The global Intelligent Virtual Assistant (IVA) market size is expected to reach USD 12.28 billion by 2024 according to a new report by Grand View Research, Inc. Demand for online self-service and growing need for self-reliance and rapid resolution of queries are expected to be the primary contributors to market growth.
Online websites have become the preferred service channel for consumers gathering information, resolve issues, as well as make purchasing decisions are anticipated to drive the IVA market over the forecast period.
IVA adoption is expected to be on the rise over the upcoming years owing to its cost effectiveness. Although sales objectives have not been widely adopted for virtual agents, their potential to up sell or cross-sell is expected to be a key factor for increasing acceptance across smaller enterprises. The presence of an intelligent virtual agent on a website has helped companies achieve higher conversion rates.
Moreover, emerging trend of assistant-as-app services is expected to tap the potential of mobile applications segment. Applications engaging in conversational commerce are popping-up across several industry verticals.
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Further key findings from the study suggest:
- Speech recognition dominated the industry with the significant revenue share, which is expected to grow at a CAGR of over 38% from 2016 to 2024. Rising adoption of mobile computer technology across the world is expected to boost the demand for this segment. Speech recognition simplifies the ability to interact with smartphones and its applications. Moreover, rising demand for the technology in numbers of end-use industries including automotive and healthcare is expected to drive the industry over the future.
- Large enterprises are expected to remain the largest end-use segment by 2024. SMEs are expected to gain market share with the CAGR of nearly 36% over the next eight years. An increasing number of enterprises have adopted the technology to fuel revenue. Verticals including financial services and banking, online retail and travel have presented higher return on investment (ROI) through implementing virtual assistant. This is mainly due to higher penetration, along with the early incorporation of social and mobile channels. Industry segments with high customer contact have been among early adopters of virtual agent incorporation.
- BFSI is estimated to be a largest application segment in 2015, which is estimated to grow at a CAGR of over 35% from 2016 to 2024 owing to increased penetration of virtual assistants across the segment. Increasing penetration of smartphones and tablets is resulting in high growth in mobile banking, has become a crucial differentiator in consumer service. Banks benefits from the virtual agents by providing round the clock services and automating routine services boosting consumer satisfaction and reducing inbound calls.
- North America has the significant market share of over 38% in 2015 owing the high proliferation of internet services and mobile phones. Additionally, these regions are home to a large number of key participants offering advanced solutions to several segments such as BFSI, automotive and healthcare, among others. Emerging markets of Asia Pacific, MEA and Latin America are expected to exhibit high growth, primarily due to surge in mobility in countries including India, Brazil and China.
- Key industry participants include 7 Customer Inc., Anboto Group, Apple Inc., Artificial Solutions, Clara Labs, CodeBaby Corp., Creative Virtual Ltd., CX Company, eGain Communications, Eidoserve Inc., Existor, Google, IBM Corporation, Intel Corporation, InteliWISE S.A., Microsoft Corporation, Next IT Corporation, Nuance Communications, Oracle Corporation, Speaktoit Inc., Synthetix Ltd., and ViClone Corporation. Owing to the intense competition, the key companies and several new entrants have established cooperative relationships among themselves or with third parties to increase the ability of their technologies to address the needs of the prospective customers.