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Virtual shopping assistants are artificial intelligence-powered chatbots that provide shopping assistance to online customers. They are designed to understand natural language queries, retrieve product information from retailer databases in real-time, and provide personalized recommendations. Virtual shopping assistants help online shoppers navigate websites, search for products, get information on product features, prices, and availability. They can answer basic queries on sizing, compatibility, delivery and return policies to make the online shopping experience more convenient and engaging for customers.
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 Dynamics
Growing E-Commerce Industry
The significant growth of the e-commerce industry worldwide has increased the demand for virtual shopping assistants. As online shopping continues to gain prominence, retailers are adopting virtual shopping assistants to enhance customer experience and increase sales. Virtual assistants help attract new customers, encourage repeat purchases, and support around-the-clock thereby boosting sales volumes.
Personalized Shopping Experience
Virtual shopping assistants utilize AI technologies like machine learning and natural language processing to gain contextual understanding of customer needs and preferences. This enables them to provide a highly personalized shopping experience by recommending most relevant products, answering queries instantly, and simplifying the purchase process. The ability to offer one-to-one personalized service at scale has increased their adoption across online retailers.
Key players operating in the virtual shopping assistant market includes 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. Anthropic and Synthesia are known for their capabilities in computer vision and facial recognition. Soundhound, Cognigy and Nuance have partnership with large retailers.
Segment Analysis
One major segment in the virtual shopping assistant market is chatbots. Chatbots are expected to dominate the market during the forecast period. Chatbots can have natural conversations through messaging applications and websites to answer customer questions and provide recommendations. Chatbots are preferred by retailers as they provide 24×7 support to customers and can handle high volumes of simultaneous conversations.
PEST Analysis
Political: Government regulations around data privacy and protection are influencing technology adoption in the virtual shopping assistant market. Strict laws make businesses more cautious before collecting and storing customer data.
Economic: Rising disposable incomes and spending capabilities are fueling the demand for digital shopping experiences. Customers expect personalized recommendations and assistance during online shopping.
Social: Younger demographics are early adopters of virtual shopping tools. Social media integration helps brands better engage with customers. Customers appreciate personalized experiences based on past purchases and interests.
Technological: Advancements in AI, NLP, and voice assistance are enhancing the capabilities of virtual shopping assistants. Deep learning improves customer understanding. Integrations with IoT, VR, and AR are expanding application scenarios.
Regional analysis: North America dominates with a majority market share currently due to favorable demographic trends and advanced technological infrastructure. Countries like the US and Canada have seen widespread deployments of virtual shopping tools by major retailers.
Key Takeaways
The global Virtual Shopping Assistant Market is expected to witness high growth over the forecast period.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
