Virtual Digital Assistant (VDA) Market by Product (Chatbots and IVA Smart Speakers), By User Interface (Text-based, Text-to-speech based, and Automatic Speech Recognition), By Application (Customer Service, Marketing Assistant, E-commerce and Sales, E-learning, Tax Filing and Processing, and Others), By End user (Enterprise VDA and Consumer VDA) - Global Opportunity Analysis and Industry Forecast, 2022 – 2030

Market Definition:

The Virtual Digital Assistant (VDA) Market size was valued at USD 13.36 billion in 2021 and is predicted to reach USD 75.39 billion by 2030 with a CAGR of 21.2% from 2022-2030. 

Virtual Digital Assistant (VDA) is an advanced software program that can perform tasks or services for an individual based on commands. It uses artificial intelligence (AI), natural language processing (NLP), natural language understanding (NLU), and machine learning to collect data, process it, and combine with historical information so that its algorithms can create data models that can identify hidden behavioural patterns. These data models are then refined gradually with time as more data is added to its database. 

By learning user’s behavioural patterns and preferences, digital assistants can answer complex questions, provide recommendations, make predictions, and simulate a conversation. These things enable VDAs to perform jobs for end users such as adding tasks to the calendar, providing quick information that would be normally searched in a web browser, and controlling smart home devices, including lights, fans and devices that can be remotely operated. The most popular Virtual Assistants currently available in the market are from Amazon, Apple and Google (Alphabet).

Market Dynamics and Trends:

Development of newer and advanced virtual digital assistant software such as Alphachat, Hyro, and Netomi, along with third-party equipment to run them have significantly reduced human efforts and increased the work efficiency. Introduction of Speaker-Based Virtual Assistants such as Amazon Echo and Apple homepod are also contributing to the growth of virtual digital assistant market. 

For instance, in 2021, Amazon alone has sold 65 million units of VDA enabled Amazon Echo speakers worldwide. Moreover, with the rise of messaging services such as WhatsApp and WeChat, along with the availability of low-cost software modules for the development of chatbot is expected to create ample growth opportunities for the market in the coming years.
However, the linguistic accuracy of chatbots is one of the major challenges faced by the market players at present. Also, in case of smart speakers with virtual assistant, the complex system Integration adds to the overall cost that restrains the widen use of these products. 

On the contrary, introduction of virtual digital assistants (VDA) in smartphones such as Apple’s Siri or Amazon’s Alexa are making them become a part of most people’s everyday lives. As the technology is now available and evolving fast, the use of chatbots and digital assistants is also growing in workplaces all over the world and expected to create ample growth opportunities for the market in the coming years.

Market Segmentations and Scope of the Study:

The virtual digital assistant market is segmented on the basis of product, user interface, application, end-user and geography. On the basis of product, the market is divided into chatbots and IVA smart speakers. On the basis of user interface, the market is classified into text-based, text-to-speech based, and automatic speech recognition. On the basis of application, the market is categorised into customer service, marketing assistant, e-commerce and sales, e-learning, tax filing & processing and others.  On the basis of end user, the market is divided into enterprise VDA and consumer VDA. Enterprise VDA is further sub-segmented into BFSI, healthcare, IT & telecom, education, automotive, media & entertainment and others. Geographic breakdown and analysis of each of the aforesaid segments includes regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis:

North America holds the major market share in the virtual digital assistant market and is expected to dominate the market throughout the forecast period. This is attributed to the healthcare and banking sector of this region that has been actively investing in VDA chatbots for customer personalization and servicing. Moreover, presence of major key players such as Apple, Google (Alphabet), and Amazon boost the adaption among the people and market growth in this region. 

For instance, in April 2022, U.S Bank launched North Americas first Spanish-language voice assistant that would help Spanish speaking customers to save time on basic banking tasks and get more value out of their bank.

Asia Pacific denotes the developing market with gradual increase in virtual digital assistant market size and significant growth rate. Increasing adoption of technology and increased use of smart phones drive the growth of virtual digital assistant market in this reason. 

For instance, in March 2021, Huawei’s virtual digital assistant adds esports integration that will help esports fans to access live scores, results and news from major gaming events in China.

Competitive Landscape:

The virtual digital assistant market is getting competitive as more or more market players are entering into the business, encouraged by the rapid adoption. Some of the key players are Google (Alphabet), Apple, Amazon, Microsoft, Nuance Communications, Samsung Electronics, International Business Machines (IBM), Baidu, Blackberry, Inbenta Technologies and Facebook. Multilingual AI models are an active research topic among these large tech companies. 

For instance, in May, 2022 Amazon Alexa AI's Natural Language Understanding group released a dataset containing one million annotated samples from 51 languages for training AI models that can understand natural language. This will help Amazon’s Virtual Assistant, Alexa to understand commands on these languages. Moreover, Google is also working on a personalised speech recognition feature for its virtual digital assistant that will allow it to recognise frequent words and names used by the users. The significance of this feature is voice match, which allows smart speakers to recognize the voice of the specific user and personalize responses for that user.

KEY BENEFITS:

• Virtual Digital Assistant (VDA) Market report provides the quantitative analysis of the current market and estimations through 2022-2030 that assists in identifying the prevailing market opportunities to capitalize on.

• The study comprises a deep dive analysis of Virtual Digital Assistant (VDA) Market trend including the current and future trends for depicting the prevalent investment pockets in the market.

• The information related to key drivers, restraints and opportunities and their impact on Virtual Digital Assistant (VDA) Market is provided in the report.

• The competitive analysis of the market players along with their market share in Virtual Digital Assistant (VDA) Market

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

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

KEY MARKET SEGMENTS:

By Product

• Chatbots

• IVA Smart Speakers

By User Interface

• Text-based

• Text-to-speech based

• Automatic Speech Recognition

By Application

• Customer Service

• Marketing Assistant

• E-commerce and Sales

• E-learning

• Tax Filing and Processing

• Others

By End User

• Enterprise VDA

  • BFSI

  • Healthcare

  • Retail

  • IT & Telecom

  • Education

  • Automotive

  • Media & Entertainment

  • Others

• Consumer VDA

By Geography

• North America

  • U.S

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

  • Italy

  • Spain

  • Rest of Europe

• Asia-Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

  • Rest of Asia-Pacific

• RoW

  • UAE

  • Saudi Arabia

  • South Africa

  • Brazil

  • Remaining countries

REPORT SCOPE AND SEGMENTATION:

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