Smart Virtual Personal Assistants Market Size, Share, Trends, Growth and Forecast 2030

Smart Virtual Personal Assistants Industry Prospective:

The global smart virtual personal assistants market size was worth around USD 2.35 billion in 2022 and is predicted to grow to around USD 15.23 billion by 2030 with a compound annual growth rate (CAGR) of roughly 26.53% between 2023 and 2030.

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Smart Virtual Personal Assistants Market: Overview

A smart virtual personal assistant is also known as an artificial intelligence (AI) assistant or a digital assistant. It is a computer program that reciprocates or reacts to natural language written or voice commands. There are several types of AI personal assistants including AI avatars, voice assistants, chatbots, and domain-specific virtual assistants. The technology backing the development and application of smart virtual personal assistants has penetrated almost all industries and business areas. It has helped to improve the brand image while reducing the burden on customer service teams. There are certain specific technologies that guide the innovation of AI assistants. For instance, a company's technology is the speech-to-text (STT) or text-to-speech (TTS) programming ecosystem where the former converts human speech into digital signals and the latter deploys a reverse method. Chatbots, on the other hand, typically function using deep learning methods where the AI tools are equipped with deep learning algorithms and they learn from human-to-human dialogue and their data. The demand for smart virtual personal assistants is expected to grow at a steady rate during the forecast period.

Key Insights:

• As per the analysis shared by our research analyst, the global smart virtual personal assistants market is estimated to grow annually at a CAGR of around 26.53% over the forecast period (2023-2030)
• In terms of revenue, the global smart virtual personal assistants market size was valued at around USD 15.23 billion in 2022 and is projected to reach USD 2.35 billion, by 2030.
• The smart virtual personal assistants market is projected to grow at a significant rate due to the growing advancements in the field of AI assistants
• Based on application segmentation, consumer electronics was predicted to show maximum market share in the year 2022
• Based on technology segmentation, text-to-speech was the leading technology in 2022
• On the basis of region, North America was the leading revenue generator in 2022

Smart Virtual Personal Assistants Market: Growth Drivers

Growing advancements in the field of AI assistants to drive market growth

The global smart virtual personal assistants market is expected to grow owing to several ongoing projects aiming at further improvements in AI assistant technology. Program developers are working toward developing smart virtual personal assistants that can get as close as possible to real-life human interactions. Some of the currently available solutions provide interactions that can be easily identified as machine-led conversations; however, there has been a significant change in smart virtual personal assistant ecosystems with the latest tools such as Chat GPT, Microsoft Bing, Chatsonic, and many more.

The deliverables associated with the technology are not limited to text-based conversation. There are several companies that offer solutions specifically designed to meet broader applications. For instance, Otter, an AI assistant developed by Otter.ai can automatically capture slides, write notes, record audio, and generate summaries. By connecting essential office communication tools such as Microsoft or Google Calendar with Otter, the tool will automatically join and record meetings conducted on Google Meet, Zoom, or Microsoft Teams. These smart digital assistants can help companies reduce tons of manual work and deploy human resources for other critical business operations needs.

Smart Virtual Personal Assistants Market: Restraints

Concerns over privacy invasion and unauthorized data storage by digital assistants to restrict market growth

The global smart virtual personal assistants market size may be restricted owing to the growing concerns over privacy invasion caused by smart virtual personal assistants. Since almost all AI interactive tools collect and store private data such as the name of the person using the tool and login credentials, there is a risk of security breach and theft of personal data by cybercriminals. For instance, a study posted in 2018 discussed in detail the number of vulnerabilities that researchers found in the voice commands of smart virtual personal assistants. A recent incident that triggered more conversation surrounding privacy invasion involved the recording of a personal conversation by an Echo smart speaker which was later sent to a random contact by the tool. Consumers are becoming increasingly hesitant in trusting such advanced technology that has the capacity to learn and evolve on its own which could directly impact the personal lives of users.

Smart Virtual Personal Assistants Market: Opportunities

Growing strategic partnerships between businesses may provide excellent growth opportunities

The smart virtual personal assistants industry players are aggressively expanding their businesses by forging strategic alliances with companies across the globe. This trend is visible in the number of collaborations that have occurred in the past few years ranging from providing general solutions to meeting specific company requirements. In August 2023, JIVY Group and DRUID AI announced a collaboration to redefine the environment surrounding AI assistants. DRUID AI is the leading developer of conversational AI solutions while JIVY Group delivers next-generation technology services and strategy-led enterprise delivery. In July 2023, the leading provider of enterprise conversational AI (CAI) platform, Kore.ai announced that it had initiated a novel partner program to provide additional support to the company’s associated indirect sales channel. Kore.ai is reported to be growing at a rate of 55% year-on-year. In the month of August 2023, another key strategic alliance successfully marked its beginning. It involved tech giants Google Cloud and SIX Flags Entertainment Corporation in which the latter intends to use Google AI assistant for improving business operations.

Smart Virtual Personal Assistants Market: Challenges

Ambiguity over copyright-related issues with AI assistants to challenge market growth

With the growing use of extremely advanced smart virtual personal assistants, there have been several conversations about issues related to copyrighting work produced by an AI assistant. There are several aspects associated with these concerns. For instance, researchers argue that since most of the data provided by an AI assistant is derivative work from previously published information, can AI assistants be held accountable for copyright infringement. Additionally, they have also raised questions regarding the possibility of copyrighting information or art developed by an AI. More clarity is needed to differentiate between the quality of information produced by a human and a machine and it is expected to create challenges for the global market players during the forecast period.

Smart Virtual Personal Assistants Market: Segmentation

The global smart virtual personal assistants market is segmented based on application, product, technology, and region.

Based on application, the global market segments are education, BFSI, retail, healthcare, IT & telecom, automotive, consumer electronics, travel & hospitality, and others. In 2022, the highest growth was observed in the consumer electronics segment with a market share of 18.65%. The increasing integration of voice control systems in consumer electronic items such as smartphones, laptops, speakers, and others is the main reason for higher segmental growth. During the forecast period, the automotive industry is likely to continue growing at a steady pace as multiple automobile manufacturers are investing in deploying infotainment systems for improved driving experience.

Based on product, the smart virtual personal assistants industry is divided into smart speakers and chatbots.

Based on technology, the smart virtual personal assistants industry segments are text-based, text-to-speech, and automatic speech recognition. In 2022, the highest market growth was registered in the text-to-speech segment which held control over 61.45% of the total share. The surging adoption rate of smart speakers across industries is expected to push the segmental growth for automatic speech recognition technology. Furthermore, the growing popularity of mobile computing technology may act as a crucial driving force for the speech recognition segment.

Smart Virtual Personal Assistants Market: Report Scope

Smart Virtual Personal Assistants Market: Regional Analysis

North America to deliver the best results during the forecast period

The global smart virtual personal assistants market will be dominated by North America during the forecast period. In 2022, the region generated over 30.27% of the total global revenue. The leading reason for high regional growth is the presence of key developers of smart virtual personal assistants in the US that have managed to change the trends witnessed in the technology sector. For instance, the first virtual assistant was developed by a scientist at the Massachusetts Institute of Technology. The region, in recent times, has witnessed the launch of several new AI assistants to meet the challenging demands of technology-oriented consumers.

In May 2023, Microsoft, a global tech firm, launched a new virtual assistant called Copilot. The tool will be integrated with all of the Windows 11 operating systems by Microsoft. Meanwhile, end-user verticals of smart virtual personal assistants have been deploying business-specific tools for increased efficiency. In October 2022, American financial firm Wells Fargo launched an internal virtual assistant tool called Fargo. The company rolled out the program to its customers in the following months to improve the banking experience. Increased sales of advanced consumer electronics, higher adoption by financial services companies, and brands operating in the regional tourism sector are likely to promote growth in North America.

Smart Virtual Personal Assistants Market: Competitive Analysis

The global smart virtual personal assistants market is led by players like:

• Apple Siri
• Amazon Alexa
• Samsung Bixby
• Google Assistant
• OpenAI GPT-3
• Microsoft Cortana
• Baidu DuerOS
• IBM Watson Assistant
• Yandex Alice
• Nuance Communications
• Sony Xperia Assistant
• Alibaba AliGenie
• HTC Sense Companion
• Xiaomi Xiao AI
• LG ThinQ

The global smart virtual personal assistants market is segmented as follows:

By Application

• Education
• BFSI
• Retail
• Healthcare
• IT & Telecom
• Automotive
• Consumer Electronics
• Travel & Hospitality
• Others

By Product Outlook

• Smart Speakers
• Chatbots

By Technology

• Text-Based
• Text-To-Speech
• Automatic Speech Recognition

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa