Intelligent Virtual Assistant (IVA) Market Size (2024)

The market size of the Intelligent Virtual Assistant industry is predicted to grow significantly, driven by advancements in artificial intelligence, deep neural networks, and machine learning. The usage of virtual assistants, such as chatbots and smart speakers, is expanding across various sectors including retail, healthcare, and BFSI. These virtual assistants not only act as personal assistants, aiding users in completing tasks, but are also increasingly being used in customer service roles, improving brand experiences. The functionality of these assistants can be modified according to the end user, enhancing customer experience in specific industries. The healthcare sector, in particular, has seen widespread adoption of intelligent virtual assistants, while retail companies are using chatbots to enhance customer experience. The COVID-19 pandemic has also influenced market growth, with more people turning to voice assistants during changes to their usual routines.

Market Size of Intelligent Virtual Assistant (IVA) Industry

Share

Study Period	2019 - 2029
Market Size (2024)	USD 14.77 Billion
Market Size (2029)	USD 60.83 Billion
CAGR (2024 - 2029)	32.72 %
Fastest Growing Market	Asia-Pacific
Largest Market	North America
Major Players *Disclaimer: Major Players sorted in no particular order

Intelligent Virtual Assistant (IVA) Market Analysis

The Intelligent Virtual Assistant Market size is estimated at USD 14.77 billion in 2024, and is expected to reach USD 60.83 billion by 2029, growing at a CAGR of 32.72% during the forecast period (2024-2029).

• Deep neural networks, machine learning, and other advances in AI are making more virtual assistants possible. Chatbots and smart speakers are two examples of virtual assistants that are used in retail, BFSI, and healthcare, among other end-user industries. A virtual assistant acting as a personal assistant is a significant consumer-facing form. With the aid of Apple's Siri or by providing an easy-to-use interface for connected homes or autos, it aids users in completing various chores.
• Another use on the rise is virtual assistants adopting the customer service agent role. For enterprises, virtual assistants improve customer and brand experiences with a more consumer-friendly approach. For example, Five9, a cloud contact center provider, launched Five9 Virtual Assistant in partnership with Inference Solutions. The system leverages conversational artificial intelligence to automate manual tasks and answer common questions in the contact center.
• The capabilities of these assistants can also be changed based on the end user, which makes the customer experience better in a certain industry.For example, in the healthcare industry, a virtual assistant can help a customer find a doctor's office, fill and refill a prescription, and get payment reminders.
• Some virtual personal assistants that have gained recognition across the healthcare sector are Apple's Siri, Microsoft's Cortana, and Google's Assistant. Small and medium-sized businesses also drive the technology behind intelligent virtual assistants, making them important parts of health-intelligent virtual assistants. For example, Next IT's Alme of Healthcare is a virtual assistant that focuses on managing chronic diseases and actively answers patients' questions and requests. This is currently being adopted on a massive scale by healthcare providers.
• Aside from healthcare, retail companies also use chatbots in popular messaging apps to give their customers a better experience.Domino's and other stores use AI and machine learning to power virtual assistants like chatbots, which let customers place orders directly through Facebook Messenger.
• The Spring 2020 Smart Audio Report confirmed that the COVID-19 outbreak caused about 77% of US adults to change their normal routines. During these changes, more people used voice assistants, which was good for market growth.
• Companies are also rolling out offerings that help people stay aware of these uncertain times. For example, Avaamo, a deep-learning software company that specializes in conversational interfaces and is backed by Wipro Ventures, launched Project COVID, a COVID-19 Intelligent Virtual Assistant that can be used by anyone and helps find answers quickly in plain English.

Intelligent Virtual Assistant (IVA) Industry Segmentation

An intelligent virtual assistant is a computer system that uses artificial intelligence (AI) to act like a person and do tasks like customer service.This technology uses parts of IVR and other modern artificial intelligence projects to give users full-fledged virtual identities that can talk with them.

The Intelligent Virtual Assistant (IVA) Market is segmented by Product (Chatbot, Smart Speaker), User Interface (Text-to-Text, Text-to-Speech, Automatic Speech Recognition), End User (For Chatbots (Retail, Healthcare, BFSI, Telecom, Travel and Hospitality), For Smart Speaker (Personal and Commercial)), and Geography.

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Intelligent Virtual Assistant (IVA) Market Size Summary

The Intelligent Virtual Assistant (IVA) market is witnessing significant growth, driven by advancements in AI technologies like deep neural networks and machine learning. Virtual assistants are increasingly being utilized in various end-user industries, including retail, BFSI, and healthcare. They are not only helping users with personal tasks but also improving customer service experiences in businesses. The role of virtual assistants is also evolving based on the needs of the end user, thereby enhancing the customer experience in specific industries. For instance, in the healthcare industry, virtual assistants are assisting customers in finding doctor's offices, managing prescriptions, and receiving payment reminders.The market trend indicates a surge in the use of smart speakers, which are expected to drive the growth of the IVA market. Smart speakers have become part of people's routines due to their multitasking abilities and speed. Consumer preference for affordable, high-end feature-packed products is also contributing to the market growth. Companies are continuously rolling out new products to meet the increasing market demand. The North American region is expected to hold a significant share in the market, given the preference of millennials for self-service options and messaging apps. The market is moderately competitive with several significant players dominating it. However, the advancement of integrated speech and gesture recognition technologies is leading to the entry of new players, thereby expanding the market presence across emerging economies.

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Intelligent Virtual Assistant (IVA) Market Size - Table of Contents

1. 1. MARKET INSIGHTS

   1. 1.1 Market Overview

   2. 1.2 Industry Stakeholder Analysis

   3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

   4. 1.4 Industry Value Chain Analysis

   5. 1.5 Technology Snapshot

   6. 1.6 Assessment of COVID-19 Impact on the Intelligent Virtual Assistant (IVA) Market

2. 2. MARKET SEGMENTATION

   1. 2.1 By Product

      1. 2.1.1 Chatbots

      2. 2.1.2 Smart Speakers

   2. 2.2 By User Interface

      1. 2.2.1 Text-to-Text

      2. 2.2.2 Text-to-Speech

      3. 2.2.3 Automatic Speech Recognition

   3. 2.3 By End-User

      1. 2.3.1 Chatbots

         1. 2.3.1.1 Retail

         2. 2.3.1.2 BFSI

         3. 2.3.1.3 Healthcare

         4. 2.3.1.4 Telecom

         5. 2.3.1.5 Travel and Hospitality

         6. 2.3.1.6 Other End-User Industries

      2. 2.3.2 Smart Speakers

         1. 2.3.2.1 Personal

         2. 2.3.2.2 Commercial

   4. 2.4 Geography

      1. 2.4.1 North America

         1. 2.4.1.1 United States

         2. 2.4.1.2 Canada

      2. 2.4.2 Europe

         1. 2.4.2.1 Germany

         2. 2.4.2.2 United Kingdom

         3. 2.4.2.3 France

         4. 2.4.2.4 Spain

         5. 2.4.2.5 Rest of Europe

      3. 2.4.3 Asia-Pacific

         1. 2.4.3.1 China

         2. 2.4.3.2 Japan

         3. 2.4.3.3 India

         4. 2.4.3.4 Rest of Asia-Pacific

      4. 2.4.4 Latin America

         1. 2.4.4.1 Brazil

         2. 2.4.4.2 Argentina

         3. 2.4.4.3 Rest of Latin America

      5. 2.4.5 Middle East and Africa

         1. 2.4.5.1 UAE

         2. 2.4.5.2 Saudi Arabia

         3. 2.4.5.3 South Africa

         4. 2.4.5.4 Rest of Middle East and Africa

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