Virtual Assistants used for both consumer and enterprise applications are continuously evolving. The increasing penetration of IoT and connected devices in various industries, coupled with Robotic Process Automation (RPA), is boosting the virtual assistant market ecosystem.
Natural Language Processing and Machine learning form the backbone of virtual assistants. Continuous improvements in both these technologies will make virtual assistants more sophisticated, thereby driving their adoption. The increasing use cases of virtual assistants in various end-use industries is also driving the growth of this market.
Companies, both big and small, are investing in the virtual assistant ecosystem. In December 2019, Hugging Face, a Natural Language Processing Company raised US$ 15 million funding. Another major start-up in the virtual assistant market, Babylon Health raised US$ 550 million funding. The company plans to use this investment for expanding its businesses in the U.S. and Asia.
The outbreak of COVID-19 has bought along with a global recession, which has impacted several industries. Along with this impact, COVID Pandemic has also generated a few new business opportunities for the Virtual Assistants market. The overall competitive landscape and market dynamics of Virtual Assistants have been disrupted due to this pandemic. All these disruptions and impacts have been analyzed quantifiably in this report, which is backed by market trends, events, and revenue shift analysis. COVID impact analysis also covers strategic adjustments for Tier 1, 2, and 3 players of the Virtual Assistants Market.
|
Components |
Product, Parts & Devices |
Services & Solutions |
Technology |
Deployment |
End-Use Industry |
|
Processors |
Smartphones and Tablets |
Solutions |
Machine Learning |
Cloud |
Transportation & Logistics |
|
Memory |
Wearables |
Services |
NLP |
On-premise |
Healthcare |
|
Storage |
Workstation Systems |
Computer Vision |
Automotive |
||
|
FPGA |
Others |
Context Awareness |
Retail |
||
|
ASIC |
Others |
BFSI |
|||
|
Modules |
Aerospace |
||||
|
Oil & Gas |
|||||
|
Telecom |
|||||
|
Others |
In industries such as BFSI and Retail in which customer experience and customer satisfaction are of prime importance, virtual assistants are already being integrated and they will play a vital role in the coming years. Hence, these end-use industries are expected to account for significant shares in the virtual assistant market ecosystem. The rise of mobile banking is one of the most important factors that will drive the growth of the virtual assistants market in the BFSI end-use industry. The Bank of America, one of the world’s largest banking institutes, surpassed 10 million subscribers for its mobile chatbot Erica by the end of 2019.
The healthcare end-use industry is also expected to grow at a high CAGR of around 23.5% during the forecast period. In the healthcare industry, virtual assistants are used for a variety of tasks such as addressing medication-related queries, medication guidance, entering data into EHRs, etc.
In the Products, Parts and Devices segment, smartphones and tablets are expected to account for a significant share of the market in 2018, the high penetration of smartphones being the most important factor for this dominance.
The global virtual assistants market was valued at US$ 4,259.8 mn in 2018 and is expected to reach US$ xx mn by the year 2026, growing at a CAGR of 24%. The increasing demand for Robotic Process Automation for performing various repetitive and administrative tasks and the increasing penetration of smartphones are driving the growth of the virtual assistants ecosystem.
North America is expected to dominate the virtual assistant's market ecosystem. The presence of major players in this market and the high rate of adoption of advanced technologies are the major factors for the dominance of this region. On the other hand, the growing automotive and retail sectors and the ever-increasing application of virtual assistants in these sectors are providing a solid platform for the growth of the European Virtual Assistants ecosystem.
There are many trends that are having an impact on the market forecast. These, when evaluated from a company’s perspective, can drive growth. Our numerous consulting projects have generated sizeable synergies across all regions and all sizes of companies.
|
Company |
Ecosystem Positioning |
Total Revenue-2018 |
Industry |
Region |
|
Amazon |
Products, Parts, and Devices |
US$ 232.88 bn |
Retail, BFSI, etc |
Global |
|
Microsoft Corporation |
Products, Parts, and Devices |
US$ 110.36 bn |
Retail, Healthcare, BFSI, etc |
Global |
|
IBM Corporation |
Products, Parts, and Devices |
US$ 79.6 bn |
Healthcare, BFSI, etc |
Global |
|
|
Products, Parts, and Devices |
US$ 136.81 bn |
BFSI, Healthcare, etc |
Global |
|
Nuance Communication* |
Products, Parts, and Devices |
US$ 1.94 bn |
Healthcare |
Global |
Very few markets have interconnectivity with other markets like Virtual Assistants. Our Interconnectivity module focuses on the key nodes of heterogeneous markets in detail. Artificial Intelligence, Internet of Things, Autonomous Vehicles, 5G technology, and Electronic Health Records markets are some of our key researched markets.
| Trends | End-Use Industry | Impact |
| Increasing the use of chatbots for offering personalized and patient-centric services to assist patients with their medication guidance, medical queries, nutrition, symptom checks, and other matters. Chatbots have reduced the number of patients visiting doctors for minor health-related issues. | Healthcare | 0.54% |
| Procurement chatbots integrated with artificial intelligence act as a single point of contact in addressing external and internal queries related to orders, track status, invoices, etc. | Transportation & Logistics | 0.06% |
| Chatbots are already being extensively used in the banking industry to revolutionize customer relationship management at the personal level. For instance, the Bank of America has deployed a virtual assistant for its customers known as Erica, which uses artificial intelligence, machine learning algorithms, and natural language processing technologies in order to provide suggestions over mobile phones, for helping customers with their financial affairs. | BFSI | 0.10% |
Ask for free product review call with the author
Share your specific research requirements for a customized report
Request for due diligence and consumer centric studies
Request for study updates, segment specific and country level reports
Log in / Register
