The global digital avatar market was estimated at USD 14.36 billion in 2022 and it is expected to surpass around USD 682.6 billion by 2032, poised to grow at a CAGR of 47.13% from 2023 to 2032. The digital avatar market in the United States was accounted for USD 5.2 billion in 2022.
Key Pointers
Report Scope of the Digital Avatar Market
| Report Coverage | Details |
| Revenue Share of North America in 2022 | 46% |
| CAGR of Asia Pacific from 2023 to 2032 | 51.33% |
| Revenue Forecast by 2032 | USD 682.6 billion |
| Growth Rate from 2023 to 2032 | CAGR of 47.13% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Companies Covered | Epic Games, Inc.; Pinscreen Inc.; Soul Machines; NEON (SAMSUNG); AI Foundation; Microsoft Corporation; NVIDIA Corporation; UneeQ; Didimo, Inc.; Spatial Systems, Inc.; DeepBrain AI; Wolf3D |
The rising demand for authentic and personalized characters for online interactions by companies from various industries drives the growth of the market. Digital avatars help companies to create engaging and intelligent interactions with customers. Companies in the market for digital avatars offer various customization options. The digital avatar reflects styles and personalities. For instance, in April 2023, Perfect Corp. integrated the AI Magic Avatar feature into the brand’s YouCam Perfect app
The feature has empowered users to generate more than a hundred personalized digital avatars, allowing them to express themselves across various digital categories. Such digital avatars have become key aspects of digital personas and communications. Technological developments are further projected to play an important role in the overall growth of the market. The incorporation of augmented reality (AR) offers an immersive digital avatar experience. Avatars with AI and AR are increasingly being deployed in customer-facing scenarios, including retail and sales office environments.
For instance, in April 2023, Spheroid Universe, an extended reality metaverse company, launched artificial intelligence (AI) avatars that inhabit the world through AR. Businesses can incorporate digital avatars into various operations, including sales, advertising, consumer interactions, general customer, and more. Further, AI avatars can be integrated with voice synthesis and voice recognition to enhance human interactions and communications.
Product Insights
The interactive digital avatar segment is projected to expand at a CAGR of 49.05% over the forecast period. The growth is attributed to the rising product adoption in customer service, entertainment, healthcare, and education sectors for various purposes, as they provide more engaging experiences. Furthermore, digital avatars are increasingly being used in animated films and video games to offer personalized experiences. The ability to provide a human-like natural experience is projected to offer lucrative growth opportunities in the market for digital avatars.
A non-interactive digital avatar is not capable of interacting with humans. These digital avatars are implemented in various industry verticals, such as films, video games, and virtual reality experiences. Companies are using non-interactive digital avatars to perform the role of welcome hosts on their websites to describe the products or services and introduce the company. However, ineffectiveness in giving assurance to customers and limited functionalities are expected to hamper the segment's growth over the forecast period.
Industry Vertical Insights
The retail & e-commerce segment accounted for a significant share of around 21% in 2022 in the digital avatar market. Furthermore, it is expected to advance at significant CAGR of 46.22% from 2023 to 2032. E-commerce chatbots are helping the sector to benefit substantially from the power of messaging to drive revenue, enhance consumer experience, and reduce costs by offering 24/7 services.
Furthermore, they help to offer a consistent experience across multiple distribution channels and facilitate better communication. Chatbots are increasingly being deployed in the retail & e-commerce industry for product recommendations to enable personalized service. They assist customers in keeping track of their order status, shipping and billing information, and much more.
The education & training segment is anticipated to grow substantially in the market over the forecast period. Digital avatars are increasingly being implemented in the education and training sector to provide a personalized learning experience. Technological developments enable virtual agents to understand learning preferences, needs, and styles to provide additional resources and personalized recommendations. The increasing adoption of digital avatars for e-learning platforms, online courses, and training programs is projected to offer significant growth opportunities for the market segment.
Category Insights
The virtual influencer segment accounted for a significant market share of 26% in 2022. Virtual influencers enable brands to produce unattainable content with humans, allowing a higher degree of creative freedom which helps to target the correct set of customers. Furthermore, numerous fashion brands collaborate with virtual influencers to create new, unique experiences and attract younger audiences. The ability to generate higher engagement and improved social media reach is projected to fuel further growth of virtual influencers over the forecast period.
The virtual agents & assistants segment is projected to expand at a CAGR of 44.43% from 2023 to 2032. The assistant is a conversational software that allows brands to respond to customers by using AI, reducing the response time. Companies implement virtual agents on their websites to provide 24/7 assistance and support to enhance customer satisfaction. They can handle multiple customer queries, improving the response time and reducing operational costs. Additional features such as personalization, data collection, and analysis will offer growth opportunities for this segment through 2032.
Regional Insights
The market for digital avatar in the Asia Pacific region is projected to grow at the highest rate of 51.33% during the forecast period. The rising number of smartphone and internet users is driving regional growth. Digital avatar allows people to interact with others on social media platforms without revealing their identity. Furthermore, continuous technological advancements have enabled marketers to create and offer virtual avatars at affordable rates. A steady rise in online gaming and social media users to interact and express themselves is anticipated to fuel further market growth in the region.
The North American region accounted for a significant market share of around 46% in 2022 and is expected to continue its dominance throughout the forecast period. The growing popularity of AR and VR allows users to interact with digital environments in a more realistic and immersive manner. Regional consumers prefer customized digital avatars to reflect their interests and personalities. Furthermore, considering the demand, regional companies also focus on offering customization in digital avatars through in-app purchases and other virtual goods through social media, virtual reality, and gaming.
Digital Avatar Market Segmentations:
By Product
By Category
By Industry Vertical
By Regional
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Product Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Digital Avatar Market
5.1. COVID-19 Landscape: Digital Avatar Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Digital Avatar Market, By Product
8.1. Digital Avatar Market, by Product, 2023-2032
8.1.1 Interactive Digital avatar
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. Non-Interactive Digital avatar
8.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 9. Global Digital Avatar Market, By Category
9.1. Digital Avatar Market, by Category, 2023-2032
9.1.1. Virtual Agents & Assistants
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. Virtual Influencers
9.1.2.1. Market Revenue and Forecast (2020-2032)
9.1.3. Others
9.1.3.1. Market Revenue and Forecast (2020-2032)
Chapter 10. Global Digital Avatar Market, By Industry Vertical
10.1. Digital Avatar Market, by Industry Vertical, 2023-2032
10.1.1. BFSI
10.1.1.1. Market Revenue and Forecast (2020-2032)
10.1.2. Retail & E-commerce
10.1.2.1. Market Revenue and Forecast (2020-2032)
10.1.3. Healthcare
10.1.3.1. Market Revenue and Forecast (2020-2032)
10.1.4. Gaming & Entertainment
10.1.4.1. Market Revenue and Forecast (2020-2032)
10.1.5. Education & Training
10.1.5.1. Market Revenue and Forecast (2020-2032)
10.1.6. Automotive
10.1.6.1. Market Revenue and Forecast (2020-2032)
10.1.7. IT & Telecom
10.1.7.1. Market Revenue and Forecast (2020-2032)
10.1.8. Others
10.1.8.1. Market Revenue and Forecast (2020-2032)
Chapter 11. Global Digital Avatar Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Forecast, by Product (2020-2032)
11.1.2. Market Revenue and Forecast, by Category (2020-2032)
11.1.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.1.4. U.S.
11.1.4.1. Market Revenue and Forecast, by Product (2020-2032)
11.1.4.2. Market Revenue and Forecast, by Category (2020-2032)
11.1.4.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Forecast, by Product (2020-2032)
11.1.5.2. Market Revenue and Forecast, by Category (2020-2032)
11.1.5.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.2. Europe
11.2.1. Market Revenue and Forecast, by Product (2020-2032)
11.2.2. Market Revenue and Forecast, by Category (2020-2032)
11.2.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.2.4. UK
11.2.4.1. Market Revenue and Forecast, by Product (2020-2032)
11.2.4.2. Market Revenue and Forecast, by Category (2020-2032)
11.2.4.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.2.5. Germany
11.2.5.1. Market Revenue and Forecast, by Product (2020-2032)
11.2.5.2. Market Revenue and Forecast, by Category (2020-2032)
11.2.5.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.2.6. France
11.2.6.1. Market Revenue and Forecast, by Product (2020-2032)
11.2.6.2. Market Revenue and Forecast, by Category (2020-2032)
11.2.6.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Forecast, by Product (2020-2032)
11.2.7.2. Market Revenue and Forecast, by Category (2020-2032)
11.2.7.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.3. APAC
11.3.1. Market Revenue and Forecast, by Product (2020-2032)
11.3.2. Market Revenue and Forecast, by Category (2020-2032)
11.3.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.3.4. India
11.3.4.1. Market Revenue and Forecast, by Product (2020-2032)
11.3.4.2. Market Revenue and Forecast, by Category (2020-2032)
11.3.4.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.3.5. China
11.3.5.1. Market Revenue and Forecast, by Product (2020-2032)
11.3.5.2. Market Revenue and Forecast, by Category (2020-2032)
11.3.5.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.3.6. Japan
11.3.6.1. Market Revenue and Forecast, by Product (2020-2032)
11.3.6.2. Market Revenue and Forecast, by Category (2020-2032)
11.3.6.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Forecast, by Product (2020-2032)
11.3.7.2. Market Revenue and Forecast, by Category (2020-2032)
11.3.7.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.4. MEA
11.4.1. Market Revenue and Forecast, by Product (2020-2032)
11.4.2. Market Revenue and Forecast, by Category (2020-2032)
11.4.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.4.4. GCC
11.4.4.1. Market Revenue and Forecast, by Product (2020-2032)
11.4.4.2. Market Revenue and Forecast, by Category (2020-2032)
11.4.4.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.4.5. North Africa
11.4.5.1. Market Revenue and Forecast, by Product (2020-2032)
11.4.5.2. Market Revenue and Forecast, by Category (2020-2032)
11.4.5.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.4.6. South Africa
11.4.6.1. Market Revenue and Forecast, by Product (2020-2032)
11.4.6.2. Market Revenue and Forecast, by Category (2020-2032)
11.4.6.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Forecast, by Product (2020-2032)
11.4.7.2. Market Revenue and Forecast, by Category (2020-2032)
11.4.7.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.5. Latin America
11.5.1. Market Revenue and Forecast, by Product (2020-2032)
11.5.2. Market Revenue and Forecast, by Category (2020-2032)
11.5.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.5.4. Brazil
11.5.4.1. Market Revenue and Forecast, by Product (2020-2032)
11.5.4.2. Market Revenue and Forecast, by Category (2020-2032)
11.5.4.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Forecast, by Product (2020-2032)
11.5.5.2. Market Revenue and Forecast, by Category (2020-2032)
11.5.5.3. Market Revenue and Forecast, by Industry Vertical (2020-2032)
Chapter 12. Company Profiles
12.1. Epic Games, Inc.
12.1.1. Company Overview
12.1.2. Product Offerings
12.1.3. Financial Performance
12.1.4. Recent Initiatives
12.2. Pinscreen Inc.
12.2.1. Company Overview
12.2.2. Product Offerings
12.2.3. Financial Performance
12.2.4. Recent Initiatives
12.3. Soul Machines
12.3.1. Company Overview
12.3.2. Product Offerings
12.3.3. Financial Performance
12.3.4. Recent Initiatives
12.4. NEON (SAMSUNG).
12.4.1. Company Overview
12.4.2. Product Offerings
12.4.3. Financial Performance
12.4.4. Recent Initiatives
12.5. AI Foundation
12.5.1. Company Overview
12.5.2. Product Offerings
12.5.3. Financial Performance
12.5.4. Recent Initiatives
12.6. Microsoft Corporation
12.6.1. Company Overview
12.6.2. Product Offerings
12.6.3. Financial Performance
12.6.4. Recent Initiatives
12.7. NVIDIA Corporation.
12.7.1. Company Overview
12.7.2. Product Offerings
12.7.3. Financial Performance
12.7.4. Recent Initiatives
12.8. UneeQ; Didimo, Inc.
12.8.1. Company Overview
12.8.2. Product Offerings
12.8.3. Financial Performance
12.8.4. Recent Initiatives
12.9. Spatial Systems, Inc.
12.9.1. Company Overview
12.9.2. Product Offerings
12.9.3. Financial Performance
12.9.4. Recent Initiatives
12.10. DeepBrain AI
12.10.1. Company Overview
12.10.2. Product Offerings
12.10.3. Financial Performance
12.10.4. Recent Initiatives
Chapter 13. Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
Chapter 14. Appendix
14.1. About Us
14.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers