Tuesday, 23 May 2017

Growing Focus on Strengthening Customer Relations Spurs Adoption of Intelligent Virtual Assistant Technology

The global intelligent virtual assistant market is, by nature, immensely fragmented and is characterized by the presence of a large number of local as well as global players. Transparency Market Research reports that in 2015, leading companies such as Creative Virtual Ltd., Nuance Communication Inc., Next IT Corporation, and IntelliResponse Systems jointly accounted for a share of around 32%. Other prominent players such as CodeBaby Corporation, Anboto Group, Artificial Solutions Ltd., and Speaktoit Inc. have been working toward enhancing their product portfolios and expanding their networks by establishing partnerships with end-use enterprises.

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“There has been an increased focus on the development of intelligent virtual assistants to be used in a wide range of applications,” states the author of the study. “This trend is reflected in the activities of a number of companies who are providing utilities such as immediate access to the internal guides of employees, self-service, intelligent reporting, and improved customer experience.”

A recent example would be Nuance Communications Inc. In June 2016, the company expanded its healthcare portfolio with the use of intelligent virtual assistant technologies such as speech recognition in its clinical and healthcare services.

The lead analyst of the TMR study also finds that several emerging and promising players are focused on expanding their customer base through partnerships and acquisitions.

Social Media Plays Crucial Role in Development of Intelligent Virtual Assistants

The impact of social media on the development of intelligent virtual assistant technology has been huge. “An increasing number of consumers have been spending more time on social media platforms for various day-to-day activities and this has tremendously impacted their purchase decisions,” states a TMR analyst. Keeping this in mind, the growth of the intelligent virtual assistant market in the retail sector has been remarkable with players looking to improve customer experience and relationship.

In addition to this, the shift of organizations from analog to digital technologies has resulted in the massive amounts of organizational data, thereby creating the demand for intelligent virtual assistant software. This is a key factor driving the global market.

On the down side, the complexities and cost of intelligent virtual assistant technology are rather high, which present major challenges for several companies. The lack of skilled resources required to effectively use and manage this technology is also a key barrier.

Asia Pacific to Exhibit Faster Growth than that of Global Market

The opportunity in the global intelligent virtual assistant market is forecast to rise from US$627.7 mn in 2015 to be worth a massive US$7.9 bn by 2024. The market is likely to expand at an astounding 32.8% CAGR during the forecast period. By technology, speech recognition is not only the leading revenue generator but is also projected to exhibit the highest CAGR of 33.3% from 2016 to 2024. Websites form the leading application segment in the intelligent virtual assistant market, while messenger bots have been identified by TMR analysts as the most promising segment.

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In terms of end use, large enterprises hold the majority share at present and small and medium enterprises will expand at the fastest CAGR through 2024. While North America is the leading contributor to the growth of the intelligent virtual assistant market by region, Asia Pacific is projected to expand at a pace greater than that of the global market.

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