An intelligent virtual assistant is an artificial intelligence system that enables human interaction with a PC or smartphone through the internet, SMS, messenger, and other interfaces to perform particular tasks, such as customer service. An intelligent virtual assistant is extensively used in a variety of applications across the industries.
The intelligent virtual assistant technology is superseding traditional interactive voice response systems. It is improving customer and brand experience with a consumer-friendly approach. The technology, on the other hand, is empowering the next generation multichannel experience that allows consumers to seamlessly and conveniently communicate with business across voice, text, and other channels.
Substantial investment in intelligent virtual assistant technology by the large companies is anticipated to drive the market growth during the forecast period, 2020-2029. Giant companies such as google to automobile manufacturers BMW are investing a great deal of amount in intelligent virtual assistants. For instance, in September 2018, BMW introduced the Intelligent Personal Assistant Communication System that will help the drivers to communicate with vehicles.
The smart speaker segment is expected to grow at the highest CAGR during the forecast period due to the integration of smart speakers with an advanced automation system that controls devices and appliances such as HVAC, smart thermostats, and security systems. Most popular smart speakers and virtual assistants are Alexa, Genie AI, Siri, and DureOS, among others.
The automatic speech recognition (ASR) segment is anticipated to grow at the highest rate due to its extensive deployment in smart speakers. Several technology companies are becoming aware of automatic speech recognition’s potential and are working toward making voice recognition as a standard for many products. For instance, Amazon, Microsoft, Google, Apple, and Facebook are already offering the feature on a gamut of devices through services like Google Home, Amazon Echo, and Siri.
Among the industry verticals, the retail segment is anticipated to hold the largest market share during the forecast period, 2020-2029. Many companies are entering into a collaboration with tech giants to enhance the customer experience; for instance, in the year 2017, Target Corporation announced a partnership with Google to enable shoppers to shop and buy products with the help of a virtual assistant. Increasing deployment of intelligent virtual assistant in the retail sector is foreseen to boost market growth. For instance, as per the Accenture report 2018, more than 20% of retailers deployed artificial intelligence in the retail stores. An intelligent virtual assistant helps the retailers to deliver a better, more relevant, personalized, and enhanced experience. Google and Walmart announced the first voice-shopping partnership in August 2017. Further, in April 2019, these two companies announced a partnership, allowing Walmart shoppers to order groceries for pickup and home delivery via Google Assistant.
According to Nuance Communications, Inc. survey, “why organization relies on virtual assistance” reveals that:
North America is likely to hold the largest share in the intelligent virtual assistant market and continue the dominance during the forecast period, 2020-2029. This is primarily attributed to the presence of many large companies in the region. Furthermore, Amazon’s virtual assistant “Alexa” is a very popular voice-based virtual assistant widely integrated into home appliances, smart devices, and cars in the U.S.
Europe is anticipated to grow at a significant growth rate in the intelligent virtual assistant market. Germany is foreseen to dominate the European Intelligent Virtual Assistant Market. Germany's Federal Association for Information Technology, Bitkom, published a study in 2018 showing the widespread popularity and acceptance of voice assistants across Germany. It revealed that more than 13% of Germans (one in eight) already owned and used a voice-based virtual assistant, be it Amazon Echo, Google Home, or HomePod by Apple. In Europe, the government recently set out a 10-year plan for the NHS, in which it pledged to boost investment in artificial intelligence (AI). Therefore, playing a critical role in the European intelligent virtual assistant market growth.
Asia-Pacific is expected to grow at the highest CAGR during the forecast period, 2020-2029, where South Korea and China are two notable countries flourishing the development of intelligent virtual assistant technology. The growth is primarily driven by the integration of intelligent virtual assistants in the smartphones and tablets in the region. Furthermore, at CES 2018, South Korean electronics mogul LG announced a partnership with Google, enabling customers to communicate with televisions via Google Assistant. On the other hand, the Indian travel portal, Yatra, recently introduced a personalized voice assistant called Yuva (Yatra Universal Virtual Assistant).
Middle East region is expected to grow at a considerable growth rate in the intelligent virtual assistant market during the forecast period, 2020-2029. For instance, the Middle East bank Emirates NBD is piloting an intelligent virtual assistant with selected customers. It is planning to launch it soon. In Latin America, the intelligent virtual assistant market is foreseen to grow at a healthy growth rate, owing to the technological developments in the region. In January 2019, the Central Bank of Brazil launched a web application called “Din assists”, which uses artificial intelligence and machine learning to provide guided conversations.
Some of the notable players of the intelligent virtual assistant market are Alphabet, Amazon, Apple, Nuance Communications, IBM, Microsoft, Samsung Electronics, Inbenta Technologies, Baidu, and Blackberry.