Virtual Influencer Market Overview
As per MRFR analysis, the Virtual Influencer Market Size was estimated at 16.41 (USD Billion) in 2022.
The Virtual Influencer Market Industry is expected to grow from 21.03(USD Billion) in 2023 to 195.9 (USD Billion) by 2032. The Virtual Influencer Market CAGR (growth rate) is expected to be around 28.14% during the forecast period (2024 - 2032).
Key Virtual Influencer Market Trends Highlighted
The global virtual influencer market is rapidly evolving, with advancements in technology and increasing adoption across various industries. Key market drivers include the rise of immersive technologies such as augmented reality (AR) and virtual reality (VR), which enhance the engagement and relatability of virtual influencers. The growing popularity of social media and the desire for personalized content have also fueled the demand for virtual influencers.
Opportunities for market exploration include the development of sophisticated artificial intelligence (AI) and machine learning algorithms that can create more realistic and interactive virtual influencers. Collaboration between virtual influencers and brands presents a significant opportunity as brands seek to leverage the authenticity and reach of these digital personalities to connect with target audiences.
Recent trends in the virtual influencer market include the emergence of hyper-realistic virtual influencers with detailed avatars and personal narratives. The integration of virtual influencers into e-commerce platforms allows for immersive shopping experiences and personalized recommendations. Additionally, the rise of virtual influencer agencies and management companies provides support and resources for brands and creators looking to leverage the power of virtual influencers effectively.
Figure 1: Virtual Influencer Market Size, 2023-2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Virtual Influencer Market Drivers
Rising Popularity of Social Media and Influencer Marketing
One of the main reasons for the emergence and growth of the virtual influencer market is the expansion of numerous social media platforms and the increasing popularity of influencers. Social media platforms provide a broad and responsive public for virtual influencers to interact with while also allowing brands to take advantage of influencer marketing without the disadvantages of real liaisons. The advantages of virtual influencers over conventional influencers include control over them and fitness for brands, as they can provide a consistent message and do not put a reputation of the brand at risk, unlike real influencers.
Additionally, they can be easily scaled to respond to a broader audience and can serve as virtual assistants to clients on multiple platforms. In the future, the growing popularity of social media and influencer marketing will give rise to a higher demand for virtual influencers.
Advancements in Artificial Intelligence and Machine Learning
AI and ML algorithms: Impact of the latest advancements in artificial intelligence and machine learning on the growth of the Global Virtual Influencer Market Industry? The rapid advances in artificial intelligence and machine learning have a major bearing on the phenomenal growth of the virtual influencer market industry. AI and ML programs lend virtual human influencers a more realistic look as they interact with their followers. They can also smile, laugh, or make funny faces.
They respond with varying lengths of pauses, speech rate, and word length. Thanks to these programs, virtual influencers can establish contact with the audience and sustain the connection on an emotional level. They flaunt higher sophistication levels, and as the AI and ML technologies make further headway, they will barely be distinguishable from their human counterparts.
Growing Demand for Personalized and Immersive Experiences
Guests provide an adaptive response to user actions and continuously optimize the site's usability. They build relationships with guests based on their previous behavior on-site and previous communications. The virtual influencer of the brand works with consumers one-on-one and gives them personalized recommendations. Virtual guests interact with them, provide individual assistance and share exclusive offers. This approach to solving consumers' problems allows for establishing a more trusting relationship and building loyalty.
Thus, they participate in virtual meetings with fans, play games with them and allow them to try on clothes and jewelry using AR/VR technologies.
Virtual Influencer Market Segment Insights
Virtual Influencer Market Type Insights
The Global Virtual Influencer Market is segmented into Virtual Humans, Animated Characters, and Artificial Intelligence-Driven Avatars. Virtual Humans are computer-generated mimics of real people. It is more used for the posts of goods in stores and social networks, where the view is not so soulless. Animated Characters are creative computer-generated mimics. They are used more often in cartoon cinemas with fairy tales and some series for children. They are used to show some social media or products and thus create fun for the viewer. Finally, Artificial Intelligence-Driven Avatars are computer-generated copies of real people adapted to humans using artificial intelligence.
They can be applied in other areas, such as lectures, play, or help to solve the user's question. The Artificial Intelligence-Driven Avatars segment is expected to grow from 2024 to 2032 and will be equivalent to USD 195.9 billion, with a CAGR of 28.14%. One of the most active segments of growth in this market is using computer-generated copies of people adapted to internet use. They can move, communicate with the chat and, if necessary, drive the user further down. At the same time, the growth is facilitated by the popular growth of social media, the desire to receive new and soul-pleasing information, and the development of artificial intelligence. With the active growth of the market, we can say that soon, we will see even more different and useful virtual influencers.
Figure 2: Virtual Influencer Market, By Type, 2023 & 2032
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Virtual Influencer Market Deployment Insights
The deployment segment of the Global Virtual Influencer Market is categorized into social media platforms, brand websites and e-commerce platforms. Social media platforms, with their vast user base and engagement levels, account for the largest share of the market. In 2023 the Global Virtual Influencer Market on social media platforms was valued at USD 12.3 billion and is projected to reach USD 95.6 billion by 2032, growing at a CAGR of 28.6%. Brand websites utilize virtual influencers to enhance brand image and connect with customers on a personal level.
The market for virtual influencers on brand websites is expected to grow from USD 4.2 billion in 2023 to USD 32.1 billion by 2032, registering a CAGR of 27.4%. E-commerce platforms leverage virtual influencers to showcase products and drive sales. This segment is anticipated to grow from USD 2.7 billion in 2023 to USD 21.5 billion by 2032, with a CAGR of 26.7%. Adoption of virtual influencers across these deployment segments is driven by factors such as rising consumer engagement, increasing demand for personalized content and the need for cost-effective marketing strategies.
Virtual Influencer Market Application Insights
Application segment plays a pivotal role in shaping the dynamics of the Global Virtual Influencer Market. Virtual influencers are increasingly leveraged across diverse applications, including product marketing, customer service, brand storytelling and entertainment. These applications have unique requirements and growth trajectories that influence the overall market landscape. In the product marketing domain, virtual influencers effectively engage audiences, showcase products, and drive sales through authentic and relatable content. Their ability to connect with consumers on an emotional level enhances brand recall and purchase intent.
The customer service segment utilizes virtual influencers to provide personalized support, answer queries, and resolve customer issues promptly and efficiently. This segment is expected to witness significant growth as businesses seek to improve customer satisfaction and loyalty. In the realm of brand storytelling, virtual influencers serve as compelling brand ambassadors, crafting narratives that resonate with target audiences. They enable brands to connect with consumers on a deeper level, building strong emotional connections and fostering brand loyalty.
The entertainment industry has also embraced virtual influencers, leveraging their popularity to create engaging content, host virtual events, and drive fan engagement. As the entertainment landscape continues to evolve, virtual influencers are poised to play an increasingly prominent role in shaping the industry. With their versatility and ability to cater to diverse applications, the application segment remains a key driver of the Global Virtual Influencer Market, presenting immense opportunities for growth and innovation.
Virtual Influencer Market End User Insights
The Global Virtual Influencer Market Segmentation by End User can be divided into Consumer Goods and Retail, Fashion and Beauty, Technology and Software, and Travel and Hospitality. The Consumer Goods and Retail segment is projected to grow at the fastest CAGR during the forecast period, owing to the increasing adoption of virtual influencers by brands to promote their products and services. The Fashion and Beauty segment is also expected to witness significant growth as virtual influencers are increasingly used to showcase new fashion trends and beauty products.
The Technology and Software segment is expected to grow steadily, driven by the increasing use of virtual influencers in marketing campaigns. The Travel and Hospitality segment is also expected to grow at a steady pace as virtual influencers are increasingly used to promote travel destinations and hospitality services.
Virtual Influencer Market Regional Insights
The regional segmentation of the Global Virtual Influencer Market offers valuable insights into the industry's geographical distribution and growth dynamics. North America holds a dominant position in the market, driven by the early adoption of virtual influencers by brands and agencies. In 2023, the region accounted for approximately 40% of the Global Virtual Influencer Market revenue, and this dominance is expected to continue in the coming years. Europe is another key region, with a market share of around 30%. The region has witnessed a surge in the use of virtual influencers in industries such as fashion, beauty, and lifestyle.
The APAC region is projected to experience significant growth in the coming years, owing to the rising popularity of virtual influencers in countries like China, Japan, and South Korea. South America and MEA represent emerging markets with untapped potential for virtual influencer marketing.
Figure 3: Virtual Influencer Market, By Regional, 2023 & 2032
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Virtual Influencer Market Key Players And Competitive Insights
Virtual Influencer Market Top 10 companies are continuously developing new technologies and strategies to enhance their offerings. Leading Virtual Influencer Market companies are investing considerably in research and development to create more realistic virtual influencers. The Virtual Influencer Market is under development, mainly due to the growing use of virtual influencers by brands and marketers. Virtual Influencer Market's competitive landscape may be left incomplete, and new entrants can take advantage of the competitive pioneer and gain customer traction.
The demand for Virtual Influencer Market is rapidly increasing, and companies are asking for new solutions to improve their market share. At present, customers require new Virtual Influencer Market applications and existing companies have to develop new ideas and technologies that meet the customer demands and improve their Virtual Influencer Market market share.
One of the major competitors in the Virtual Influencer Market is Lil Miquela, a virtual influencer created by Charles Dam Brosseau. Lil Miquela joined the social media club 4 years ago and has since impressed many of her followers. Brud, a Los Angeles-based startup, developed her. Lil Miquela has collaborated with some of the world's most prestigious brands, like Prada, Calvin Klein, and Samsung. In terms of appearance and personality, Lil Miquela is outstanding, cute and charismatic. In addition, fans prefer to buy her products online. Nevertheless, information on how to earn money as a visual influencer remains confidential.
Key Companies in the Virtual Influencer Market Include
Virtual Influencer Market Industry Developments
The global virtual influencer market is projected to reach USD 195.9 billion by 2032, exhibiting a CAGR of 28.14% from 2043 to 2032. Advancements in artificial intelligence (AI) and computer graphics have fueled the adoption of virtual influencers. Brands are increasingly leveraging virtual influencers for marketing campaigns, as they offer several advantages over traditional influencers, such as complete control over their image and messaging and the ability to create content that resonates with younger audiences. Recent news developments include the launch of new virtual influencers by major companies, such as Samsung's NEON and L'Oréal's Shudu. Virtual influencers are also gaining popularity in the fashion and beauty industries, with brands partnering with virtual influencers to showcase their products and engage with consumers.
Virtual Influencer Market Segmentation Insights
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Virtual Influencer Market Type Outlook
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Virtual Influencer Market Deployment Outlook
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Social Media Platforms
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Brand Websites
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E-commerce Platforms
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Virtual Influencer Market Application Outlook
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Product Marketing
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Customer Service
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Brand Storytelling
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Entertainment
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Virtual Influencer Market End User Outlook
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Virtual Influencer Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
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Report Attribute/Metric
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Details
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Market Size 2022
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16.41 (USD Billion)
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Market Size 2023
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21.03 (USD Billion)
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Market Size 2032
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195.9 (USD Billion)
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Compound Annual Growth Rate (CAGR)
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28.14% (2024 - 2032)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2023
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Market Forecast Period
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2024 - 2032
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Historical Data
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2019 - 2023
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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Shudu, Miquela, Ntwrk, Brud, ByteDance, Aww Inc., Society of Digital Agencies, The Digitals, Influential, Genies, Loncoln, KSwiss, HypeAuditor, VirtualHumans.org
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Segments Covered
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Type, Deployment, Application, End User, Regional
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Key Market Opportunities
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Growing Adoption in Marketing CampaignsRise of Metaverse and Virtual WorldsEnhanced Engagement and ImmersionIntegration with Artificial IntelligenceExpansion into New Industries
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Key Market Dynamics
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Rising demand for personalized contentGrowing adoption of social media platformsIncreasing popularity of virtual influencersAdvancements in artificial intelligenceEmerging metaverse and virtual reality
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Frequently Asked Questions (FAQ) :
The global virtual influencer market is expected to reach USD 195.9 billion by 2032, growing at a CAGR of 28.14% from 2023 to 2032.
The key drivers of the global virtual influencer market include the increasing popularity of social media, the growing demand for personalized content, and the advancements in artificial intelligence (AI) and computer-generated imagery (CGI).
Virtual influencers are used in a variety of applications, including brand endorsements, product promotions, and customer service.
The key trends in the global virtual influencer market include the increasing use of AI and CGI to create more realistic and engaging virtual influencers, the growing popularity of virtual influencers among Gen Z and Millennials, and the increasing use of virtual influencers in e-commerce.
The key competitors in the global virtual influencer market include Meta Platforms, Inc., ByteDance, Ltd., and Snap, Inc.
The global virtual influencer market is expected to be dominated by North America and Europe in the coming years. However, the Asia-Pacific region is expected to witness the highest growth rate during the forecast period.
The global virtual influencer market faces a number of challenges, including the lack of regulation, the potential for fraud and abuse, and the ethical concerns surrounding the use of AI and CGI to create virtual influencers.
The global virtual influencer market presents a number of opportunities for growth, including the increasing adoption of AI and CGI, the growing popularity of virtual influencers among Gen Z and Millennials, and the increasing use of virtual influencers in e-commerce.
The key factors to consider when investing in the global virtual influencer market include the regulatory landscape, the potential for fraud and abuse, and the ethical concerns surrounding the use of AI and CGI to create virtual influencers.
The global virtual influencer market is expected to continue to grow rapidly in the coming years, driven by the increasing adoption of AI and CGI, the growing popularity of virtual influencers among Gen Z and Millennials, and the increasing use of virtual influencers in e-commerce.
