IVA Market to Reach $44.2 Billion by 2027, Valuates Reports

Market research firm Valuates estimated the worldwide intelligent virtual assistant (IVA) market at $3.4 billion in 2019 and projects it to reach $44.25 billion by 2027, growing at a compounded annual rate of 37.7 percent.

Major factors driving the growth of the IVA market are the increasing demand for exceptional customer service, increased penetration of smartphones into everyday life, and increased research and development, particularly as technology vendors move to incorporate gesture recognition technology into their intelligent virtual assistants.

The report found that IVAs can increase company revenue by reducing effort in customer handling, eliminating infrastructure setup costs, and reduced manpower costs. It also reduces live chat volume, offers quick response, and saves time.

IVA efficiently collects customer feedback and contact details thereby, helping organizations improve communication with customers, Valuates researchers asserted in the report. Fast response, better data collection, and less reliance on customer service are only a few of the advantages of using an intelligent virtual assistant, they said.

The IVA market is also benefitting from continuous advancements in artificial intelligence, as IVAs are becoming more human-like and can read, listen, understand, and react to online customer queries dynamically.

When opposed to older technology, intelligent virtual assistance provides convenience as well as other benefits, such as voice recognition, natural language understanding, and affordability.

Based on technology, the report projects text-to-speech to be one of the most significant segments, while chatbots are projected as one of the most lucrative segments.

Based on verticals, the financial services and insurance sector is expected to hold the largest market share. However, the most lucrative segments will be the automotive and healthcare industries, according to the report.

Key market players identified in the report include Google, Amazon, Apple, Artificial Solutions, eGain, IBM, IPsoft, Nuance Communications, Verint Systems, and Samsung.