Virtual Humans Market Expected to Reach $1827.7 Billion by 2033

According to a new report published by Allied Market Research, titled, “Virtual Humans Market," The virtual humans market size was valued at $43.30 billion in 2023, and is estimated to reach $1,827.7 billion by 2033, growing at a CAGR of 45.1% from 2024 to 2033. Virtual humans are automated, three-dimensional agents designed to converse, understand and express emotions. These digital entities can simulate realistic face-to-face conversations utilizing computer-generated imagery and sound alongside artificial intelligence. It serves as an effective alternative to live role-plays involving instructors, or paid actors, offering logistical advantages such as scalability and availability. In addition, virtual humans enhance the learning experience by providing consistent interactions, personalized feedback, and safe environments for practice. This combination of advanced technology and immersive engagement makes virtual humans a valuable tool in education, training, and various professional applications.

The increased focus on personalization in customer experiences drives the demand for virtual humans. They can adapt interactions to meet individual preferences and behaviors. Virtual humans provide customized responses, recommendations, and support, enhancing overall engagement and satisfaction by analyzing user data. This tailored approach allows businesses to build stronger relationships with customers, fostering loyalty and improving retention rates. In addition, the companies seek to differentiate themselves in competitive markets. Furthermore, leveraging virtual humans for personalized experiences becomes a key strategy for success, which is driving the growth of virtual humans industry. However, privacy and data security concerns arise from the use of virtual humans, as they often collect and analyze personal information. This increases the possibility of potential data breach and misuse, which can hinder adoption and limit the virtual humans market size.

Furthermore, the growth of e-learning and remote education presents significant opportunities for virtual humans to enhance the educational experience. Virtual humans can cater to diverse learning styles and needs, by providing interactive tutoring and personalized support. This, in turn, makes education more accessible. These humans can simulate real-life scenarios, engage students in immersive learning environments, and offer instant feedback, fostering deeper understanding and retention of knowledge. The integration of virtual humans can create more dynamic, engaging, and effective educational experiences for learners of all ages, as online learning continues to evolve. This is driving the market growth.

On the basis of industry vertical, the global virtual humans market share was dominated by the gaming & entertainment segment in 2023, owing to the increasing demand for immersive experiences and interactive storytelling. The advancements in graphics and AI technology further enhance user engagement, which drives the segment growth. However, the BFSI segment is expected to register the highest CAGR during the forecast period. This is attributed to the increasing adoption of virtual humans for customer service, fraud detection, and personalized financial advice.

By region, North America dominated the virtual humans market share in 2023 owing to significant investments in artificial intelligence and adoption of advanced technologies. The presence of leading tech companies and innovative startups in the U.S. and Canada fosters rapid development and adoption of virtual human solutions. In addition, the surge in demand for personalized customer experiences further contributes to the region's growth. However, Asia-Pacific is expected to exhibit the highest growth during the virtual humans market forecast period. This is attributed to rapid advancements in technology, increase in smartphone penetration, and surge in interest in artificial intelligence applications. The region's diverse consumer base and rise in disposable incomes drive demand for innovative solutions, including virtual humans. 

For instance, in February 2024, Elliptic Labs, a global AI software company and the world leader in AI Virtual Smart Sensors, currently deployed in over 500 million devices, launched its 100% software-only AI Virtual Human Presence Sensor on multiple Lenovo ThinkPad T Series laptops. This release covers the Lenovo ThinkPad T14 i Gen 5, T14s Gen 5, and T16 Gen 3. These laptops will be powered with the latest Intel and AMD chipsets (both Intel and AMD are Elliptic Labs’ partners), except for the ThinkPad T16 Gen 3 laptop, which will run Intel only. The AI Virtual Human Presence Sensors delivers innovation, power, and value to the ThinkPad T Series, reducing power consumption while offering more user privacy and improved security..

Key findings of the Study 

• By type, the avatars segment held the largest share in the virtual humans market for 2023.

• By industry vertical, the gaming and entertainment segment held the largest share in the virtual humans market for 2023.

• Region-wise, North America held the largest market share in 2023. However, Asia-Pacific is expected to witness the highest CAGR during the forecast period.

The key players profiled in the virtual humans market analysis are 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 players have adopted various strategies to increase their market penetration and strengthen their position in the virtual humans industry.