Digital Assistant Market

Digital Assistant Market Overview

Digital Assistant Market Size was valued at USD 9.9 Billion in 2023. The Digital Assistant market industry is projected to grow from USD 11.2 Billion in 2024 to USD 35.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 18.20% during the forecast period (2024 - 2032). Rising adoption of consumer electronics and increasing implementation in large customer bases sectors such as healthcare and banking boost the market growth.

Figure 1: Digital Assistant Market Size, 2024-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Industry News of Digital Assistant Market

• On Jan. 31, 2023, Zoom launched a chatbot virtual assistant for its contact center as a service (CCaaS) offering. The Zoom chatbot assists people calling Zoom's contact center, using conversational language and proprietary AI. Zoom's new CCaaS chatbot frees up support staff by handling simple queries and requests from callers. Supported by automation technology, the chatbot processes requests by understanding customer intent without a dependency on keywords. Zoom Virtual Agent can help businesses with customer service or in-house IT helpdesks, integrating with various CRM systems.

• On Mar. 01, 2023, Krenovator Technology Sdn. Bhd. (Malaysia), an AI tech talent and placement platform, introduced an AI Coding Assistant named Abraham to accelerate coding learning for tech talents. The new AI Coding Assistant is available on its digital Tech Talent Platform launched in 2022. The new tool helps users improve their coding skills efficiently and effectively by providing them with real-time feedback and suggestions. It also allows users to create new software faster than conventional methods.

Digital Assistant Market Trends

• Increasing adoption in Consumer Electronics Sector

The industry is expected to develop because of the rising adoption of consumer electronics like smartphones, smartwatches, and smart speakers. Customers are becoming more accustomed to using smart gadgets, so they rely heavily on digital assistants to get sports scores, place food orders, and schedule their programs. As a result of the increasing complexity of work, most organizations now rely on clever virtual assistants to help them manage their workload and swiftly address customer concerns. A clever virtual assistant also facilitates communication between machines and people. Additionally, it uses voice recognition technology to translate spoken words and phrases into machine-readable forms. The abovementioned factors will drive the market for intelligent virtual assistants during the projection period.  

The demand for increased efficiency among service-based businesses and incorporating virtual assistants powered by artificial intelligence (AI) across various devices, including tablets, desktops, and smartphones, is expected to drive market expansion.       

Figure 2: Penetration rate of Digital Assistants in Applications Worldwide

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review  

Digital Assistant Market Segment Insight

Digital Assistant by User-Interface Type Insights

Based on vertical type, the Digital Assistant Market segmentation includes automatic speech recognition, text-based, and text-to-speech. The automatic speech recognition segment accounted for the largest share of this market and is also anticipated to grow at a CAGR of 27.86% throughout the forecast period. The future growth of this segment can be attributed to the widespread use of smart speakers across numerous industries. Smart speakers may recognize speech and react to consumer-generated speech in a specified way. The demand for automatic voice recognition is anticipated to increase as mobile computing technology becomes more widely used. Customers may now interact with cell phones and their applications more efficiently. Because major smart speakers producers like Amazon Alexa, Google Home, and Bose have U.S. headquarters, most of their devices are introduced and distributed there first.      

Users can have natural conversations with electronic devices like telephones and computer interfaces thanks to a technique called automated speech recognition (ASR). The most advanced ASR technology was recently developed called "natural language processing." This technology allows for the most natural communication between humans and computers. Text-to-text, text-to-speech, and automatic speech recognition are the user interfaces utilized by intelligent virtual assistants. End users in retail, BFSI, healthcare, telecom, and others mostly employ them.         

Figure 3: Digital Assistant Market by User-Interface Type, 2022 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Since voice-to-text solutions are currently in high demand, speech recognition products are predicted to experience an unexpected increase. Software for turning speech into text is enhancing internal productivity in healthcare businesses. Voice recognition software is becoming increasingly popular among hospitals with limited financial resources as it reduces unnecessary overhead costs for the healthcare sector.       

February 2023 The cloud-native service provider Civo has unveiled "Kubeflow as a Service," a new machine learning managed service, with the goal of enhancing the developer experience and lowering the resources and time needed to extract insights from ML algorithms.  

February 2023 The top provider of digital customer service, Glia, recently unveiled Glia Virtual Assistants to assist businesses in reducing costs and speeding up resolution times while offering seamless customer experiences that combine virtual and human support. Based on conversational AI solutions from Glia's recent acquisition of Finn AI, GVAs are pre-trained to provide value right out of the box and optimized for banks and credit unions. Glia provides a single supplier solution for digital customer service by completely integrating GVAs into its industry-leading platform.      

Digital Assistant by Application Insights

Based on application type, the Digital Assistant Market segmentation includes BFSI, Consumer Electronics, Automotive, Healthcare, Education, Retail, IT & Telecom, Travel & Hospitality and Others. The automotive segment is estimated to grow at a CAGR of 30.54% through the forecast period. In the IVA market, which is anticipated to grow over the next few years, this segment is quickly becoming one of the fastest growing due to the increasing implementation of electric vehicles. These intelligent digital assistant works on artificial intelligence and machine learning platform will change dynamics of the overall industry in the coming years. Many businesses, including Daimler, Morris Garage, Audi, BMW, and Hyundai, have voice-enabled infotainment systems integrated.   

Consumer electronics is the second-highest segment that dominated this market, growing with a significant CAGR of 29.8% over the past few years. Another favorable factor for the Digital Assistant Market is the increasing integration of intelligent virtual assistants into consumer electronics such as laptops, tablets, smartphones, and PCs. This digital assistant can be used for various tasks or objectives, including helping users navigate an electronic system, helping customers pay their bills, helping customers with various customer service issues, and providing information about various products.        

In the past few years, the demand for the worldwide digital assistant has been driven by increased utilization of cloud-based office solutions across various industries and the number of individuals working remotely. IVAs based on smartphones or computers, like Alexa, Siri, and Google Voice Assistant, are becoming increasingly popular, and many goods are incorporating IVA technologies.    

Many developing nations are turning to technology to handle the rising demand for healthcare services while controlling the price of care delivery. This has caused healthcare providers in these economies to pay more attention to exploring and using the possibilities of virtual healthcare assistants. As a result, many virtual assistant technology companies emphasize growing their presence in emerging nations.       

Furthermore, digital assistants in the healthcare sector are fragmented due to shifting consumer demands, which drive businesses to innovate to attract more customers. With companies introducing a wide range of products to attract customers, the competition in this sector has grown more intense over time. However, government rules about t protecting customer data to prevent its misuse may impede market expansion as businesses must abide by them and immediately implement adjustments        

Digital Assistant by Regional Insights

This market has been segmented by region into North America, Europe, Asia-Pacific, and the rest of the world. The North American region commands the highest share of 39.8% in 2023 and is expected to remain dominant throughout the forecast period. According to IEA, InU.S. electric car market share is doubled, i.e., reached 4.5% in 2021, reaching 630 000 sold. While in emerging economies, the electric car showed a growth rate of more than 100%, even though sales volumes remain low. This shows that the domination of digital assistants in cars is much more in the U.S. when compared to other regions.

Moreover, the demand for home monitoring devices, the prevalence of chronic illness, and the aging population are all critical drivers of the digital assistant's expansion in North America. All age groups use home-based technology since operating it has grown tedious. They are also lightweight and portable, so patients may carry them around at all times without feeling uncomfortable. Additionally, it guarantees continuous monitoring of the patient's health.    

On the other hand, the Asia-Pacific region is estimated to grow at the highest CAGR of 31.6% through the forecast period. The development of AI-powered digital assistants for business interaction has shown that they are competent at business tasks like booking appointments and consulting across various industries. Businesses are introducing products that allow an app or gadget to function as an AI agent. The development of AI-powered IVAs for business interaction has shown that they are more competent at business tasks like booking appointments and consulting across various industries. Businesses are introducing products that allow an app or gadget to function as an AI agent.   

Figure 4: DIGITAL ASSISTANT MARKET, BY REGION, 2022 and 2030

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Furthermore, Asia-Pacific is predicted to have the most tremendous growth rate due to inexpensive labor, low production costs, and increased consumer awareness of virtual assistant solutions. India and China will be the most significant contributors to this growth. Throughout the forecast period, expanding R&D spending and expanding healthcare infrastructure are also anticipated to have an equal impact on the market for virtual assistants in healthcare.       

Digital Assistant Key Market Players & Competitive Insights

Due to the existence of well-established main competitors, the Digital Assistant Market needs to be more cohesive and highly concentrated. Industry participants have implemented several initiatives, including investments in research and development, mergers and acquisitions, and the expansion of manufacturing facilities, to maintain their position as leaders and meet consumers’ expanding needs.

Major players in the digital assistant market include Amazon.com Inc., Apple Inc., IBM Corporation, Nuance Communications Inc., Alphabet Inc., Inbenta Technologies Inc., Microsoft Corporation, Baidu Inc., BlackBerry Ltd., Artificial Solutions, EGain Corporation, IPsoft Inc (Amelia), Avaamo, Alibaba Group, Xiaomi Inc and Oracle, among others.  

 Key Companies in the Digital Assistant market include

• Amazon.com Inc.

• Apple Inc.

• IBM Corporation

• Nuance Communications Inc.

• Alphabet Inc.

• Inbenta Technologies Inc.

• Microsoft Corporation

• Baidu Inc.

• BlackBerry Ltd.

• Artificial Solutions

• EGain Corporation

• IPsoft Inc

• Avaamo

• Alibaba Group

• Xiaomi Inc and

• Oracle

• Sensely, Inc.

• Verint Systems Inc.

Digital Assistant Industry Developments

February 2023 Nebraska-based Today, Bluestem Health announced the debut of a Mediktor-powered AI-based virtual medical assistant. Both current and new patients can use this to effectively evaluate their symptoms online and be directed to the best degree of therapy.     

February 2023 Bixby has received fresh updates from Samsung Electronics Co., Ltd. that enhance its performance, capabilities, and user experience. The new enhancements significantly strengthen Bixby's language recognition capabilities, providing users more control over their smartphone experience.

Digital Assistant Market Segmentation

Digital Assistant User Interface Outlook

• Automatic Speech Recognition
• Text-Based
• Text-to-Speech

Digital Assistant Application Outlook

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

Digital Assistant Regional Outlook

• North America

  • US
  • Canada

• Europe

  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Rest of Europe

• Asia-Pacific

  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Australia
  • Rest of Asia-Pacific

• Rest of the World

  • Middle East

  • Africa

  • Latin America

Digital Assistant Market Segmentation

Digital Assistant User Interface Outlook (USD Million, 2019-2030)

• Automatic Speech Recognition

• Text-Based

• Text-to-Speech

• Others

Digital Assistant Application Outlook (USD Million, 2019-2030)

• BFSI

• Consumer Electronics

• Automotive

• Healthcare

• Education

• Retail

• IT & Telecom

• Travel & Hospitality

• Others

Digital Assistant Regional Outlook (USD Million, 2019-2030)

• North America Outlook (USD Million, 2019-2030)

  • North America Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • North America Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

  • US Outlook (USD Million, 2019-2030)

  • US Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • US Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

  • CANADA Outlook (USD Million, 2019-2030)

  • CANADA Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • CANADA Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

• Europe Outlook (USD Million, 2019-2030)

  • Europe Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • Europe Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

  • Germany Outlook (USD Million, 2019-2030)

  • Germany Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • Germany Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

  • France Outlook (USD Million, 2019-2030)

  • France Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • France Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

  • UK Outlook (USD Million, 2019-2030)

  • UK Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • UK Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

  • ITALY Outlook (USD Million, 2019-2030)

  • ITALY Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • ITALY Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

  • SPAIN Outlook (USD Million, 2019-2030)

  • Spain Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • Spain Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

  • Rest Of Europe Outlook (USD Million, 2019-2030)

  • Rest Of Europe Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • REST OF EUROPE Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

• Asia-Pacific Outlook (USD Million, 2019-2030)

  • Asia-Pacific Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • Asia-Pacific Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

  • China Outlook (USD Million, 2019-2030)

  • China Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • China Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

  • Japan Outlook (USD Million, 2019-2030)

  • Japan Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • Japan Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

  • India Outlook (USD Million, 2019-2030)

  • India Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • India Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

  • Australia Outlook (USD Million, 2019-2030)

  • Australia Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • Australia Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

  • Rest of Asia-Pacific Outlook (USD Million, 2019-2030)

  • Rest of Asia-Pacific Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • Rest of Asia-Pacific Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

• Rest of the World Outlook (USD Million, 2019-2030)

  • Rest of the World Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • Rest of the World Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

  • Middle East Outlook (USD Million, 2019-2030)

  • Middle East Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • Middle East Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

  • Africa Outlook (USD Million, 2019-2030)

  • Africa Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • Africa Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others

  • Latin America Outlook (USD Million, 2019-2030)

  • Latin America Digital Assistant by User Interface

    • Automatic Speech Recognition

    • Text-Based

    • Text-to-Speech

    • Others

  • Latin America Digital Assistant by Application

    • BFSI

    • Consumer Electronics

    • Automotive

    • Healthcare

    • Education

    • Retail

    • IT & Telecom

    • Travel & Hospitality

    • Others