With 31% Global CAGR, IVA market among highest growing businesses of 2019-24

Global intelligent virtual assistant market value is projected to reach US$ 11.3 Billion by 2024 which was US$ 2.2 Billion in 2018.

The Artificial Intelligence (AI) based intelligent virtual assistant market will grow with a global CAGR of 31% during 2019-24 and will touch US$11.3 Billion by the end of the period. These estimated were made in a market research report of IMARC Group.

According to the report, BFSI (Banking, Financial Services and Insurance) sector is the biggest consumer of the IVA. Intelligent virtual assistant refers to a software agent based on artificial intelligence, which helps in performing several tasks for an individual. In order to enhance the user interface, it emulates human interaction and is integrated with gadgets like smartphones, tablets, portable speakers, smart-watches, etc. As the majority of intelligent virtual assistants employ online resources for answering user's queries, they do not work without an internet connection. Some of the widely used intelligent virtual assistants include Google Assistant, Apple's Siri, Amazon Alexa and Microsoft Cortana. A new research report titled "Intelligent Virtual Assistant Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024" by IMARC Group estimates that the global IVA market was worth US$ 2.2 Billion in 2018. The report further anticipates the market size of an intelligent virtual assistant to cross US$ 11.3 Billion by 2024, at a projected CAGR of 31% over the forecast period.

Social media offers a marketing platform to the developers for introducing intelligent virtual assistant amongst consumers. This coupled with a strong penetration of smartphones has propelled the intelligent virtual assistant market growth. Technological advancements have led to a significant shift from analogue to digital technologies in a number of organisations, thereby widening the market opportunities. Other factors such as reduced cost of customer service operations and robust dependence on the internet have further resulted in increased usage of Intelligent virtual assistant among the younger generation. However, voice recognition is yet to improve amongst several Intelligent virtual assistant technologies. Moreover, its initial price acts as one of the factors impeding market growth.

On the basis of the product, the market is classified as chatbots and IVA smart speakers. A chatbot is a computer programme which carries out conversations via textual means. On the other hand, smart speakers are wireless speakers which encompass a virtual assistant, playing data as and when commanded. At present, rule-based exhibits a clear dominance in the global intelligent virtual assistant market. Rule-based is followed by conversational Al Based. On the basis of technology, the market is segmented as a text based, text-to-speech, automatic speech recognition (ASR) and others.

Based on end-use, the report finds that BFSI currently represents the largest end-use segment of the intelligent virtual assistant market. BFSI is followed by travel, retail, government, education and others. On a geographical front, North America enjoys a top position in the global intelligent virtual assistant market, accounting for the biggest market share. North America is followed by Europe, Asia Pacific, Middle East and Africa.

The market is highly fragmented and surrounded by numerous small and large manufacturers who compete in terms of prices and quality. There is a rigid competition in the market which makes it hard for small players to survive. Microsoft is the leader in the IVA market follows by Nuance Communications, Samsung Electronics, Alphabet, Apple, Amazon, International Business Machines (IBM), Baidu, Blackberry and Inbenta Technologies.

(With inputs from IMARC Group)