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Virtual shopping assistants are artificial intelligence-enabled chatbots that help consumers browse, search, and purchase products online. They use natural language processing to understand consumers’ needs and provide personalized shopping recommendations and assistance. Virtual shopping assistants can recognize images, understand speech, and answer text or voice queries related to product descriptions, prices, sizes, availability, delivery timelines, payment options etc. This enables an enhanced shopping experience for online customers and drives higher sales conversion for e-commerce retailers.
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:
The global virtual shopping assistant market is expected to witness significant growth over the forecast period, driven by increasing adoption of conversational commerce solutions among e-retailers. Rapid proliferation of e-commerce industry with expanding internet and smartphone penetration worldwide has accelerated the demand for virtual assistants that can help consumers navigate various online shopping websites and apps more efficiently. Additionally, integration of advanced technologies such as augmented reality, virtual reality, and computer vision in virtual shopping assistants is gaining traction. This allows customers to visually see how products like apparel, furniture, cosmetics etc. would look on them through AR/VR capabilities of virtual assistants. Such personalized and interactive shopping experiences are propelling the demand for more advanced virtual shopping assistants.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as it requires huge capital investment and technological capabilities to develop virtual shopping assistant solution. However, cloud technologies lowered the entry barriers.
Bargaining power of buyers: The bargaining power of buyers is high as virtual shopping assistant solution has several substitutes available and buyers can switch between providers easily.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as suppliers rely on key software development companies and AI providers for technology. However, presence of several AI solution providers balances the power.
Threat of new substitutes: The threat of new substitutes is high as chatbots, virtual agents and other conversational AI have potential to replace virtual shopping assistants.
Competitive rivalry: The competitive rivalry is high due to presence of numerous providers with similar virtual assistant solutions.
Regional analysis: North America region dominates the virtual shopping assistant market currently. However, Asia Pacific region is expected to exhibit fastest growth during forecast period due to increasing penetration of smartphones and expanding e-commerce sector across countries like India and China.
Key players: 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 players are focusing on developing advanced AI capabilities and omnichannel integrations to strengthen their market position.
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.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
