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Virtual shopping assistants have gained immense popularity as they help consumers navigate through online stores and find desired products with ease. They can recommend products based on customers’ preferences, past purchase history and searches. Using advanced technologies like machine learning and artificial intelligence, virtual shopping assistants understand natural language queries to provide personalized shopping experiences. They also enable functions like visual search that allows customers to upload images of products they want to find or are interested in.
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:
One of the key trends fueling the growth of virtual shopping assistant market is the rising focus on enhancing customer experience. E-commerce retailers are investing heavily in adopting virtual shopping assistants as they recognize the need to provide superior shopping experiences to customers online. Virtual shopping assistants improve customer experience by understanding consumer needs through conversational interfaces. They offer a more personalized approach to shopping by learning customers’ preferences over time. This high-level of personalization helps increase shopper satisfaction, builds loyalty and also encourages incremental or repeat purchases. As more customers demand convenience and personalized services, virtual shopping assistants are poised to play a vital role in enhancing customer experience in the retail industry.
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 advancing technology through investments in natural language processing, machine learning and computer vision to offer more effective virtual shopping experiences.
SWOT Analysis
Strength: Virtual shopping assistants have the ability to handle a large volume of customer queries effectively 24/7 without human errors. They are cost effective compared to hiring human agents.
Weakness: Large upfront costs are required for the development and deployment of virtual shopping assistants. Privacy and security concerns still prevail around the use of personal data by these assistants.
Opportunity: Growing e-commerce industry and shift towards online shopping post-Covid presents a massive opportunity for virtual shopping assistants to be adopted widely. Customers’ increasing preference for personalized shopping experiences also opens up opportunities.
Threats: Technology giants like Amazon, Google and Microsoft already have strong virtual assistant products. Competition from them can pose a threat to smaller players. Changing customer expectations and rapid technological advancements also threaten existing products.
Regional Analysis: North America currently dominates the market led by widespread technology adoption in the US and Canada. The availability of large technology companies and startups focusing on conversational AI provides the region an edge.
Key Takeaways
The global Virtual Shopping Assistant Market is expected to witness high growth over the forecast period supported by increasing online shopping and preference for personalized experiences.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
