The Intelligent Virtual Assistant (IVA) market was valued at USD 2.58 billion in 2019 and is expected to reach USD 6.27 billion by 2025, at a CAGR of 36.45% over the forecast period 2020 - 2025. The efficient use of IVA technology lies in the concepts of aggregation and augmentation as organizations are becoming more comfortable with the idea of integrating chatbots and intelligent assistants into their processes, and are confident that it will lead to improvements in efficiency and customer satisfaction.
- With expected to AI becoming the core of many technology-based applications, the investments in the IVA sector are growing, while virtual assistant stands as one of the standard features for many AI-related applications, thereby leverage the fast-growing technology to expand in the coming years.
- With various sectors quickly integrating the IVA into their business ecosystem, organizations are now looking forward to enhancing their existing communication platform thereby fueling the demand of the IVA market.
- With declining costs of hardware, the infrastructure costs associated with the development and deployment of IVA based technology have come down drastically, that is enabling companies to pursue the AI technology and develop solutions thereby cater to industry-specific needs.
Scope of the Report
The Intelligent Virtual Assistants (IVAs) are AI-driven software solutions for enterprises looking forward to automating their customer service operations. Owing to their self-learning ability, scalability, and customizable features, AI-driven virtual assistances are gaining across enterprises. As brands across industries are focusing on improving customer experience, IVAs are expected to gain traction considering the functional abilities compared to programmable chatbots. It expands the scope of the first-generation AI platform beyond Information Technology simplification and optimization so that it can leverage on AI to drive the transformations to the core of the business.
Key Market Trends
BFSI Sector is Gaining Traction Due to Emergence of Automated Service-based Platform
- BFSI sector is among the early adopters of personalized product recommendations based on past experience of its customers thereby understanding their need for the banking as well as financial services along with their browsing habits.
- The banking industry has a wide range of products and services for its customers with an increasing number of banking service providers adopting personalized banking to retain their customers. IVAs, which are capable of delivering quick and efficient customer service, along with personalized offers based on their profile are, therefore, becoming common across the banking industry.
- Emphasis on omnichannel experience also supports the adoption of IVAs. Prominent banking service providers, such as Bank of America, JP Morgan Chase, and Capital One have already implemented virtual assistants in the form of chatbots and have successfully streamlined their back-end operations, thereby, saving significant costs.
- For instance, IBM, which offers AI solutions for call centers, quoted that bot interactions in the Banking industry is expected to hit 90% by 2022. Such statistics substantiate the segment’s growth over the forecast period.
North America to Register a Significant Growth During the Forecast Period
- With a large fraction of millennials in the region inclined toward self-service options and messaging apps, the enterprises across the region are estimated to opt for IVA services to cater to their needs, thereby fueling the growth of the market across the region.
- The robust banking sector of the region has actively invested in chatbots for customer personalization. In fact, the early adopters of the AI assisted chatbots in the banking sector are from North America.
- For instance, Nuance Communications, a prominent player in the market revealed that 80% of 10,000 US clinicians believe that virtual assistants would drastically change healthcare by the end of 2019. Such high consumer inclination toward self-service options has led to the growth of the messaging applications indicate the favorable environment for the adoption of IVA chatbots across regions.
- Furthermore, the growing investments by companies in developing improved IVA technology by the help of artificial intelligence and machine learning to support automated decision-making systems are expected to fuel the market across North America during the forecast period.
The intelligent virtual assistant market is moderately competitive and consists of a few major players. In terms of market share, some of the players currently dominate the market. However, with the advancement in the integrated speech as well as gesture recognition technologies, new players are increasing their market presence thereby expanding their business footprint across the emerging economies.
- September 2019 - Oracle Corp. collaborated with Deloitte Digital to help brands make every customer interaction matter. By bringing together enterprise-class Customer Data Platform (CDP) capabilities and demonstrated technology and business expertise, Oracle and Deloitte Digital will help brands deliver personalized and contextualized experiences in real-time and at scale across the entire customer journey.
- May 2019 - Vodafone Idea Limited signed a multi-million-dollar five-year agreement with IBM to deliver an enhanced customer experience to millions of connected consumers and businesses in India. In addition, this engagement will also contribute to Vodafone Idea’s merger synergy objectives by reducing its IT-related costs.
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