth in the segment is fueled by the rising demand for unique solutions that simplify the process of integrating virtual influencers into marketing strategies. Solution providers are offering their expertise and creative solutions to implement virtual influencers in several marketing campaigns, which is driving segment growth over the forecast period.

The services segment is expected to grow at the fastest CAGR from 2023 to 2030. This is attributed to the numerous services offered, which include consultancy, analytics and reporting, and others, along with leveraging advanced technology to engage with audiences across various platforms. Brands and agencies are increasingly turning to specialized service providers as they help agencies create and manage virtual influencers effectively, which is expected to augment the segment demand over the forecast period.

End-use Insights

The fashion & lifestyle segment held the highest revenue share of over 34% in 2022 and is projected to continue its dominance over the forecast period. Brands associated with the fashion and lifestyle sectors find virtual influencers particularly appealing for promoting a range of products such as clothing, bags, accessories, footwear, beauty items, and wallets. With the ongoing technological advancements, the virtual influencers are getting increasingly realistic and relatable, therefore, the fashion and lifestyle segment is expected to influence the segment's growth further.

The food & entertainment segment is expected to grow at the fastest CAGR from 2023 to 2030. Virtual influencers are used to promote restaurants and products in the food industry as they are considered to appeal younger audiences. They are also used to promote the entertainment industry's television shows, movies, and music to create hype for new events and projects, which is projected to offer significant growth opportunities for virtual influencers in the food & entertainment segment in the coming future.

Regional Insights

The North America region witnessed the largest market share of over 44% in 2022. The region is home to some popular social media platforms. Companies from a wide range of industries, such as entertainment, fashion, and beauty, are incorporating virtual influencers into their marketing strategies. Lil Miquela from the U.S. and Avery from Canada are among the popular virtual influencers in the region. The rising importance of social media among consumers and the increased focus of brands on exploring innovative ways to target customers are projected to fuel the market growth in the region.

The Asia Pacific region is projected to grow at the fastest CAGR over the forecast years. The growth is attributed to several factors, including high demand for innovative marketing strategies, a growing population, and rising adoption of social media platforms. The countries such as Japan and China are at the forefront of the virtual influencer trend. In addition, the brands are incorporating virtual influencers in their marketing campaigns resulting in significant growth opportunities for virtual influencers in the Asia Pacific region.

Key Companies & Market Share Insights

The market is classified as highly competitive with the presence of several market players. The key players operating in the industry are focusing on strategic alliances, product development, expansion, and partnerships to remain competitive in the industry. For instance, in January 2023, Nylon Korea collaborated with Rina, a virtual influencer, to promote the Cheer Up K-Fashion campaign on her social media while making the brand popular globally. Such strategic collaborations by key players are anticipated to augment the market growth over the forecast period.

Virtual Influencer Market Report Scope

Global Virtual Influencer Market Report Segmentation

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 2018 to 2030. For this study, Grand View Research has segmented the global virtual influencer market report based on type, offering, end-use, and region:

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Non-human

  • Human Avatar

• Offering Outlook (Revenue, USD Million, 2018 - 2030)

  • Solution

  • Services

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Food & Entertainment

  • Sports & Fitness

  • Banking & Finance

  • Travel & Holiday

  • Fashion & Lifestyle

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Rest of Europe

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa (MEA)

    • UAE

    • South Africa

    • Saudi Arabia

    • Rest of Middle East & Africa