Virtual shopping assistants are AI-powered chatbots that provide shopping assistance to customers on e-commerce platforms and websites. They are designed to have natural conversations and answer questions about products, shipping, returns, and payments. Virtual shopping assistants help improve customer experience and boost sales by providing personalized recommendations, product searches, and responding to customer queries 24/7.
The 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 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growth of the virtual shopping assistant market is driven by the rising e-commerce sales worldwide. E-commerce sales surpassed US$ 4 trillion in 2019 and are expected to reach US$ 7 trillion by 2025. Virtual shopping assistants help drive online sales by assisting millions of shoppers simultaneously. Moreover, growing demand for personalized shopping experiences is also fueling the adoption of virtual shopping assistants that can understand individual customer needs and preferences. However, data privacy concerns regarding personal user information can hamper market growth.
SWOT Analysis
Strength: Virtual shopping assistants have the ability to provide personalized recommendations to customers based on their preferences and past purchases. They can help customers find products more efficiently. Virtual assistants never get tired and can work 24/7.
Weakness: Developing highly intelligent virtual assistants requires massive amounts of data and high computing power which increases costs. Many customers still prefer human interaction when shopping and have concerns about data privacy with virtual assistants.
Opportunity: As more people shop online, the demand for virtual assistants will continue growing. Integrating virtual assistants with augmented reality and virtual reality technologies can provide immersive shopping experiences for customers.
Threats: Increased competition from other retailers and shopping platforms that offer similar virtual shopping technologies. Customers may switch to competitors if they provide better shopping experiences.
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. These companies are focusing on advancing the capabilities of virtual assistants through innovations in areas such as conversational AI, computer vision and machine learning.
Key Takeaways:
The global Virtual Shopping Assistant market is expected to witness high growth, exhibiting CAGR of 32% over the forecast period, due to increasing demand for personalized shopping experiences. Customers want recommendations tailored to their individual preferences and virtual assistants can deliver this level of personalization at scale.
Regional analysis: North America dominated the global virtual shopping assistant market in 2023, accounting for around 35% share. However, Asia Pacific is expected to witness the highest growth during the forecast period owing to rapid adoption of virtual technologies across industries in emerging economies such as China and India.
