Market Research Report
Intelligent Virtual Assistant (IVA) Market Size, Share & Trends Analysis Report By Type (Speech Recognition, Text-to-Speech Recognition), By Service, By Application, By End-use, and Segment Forecasts, 2018 - 2024
|Published by||Grand View Research, Inc.||Product code||370450|
|Published||Content info||106 Pages
Delivery time: 1-2 business days
|Intelligent Virtual Assistant (IVA) Market Size, Share & Trends Analysis Report By Type (Speech Recognition, Text-to-Speech Recognition), By Service, By Application, By End-use, and Segment Forecasts, 2018 - 2024|
|Published: March 31, 2018||Content info: 106 Pages||
The global Intelligent Virtual Assistant (IVA) market size was estimated at USD 1005.2 million in 2016 and is expected to grow at a CAGR of 36.7% during forecast period. IVA is a software assistant that uses artificial intelligence to model the human interaction to perform multiple tasks such as customer services. It helps consumers manage an array of tasks such as connected cars, and homes. These assistants include Google Assistant, Apple Siri, Microsoft's Cortana, Amazon Echo, and others. The IVA market is primarily driven by growing trend of outsourced assistance, and mobile workforce, along with increasing focus on customer engagement.
Growing demand for self-reliance, online self-service, and rapid resolution of queries are also awaited to be the influential factors to market growth. According to Global Entrepreneurship Monitor (GEM), in 2015 there were around 27 million working age Americans who are operating a new business. This number is estimated to grow worldwide and websites will become the preferred service channel for consumers, who visit them for gathering information, resolve issues, as well as make purchasing decisions. Thus, IVA would streamline the business activities and save the overhead costs involved in advertising, interviewing, and training operations.
Moreover, owing to the increasing customer expectations in cloud applications, big data analytics and social media has changed the way organizations work and interact. In order to increase revenue and improve consumer satisfaction, organizations are restructuring their consumer experience strategy. They are adopting consumer engagement solutions such as Digital Employee by Artificial Solutions that focuses on assisting the employees achieve their sales targets.
In addition to enhancing user experience, IVAs contribute in reducing customer service operational costs. They help deflect costs from high price channels such as technical support telephone contacts, email response, callback, etc. Furthermore, successful implementation of these services aids in reduction in hold times, since high-volume low-value calls can be diverted. Thus, reducing the resolution time by transferring conversation content to a telephone agent in case of escalation. Thus, adoption of such technologies within the business is anticipated to propel the industry growth over the next eight years.
Speech recognition dominated the market in 2015 and is expected to follow the similar trend throughout the forecast period. Speech recognition IVA accounted for a significant market share of over 61% in 2015, and anticipated to grow exponentially at a CAGR of 38.1% from 2016 to 2024. Rising adoption of mobile computer technology across the world are expected to boost the demand for speech recognition segment, thus, making it easier for customers to interact with smartphones and its applications. Moreover, proliferating demand for technology in various applications including automotive, BFSI, and healthcare shall propel the market over the next eight years.
Marketing assistant service accounts for the majority share of IVA market contributing over 58% in 2015, and is anticipated to flourish, growing at a CAGR of 35.9% over the forecast period. It supports customers with features such product navigation, social media management, and web marketing. The marketing assistant service also helps to enhance brand recognition and customer loyalty.
IVA provides customer services with advantages such as enhanced customer support, lower operating cost, high customer satisfaction, individualized service to customers, multiple language, and multiple device support. Furthermore, they prove to be a key differentiator, which not only increases consumer loyalty but also increases the income and sales.
The IVA market for BFSI application accounted for USD 226.5 million, and is estimated to grow significantly at CAGR of 35.3% from 2016 to 2024. Automotive emerged as the fastest growing application and is expected to witness highest CAGR of 39.5% over the next eight years. The use of IVA's in BFSI saves time in finding answers, and makes websites and apps user friendly. It responds to queries and help customers while paying bill, and carrying out transfers. Furthermore, they provide consumers with round the clock service, and reduce call-waiting time.
Additionally, automotive is emerging as significant application segment with the increasing adoption of IVAs. Integrating features such as adaptive cruise control, automatic parking, lane change assist, and other ADAS features with virtual assistant. It offers personalized content to the driver and delivers a smart connected and safer driving experience. Several virtual assistant providers such as Nuance are developing advanced IVAs with the ability to integrate voice biometrics as part of the connected infotainment offering.
Large enterprises accounted for the majority share of over 57% in 2015 and are expected to follow the similar trend throughout the forecast period. SMEs are predicted to gain substantial market share over the next eight years. An increasing number of enterprises across industry verticals have adopted virtual agent technology to fuel revenue. However, the virtual assistant needs to be capable of replicating the services presently available through conventional or traditional self-service options.
Verticals including banking and financial services, travel, and online retail have exhibited higher Return On Investment (ROI) through virtual assistant implementation. This is primarily due to higher penetration, as well as early incorporation of social and mobile channels. Industry areas with high customer contact have been among early adopters of virtual agent incorporation.
North America dominated the IVA market in 2015, and accounted for a share of over 38% owing to the technological advancements over the decade. These advancements have resulted in increased use of cloud-based applications such as Skype, and MS Office Online. Additionally, the ease of usability of software assistants such as Microsoft Cortana, Google Assistant, and Apple Siri has brought new opportunities in the IVA market, thereby, resulting in the market expansion. Moreover, the IVA industry is also evolving and improving, with a number of the UK virtual assistant agencies beginning to expand its footprints into the U.S. market.
Asia Pacific is expected to emerge as the fastest growing region owing to the rising demand from the emerging economies including India and China. Owing to transformational factors such as demand for self-reliance, service providers have developed multi-language platforms to better serve the need of varied users. Need for healthcare service availability and reliability on a global level in general, and in developing markets in particular, is also expected to be a viable opportunity for market entry.
Intelligent Virtual Assistant market is highly fragmented and is characterized by intense competition, which is expected to strengthen over the future. Key companies and several new entrants have established or may establish cooperative relationships among themselves or with third parties thereby increasing the aptitude of their technologies to address the needs of the prospective customers. Some of the key players operating in this market are Apple, Inc., Google LLC, IBM Corporation, Oracle Corporation, and Microsoft Corporation.Majority of market participants have been aiming to provide a rational component, the sophistication and intelligence of which is estimated to help enterprises boost customer experience management.
This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global intelligent virtual assistant market report based on type, services, application, end-use, and region: