July 24, 2024
Ict

AI-powered Virtual Assistants Are Fueling the Growth of Virtual Shopping Assistant Market

The virtual shopping assistant market consists of digital assistants powered by artificial intelligence that help shoppers find and purchase products online. These virtual assistants leverage technologies like natural language processing, computer vision, and machine learning to understand shopper queries, recommend relevant products, and complete purchases on behalf of users. They provide an intuitive conversational interface to simplify the online shopping experience.

The global Virtual Shopping Assistant Market is estimated to be valued at US$ 624.7 Mn in 2023 and is expected to exhibit a CAGR of 32.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the major trends in the virtual shopping assistant market is the integration of augmented reality and virtual reality capabilities. Technology companies are developing shopping assistants that can leverage AR/VR to improve shopper engagement. For example, some assistants allow users to try outdigital replicas of clothes, furniture, and beauty products through their mobile or smart glasses to visualize how the items would look in real life. This improves decision making and Cart abandonment rates for online buyers. The implementation of AR/VR is expected to make virtual shopping more interactive and immersive in the coming years.

Segment Analysis
The global virtual shopping assistant market is segmented by type, technology, end user, and region. Based on type, the market is segmented into chatbots, smart speakers. The smart speakers segment is expected to dominate the market during the forecast period. This is mainly attributed to the increasing adoption of smart speakers integrated with virtual assistant technology by consumers for various activities like online shopping, music streaming, navigation, etc.

Regionally, North America dominated the market in 2023 with a revenue share of over 35%. Higher digitization and growing adoption of virtual assistants by retailers to enhance customer experience is fueling market growth in the region. Asia Pacific is expected to witness fastest growth over the forecast period due to rising internet and smartphone penetration in developing countries like China and India.

Key players operating in the virtual shopping assistant market are Anthropic PBC, Synthesia Limited, Observe.AI, Avaamo, Cognigy, SoundHound AI Inc., Luka, Inc. Pypestream Inc,, Mobisoft Infotech, EdgeVerve Systems Limited, Nuance Communications, Inc., Ada, and Kore.ai. Major players are focusing on product innovation and partnerships with retailers to enhance their market share. For instance, in 2022, Nuance partnered with Adidas to integrate conversational AI in their mobile application for improved customer experience.

Key Takeaways
The global virtual shopping assistant market size is expected to reach US$ 1,624.7 Mn by 2030, expanding at a CAGR of 32% during the forecast period. Increasing consumer preference for conversational commerce is expected to drive the market.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it