Digital Human Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 30.41 Billion |
| Market Size (2029) | USD 171.26 Billion |
| CAGR (2024 - 2029) | 41.29 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Digital Human Market Analysis
The Digital Human Market size is estimated at USD 30.41 billion in 2024, and is expected to reach USD 171.26 billion by 2029, at a CAGR of 41.29% during the forecast period (2024-2029).
- Driven by technological advancements and a rising demand for personalized interactions, the digital human market is witnessing robust growth. As metaverse platforms gain traction, they present fresh avenues for digital humans to take on roles like virtual guides, educators, and entertainers, thereby amplifying user engagement in these immersive settings.
- There's an escalating trend towards hyper-personalized interactions. Here, digital humans fine-tune their responses to align with individual user preferences, bolstering both customer satisfaction and engagement. Moreover, the appetite for interactive avatars is on the rise, especially in sectors like customer service and education, where these avatars deliver real-time responses, enriching user experiences.
- With the ascent of virtual commerce, digital humans are finding new roles as virtual assistants and influencers, streamlining customer interactions in immersive settings. Acting as the brand's face and voice, the Digital Sales Agent not only offers tailored product recommendations but also aids in purchase decisions, evaluates alternatives, and supports ongoing campaigns and product upsells.
- People can better relate to digital humans that have a more realistic appearance. Currently, Colossyan leads in delivering the most lifelike digital humans. Beyond verbal exchanges, these digital entities can convey non-verbal cues, including subtle facial microgestures like winking, nodding, and frowning. Colossyan's platform boasts over 150 diverse stock avatars, spanning various ages, ethnicities, and professions, ready for immediate use as on-screen video talent.
- Developing sophisticated digital humans demands hefty investments in cutting-edge technologies, encompassing artificial intelligence, 3D modeling, and natural language processing. Such substantial costs pose challenges for smaller firms and startups aiming to penetrate the market.
- The COVID-19 pandemic underscored the need for remote interactions across multiple sectors. This urgency spurred a heightened demand for digital humans, stepping up as virtual assistants, customer service agents, and educators. As the dust settles in the post-COVID realm, the market continues to evolve, pushing boundaries of innovation while simultaneously introducing challenges for companies weaving these technologies into their fabric.
Digital Human Market Trends
Retail and E-commerce to Hold Significant Growth
- Digital humans are revolutionizing personalized shopping experiences. They engage with customers via text or speech, offering product recommendations and assistance, effectively taking on the role of a traditional salesperson. According to ITA, B2C e-commerce sales are set to leap from USD 3,322.6 billion in 2022 to an anticipated USD 5,178.3 billion by 2026. E-commerce brands are actively seeking imagery that resonates with their target demographics.
- By integrating conversational intelligence, digital human avatars can engage with customers on a larger scale, allowing for a more nuanced understanding of individual needs and preferences.
- For example, Tata CLiQ, an e-commerce platform under the Tata Group, is leveraging Adobe to enrich its mobile app and website with personalized shopping features. Additionally, AI startup Pantheon Lab is delving into the potential of AI-generated digital human avatars across diverse sectors, including e-commerce.
- These digital avatars foster empathy and connection, enhancing the personal touch of online shopping. An IBM study highlights a gap in satisfaction, revealing only 14 percent of online consumers are content with their shopping experiences. This underscores the industry's pivot towards lifelike interactions to bolster user satisfaction and trust in digital platforms.
- With the rise of large language models (LLMs) like ChatGPT, Bard, and Llama, e-commerce businesses can better align with user expectations. Forward-thinking online retailers are adopting bespoke LLMs, empowering shoppers to voice any prompt they desire.
- Alibaba Cloud, in collaboration with YCYH, offers a comprehensive suite of customizable services for crafting digital humans. Their services span from original design and modeling to UE software coding and adapting motion capture equipment. These digital humans are versatile, serving as livestreaming hosts, brand ambassadors, virtual idols, and animated actors.
- Looking ahead, digital storefronts should integrate both verbal and graphic elements. Humans naturally communicate through text, speech, and emotional expression. By embracing this holistic approach, online retail interactions can mirror the depth and productivity of genuine in-person conversations.
North America is Expected to Hold a Major Share of the Market
- Technological advancements and evolving consumer behaviors have significantly shaped the demand for digital humans in North America. E-commerce platforms in North America are increasingly integrating digital humans to boost customer engagement. These virtual assistants offer personalized shopping experiences, guiding customers in product selection and addressing queries in real-time.
- With the integration of artificial intelligence (AI) and natural language processing (NLP) technologies, digital humans have enhanced capabilities, enabling them to comprehend and respond to customer inquiries more adeptly. Such advancements are vital for businesses aiming to uphold a competitive edge in customer service.
- In June 2024, NVIDIA unveiled its ACE generative AI microservices, heralding a new era for digital humans and promising forthcoming generative AI innovations. Early adopters of ACE technologies span customer service, gaming, and healthcare sectors, streamlining the creation, animation, and operation of lifelike digital humans across diverse domains.
- The U.S. healthcare sector is a prominent player in the Digital Human Market, harnessing these virtual entities to elevate patient interactions, enhance medical training, and conduct therapy sessions. Digital humans act as interactive health assistants, offering information, monitoring well-being, and providing emotional support. In medical training, they create a realistic simulation environment, allowing practitioners to refine their skills and knowledge.
- In the U.S. retail sector, digital humans are transforming customer experiences, delivering personalized and engaging interactions that align with modern consumer expectations. Given the rising digital transformations among end-users, the market is poised to capture a substantial share.
Digital Human Industry Overview
The Digital Human market is semi-consolidated and is expected to be fragmented, primarily driven by the presence of new players. These key players employ strategies such as mergers, acquisitions, and product innovations to maintain a competitive edge and broaden their global footprint. Key player include Samsung Electronics Co., Ltd., Microsoft Corporation, Meta Platforms, Inc., and others.
As the market continues to evolve, ongoing advancements in AI and machine learning will likely enhance the capabilities and acceptance of digital humans across various sectors. This comprehensive overview highlights the dynamic nature of the digital human market, showcasing its potential for growth while also addressing the challenges that need to be navigated for successful implementation and adoption.
Digital Human Market Leaders
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Samsung Electronics Co., Ltd.
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Microsoft Corporation
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Meta Platforms, Inc
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Tencent Holdings Limited
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Nvidia Corporation
*Disclaimer: Major Players sorted in no particular order
Digital Human Market News
- October 2024: e& UAE announced the launch of its groundbreaking team of human-digital advisors at Gitex Global 2024, each with a unique personality representing different nationalities living in the UAE. This marks a significant milestone in the region’s telecommunications industry.
- September 2024: At the recent 2024 Tencent Global Digital Ecosystem Summit, Tencent Cloud, the cloud business of the global leading technology company Tencent, announced a strategic partnership with the S.M.A.R.T Entrepreneurship Club, a club dedicated to connecting business needs with leading AI solutions and fostering international collaborations that enhance value for all stakeholders.
Digital Human Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of macroeconomic trends
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rapid Developments in Artificial Intelligence (AI), Machine Learning, and Natural Language Processing
5.1.2 Growth in E-learning
5.2 Market Restraints
5.2.1 High Development Costs
6. MARKET SEGMENTATION
6.1 By Product Type
6.1.1 Interactive Digital Human
6.1.2 Non-Interactive Digital Human
6.2 By End-user Industry
6.2.1 Retail
6.2.2 Gaming and Entertainment
6.2.3 BFSI
6.2.4 Education
6.2.5 Automotive
6.2.6 Other End-user Industries
6.3 By Geography***
6.3.1 North America
6.3.2 Europe
6.3.3 Asia
6.3.4 Australia and New Zealand
6.3.5 Latin America
6.3.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Samsung Electronics Co., Ltd.
7.1.2 Microsoft Corporation
7.1.3 Meta Platforms, Inc
7.1.4 Tencent Holdings Limited
7.1.5 Nvidia Corporation
7.1.6 iFLYTEK Corporation
7.1.7 Epic Games, Inc.
7.1.8 Digital Domain
7.1.9 Didimo Inc.
7.1.10 Reallusion Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Digital Human Industry Segmentation
Digital human creates an emotional connection by combining machine learning, speech recognition, natural language processing and conversational AI.
The digital human market is segmented by product type (interactive digital human, non-interactive digital human), by end-user industry (retail, gaming and entertainment, BFSI, education, automotive, other end-user industries), by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Product Type | |
| Interactive Digital Human | |
| Non-Interactive Digital Human |
| By End-user Industry | |
| Retail | |
| Gaming and Entertainment | |
| BFSI | |
| Education | |
| Automotive | |
| Other End-user Industries |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Digital Human Market Research FAQs
How big is the Digital Human Market?
The Digital Human Market size is expected to reach USD 30.41 billion in 2024 and grow at a CAGR of 41.29% to reach USD 171.26 billion by 2029.
What is the current Digital Human Market size?
In 2024, the Digital Human Market size is expected to reach USD 30.41 billion.
Who are the key players in Digital Human Market?
Samsung Electronics Co., Ltd., Microsoft Corporation, Meta Platforms, Inc, Tencent Holdings Limited and Nvidia Corporation are the major companies operating in the Digital Human Market.
Which is the fastest growing region in Digital Human Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Digital Human Market?
In 2024, the North America accounts for the largest market share in Digital Human Market.
What years does this Digital Human Market cover, and what was the market size in 2023?
In 2023, the Digital Human Market size was estimated at USD 17.85 billion. The report covers the Digital Human Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Digital Human Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Digital Human Industry Report
Statistics for the 2024 Digital Human market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Digital Human analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
