A virtual assistant is a software-based application that can identifies voice commands and responds or completes tasks for a user. Virtual assistants are installed in almost every tablet and smartphone, advanced computers, and, nowadays in standalone devices such as Google Home and Amazon Echo. Virtual assistants can do anything like a human from play music, answer questions, tell jokes, and control home items such as door locks, lights, thermostats, and smart home devices. They are also able to send text messages, respond to various voice commands, make phone calls, and set up reminder
The virtual assistant market is expected to grow by USD 26.94 billion between 2022 and 2027, at a CAGR of 37.29% during the forecast period.
Increasing use of virtual assistant solutions to improve customer service
The rising adoption of virtual assistant solutions in customer service is considered as the primary factor driving the growth of the global market across the globe. With the help of virtual assistant solutions, companies can enhance customer service functions such as front desk activities, meeting reminders, and other customized services. An increasing number of mobile payments across the globe is one of the major factors contributing to the growth of virtual assistant solutions. For instance, it is expected that around 1.06 billion people will make mobile payments by the end of 2020.
Furthermore, increasing usage of smart technologies and devices such as smart speakers and chatbots in industries such as retail, automotive, media & entertainment, travel, etc. is expected to impact significantly on the growth of the virtual assistant market. Various consumer products brands have already adopted virtual assistant solution in their business operations.
Adoption of natural language processing in virtual assistant solutions
The development of natural language processing (NLP) is also one of the major factors contributing to the growth of the global virtual assistant market over the forecasted period. NLP is an element of artificial intelligence (AI), which is capable of analyzing human language and converting it into machine language. NLP has the ability to operate the system only when the recorded voice is detected in various applications.
The automotive application holds a significant market share
Consumer electronics, automotive, healthcare, BFSI, retail, and others are some of the applications analyzed in this market. Among these, the automotive application is expected to have the highest growth rate during the analysis period. The adoption of integrated technologies such as ADAS technologies, adaptive cruise control, automatic parking, etc. has increased. Combining these features with a virtual assistant, automotive manufacturers can deliver smart and safer driving experience and personalized content to the driver.
North America holds the largest share in the global market
Geographic regions included in the global virtual assistant market study are North America, Europe, Asia Pacific, South America, and Middle East & Africa along with its major countries. Among these, North America is expected to hold the largest share in the global virtual assistant market in a given forecasted period. The rising number of wireless devices and mobile subscribers in North America is expected to drive the virtual assistant market in the region. Additionally, increasing the adoption of Bring Your Own Device (BYOD) has led to the emergence of working remotely. Moreover, increasing the use of cloud-based solutions such as MS Office and Skype has led to technological advancements, which further impacted the demand for virtual assistant solutions in the region.
Key Market Players
• IBM Corporation
• Google Inc.
• CodeBaby Corporation
• Next IT Corporation
• Nuance Communications, Inc.
• Oracle Corporation
• Apple Inc.
• eGain Corporation
virtual assistant market Scope
|Revenue forecast in 2032
|USD 26.94 billion
|CAGR of 37.29 % during 2022-2032
|Product, Technology, Industry, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
Key Segment Of The virtual assistant market
By Product, (USD Million)
• Smart Speakers
By Technology, (USD Million)
• Speech Recognition
By Industry Vertical, (USD Million)
• It & Telecommunications
• Defense & Government
• Travelling & Hospitality
• Media & Entertainment
Regional Overview, (USD Million)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
Middle East and South Africa