Virtual shopping assistants provide solutions that allow consumers to interact with chatbots or virtual agents via text or voice during online shopping. They help streamline the shopping experience by providing product recommendations, answering queries, facilitating purchases and offers to users. Equipped with capabilities like natural language processing and machine learning, virtual shopping assistants can understand consumer needs and behaviors to deliver hyper-personalized shopping assistance.

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:
Increasing adoption of AI technology by retailers is a major driver of the virtual shopping assistant market. AI enables virtual shopping assistants to learn from user interactions and data patterns which helps them provide better assistance and recommendations. For example, fashion retailers are deploying virtual agents equipped with computer vision to help customers virtually try clothes and accessories. Furthermore, rising demand for enhanced e-commerce experience among digitally native consumers is fuelling the development of new virtual shopping platforms and services. However, data privacy concerns among some users can potentially restrain the market growth. Addressing such concerns through stringent data security practices will be important for wider acceptance of virtual shopping assistants in the future.

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 offering innovative solutions equipped with capabilities like natural language processing, personalized product recommendations, order tracking and virtual try-on to help customers with an improved shopping experience.

SWOT ANALYSIS
Strength: With the advancements in technologies like artificial intelligence and machine learning, virtual shopping assistants are becoming highly intelligent and personalized. They can understand natural language and respond to shoppers' queries instantly in a conversational manner. Such virtual assistants also provide 24/7 support to customers without any downtime.
Weakness: While virtual shopping assistants aim to provide a human-like experience to customers, they still lack emotional intelligence. They may not understand shoppers' needs fully. Also, setting up advanced AI-driven virtual assistants requires heavy investments which can be difficult for small businesses to afford.
Opportunity: Virtual shopping assistants provide an opportunity to retailers and e-commerce companies to strengthen their online presence and improve customer experience. They help increase sales by making product recommendations, simplifying the shopping process, and resolving customer issues quickly. Younger generations who are tech-savvy are more comfortable interacting with chatbots and virtual assistants for their shopping needs.
Threats: Any glitches, errors or lack of proper training in virtual assistants can negatively impact customers' buying decisions and brand perception. Customers may switch to other retailers if they do not get satisfactory responses from shopping assistants. Moreover, increased competition from global tech companies which are developing more personalized and capable virtual assistants poses a threat.

Regional analysis: North America currently dominates the virtual shopping assistant market owing to wide acceptance of emerging technologies among retailers and customers in countries like the US and Canada. Asia Pacific is expected to grow at the fastest pace during the forecast period due to growing internet penetration, e-commerce adoption and rising millennial population in countries like India and China which are more open to interacting with virtual shopping assistants.

Key Takeaways
The global virtual shopping assistant market is expected to witness high growth over the forecast period due to rapid adoption of advanced technologies and changing customer behaviour.