Intelligent Virtual Assistant an Interactive Support that Performs Tasks Easily

Introduction

According to Intelligent Virtual Assistant Statistics, Intelligent Virtual Assistants (IVAs) are sophisticated software applications powered by artificial intelligence (AI), natural language processing (NLP), and machine learning (ML).

They mimic human conversation to provide interactive support and perform tasks like scheduling appointments or answering inquiries.

IVAs consist of a user-friendly interface, a backend system for processing requests, and integration with data sources for task execution.

Commonly used in customer service, healthcare, and retail, IVAs operate round-the-clock, handle multiple interactions simultaneously, and reduce operational costs by automating repetitive tasks.

Challenges include managing complex queries and ensuring data security. Despite these, IVAs play a pivotal role in enhancing efficiency and AI in Customer Experience across industries.

Editor’s Choice

• The global intelligent virtual assistant market revenue reached USD 15.3 billion in 2023.
• By 2033, the market is forecasted to reach an impressive USD 309.9 billion. Chatbots and smart speakers contribute USD 218.8 billion and USD 91.1 billion, respectively.
• Significant contributions from several key players characterize the market for intelligent virtual assistants. Apple Inc. leads the market with an 18% share.
• The global market for intelligent virtual assistants is dominated by North America. Which holds a substantial 42.5% market share.
• Virtual assistants have gained significant traction across diverse sectors, with varying degrees of utilization. They play a central role in administrative work, being adopted by 37.7% of businesses.
• When asked about the perceived intelligence of various virtual assistants, 44% of respondents identified Alexa by Amazon as the most intelligent.
• By 2021, the estimated number of users of virtual digital assistants worldwide had risen to 1,831 million.

Intelligent Virtual Assistant Market Overview

Global Intelligent Virtual Assistant Market Size

• The Global Intelligent Virtual Assistant Market has demonstrated significant growth over the years at a CAGR of 35.1%, starting from a revenue of USD 15.3 billion in 2023.
• The rapid expansion is projected to culminate in a market revenue of USD 229.4 billion by 2032 and an impressive USD 309.9 billion by 2033.

Global Intelligent Virtual Assistant Market Size – By Product Type

• The Global Intelligent Virtual Assistant Market is witnessing robust growth, with total market revenue projected to escalate from USD 15.3 billion in 2023 to USD 309.9 billion by 2033.
• Within this market, the revenue from Chatbots is expected to rise significantly from USD 10.8 billion in 2023 to USD 218.8 billion in 2033.
• Similarly, smart speakers are anticipated to see a substantial increase in revenue. Growing from USD 4.5 billion in 2023 to USD 91.1 billion by 2033.
• Finally, by 2033, the market is forecasted to reach an impressive USD 309.9 billion. Chatbots and smart speakers contributed USD 218.8 billion and USD 91.1 billion, respectively.

Competitive Landscape of the Global Intelligent Virtual Assistant Market

• Significant contributions from several key players characterize the market for intelligent virtual assistants.
• Apple Inc. leads the market with an 18% share, closely followed by 24/7 Customer Inc., holding a 17% share.
• Amazon.com Inc. and Nuance Communications Inc. each account for 9% of the market, while Baidu Inc. captures 10%.
• Google Inc. and Oracle Corporation both maintain an 8% market share.
• Microsoft Corporation and IBM Corporation contribute 7% and 6% respectively.
• The remaining 8% of the market is shared among other key players.

Regional Analysis of the Global Intelligent Virtual Assistant Market

• The global market for intelligent virtual assistants is dominated by North America. Which holds a substantial 42.5% market share.
• The Asia-Pacific (APAC) region follows with a significant 26.3% share, reflecting its rapid technological adoption and expanding digital infrastructure.
• Europe accounts for 22.4% of the market, driven by strong industrial automation and advanced AI integration.
• South America and the Middle East & Africa (MEA) regions hold smaller shares, with 6.1% and 2.7%, respectively, indicating emerging opportunities for growth and development in these areas.

Top Businesses/Industries Utilizing Virtual Assistants

• Virtual assistants have gained significant traction across diverse sectors, with varying degrees of utilization. They play a central role in administrative work, being adopted by 37.7% of businesses.
• Their application extends to marketing, where they contribute to streamlined operations for 20.5% of entities.
• In sales and prospecting activities, these digital aids are employed by 14%. Facilitating more efficient processes.
• Within the sphere of operations, a notable 9.7% of businesses rely on virtual assistants to enhance their workflows.
• In customer service, these tools have found a place in 6.3% of enterprises, bolstering interactions with clientele.
• Additionally, they assist in finance and bookkeeping tasks for 4.3% of businesses.
• Across a range of other sectors, virtual assistants are harnessed by 7.5% of organizations. Showcasing their versatility and applicability in addressing diverse operational needs.  

Perceived Intelligence of Virtual Assistants

• When asked about the perceived intelligence of various virtual assistants, 44% of respondents identified Alexa by Amazon as the most intelligent.
• Google Assistant followed with 33% of respondents rating it highly for intelligence. Siri by Apple was considered intelligent by 30% of respondents.
• Cortana from Microsoft was perceived as intelligent by 8% of respondents. While Samsung’s Bixby was favored by 5%.
• Other virtual assistants were considered the most intelligent by 3% of respondents.

Most Used Virtual Assistants

• Among the most used virtual assistants, Google Assistant leads, with 39% of respondents indicating its usage.
• Alexa by Amazon follows closely with 36%, while 29% of respondents use Siri by Apple.
• Notably, 21% of respondents do not use any of these virtual assistants.
• Cortana from Microsoft is used by 11% of respondents, and Samsung’s Bixby is utilized by 10%.
• Other virtual assistants account for 5% of usage among respondents.

Number of Digital Voice Assistants in Use Worldwide

• The usage of digital voice assistants has seen remarkable growth worldwide. In 2019, approximately 3.25 billion digital AI voice assistants were in use.
• This number increased significantly to 4.2 billion in 2020, reflecting the growing adoption of voice-activated technology across various devices.
• The trend is expected to continue, with projections indicating that the number of digital voice assistants in use will double to 8.4 billion by 2024.

Number of Users of Virtual Digital Assistants Worldwide

• The estimated number of virtual digital assistant users worldwide has shown a remarkable increase over the years.
• In 2015, there were approximately 390 million users, which grew to 504 million in 2016.
• This upward trend continued, reaching 710 million users in 2017 and surpassing the billion mark with 1,016 million users in 2018.
• The number of users further increased to 1,376 million in 2019 and 1,642 million in 2020.
• By 2021, the estimated number of users of virtual digital assistants worldwide had risen to 1,831 million.

Distribution of Devices Used to Access Voice Assistants

• The usage of voice assistants spans across a variety of devices, with smart speakers being the most popular, as indicated by 93.30% of respondents.
• Smartphones are also widely used for accessing voice assistants. With 65.80% of respondents reporting usage.
• Connected cars represent another significant category, with 50.10% of respondents using voice assistants in their vehicles.
• Smart headsets are used by 27.50% of respondents. While computers account for 11.40% of voice assistant usage.
• TVs and smartwatches have the least usage, with 7.40% and 1.30% of respondents, respectively, accessing voice assistants through these devices.

Utilization of Voice Assistants on a Smartphone

Usage of Voice Assistants on Smartphones for Various Activities

• Voice assistants on smartphones are used for a variety of purposes. With distinct patterns of engagement.
• For information inquiries, 86% of users test this function, while 52% use it monthly.
• Traffic or directions are sought by 70% of users during tests and by 47% every month.
• Searching for a place to eat involves 55% of users in tests and 28% monthly.
• Product searches engage 41% of users in tests and 24% monthly.
• Music is accessed by 41% of users in tests and 20% monthly.
• Games are played by 26% of users in tests and 14% every month.
• Radio is listened to by 21% of users in tests and 13% monthly, while podcasts are accessed by 20% of users in tests and 11% monthly.

Productive Uses of Smartphone Voice Assistants

• Smartphone voice assistants are employed for various productive uses. With different levels of engagement.
• Making calls is a primary function, with 66.6% of users testing this feature and 44.1% using it monthly.
• Voice text messaging is another popular use, tested by 57.2% of users and utilized monthly by 39.8%.
• Setting alarms is tested by 48.8% of users, with 31.6% using it regularly.
• Checking the time involves 46.9% of users in tests and 31.0% every month.
• Opening apps are tested by 34.7% of users and used monthly by 21.0%.
• Consulting the calendar is done by 32.9% in tests and 22.0% monthly.
• Controlling the smartphone sees 18.0% of users in tests and 11.9% using it regularly. Performing banking transactions is tested by 14.6% of users. With 10.8% engaging in this activity monthly.

Demographics of Virtual Assistant Users

Age Group

• Virtual assistant usage spans various age groups, revealing distinct patterns of adoption.
• Among individuals aged 18 to 29, 28% actively employ virtual assistants, showcasing their prevalence among younger demographics.
• Similarly, in the 30 to 39-year bracket, 32% of respondents engage with virtual assistants, indicating a continued usage trend.
• Meanwhile, the 40 to 49-year age group and those aged 50 and above exhibit equal usage levels at 20%, suggesting a consistent appeal that transcends generational divides.

Gender

• Utilizing virtual assistants demonstrates a balanced gender distribution, as survey responses indicate.
• Among the respondents, 51% identify as female, while the remaining 49% identify as male.

Educational Qualification

• Virtual assistant usage correlates with varying academic qualifications, reflecting nuanced preferences across educational backgrounds.
• Respondents with a high school diploma represent 17% of virtual assistant users, showcasing their engagement among individuals with foundational education.
• Of those holding a bachelor’s degree, 29% actively utilize virtual assistants, indicating a higher propensity for adoption among this cohort.
• Virtual assistant usage remains prominent even among individuals with higher academic attainments; 23% of those with master’s degrees engage with these tools, while 12% of respondents possessing a Ph.D. or higher qualifications also partake in their usage.

Voice Capabilities Provided by Utility Companies

• Utility companies today offer a range of voice capabilities through skills or actions, enhancing customer engagement and service.
• Account balance inquiries are supported by 46% of utilities, making it the most commonly offered feature.
• Efficiency tips and utility contact information are each provided by 38% of utilities.
• The ability to make payments via voice commands is available from 23% of companies.
• Information on the source of electricity generation, outage status updates, and outage notifications are each offered by 15% of utilities.
• Additionally, 8% of utilities provide smart home device control capabilities.

Top Virtual Assistants and Their Usage Along with Specifications

Amazon Alexa

• According to the latest data, approximately 68.2% of smart speaker users in the US prefer Amazon Echo, a device powered by Alexa, which has marked a slight 1.5% decrease from 2020.
• Amazon Alexa led the global smart speaker market with a share exceeding 21.7% in 2019.
• The platform now supports over 100,000 smart home devices, a 40% increase from 2019’s 60,000.
• Alexa’s appeal spans various age groups: 18-24-year-olds engage at least at 19%, while 25-34-year-olds show higher usage at 29%.

Apple Siri

• Apple claims that Siri is used by 500 million people globally, though the frequency of usage—whether daily or monthly—is unspecified.
• Despite 98% of smartphone users having tried Siri, many do not consistently use it, likely due to its introduction starting from the iPhone 4S, leading to initial curiosity rather than regular use.
• In a 2017 survey of US adults, 9% reported using Siri multiple times daily, while 65% did not use it at all.
• By January 2019, 47% of respondents were highly satisfied with Siri’s functionality.
• Siri on the HomePod achieved 99.4% accuracy in understanding queries, credited to advanced noise cancellation.

Google Assistant

• Currently, Google Assistant leads the market with a 46% share, expected to exceed 60% by 2022.
• The number of Google Assistant apps grew steadily, from 165 in April 2017 to 1,719 by January 2018.
• By 2022, Google Assistant had 81.5 million users, with Siri close behind at 77.6 million and Alexa at 71.6 million.
• As of 2024, Google Assistant’s user base expanded to 88.8 million, while Siri reached 84.2 million and Alexa grew to 75.6 million.

Consumer Adoption and Preferences

• In a survey by PwC involving 1,000 U.S. individuals aged 18 to 64, 10% were unfamiliar with voice-enabled devices and products.
• Of the 90% who were aware of such technology, 72% had used a voice assistant.
• The primary drivers of this adoption were younger consumers, households with children, and those earning over $100,000 annually.
• Despite the widespread availability of voice assistants, 74% of users primarily utilize their mobile voice assistants at home.
• Most focus group participants preferred the privacy of home use and felt socially awkward using voice assistants in public. This may explain the lower usage among 18 to 24-year-olds, who spend more time outside their homes.

Advantages and Disadvantages

• Thirty-nine percent of users have shared their positive experiences with friends and family, and an equal percentage have made repeat purchases with the same retailer.
• Additionally, 36% have developed a more favorable view of the retailer, and 24% have increased their spending with them. However, distrust remains a significant issue.
• One in four consumers would avoid using their voice assistant for shopping, both now and in the future.
• Specifically, 46% are hesitant because they doubt the voice assistant’s ability to accurately understand and process orders, while 45% are uncomfortable or lack trust in transmitting payments through their voice assistant.

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