The global virtual humans market was valued at $43.3 billion in 2023 and is estimated to reach $1.82 trillion by 2033, exhibiting a CAGR of 45.1% from 2024 to 2033. Virtual humans are a digital simulation of human beings, designed to replicate human appearance, behavior, and interaction through advanced technologies such as artificial intelligence (AI), 3D modeling, motion capture, and natural language processing (NLP). These digital beings can engage in realistic conversations, display emotional expressions, and react to stimuli, making them highly versatile for interactive applications. Virtual humans are popular in gaming, movies, and virtual reality (VR) environments.
In addition, virtual humans are now expanded into various sectors including healthcare, education, and customer service. In healthcare, they are used for patient simulations or as therapeutic companions, while in education, they enhance learning experiences through interactive training. Furthermore, virtual humans serve as digital assistants in customer service, offering efficient and human-like support to users.
The virtual human market is driven by advancements in artificial intelligence (AI) and machine learning (ML). The AI enables virtual humans to interact in more realistic, human-like ways by processing complex language, recognizing emotions, and learning from user interactions. This significantly enhanced the application in areas such as customer service, education, and entertainment, where lifelike interactions are important.
As AI technology improves, virtual humans become more capable of understanding context, providing personalized responses, and adapting to different scenarios, which is expected to drive the virtual human market growth. However, high development and implementation costs of virtual humans hinder the market growth. Advanced technologies such as AI, 3D modeling, and motion capture demand significant investment. The smaller companies with limited budgets face challenges in managing these ongoing expenses, which hampers the market growth.
Furthermore, the healthcare simulation and therapy utilizing virtual humans present significant opportunities for patient education, medical training, and mental health treatment. These digital entities can simulate realistic patient scenarios, allowing healthcare professionals to practice procedures and improve their skills in a risk-free environment. Moreover, virtual humans can provide therapeutic companionship for mental health patients, enhancing treatment outcomes. Virtual human applications not only improve healthcare quality but also drive the market growth in the healthcare sector by facilitating effective training and patient interactions.
The virtual human market is segmented into type, industry vertical, and region. By type, it is classified into avatars and autonomous virtual humans. By industrial vertical, it is divided into BFSI, education, retail, healthcare, automotive, IT & telecommunications, gaming & entertainment and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific and LAMEA.
The market players operating in the virtual human market include Epic Games, Inc., Inworld AI, Meta Platforms, Inc, Microsoft Corporation, Soul Machines, Unity Technologies, Alibaba Group Holding Limited, Aww Inc., UneeQ and Dexter Studios. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help drive the growth of the virtual humans market globally.
In addition, virtual humans are now expanded into various sectors including healthcare, education, and customer service. In healthcare, they are used for patient simulations or as therapeutic companions, while in education, they enhance learning experiences through interactive training. Furthermore, virtual humans serve as digital assistants in customer service, offering efficient and human-like support to users.
The virtual human market is driven by advancements in artificial intelligence (AI) and machine learning (ML). The AI enables virtual humans to interact in more realistic, human-like ways by processing complex language, recognizing emotions, and learning from user interactions. This significantly enhanced the application in areas such as customer service, education, and entertainment, where lifelike interactions are important.
As AI technology improves, virtual humans become more capable of understanding context, providing personalized responses, and adapting to different scenarios, which is expected to drive the virtual human market growth. However, high development and implementation costs of virtual humans hinder the market growth. Advanced technologies such as AI, 3D modeling, and motion capture demand significant investment. The smaller companies with limited budgets face challenges in managing these ongoing expenses, which hampers the market growth.
Furthermore, the healthcare simulation and therapy utilizing virtual humans present significant opportunities for patient education, medical training, and mental health treatment. These digital entities can simulate realistic patient scenarios, allowing healthcare professionals to practice procedures and improve their skills in a risk-free environment. Moreover, virtual humans can provide therapeutic companionship for mental health patients, enhancing treatment outcomes. Virtual human applications not only improve healthcare quality but also drive the market growth in the healthcare sector by facilitating effective training and patient interactions.
The virtual human market is segmented into type, industry vertical, and region. By type, it is classified into avatars and autonomous virtual humans. By industrial vertical, it is divided into BFSI, education, retail, healthcare, automotive, IT & telecommunications, gaming & entertainment and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific and LAMEA.
The market players operating in the virtual human market include Epic Games, Inc., Inworld AI, Meta Platforms, Inc, Microsoft Corporation, Soul Machines, Unity Technologies, Alibaba Group Holding Limited, Aww Inc., UneeQ and Dexter Studios. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help drive the growth of the virtual humans market globally.
Key Benefits for Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the virtual humans market analysis from 2023 to 2033 to identify the prevailing virtual humans market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the virtual humans market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global virtual humans market trends, key players, market segments, application areas, and market growth strategies.
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Key Market Segments
By Type
- Avatars
- Type
- Interactive Digital Human Avatar
- Non-Interactive Digital Human Avatar
- Autonomous Virtual Humans
By Industry Vertical
- Education
- Retail
- Healthcare
- Automotive
- IT and Telecommunications
- Gaming and Entertainment
- BFSI
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Alibaba Group Holding Limited
- Aww Inc.
- DEXTER STUDIOS
- Epic Games, Inc.
- Inworld AI
- Meta Platforms, Inc.
- Microsoft Corporation
- Soul Machines
- UneeQ
- Unity Technologies
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: VIRTUAL HUMANS MARKET, BY TYPE
CHAPTER 5: VIRTUAL HUMANS MARKET, BY INDUSTRY VERTICAL
CHAPTER 6: VIRTUAL HUMANS MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
LIST OF TABLES
LIST OF FIGURES
Executive Summary
According to the report titled, “Virtual Humans Market," the virtual humans market was valued at $11.30 billion in 2021, and is estimated to reach $440.3 billion by 2031, growing at a CAGR of 44.7% from 2022 to 2031.The computer image of an individual is referred to as a virtual human. These are avatars that are an immersive virtual reality experience and are widely recognized for their use in various aspects of daily human life. However, they do not often appear human, as virtual humans are capable of having irrational and imaginative appearances.
The key factors that drive the growth of the virtual humans market include the growth in demand for virtual space in the metaverse, the increase in demand for AI-based virtual humans in the healthcare sector and rise in awareness of creating virtual social-emotional support. AI is being promoted as a method to close the workforce gap in a world where very few nations have enough workers to deliver high-quality healthcare by automating routine chores and freeing up the time of the healthcare personnel to focus on the high value work, they are best suited to undertake. AI technology can be used to ease the burden on doctors and the healthcare system at large. AI-based virtual humans are known to increase productivity of doctors by letting them concentrate on information that is critically important rather than wasting time gathering irrelevant data or finishing encounter reports. Customer service representatives can handle patient calls and collect the necessary data, with the aid of virtual humans.
Increasing user demand and technological advancements have contributed to the growth of the digital human sector. The concept of digital humans is likely to expand beyond cultural and creative fields such as virtual celebrities. It is expected that they will become integrated with a variety of industries in order to boost the real economy. Moreover, the country has developed policies to support the development of innovative virtual humans. A complete set of services is provided by the platform to create and operate virtual hosts, celebrity broadcasters, and brand spokespersons for clients in the fields of broadcasting, television, internet, finance, and retail, enabling more industries to utilize virtual human resources. In addition, computer interface against the backdrop of metaverse, have become popular again, industry insiders have claimed by adding development of 5G, AI and VR technologies have fueled the virtual industry. Furthermore, financial returns for virtual idols are mainly generated from livestreaming platform membership fees, live broadcast rewards, brand endorsements, and appearance fees. Moreover, An Intelligent Virtual Assistant (IVA) is capable of fulfilling a wide range of customer service roles such as ease to navigate, offering product information, assisting customers in paying bills, and carry out transfers or complete forms, and directing problem queries to human agents in customer service. Such factors are prompting banking and financial institution across the world to integrate virtual assistants, leading to industry growth.
The market also offers growth opportunities to the key players. Many key players adopted various strategies such as partnership, product development, product launch, and more. For instance, in, April 2020, Hyderabad-based startup Digibeings developed an artificial intelligence-based virtual human, Intelligent Remote Assistant (IRA), which can assist healthcare workers and patients. It also monitors essential physiological signals like oxygen saturation level and respiration rate using the mobile camera without requiring any additional device. The solution is completely digital and thus, scalable. It can be accessed over mobile, desktop, VR, and AR devices, and no special training is required for users to use the product. Such factors are playing a major role in driving the growth of the virtual humans market.
The virtual humans market is segmented into type, industry vertical, and region. On the basis of type, the market is bifurcated into avatars and autonomous virtual humans. On the basis of Industry Vertical, the market is categorized into BFSI, education, retail, healthcare, automotive, IT & telecommunications, gaming & entertainment, and others. On the basis of region, it is analyzed across North America (the U.S. and Canada), Europe (Germany, Italy, France, Spain, UK, and the Rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, and the Rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
The key players profiled in the study include Alibaba Group Holding Limited, Datagen, Epic Games, Inc., iFLYTEK Corporation, Inworld AI, Meta Platforms, Inc., Microsoft Corporation Offbeat Media Group, Soul Machines, and Ziva Dynamics (Unity). The players in the market have been actively engaged in the adoption of various strategies such as partnerships, product launches, and acquisitions to remain competitive and gain an advantage over the competitors in the market.
Key Market Insights
- On the basis of type, the autonomous virtual humans segment is estimated to create $90 million in revenue by 2031. However, the avatars segment is expected to continue its dominance, during the forecast period.
- On the basis of the industry vertical, retail is the fastest-growing segment, with an impressive CAGR of 47% during the forecast period.
- On the basis of region, Asia-Pacific is the dominating segment and is expected to continue its dominance with a significant CAGR of 46%, during the forecast period.
Companies Mentioned
- Alibaba Group Holding Limited
- Aww Inc.
- DEXTER STUDIOS
- Epic Games, Inc.
- Inworld AI
- Meta Platforms, Inc.
- Microsoft Corporation
- Soul Machines
- UneeQ
- Unity Technologies
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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