Virtual Assistant Market Poised to Top $3 Billion in Five Years

The global intelligent virtual assistant market is projected to exceed $3 billion by 2020, according to a new report from Hexa Research. An increased focus on effective client communication, made easy by virtual assistants, is expected to drive the intelligent virtual assistant market over the forecast period.

Large enterprises are expected to remain the largest end-use segment of the intelligent virtual assistant market by 2020. They stand to benefit to a great extent through the deployment of virtual assistants, since they are capable of handling a considerable percentage of customer interactions. Since they also help improve the enterprise’s mobile customer service experience, a growing number of large enterprises have adopted intelligent virtual assistant technology to deliver critical cost savings and new revenue opportunities.

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 that include banking and financial services, travel, and online retail, have exhibited higher return on investment (ROI) through intelligent virtual assistant implementation. This is primarily because of 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 accounted for over 40 percent of the global intelligent virtual assistant market in 2012, and is expected to continue dominating the market over the next six years. There exists a high proliferation of Internet services and mobile phones in developed markets of North America and Europe. Additionally, these regions are home to a large number of key participants.

Demand from the Asia-Pacific area is estimated to rise, and the region is expected to exhibit high growth over the forecast period. A boost in the number of smartphones on a global level is expected to fuel the intelligent virtual assistant market.

Additionally, growing demand for self-reliance has driven virtual agent acceptance and adoption. In recognition of these changing dynamics, service providers have developed multi-language platforms to better serve the need of varied users. A 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.

Key industry participants serve numerous industries such as travel, insurance, finance, government, retail, media, etc. A growing need to oversee the growth of data in enterprises is expected to positively influence the market.

The absence of metrics and a need for standardization may act as restraints to market growth over the next six years. Growing demand to increase self-service online is estimated to be the main driving force of the market in the next few years.

A rise in the number of wireless subscribers and mobility is also estimated to drive the market over the forecast period. In 2012, the intelligent virtual assistant market was valued at over $350 million.