Firm behavior in various competition environment.

Running head: INTELLIGENT VIRTUAL ASSISTANT MARKET1
Intelligent Virtual Assistant Market: Analysis
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INTELLIGENT VIRTUAL ASSISTANT MARKET

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Intelligent Virtual Assistant Market: Analysis


I. Description
The intelligent virtual assistant (IVA) market is growing in leaps and bounds. Informed by exponential innovations in Internet of Things (IoT), search algorithms and sensor-enabled features and/or capabilities, coupled by a parallel high demand for connectivity, cost optimizations (particularly for enterprises) and convenience, IVA is market of interesting competition, structure and product features.
From a competition perspective, IVA market is largely dominated by Bit Tech. This is attributed, in part, to prohibitive upfront investment costs (only companies of substantial financial clout could afford) and, in part, by brand recognition. Unsurprisingly, companies such as Apple, Amazon, Google, Samsung (South Korea) and Baidu (China) are dominant players in IVA market. This market is projected to grow to USD 25.63 billion by 2025 (“Global Intelligent Virtual Assistant (IVA) Market 2019-2025,” 2019). The combination of high demand for data-intensive apps and needs in training, scheduling appointments, as well as a wide range of individual and business activities makes VA market a highly concentrated market and, given current patterns, is likely to show heated competition in next years.
From a market structure perspective, IVA market is largely, oligopolistic. As discussed in more detail in next section, a handful of Big Tech companies, particularly in US, dominate current IVA market and, given Big Tech’s history of lobbying to press ahead for specific regulations, dominant IVA players are expected to collaborate and interact – a fairly predictable market behavior for companies operating in an oligopolistic market.
INTELLIGENT VIRTUAL ASSISTANT MARKET

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From a product feature perspective, current IVA products and/or services come in largely differentiated offerings. The household names of Siri (Apple), Echo (Amazon) and, in a lesser degree, Google Assistant are virtual assistants offering a wide range of routine and emergency assistance to individuals and enterprises. The caveat in AI-based products and/or services, including IVA, is not, as in most conventional products and/or services, about specific features or built-in capabilities per se. Instead, IVA products are more about app add-ons development companies offer in order to introduce a completely new service or, as is frequent, enhance an existing one. This is most evident, for instance, in personal finance apps constantly updated to IVA products in order to inform consumers about a wide range of financial management options (Johnson, 2017).
II. Market Structure
The IVA market is, as noted, a highly concentrated market. Dominated by a handful of Big Tech companies, IVA market sets up high entry barriers for new comers. These barriers are not limited to financial ones, as noted above, yet, more importantly, extend to know-how.
Specifically, Big Tech companies, employing best-in-industry engineers and pouring billions of dollars in investments ...