Digital Assistant Market Size was valued at USD 9.9 Billion in 2023. The Digital Assistant market industry is projected to grow from USD 11.2 Billion in 2024 to USD 35.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 18.20% during the forecast period (2024 - 2032). Rising adoption of consumer electronics and increasing implementation in large customer bases sectors such as healthcare and banking boost the market growth.
Figure 1: Digital Assistant Market Size, 2024-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The industry is expected to develop because of the rising adoption of consumer electronics like smartphones, smartwatches, and smart speakers. Customers are becoming more accustomed to using smart gadgets, so they rely heavily on digital assistants to get sports scores, place food orders, and schedule their programs. As a result of the increasing complexity of work, most organizations now rely on clever virtual assistants to help them manage their workload and swiftly address customer concerns. A clever virtual assistant also facilitates communication between machines and people. Additionally, it uses voice recognition technology to translate spoken words and phrases into machine-readable forms. The abovementioned factors will drive the market for intelligent virtual assistants during the projection period.
The demand for increased efficiency among service-based businesses and incorporating virtual assistants powered by artificial intelligence (AI) across various devices, including tablets, desktops, and smartphones, is expected to drive market expansion.
Figure 2: Penetration rate of Digital Assistants in Applications Worldwide
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on vertical type, the Digital Assistant Market segmentation includes automatic speech recognition, text-based, and text-to-speech. The automatic speech recognition segment accounted for the largest share of this market and is also anticipated to grow at a CAGR of 27.86% throughout the forecast period. The future growth of this segment can be attributed to the widespread use of smart speakers across numerous industries. Smart speakers may recognize speech and react to consumer-generated speech in a specified way. The demand for automatic voice recognition is anticipated to increase as mobile computing technology becomes more widely used. Customers may now interact with cell phones and their applications more efficiently. Because major smart speakers producers like Amazon Alexa, Google Home, and Bose have U.S. headquarters, most of their devices are introduced and distributed there first.
Users can have natural conversations with electronic devices like telephones and computer interfaces thanks to a technique called automated speech recognition (ASR). The most advanced ASR technology was recently developed called "natural language processing." This technology allows for the most natural communication between humans and computers. Text-to-text, text-to-speech, and automatic speech recognition are the user interfaces utilized by intelligent virtual assistants. End users in retail, BFSI, healthcare, telecom, and others mostly employ them.
Figure 3: Digital Assistant Market by User-Interface Type, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Since voice-to-text solutions are currently in high demand, speech recognition products are predicted to experience an unexpected increase. Software for turning speech into text is enhancing internal productivity in healthcare businesses. Voice recognition software is becoming increasingly popular among hospitals with limited financial resources as it reduces unnecessary overhead costs for the healthcare sector.
February 2023 The cloud-native service provider Civo has unveiled "Kubeflow as a Service," a new machine learning managed service, with the goal of enhancing the developer experience and lowering the resources and time needed to extract insights from ML algorithms.
February 2023 The top provider of digital customer service, Glia, recently unveiled Glia Virtual Assistants to assist businesses in reducing costs and speeding up resolution times while offering seamless customer experiences that combine virtual and human support. Based on conversational AI solutions from Glia's recent acquisition of Finn AI, GVAs are pre-trained to provide value right out of the box and optimized for banks and credit unions. Glia provides a single supplier solution for digital customer service by completely integrating GVAs into its industry-leading platform.
Based on application type, the Digital Assistant Market segmentation includes BFSI, Consumer Electronics, Automotive, Healthcare, Education, Retail, IT & Telecom, Travel & Hospitality and Others. The automotive segment is estimated to grow at a CAGR of 30.54% through the forecast period. In the IVA market, which is anticipated to grow over the next few years, this segment is quickly becoming one of the fastest growing due to the increasing implementation of electric vehicles. These intelligent digital assistant works on artificial intelligence and machine learning platform will change dynamics of the overall industry in the coming years. Many businesses, including Daimler, Morris Garage, Audi, BMW, and Hyundai, have voice-enabled infotainment systems integrated.
Consumer electronics is the second-highest segment that dominated this market, growing with a significant CAGR of 29.8% over the past few years. Another favorable factor for the Digital Assistant Market is the increasing integration of intelligent virtual assistants into consumer electronics such as laptops, tablets, smartphones, and PCs. This digital assistant can be used for various tasks or objectives, including helping users navigate an electronic system, helping customers pay their bills, helping customers with various customer service issues, and providing information about various products.
In the past few years, the demand for the worldwide digital assistant has been driven by increased utilization of cloud-based office solutions across various industries and the number of individuals working remotely. IVAs based on smartphones or computers, like Alexa, Siri, and Google Voice Assistant, are becoming increasingly popular, and many goods are incorporating IVA technologies.
Many developing nations are turning to technology to handle the rising demand for healthcare services while controlling the price of care delivery. This has caused healthcare providers in these economies to pay more attention to exploring and using the possibilities of virtual healthcare assistants. As a result, many virtual assistant technology companies emphasize growing their presence in emerging nations.
Furthermore, digital assistants in the healthcare sector are fragmented due to shifting consumer demands, which drive businesses to innovate to attract more customers. With companies introducing a wide range of products to attract customers, the competition in this sector has grown more intense over time. However, government rules about t protecting customer data to prevent its misuse may impede market expansion as businesses must abide by them and immediately implement adjustments
This market has been segmented by region into North America, Europe, Asia-Pacific, and the rest of the world. The North American region commands the highest share of 39.8% in 2023 and is expected to remain dominant throughout the forecast period. According to IEA, InU.S. electric car market share is doubled, i.e., reached 4.5% in 2021, reaching 630 000 sold. While in emerging economies, the electric car showed a growth rate of more than 100%, even though sales volumes remain low. This shows that the domination of digital assistants in cars is much more in the U.S. when compared to other regions.
Moreover, the demand for home monitoring devices, the prevalence of chronic illness, and the aging population are all critical drivers of the digital assistant's expansion in North America. All age groups use home-based technology since operating it has grown tedious. They are also lightweight and portable, so patients may carry them around at all times without feeling uncomfortable. Additionally, it guarantees continuous monitoring of the patient's health.
On the other hand, the Asia-Pacific region is estimated to grow at the highest CAGR of 31.6% through the forecast period. The development of AI-powered digital assistants for business interaction has shown that they are competent at business tasks like booking appointments and consulting across various industries. Businesses are introducing products that allow an app or gadget to function as an AI agent. The development of AI-powered IVAs for business interaction has shown that they are more competent at business tasks like booking appointments and consulting across various industries. Businesses are introducing products that allow an app or gadget to function as an AI agent.
Figure 4: DIGITAL ASSISTANT MARKET, BY REGION, 2022 and 2030
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Furthermore, Asia-Pacific is predicted to have the most tremendous growth rate due to inexpensive labor, low production costs, and increased consumer awareness of virtual assistant solutions. India and China will be the most significant contributors to this growth. Throughout the forecast period, expanding R&D spending and expanding healthcare infrastructure are also anticipated to have an equal impact on the market for virtual assistants in healthcare.
Due to the existence of well-established main competitors, the Digital Assistant Market needs to be more cohesive and highly concentrated. Industry participants have implemented several initiatives, including investments in research and development, mergers and acquisitions, and the expansion of manufacturing facilities, to maintain their position as leaders and meet consumers’ expanding needs.
Major players in the digital assistant market include Amazon.com Inc., Apple Inc., IBM Corporation, Nuance Communications Inc., Alphabet Inc., Inbenta Technologies Inc., Microsoft Corporation, Baidu Inc., BlackBerry Ltd., Artificial Solutions, EGain Corporation, IPsoft Inc (Amelia), Avaamo, Alibaba Group, Xiaomi Inc and Oracle, among others.
February 2023 Nebraska-based Today, Bluestem Health announced the debut of a Mediktor-powered AI-based virtual medical assistant. Both current and new patients can use this to effectively evaluate their symptoms online and be directed to the best degree of therapy.
February 2023 Bixby has received fresh updates from Samsung Electronics Co., Ltd. that enhance its performance, capabilities, and user experience. The new enhancements significantly strengthen Bixby's language recognition capabilities, providing users more control over their smartphone experience.
North America
Europe
Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 9.9 Billion |
| Market Size 2024 | USD 11.2 Billion |
| Market Size 2032 | USD 35.5 Billion |
| Compound Annual Growth Rate (CAGR) | 18.20% (2024-2032) |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2019 to 2023 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | User Interface Type, Application Type, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Amazon.com Inc., Apple Inc., IBM Corporation, Nuance Communications Inc., Alphabet Inc., Inbenta Technologies Inc., Microsoft Corporation, Baidu Inc., BlackBerry Ltd., Artificial Solutions |
| Key Market Opportunities | Increasing usage for handicapped |
| Key Market Dynamics | Rising adoption of consumer electronics Increasing implementation in large customer bases sectors such as healthcare and banking |
Digital Assistant Market Highlights:
Frequently Asked Questions (FAQ) :
The market for Digital Assistants was USD 9.9 Billion in 2023.
The global analytics market is expected to be USD 35.5 Billion in 2032.
Th growth rate for the Digital Assistant market is 18.20% through the forecast period.
At present, the North American region holds the largest market share.
The major players dominating the market are Amazon Web Services, Inc., Hewlett Packard Enterprise, IBM Corporation, Century Link, Inc., Microsoft Corporation, Oracle Corporation, SAP SE, and others.
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Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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