Virtual Human Market Report 2025 (Global Edition)

Market Dynamics

Key Drivers

• Growing Demand for Hyper-Personalized and Humanized Digital Interactions drives the market growth 

The growing demand for hyper-personalized and emotionally intelligent user experiences is driving the widespread adoption of digital humans across various sectors, including customer service, retail, education, and healthcare. As organizations embrace digital transformation and automation, the necessity of maintaining a human element in digital interactions becomes increasingly important—an area where digital humans excel through their lifelike facial expressions, vocal interactions, and immediate responsiveness. Digital humans improve user engagement, shorten response times, and offer 24/7 availability, particularly in customer-facing positions like virtual banking assistants, e-commerce support representatives, and healthcare companions. These features position them as an attractive solution for brands aiming to enhance user experiences and foster deeper emotional connections with their customers. Ongoing advancements in artificial intelligence, machine learning, and real-time 3D rendering technologies further enhance the capabilities of digital humans, making them more intuitive, flexible, and scalable across various platforms and applications. 
For instance, Samsung unveiled Neon, a project developed by STAR Labs, which utilizes cutting-edge AI and CGI to create digital humans capable of personalized interactions in sectors such as hospitality, retail, and entertainment.
https://www.gsmarena.com/samsung_announces_project_neon_realistic_digital_humanoid_avatars-news-40918.php#:~:text=NEON%20is%20a%20digitally%20generated%20human%20that,the%20NEON's%20Intelligence%2C%20Learning%2C%20Emotions%2C%20and%20Memory. 

• Increasing demand for virtual space in the metaverse owing to Machine Learning (ML), Virtual Reality (VR), and Artificial Intelligence (AR)

During the pandemic, technologies like the metaverse completely changed the online world by allowing users to meet others by eliminating physical distances and using virtual space. This led to a global shift towards increased digitalization across all industries.  A loosely defined word for virtual worlds where users interact through avatars, usually in three dimensions, is the "metaverse." A survey conducted in March 2022 among firms from certain nations that have made investments in the metaverse revealed that over 92% of the businesses surveyed believed that the global COVID-19 pandemic had sped up the development of metaverse technologies. Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR) technologies are in high demand in the global media, entertainment, and gaming sectors. One of the key elements propelling the Metaverse Market's expansion is this. The main justifications for putting these technologies into practice are that gadgets such as smart glasses, intelligent helmets, MR headsets, VR headsets, HUDs, and HMDs can provide a first-person perspective that serves as a natural user interface. These devices can provide users with 6-degree freedom, for example, to create virtual environments that look realistic and improve their overall gaming experiences. Furthermore, the market is expanding as a result of the growing usage of cutting-edge technologies in a variety of applications, such as artificial intelligence (AI), mixed reality, and blockchain. The increasing use of new technologies such as blockchain, artificial intelligence (AI), mixed reality (MR), and extended reality (ER) is beneficial to the metaverse sector. Businesses including Roblox, Facebook, Oculus, Epic Games, Microsoft, Google, USM, NVidia, and others have already implemented or are in the process of deploying new technologies such as Metaverse XR, or extended reality systems. Also, bitcoin is widely used through metaverse portals to pay for anything and everything, including NFT (Non-fungible tokens) and avatar shoes. One in ten people invest in cryptocurrencies, which are frequently used to trade a variety of commodities, including NFTs, according to a CNBC survey. Therefore, owing to these the market for virtual human is expected to grow significantly.(Source- https://www.statista.com/statistics/1302264/metaverse-acceleration-due-to-covid-19/)

• Growing numbers of customers who enjoy playing video games are driving the market's expansion.

The market for virtual persons has expanded due to an increase in the number of individuals playing video games. Video games industry is one the leading users of virtual humans. The increasing comfort levels of consumers in situational uses, including VR gaming and calls, point to a bright future for virtual reality technology in gaming. Statistics from the Entertainment Software Association indicate that about 227 million Americans, including two-thirds of adults and three-quarters of children under the age of 18, play video games on a weekly basis. There are 55% of males and 45% of women that play video games, with an average age of 31. Owing to the growing integration of 3D, high-definition graphics, sound effects, Virtual Reality (VR), and Augmented Reality (AR), games are getting more and more graphically sound and high-functioning, allowing virtual humans market to flourish. The transition from 8-bit to 64-bit resolution in technology has allowed game creators to focus on producing graphics that are more realistic. Because of this the animations in the games of the virtual humans looks real and given the user a satisfying experience. The game development industry is moving towards customisation and user-centricity as a result of the quick advancement of technology. Resolution technology development accelerates industry advancement and increases customer traction and likeability. HD, FHD, UHD, and 4K high-definition displays are appropriate for visually stimulating video games. The gaming industry is evolving quickly. In 2022, a diverse array of global game creators is engaged in a number of futuristic gaming projects for specific VR/AR platforms. For instance, Sony announced the VR2 and VR2 Sense Controllers for the PlayStation 5 in February 2022 to give customers a top-notch virtual reality experience that lets them immerse themselves in a wide range of gaming experiences. VR2 also includes enhanced trackers and high visual quality. Therefore, it can be anticipated that with the rising usage of video games the market of virtual humans will also be boosting.

(Source- https://www.theesa.com/resource/2021-essential-facts-about-the-video-game-industry/)

RESTRAINTS

• The exorbitant expense of creating virtual individuals and the growing worries about video game addiction based on virtual humans

The market expansion is being restrained by the lack of technological limitations brought about by the costly creation of intelligent apps and dwindling labour demand. The production of virtual humans necessitates the involvement of a qualified professional with experience and sufficient understanding of numerous software programmes, computer programming, and other related topics. Additionally, the virtual reality software and necessary equipment, which are quite expensive, are required. These factors could lead to a decline in the market. Moreover, the increasing video games that have virtual humans as a part of the setting is becoming very addictive to a lot of consumers in recent years. Concerns regarding gaming addiction and the prevalence of violent games, which in turn contribute to an increase in depressive and aggressive conduct in children, have been raised all over the world. As a result, video games that could upset players emotionally are forbidden in several nations. In addition, a few countries have set time limits on how long individuals can play video games. For instance, in August 2021, China enacted a gaming ban that forbids those under the age of eighteen from engaging in internet gaming during the week and caps their weekend playtime at three hours. This restriction restricts the user base and expansion of the market players. Moreover, in some virtual humans-based games, there is a lot of violence being shown which results in a bad influence. A number of nations, including South Korea, Venezuela, Brazil, and others, have outlawed violent video games. For instance, the government disapproved of the content in the new Call of Duty: Cold War trailer, which was edited in August 2020. As a result, the market is growing less rapidly due to the high cost of production and excessive addiction to video games featuring virtual people.

How did the COVID-19 impact the Global Virtual Humans Market?

The COVID-19 pandemic significantly impacted the virtual human market in several ways, promoting its growth and adoption across diverse industries. The use of lockdowns and social distancing measures led to a rise in the need for virtual communication tools. Virtual people have become essential tools for schools, businesses, healthcare providers, and event planners to keep in touch and connect with their audiences thanks to artificial intelligence (AI) and natural language processing (NLP). For instance, the use of chatbots and other virtual assistants on websites and messaging applications to respond to customer inquiries and provide support has increased. Furthermore, the pandemic accelerated the use of telehealth services, leading to a rise in online consultations for medical advice. To lessen their risk of catching the virus, patients looked for online connections with medical practitioners. Virtual humans known as chatbots and avatars were used to schedule appointments, perform initial examinations, and provide medical data. Businesses such as Woebot Health and Babylon Health had significant growth during this period. Virtual humans entered the media and entertainment industry, working as virtual performers, interactive storytellers, and digital influencers. Virtual avatars allowed artists and performers to transcend national boundaries and connect with a global audience. A couple of noteworthy examples include the Fortnite virtual concerts and the social media growth in popularity of virtual influencers such as Lil Miquela. Additionally, the usage of remote learning and virtual training courses had led to the inclusion of virtual human in corporate and educational training sessions. By simulating learning environments, providing customised feedback, and mimicking real-world scenarios, virtual trainers and tutors assisted students in understanding complex concepts. Platforms like Duolingo and Coursera employed virtual instructors to enhance language learning. Virtual event platforms and solutions were becoming more and more crucial as traditional conferences and events were cancelled or rescheduled for online. At virtual events, virtual humans were employed to improve networking opportunities, offer support, and elevate the overall attendance experience. Companies such as Hopin and Remo, for instance, provided virtual event platforms featuring AI-powered networking recommendations and virtual avatars. As a result, the COVID-19 pandemic hastened the adoption of virtual humans, enabling their broader application and transforming how people communicated and engaged in a world where they were geographically apart.

Opportunity 

• Revolutionizing Human Interaction Through AI and Emotional Intelligence Integration will propel the market growth 

The infusion of state-of-the-art AI and emotional intelligence (EI) features into digital humans is a significant opportunity to transform human-computer interaction across industries like healthcare, education, finance, and entertainment. Digital humans empowered with AI can read and respond to human emotions based on facial expression recognition, voice tone analysis, and behavioral patterns to create more empathetic and context-based conversations. This creates opportunities for use in therapy, aged care, customer service, and virtual learning environments. Through real-time analysis of interaction data, digital humans are able to learn and evolve constantly based on user preferences, getting better at providing tailored experiences and lowering operational costs for companies.
For instance, Woebot is a mental health chatbot that employs AI and emotional intelligence to provide cognitive behavioral therapy (CBT). It responds empathetically to consumers, reading emotional signals through text and providing personalized mental health guidance. Through sentiment analysis of users and adapting responses to user sentiment, Woebot establishes a judgment-free, safe space where individuals feel comfortable expressing themselves. It employs face recognition, voice analysis, and natural language processing (NLP) to deliver emotionally intelligent care in mental health, thereby making therapy more accessible and affordable.
 

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Virtual Human Market is witnessing significant growth in the near future.

In 2023, the Avatars segment accounted for noticeable share of global Virtual Human Market and is projected to experience significant growth in the near future.

The BFSI segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies Alibaba Group Holding Limited , Epic Games and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

Frequently Asked Questions (FAQs)