The market for virtual humans is projected to expand to $440.3 billion in 2031, from $11.3 billion in 2021, according to global market research firm Allied Market Research.
In a report, the company said the expected size of the virtual humans market reflects a compound annual growth rate (CAGR) of 44.7 percent from 2022 to 2031.
Virtual humans, resembling human-like characters accessible through various mediums, including speakers and computer screens, pose challenges in precise definition, blurring distinctions with terms like “artificial intelligence” (AI).
“The interconnection between virtual humans, robots, androids, chatbots, conversational agents, autonomous agents, or pedagogic agents remains ambiguous,” the company said. The increase in connection between machines and people in a variety of end-use industries, and the surge in adoption of digital avatars in various industry verticals such as retail, entertainment and educational solutions drive the growth of the virtual human’s market.
“By type, avatars segment contributed to the major share in 2021. By region, Aisa-Pacific would showcase the fastest CAGR by 2031.”
The company noted that surge in advanced technologies has given rise to digital avatars and enhanced video streaming experiences, influencing over-the-top (OTT) service providers to immerse users in an expansive digital reality space known as the metaverse. This technological evolution and metaverse trends have been pivotal in propelling the growth of the virtual humans market.
The United States emerged as the top revenue contributor to the avatars segment in 2021, while Japan and South Korea are anticipated to experience substantial CAGRs of 50 percent each.
By type, the avatars segment held the largest share in 2021, garnering more than three-fourths of the global virtual humans market revenue and is projected to maintain its dominance by 2031. The same segment would also cite the fastest CAGR of 45.13 percent throughout the forecast period.
By industrial vertical, the gaming and entertainment segment contributed to nearly one-fifth of the global virtual humans market share in 2021. The retail segment is projected to dominate the market in terms of revenue by 2031.
Geographically, Asia-Pacific claimed a significant share in the global virtual humans market, attributed to the region’s expanding wireless connectivity and escalating digitalization. China, Japan, and South Korea currently dominate the virtual humans market in the Asian region.
Key drivers for market growth in this region include rapid advancements in artificial intelligence and internet of things technology. Additionally, swift urbanization and increased digital content creation and acceptance are primary factors propelling the virtual humans market across Asia-Pacific, North America, Europe, and Latin America, Middle East and Africa.