Press release
Leading Element Driving Change in the Virtual Humans Market in 2025: Metaverse Expansion Fuels Growth in the Virtual Humans Market Driver
Virtual Humans
The quick development of the metaverse is predicted to fuel the virtual humans market in the future. The metaverse is essentially a mutual virtual shared area developed by meshing virtually enhanced physical reality with a lasting physical virtual reality. The booming of the metaverse has been fueled by a surge in interest in digital experiences, opportunities in remote work and social interaction, economic avenues, and cultural transformations. Virtual humans, also known as digital avatars or virtual beings, have a vital role in the metaverse, serving as user representations, AI-guided characters, or independent entities with specific roles. These virtual humans are integral in curating the user's experience within the metaverse, allowing for more enriched, customized, and interactive digital platforms. For example, in March 2024 the UK Intellectual Property Office, which is responsible for intellectual property rights in the UK, predicted that the number of metaverse users would skyrocket, reaching around 1.4 billion users with a market value projected at $490.4 billion by 2030. As such, the metaverse's development is paving the way for the ascension of the virtual humans market.
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What growth opportunities are expected to drive the virtual humans market's CAGR through 2034?
The market for virtual humans has witnessed significant expansion in the recent past. The market value, which stands at $34.88 billion in 2024, is projected to escalate to $51.94 billion by 2025, marking an impressive compound annual growth rate (CAGR) of 48.9%. Factors like the rising use of virtual assistance and chatbots, the growth of the metaverse, heightened digitalization, increased use of smartphones, and further digitalization are responsible for the growth experienced during the historic period.
Anticipated to witness a significant upswing in the upcoming years, the market size of virtual humans is projected to reach a valuation of $252.61 billion by 2029, exhibiting a compound annual growth rate (CAGR) of 48.5%. The expected surge during the forecast period can be connected to factors such as the expansion of e-commerce, growing need for customized experiences, the rise of the metaverse, wider acceptance of digital influencers, and an enhanced emphasis on customer experience. The period is also likely to see key trends such as technological progress, the inclusion of artificial intelligence, multilingual abilities, customized experiences, and partnerships with influencers.
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What are the emerging trends shaping the future of the virtual humans market?
Leading organizations within the realm of the virtual human market are honing their efforts on creating tech-savvy solutions like AI-induced virtual human technologies. This is achieved through collaborations that boost the interaction between humans and computers, establish more life-like avatars, and enhance utilization in a wide range of sectors. AI-fueled virtual human technology essentially describes progressive systems that leverage AI to make digital human replicas that can engage with real humans in a convincingly intelligent fashion. To exemplify, Nvidia Corporation, an American software enterprise, teamed up with Aww Inc., a Japanese virtual human firm, in June 2024. The collaboration aimed at improving AI-powered virtual human technology, specifically concentrating on their virtual influencer, imma. This advanced version supports real-time interactions, amplified by NVIDIA's inventive Audio2Face technology that delivers authentic facial movements and lip-syncing. AI imma is engineered to automate the formulation of character-oriented large language models (LLMs), thereby making the process of producing and supplying virtual humans for different business purposes more efficient. This alliance marks a remarkable advancement in AI-fueled virtual human technology, with the goal to transform user involvement and interaction throughout various sectors.
Which growth-oriented segments of the virtual humans market are leading the industry's development?
The virtual humans market covered in this report is segmented -
1) By Type: Avatars, Autonomous Virtual Humans
2) By Application: Gaming And Entertainment, Simulation And Training, Virtual Reality (VR) And Augmented Reality (AR), Customer Service And Virtual Assistants, Marketing And Advertising, Other Applications
3) By Industry Type: Banking, Financial Services And Insurance (BFSI), Education, Retail, Healthcare, Automotive, Aerospace And Military, Information Technology And Telecommunications, Gaming And Entertainment, Marketing And Advertising, Other Industries
Subsegments:
1) By Avatars: 2D Avatars, 3D Avatars, Customizable Avatars, Realistic Avatars
2) By Autonomous Virtual Humans: AI-Powered Virtual Assistants, Socially Interactive Virtual Humans, Virtual Influencers, Customer Service Virtual Humans
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What regions are leading the charge in the virtual humans market?
North America was the largest region in the virtual humans market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the virtual humans market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What companies are at the forefront of innovation in the virtual humans market?
Major companies operating in the virtual humans market are Google LLC, Samsung Electronics Co. Ltd., Microsoft Corporation, Alibaba Group Holding Limited, Meta Platforms Inc., NVIDIA Corporation, iFLYTEK Co. Ltd., Unity Software Inc., Epic Games Inc., Xsens Technologies B.V., Reallusion Inc., Soul Machines Limited, AltspaceVR Inc., Cubic Motion Limited, Datagen Technologies Ltd., Inworld AI Inc., 3Lateral d.o.o., Faceware Technologies Inc., Offbeat Media Group LLC, Quantum Capture Inc., UneeQ Limited, VNTANA Inc.
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What Is Covered In The Virtual Humans Global Market Report?
•Market Size Forecast: Examine the virtual humans market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the virtual humans market for a structured understanding.
•Key Players Overview: Analyze major players in the virtual humans market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the virtual humans market.
•Segment Contributions: Evaluate how different segments drive overall growth in the virtual humans market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the virtual humans market.
•Industry Challenges: Identify potential risks and obstacles affecting the virtual humans market.
•Competitive Landscape: Review strategic developments in the virtual humans market, including expansions, agreements, and new product launches.
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