Advanced Virtual Assistant Market by Product (Chatbots and Smart Speakers), by Technology (Text-to-Speech, Speech Recognition, and Text-Based), by End User (Banking, Financial Services and Insurance (BFSI), Information Technology (IT), Telecommunication, Defence and Government, Retail, Healthcare, Travelling and Hospitality, Automotive, Media and Entertainment, and Others) – Global Opportunity Analysis and Industry Forecast, 2024–2030

Market Definition

The Advanced Virtual Assistant Market size was valued at USD 8.94 billion in 2023, and is predicted to reach USD 78.61 billion by 2030, with a CAGR of 36.5% from 2024 to 2030. An advanced virtual assistant (AVA) is an artificial intelligence (AI)-driven digital program designed to perform tasks and assist users using natural language processing and machine learning. They offer numerous benefits, such as efficiency, accessibility, personalization, and scalability. Its key components include natural language processing, machine learning, voice/text recognition, application programming interfaces (APIs), and user interfaces.

The supply chain management of AVAs involves data collection, software development, deployment infrastructure, and integration with other systems. The advanced virtual assistant market is driven by enhanced customer experiences, efficiency, data-driven insights, scalability, competitiveness, and innovation across various industries.

Market Dynamics and Trends

The increasing adoption of AI-powered virtual assistants in banking institutions enhanced customer reach by simplifying regular operations. This, in turn, allowed customers to participate in their banking activities actively. This led to a notable upswing in the utilization of advanced virtual assistants within the banking sector, indicating a substantial growth in the advanced virtual assistant market.

For instance, in June 2023, BNP Paribas's Securities Services division introduced NOA (NextGen Online Assistant), a specialized virtual agent, on its NeoLink client services portal. NOA is customized for the security service sector and efficiently interacts with the bank's systems, improving its financial sector services. 

Additionally, the global penetration of internet access and smartphone usage is closely intertwined with the growth of the advanced virtual assistant market. The convenience of voice-activated features in smartphones and the availability of high-speed internet ensure smooth interactions with virtual assistants, driving a significant growth in the market.

Moreover, the increasing adoption of advanced virtual assistants by end users such as telecommunication, healthcare, and others to simplify their tasks and remain competitive in the fast-growing digital economy is driving the market growth globally.

For instance, in April 2023, TeleVox introduced Iris, an AI-driven omnichannel conversational virtual assistant, as a new addition to its comprehensive digital patient engagement platform called HouseCalls Pro. Iris is accessible through web, voice, and SMS interactions, offering patients swift access to information and simplified task handling. 

However, the increasing costs of developing AVAs decreased the user base, especially for small businesses and startups. These small enterprises face financial difficulties in using AVAs, which hinder the market growth. 

On the contrary, the integration of advanced virtual assistants with the Internet of Things (IoT) devices in smart homes that allow voice commands to control appliances and systems creates future growth opportunities. This integration enhances convenience, enables automation, and introduces personalized experiences for everyday tasks. Thus, this development is expected to create ample opportunities for the advanced virtual assistant market in the future. 

Market Segmentations and Scope of the Study 

The advanced virtual assistant market is segmented based on product, technology, end user, and region. Based on the product, the market is divided into chatbots and smart speakers. Based on technology, the market is segmented into text-to-speech, speech recognition, and text-based. Based on end user, the market is classified into banking, financial services and insurance (BFSI), information technology (IT), telecommunication, defence and government, retail, healthcare, traveling and hospitality, automotive, media and entertainment, and  others. The regional breakdown and analysis of each of the aforesaid segments include regions, such as North America, Europe, Asia-Pacific, and the Rest of the World (RoW).

Geographical Analysis

North America holds the dominant share in the advanced virtual assistant market, due to the increasing use of advanced virtual assistants in the banking sector. Advanced virtual assistant increases operational efficiency, offers 24/7 availability, and leads to cost savings, enhancing the demand for AVAs in banks. For instance, in October 2022, the Bank of America's advanced virtual financial assistant, Erica, surpassed 1.5 billion interactions with clients per day. The increase in the number of users reflects the growing demand and popularity of virtual financial assistants, contributing to the overall growth of the advanced virtual assistant market.

Furthermore, prominent corporations such as Google and Microsoft are joining forces to propel the growth of AVA systems. Their collaboration aims to extend the accessibility of AVA technologies, including speech recognition, to a broader audience which fuels the market growth.

For instance, in October 2022, Google collaborated with Apple, Meta, Amazon, and Microsoft to improve speech recognition for advanced virtual assistants for individuals and people with disabilities such as Parkinson’s cerebral palsy, down syndrome, and other related conditions. This collaboration will increase the growth of the advanced virtual assistant market as it aims to make AVAs easier to use and beneficial to a wider range of individuals which in turn, expands their potential applications.

On the other hand, Asia-Pacific is expected to witness the highest growth in the region as smartphone manufacturers are improving AVAs in their phones to provide a better consumer experience to their users. This factor propels the market growth. For instance, in February 2023, Samsung Electronics updated Bixby, a voice assistant designed to improve user experiences, boost performance, and augment the capabilities of the intelligent assistant and its platform.

These recent updates represent a substantial enhancement in Bixby's powers, particularly in advanced language recognition, offering users more control over their smartphone interactions. As Samsung continues to improve the performance of their smartphones, they are attracting a wider audience to their product. This leads to the increased usage of advanced virtual assistants in this particular region.

Additionally, owing to increasing smartphone penetration, enterprises are adopting chatbots for improved interaction with customers, driving the growth of the advanced virtual assistant market in countries such as India, Singapore, Japan, and South Korea. According to a report published by GSMA Intelligence, a global organization unifying the mobile ecosystem to discover, develop, and deliver innovation, the number of smartphone users in the Asia-Pacific region is predicted to increase from 73% to 83% from 2021 to 2025.

Competitive Landscape

Various market players operating in the advanced virtual assistant market include Microsoft Corporation, Nuance Communications, Inc., Samsung Electronics Co. Ltd., Apple, Inc., Amazon.com, Inc., International Business Machines (IBM) Corporation, Baidu, Inc., BlackBerry Ltd., Inbenta Technologies, Inc., [24]7.ai, Inc, and others. These market players continue to adopt various market development strategies, including R&D investments, product launches, and others, to maintain their dominance in the advanced virtual assistant market.

For instance, in September 2023, Amazon.com, Inc. invested in R&D to make its voice assistant- Alexa, the world’s best personal assistant. It enhanced voice assistant capabilities and user experience, which served as a driving force for the overall market's growth.

Also, in September 2023, Microsoft Corporation launched Copilot. This AI-powered virtual assistant made it easy for users to get answers to questions, rewrite text, and perform functions across different applications, ultimately making consumers' digital interactions more efficient and user-friendly than before. This, in turn, broadened the consumer base of AVAs.

KEY BENEFITS

• The report provides quantitative analysis and estimations of the advanced virtual assistant market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the advanced virtual assistant market, including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the advanced virtual assistant market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters- Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders

KEY MARKET SEGMENTS

By Product 

• Chatbots

• Smart Speakers

By Technology

• Text-to-Speech

• Speech Recognition

• Text-Based

By End User

• Banking, Financial Services and Insurance (BFSI)

• Information Technology (IT)

• Telecommunication

• Defense and Government

• Retail

• Healthcare

• Travelling and Hospitality

• Automotive

• Media and Entertainment

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The U.K.

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific 

• Rest of the World (RoW)

  • Latin America

  • Middle East 

  • Africa

REPORT SCOPE AND SEGMENTATION:

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