June 18, 2024
Ict

Virtual Shopping Assistant Market Propelled by the Rising Demand for Virtual Shopping Assistants

Virtual shopping assistants are AI-powered systems that help customers discover, browse and purchase products online through natural conversations. Offering an intuitive shopping experience with contextual product recommendations, virtual shopping assistants improve customer satisfaction and drive sales for retailers. Leveraging AI technologies like natural language processing and computer vision, virtual assistants understand customers’ needs and answer queries related to product features, pricing and availability in real-time.

The global Virtual Shopping Assistant Market is estimated to be valued at US$ 624.7 Mn in 2024 and is expected to exhibit a CAGR of 32% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Growth Accelerated by Conversational Commerce
One of the key trends fueling the growth of the virtual shopping assistant market is the rise of conversational commerce. Customers are increasingly adopting chatbots and voice assistants on websites and mobile apps for quicker product searches and purchases. Virtual shopping assistants offer a more personalized shopping experience through natural language conversations as compared to traditional e-commerce platforms. By understanding customers’ intentions from text or speech, virtual assistants can navigate them effortlessly through product listings, answer queries and complete transactions seamlessly. This has boosted sales conversions for online retailers and is expected to further drive the popularity of virtual shopping assistants.

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 developing more human-like virtual assistants with advanced natural language capabilities. They are also integrating virtual assistants across multiple sales channels to provide seamless shopping experience. Partnerships and acquisitions are other key strategies adopted by major companies to enhance their product portfolio and geographic footprint.

Segment Analysis
The global virtual shopping assistant market is dominated by chatbots segment. Chatbots are AI-powered digital assistants that uses natural language conversations to help customers. They can answer commonly asked questions related to product details, ordering process, delivery and refund policies. Chatbots are preferred choice of retailers as they can handle high volume of customer queries and demands in a cost effective manner round the clock without any human intervention. Chatbots provide personalized shopping experience and helps in increasing average order value and conversion rates.

Regional analysis: North America region is expected to dominate the global virtual shopping assistant market during the forecast period. Presence of major technology companies and retailers who are early adopters of AI and virtual shopping technologies drives the market growth. Europe is second fastest growing region due to increasing tech savviness of customers and retailers investing in digital transformation initiatives. Asia Pacific region is anticipated to register highest CAGR during 2024-2031. Rapid growth of e-commerce industry, rising internet penetration and growing consumer spending on online shopping are major factors propelling the demand of virtual shopping assistants in the region.

Key Takeaways
The global Virtual Shopping Assistant Market is expected to witness high growth.

*Note:

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