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The digital human market is changing significantly, altering the dynamics of man-machine interaction and reconstructing virtual and real experiences’ boundaries. AI-based digital humans in the form of realistic avatars or interfaces are becoming popular across industries. A major driver for market dynamics is the demand for personalized and engaging customer experiences. Retailers, financiers and health service providers are using digital humans to engage with customers, provide assistance, answer questions and make their interface more immersive and human-like. This improves user engagement while also building a link through better understanding natural language, emotions and context that caters for an increased need for more intuitive responsive interfaces.
Furthermore, advances in artificial intelligence (AI) and machine learning (ML) are driving market dynamics by enabling digital humans to learn faster overtime. These AI-driven avatars can learn from interactions with users, recognize individual preferences and alter themselves so as to offer more customized contextualized encounters. Digital humans’ continuous learning ability makes them suitable for various applications ranging from virtual customer service representatives to educational tutors thus enhancing their usefulness in various sectors.
Another major trend in market dynamics is the inclusion of digital humans into virtual reality (VR) or augmented reality (AR) environments. With increased presence of VR/AR technologies in today’s world, one cannot understate the role of digital humans in creating highly immersive virtual experiences with a touch of realism. Education institutions have also begun utilizing these entities beyond gaming platforms as they play vital roles in simulating scenarios that mimic real life situations that allow students to interact remotely with each other.Most importantly,digital persons create a sense of reality because they use human-like expressions when conveying information.
Also among market forces affecting the sector are new forms such as brand ambassadors based on artificial intelligences (AI), called “Virtual Influencers”. Digital personages are increasingly often used by companies on social media sites as their brand spokesmen owing to their attractive look and charm factor.Digital influencers are especially appealing for marketing and brand communication strategies because of their unique mix of creativity, consistency, and absence of real-world limitations.
Moreover, democratization of digital human creation tools also dictates market dynamics. Platforms and technologies that enable easy creation of digital humans including avatar customizations, animation and behavioral programming have made it more accessible to businesses and individuals in creating these personas. Through this democratization, the application of digital humans is expanding to different sectors such as personalized advertisements or virtual friendhips.
Some other challenges concerning market dynamics include ethical concerns, privacy issues and standardization needs for developing and deploying digital humans. As these AI-driven entities become more integrated into daily life, addressing these issues will be crucial for ensuring responsible and ethical use.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2022 | USD 4.83 Billion |
| Market Size Value In 2023 | USD 5.59 Billion |
| Growth Rate | 31.9% (2023-2032) |
Digital Human AI Avatars Market Highlights:
Digital Human (AI Avatars) Market Overview
Digital Human (AI Avatars) Market Size was valued at USD 4.83 billion in 2022. The Digital Human (AI Avatars) Market industry is projected to grow from USD 5.59 billion in 2023 to USD 67.54 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 31.9% during the forecast period (2023 - 2032).
A digital person, also known as an AI avatar, is a lifelike virtual depiction of a human driven by artificial intelligence (AI) technologies. These avatars are created to imitate human look, behavior, and interaction, frequently blurring the barrier between reality and virtuality. Digital humans can take many forms, ranging from 2D and 3D characters to realistic humanoid figures, and they can be utilized in a wide range of applications, including customer service, virtual assistants, entertainment, healthcare, and education. Natural language processing (NLP), speech recognition, facial recognition, and machine learning capabilities are frequently included, allowing them to participate in meaningful conversations, interpret user gestures, and react to enquiries with human-like interactions. Digital people have the potential to transform how we interact with technology and provide more personalized and immersive experiences across a wide range of fields, making them an exciting and quickly expanding area of AI and human-computer interaction.
FIGURE 1: DIGITAL HUMAN (AI AVATARS) MARKET SIZE 2018-2032 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Digital Human (AI Avatars) Market Trends
Improvements in cutting-edge technologies like AI
Because of technological advancements and fundamental gains in artificial intelligence, the market for human digital avatars is rising. Technological advancements have enabled the creation of virtual assistants, analogous to virtual teachers in school. These computerized human avatars promote active, interactive learning at the pace of the learner and can be customized for the user's convenience. They are also used in the healthcare business to improve teaching and learning opportunities through medical simulation and training. They are used in retail to deliver more interesting and personalized experiences for customers. As a result, new technological advances such as AI will broaden the possible applications for digital human avatars, accelerating market growth in the near future. Improved speech recognition technology allows digital persons to more accurately perceive and respond to spoken orders and inquiries. This is very useful in applications such as virtual assistants and customer care chatbots. Technological advances in 3D modeling, animation, and rendering result in increasingly realistic and visually appealing digital humans. Conversations become more engaging and relatable because these avatars can closely resemble humans.
Digital Human (AI Avatars) Market Segment Insights
Digital Human (AI Avatars) Product Type Insight
The Digital Human (AI Avatars) Market, in this report, has been segmented based on Product Type into interactive digital human avatar and non-interactive digital human avatar.
The interactive digital human avatar segment holds the largest share of the total market. Because companies are working on various R&D activities, product launches, and innovations in existing product lines, the interactive digital human avatar segment is expected to account for a significantly large revenue share in the global market over the forecast period. NTT DATA will also present its latest Al-powered digital human platform, Lottie. Lottie will be an informative and entertaining guide for visitors, providing information about the event, players, and sport itself, as well as aiding attendees in navigating the course. This interactive and engaging product, which incorporates multimedia components such as voice, video, and graphics, represents the future of customer service across multiple industries, integrating the best aspects of digital and human interactions.
FIGURE 2: DIGITAL HUMAN (AI AVATARS) MARKET, BY PRODUCT TYPE, 2022 VS 2032 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Digital Human (AI Avatars) Technology Insights
The Digital Human (AI Avatars) Market, in this report, has been segmented on the basis of Technology into 3D scanning, 3D modelling, natural language processing, natural language generation, and artificial intelligence (AI).
The artificial intelligence (AI) segment holds the largest share of the total share. This is due to the fact that AI is required for the creation of realistic and lifelike digital human avatars. The avatar's facial expressions, body motions, and voice are generated using AI. These artificial human avatars can understand and interpret human language, identify facial expressions and gestures, simulate emotions, and respond dynamically to user interactions thanks to AI technology. This level of intricacy and adaptability is critical in producing lifelike and compelling digital human avatars that may be used in a variety of industries, ranging from customer service to entertainment and education. Furthermore, AI is continuously evolving, allowing AI avatars to become ever more capable and adaptable. Natural language processing (NLP), machine learning, and deep learning are advanced AI technologies that help to improve the realism, responsiveness, and intelligence of these avatars.
Digital Human (AI Avatars) Industry Vertical Insights
The Digital Human (AI Avatars) market in this report has been segmented on the basis of industry vertical into gaming, retail, entertainment, BFSI, IT & telecommunications, education, health & sports, automotive, advertisement and others.
The entertainment segment holds 23.2% of the total share. Digital human avatars provide entertainment creators with unprecedented creative freedom and control. Filmmakers and animators can manipulate and fine-tune these avatars' appearance, behavior, and narrative arcs to meet their artistic vision. This adaptability enables the study of varied storytelling styles, character development, and imaginative worlds that would be difficult or costly to accomplish using traditional methods. Artists, animators, and performers can collaborate remotely using digital human avatars, allowing them to work from separate locations.
Digital Human (AI Avatars) Application Insights
The Digital Human (AI Avatars) market in this report has been segmented on the basis of Application into virtual agents, virtual assistants, virtual influencers, virtual companions, and virtual characters.
The virtual agents segment holds the largest share of the total market share. Virtual agents are AI-powered chatbots or virtual assistants that can interact naturally with people. They are utilized in many different fields, including customer service, education, and healthcare. There are various reasons why the virtual agents business is leading. For starters, virtual agents are growing more complex and can now do a broader range of jobs. Second, the cost of producing and deploying virtual agents is falling, making them more accessible to organizations. Third, the growing use of AI technology is raising the demand for virtual agents.
Digital Human (AI Avatars) Regional Insights
Based on Region, the global Digital Human (AI Avatars) is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. Further, the major countries studied in the market report are the U.S., Canada, Germany, UK, Italy, Spain, China, Japan, India, Australia, UAE, and Brazil.
The North America Digital Human (AI Avatars) market has the largest market share region for global Digital Human (AI Avatars). Factors such as increased activity by leading market players, such as new releases and product expansions, among others, are driving revenue growth in this region's digital human avatar market. Ogilvy, for example, launched Reality, a specialized digital experience lab' geared at studying and creating novel applications of technologies such as Augmented Reality (AR), Virtual Reality (VR), and Non-Fungible Tokens (NFTs). Dickon Laws, Ogilvy's global head of innovation, will lead the studio, which will serve as an 'innovation translator, pathfinder, and risk navigator' for network customers.
The Asia-Pacific Digital Human (AI Avatars) market has the largest growth rate. Factors such as increased activity by leading market players, such as new releases and product expansions, among others, are driving revenue growth in this region's digital human avatar market.
FIGURE 3: DIGITAL HUMAN (AI AVATARS) MARKET SIZE BY REGION 2022 VS 2032 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Digital Human (AI Avatars) Market- Key Market Players and Competitive Insights
The Digital Human (AI Avatars) market is a highly competitive industry making substantial investments in research and development to expand their product/service portfolios, contributing to the market's robust growth. The market is characterized by the presence of established and large Digital Human (AI Avatars) companies, as well as many smaller and emerging players such as Roblox Corporation, Wolf3D. Key developments include new product/service launches, mergers and acquisitions, contractual agreements, increased investments, and collaborations with other organizations. Given the competitive and evolving market landscape, competitors in the digital human (AI Avatars) industry are focusing on cost-effective offerings to thrive and expand.
The competition in the Digital Human (AI Avatars) market is driven by various factors, including pricing, quality, delivery time, and the ability to offer customized solutions to customers. Moreover, partnerships and collaborations with other players in the industry, such as OEMs and suppliers, are crucial for companies to remain competitive in the market. Mergers and acquisitions are also common in the Digital Human (AI Avatars) market, as companies seek to expand their reach and capabilities.
Key Companies in Digital Human (AI Avatars) Market Include
- DeepMotion
- iFLYTEK Corporation
- Inworld AI
- Meta Platforms, Inc.
- Didimo Inc.
- Soul Machines
- Ziva Dynamics
- Tencent Holdings Limited
- Nvidia Corporation
- Microsoft Corporation
- Netease, Inc.
- Epic Games, Inc.
- Roblox Corporation
- Wolf3D
- Hour One
- Spatial Systems, Inc.
Digital Human (AI Avatars) Industry Developments
December 2021, Synthesia, a startup based in London, U.K. that is building AI-based video avatars of actual people, announced a USD 50 million funding round led by Silicon Valley venture capital companies Kleiner Perkins and GV, among others.
Digital Human (AI Avatars) Market Segmentation
Global Digital Human (AI Avatars) Product Type Outlook
- Interactive Digital Human Avatar
- Non-Interactive Digital Human Avatar
Global Digital Human (AI AVATARS) Technology Outlook
- 3D Scanning
- 3D Modelling
- Natural Language Processing
- Natural Language Generation
- Artificial Intelligence (AI)
Global Digital Human (AI AVATARS) Application Outlook
- Virtual Agents
- Virtual Assistants
- Virtual Influencers
- Virtual Companions
- Virtual Characters
Global Digital Human (AI AVATARS) Industry Vertical Outlook
- Gaming
- Entertainment
- BFSI
- IT & Telecommunication
- Education
- Automotive
- Advertisement
- Health & Sports
- Others
Digital Human (AI Avatars) Market Regional Outlook
-
North America
- US
- Canada
- Mexico
-
Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
-
Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
-
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Rest of the Middle East & Africa
-
South America
- Brazil
- Argentina
- Chile
- Rest of South America
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