Digital Human Avatar Market Size to Reach USD 156.19 Billion by 2032; Current Vital Trends, High-End Features, Potential Applications, Limitations & Companies – The Brainy Insights


The market will experience rapid growth due to the rapid advancements in AI during the forecast period. The leading developers and investors of the metaverse are headquartered in the North America region, thereby driving innovation and propelling the digital human avatar market’s growth.

Newark, July 06, 2023 (GLOBE NEWSWIRE) — The Brainy Insights estimates that the USD 5.40 billion in 2022 global digital human avatar market will reach USD 156.19 billion in 2032. Remote work, culture and distance learning grew exponentially during the covid-19 pandemic. This contributed significantly towards developing interactive, engaging, and effective virtual work and learning environments, contributing to human digital avatars’ growth. Similarly, the gaming industry also gained during the pandemic, which further led to the development of digital human avatars. The introduction of the metaverse worldwide led to its integration into the commercial, healthcare, automotive and retail space. The shift towards online platforms across industries has accelerated the adoption of digital human avatars for better customer management services. The multiple benefits digital human avatars offer in the automated global world will propel its growth in the market.

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Key Insight of the Global Digital Human Avatar Market

North America is expected to rise the fastest during the forecast period.

Given that the country has a technologically developed market, the United States of America dominates the regional market. They are innovators in cutting-edge technologies like AI, machine learning, and AR. The region is home to the top metaverse investors and developers, fostering innovation and accelerating market expansion. The market can adopt Digital human avatars more quickly given the developed, networked, and well-established ICT infrastructure. The rising costs of research and development will aid the market’s expansion.

In 2022, the interactive segment dominated the market with the largest market share of 53% and market revenue of 2.86 billion.

The product type segment is divided into interactive and non-interactive. In 2022, the interactive segment dominated the market with the largest market share of 53% and market revenue of 2.86 billion.

In 2022, the BFSI segment dominated the market with the largest market share of 30% and market revenue of 1.62 billion.

The industry vertical segment is divided into BFSI, retail, automotive, gaming, entertainment, education, healthcare, IT and Telecommunications and others. In 2022, the BFSI segment dominated the market with the largest market share of 30% and market revenue of 1.62 billion.

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Advancement in market

May 2023 – Chinese tech firm Tencent started offering deep fake virtual humans with customized features for USD 145. In just 24 hours, generative AI can produce a “Deepfake-as-a-Service” based on anyone as long as they can film them for three minutes and record them speaking 100 lines in either Chinese or English. Options are available on Tencent’s digital human product page to suit users’ tastes. They can choose from a variety of artistic styles, including two and three-dimensional renditions of “realistic” and “cartoon” styles as well as a three-dimensional “semirealistic” variation, and they can buy the entire digital body or only the upper half. Additionally, the virtual person’s backdrop and voice can be changed, set up for a movie, or connected to a database.

Market Dynamics

Driver: The use of digital human avatars for brand representation is rising.

Every brand invests heavily in enhancing its customer management services since they view its customer base as a priority. Additionally, branding, marketing, and advertising are continually changing since they are essential for generating income. The use of digital human avatars for customer support, brand imaging, advertising, and marketing is expanding due to economies becoming more automated and digital. Brands typically build and create a digital human avatar representing their ideal customer and their core beliefs. Customers associate these avatars with the companies as they become synonymous with them. An interactive, engaging, and quick customer management service is made possible by digital avatars. They can process real-time data and provide consumers with the best options, effectively personalizing their experience. Therefore, the market’s expansion will be fueled by brands’ increasing adoption of digital human avatars to enhance their branding and consumer services.

Restraints: The high capital investments.

The production of a digital human avatar is a high-end, high-value, sophisticated procedure requiring much capital. Unlike small businesses, large businesses can use their financial strength to invest in creating their digital human avatars. The potential growth of the global market for digital human avatars is constrained by a need for more funding, which also limits the growth of small businesses. The high maintenance and integration costs will also constrain the market’s expansion.

Opportunities: Improvements in cutting-edge technologies like AI.

The market for human digital avatars is expanding due to technological developments and fundamental advances in artificial intelligence. Technological developments have made it possible to create virtual assistants similar to virtual teachers in education. These computerized human avatars encourage active, interactive learning at the learner’s pace and can be personalized for the user’s convenience. They are also used in the healthcare industry for medical simulation and training, enhancing teaching and learning opportunities. They are utilized in retail to provide customers with more exciting and customized experiences. As a result, new technological developments like AI will expand the potential applications for digital human avatars, spurring the market’s expansion in the foreseeable future.

Challenges: The growing ethical concerns.

The dangers of digital human avatars can outweigh the benefits without legal and ethical frameworks restricting their use for malicious activities. Human digital avatars are used in trolling or honey-trapping individuals and then harassing them by extorting money or cyberbullying. In other instances, digital human avatars cause danger to society if not regulated. The relatively new market of avatars and its constantly evolving nature has made it difficult for authorities to frame the market’s rules and regulations. Therefore, the growing ethical concerns and lack of comprehensive regulations will hamper the market’s growth.

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Some of the major players operating in the global digital human avatar market are:

• Alibaba Group Holding Limited
• Epic Games, Inc.
• iFLYTEK Corporation
• Inworld AI
• Meta Platforms, Inc.
• Microsoft Corporation
• Offbeat Media Group
• Soul Machines
• Ziva Dynamics

Key Segments cover in the market:

By Product Type

• Interactive
• Non-interactive

By Industry Vertical

• Retail
• Automotive
• Gaming
• Entertainment
• Education
• Healthcare
• IT and Telecommunications
• Others

By Region

• North America (U.S., Canada, Mexico)
• Europe (Germany, France, the UK, Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America)
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

About the report:

The market is analyzed based on value (USD Billion). All the segments have been analyzed worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report analyses driving factors, opportunities, restraints, and challenges to gain critical market insight. The study includes Porter’s five forces model, attractiveness analysis, Product analysis, supply, and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.

About The Brainy Insights:

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