Virtual Influencer Market Size & Share, By Type (Non-human, Human), Offering (Solution, Services), End-use, Regional Forecast, Industry Players, Growth Statistics Report 2024-2032

Market Outlook:

Virtual Influencer Market was over USD 4.67 Billion in 2023 and is expected to surpass USD 54.98 Billion by end of the year 2032, witnessing more than 39.7% CAGR between 2024 and 2032.

• Base Year Value (2023): USD 4.67 Billion
• CAGR (2024-2032): 39.7%
• Forecast Year Value (2032): USD 54.98 Billion
• Historical Data Period: 2019-2023
• Largest Region: North America
• Forecast Period: 2024-2032

Market Dynamics:

Growth Drivers & Opportunity:

One major growth driver for the Virtual Influencer market is the increasing adoption of social media platforms and influencer marketing by brands. With the rise of social media usage among consumers, brands are looking for new and innovative ways to reach their target audience. Virtual influencers offer a unique and engaging way for brands to connect with consumers and promote their products or services. As a result, the demand for virtual influencers is expected to continue growing in the coming years.

Another key growth driver for the Virtual Influencer market is the advancements in technology, particularly artificial intelligence and virtual reality. These technological advancements have made it easier and more cost-effective to create and manage virtual influencers. Companies are able to customize virtual influencers to fit their brand image and target audience, leading to more effective and targeted marketing campaigns. As technology continues to progress, the capabilities and reach of virtual influencers are only expected to expand further.

Report Scope

Report Coverage	Details
Segments Covered	Type, Offering, End-Use
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	Epic Games, Pinscreen, Soul Machines, NEON, AI Foundation, Dapper Labs, UneeQ Limited, Didimo, Spatial Systems, DeepBrain AI, REBLIKA, Ogilvy, Cafegroup

Industry Restraints:

Despite the growth potential, there are a few major restraints that could impact the Virtual Influencer market. One of the key restraints is the lack of authenticity and credibility associated with virtual influencers. Unlike human influencers, virtual influencers lack the personal touch and genuine connection that many consumers value. This could lead to skepticism and distrust among consumers, negatively impacting the effectiveness of virtual influencer marketing campaigns.

Another significant restraint for the Virtual Influencer market is the potential for backlash and controversy. As virtual influencers become more prominent in the marketing landscape, there is a risk of encountering issues related to ethics, privacy, and manipulation. Brands using virtual influencers need to be mindful of these potential pitfalls and ensure that their campaigns are transparent and ethical to avoid damaging their reputation and losing consumer trust.

Regional Forecast:

North America:

The virtual influencer market in North America is one of the most developed and competitive regions globally. The United States and Canada are the two main countries driving growth in this market. In the United States, virtual influencers have gained immense popularity across social media platforms such as Instagram, TikTok, and YouTube. Brands are increasingly collaborating with virtual influencers to reach a younger, tech-savvy audience. The U.S. market is expected to continue growing as virtual influencers become more mainstream in advertising and marketing campaigns.

Canada, on the other hand, is also witnessing a rise in the adoption of virtual influencers. Canadian brands are leveraging virtual influencers to promote their products and engage with consumers in a more interactive and personalized manner. The market in Canada is expected to grow significantly in the coming years as more brands realize the potential of virtual influencers in their marketing strategies.

Asia Pacific:

In Asia Pacific, countries like China, Japan, and South Korea are leading the virtual influencer market in terms of innovation and adoption. China, in particular, has a booming virtual influencer industry with platforms like Weibo and Douyin (Chinese version of TikTok) being popular among virtual influencers. Chinese virtual influencers have a massive following, and brands in China are increasingly partnering with them to promote their products.

In Japan, virtual influencers have become a cultural phenomenon with characters like Kizuna AI and Imma gaining widespread popularity. Japanese brands are actively collaborating with virtual influencers to create engaging and creative marketing campaigns. South Korea is also witnessing a growing interest in virtual influencers, especially among younger audiences. The market in South Korea is expected to expand as more brands invest in virtual influencer marketing campaigns.

Europe:

Europe, specifically the United Kingdom, Germany, and France, is also seeing a rise in the adoption of virtual influencers. In the United Kingdom, virtual influencers are being used by brands to target a diverse audience and create more engaging content. British virtual influencers like Lil Miquela and Shudu have gained a significant following on social media platforms.

Germany and France are also witnessing a surge in the virtual influencer market. German brands are leveraging virtual influencers to reach a younger demographic and drive brand engagement. French virtual influencers are also contributing to the growth of the market in France, with brands recognizing the value of virtual influencer marketing in their promotional activities.

Segmentation Analysis:

In terms of segmentation, the global virtual influencer market is analyzed on the basis of Type, Offering, End-Use.

Virtual Influencer Market Size & Share

The virtual influencer market is segmented by type into Non-human and Human influencers. Non-human influencers, such as artificial intelligence-powered avatars and animated characters, are gaining popularity in the digital marketing space. These influencers are created by brands or agencies to represent their products or services in a more engaging and relatable way. On the other hand, human influencers are real individuals who have built a massive following on social media platforms like Instagram and TikTok. The market share between non-human and human influencers is steadily growing, with non-human influencers carving out a niche for themselves in the industry.

Offering

In terms of offerings, the virtual influencer market is divided into solutions and services. Solutions include software platforms and tools that help brands create, manage, and track the performance of their virtual influencers. These solutions often come with advanced analytics and data insights to optimize influencer campaigns. On the other hand, services include agency and consultancy services that help brands develop and execute virtual influencer strategies. The market size for virtual influencer solutions and services is expected to increase as more brands recognize the value of integrating virtual influencers into their marketing mix.

End-use

The end-use segment of the virtual influencer market includes industries such as fashion, beauty, lifestyle, gaming, and entertainment. Fashion and beauty brands have been early adopters of virtual influencers, leveraging their digital presence to reach a wider audience and drive sales. Gaming and entertainment companies have also started to collaborate with virtual influencers to promote their products and engage with their fan base. As the virtual influencer market continues to evolve, we can expect to see more diverse end-uses across various industries as brands look to expand their reach and stay ahead of the competition.

Competitive Landscape:

The competitive landscape in the Virtual Influencer Market is dynamic and ever-evolving, with companies constantly striving to position themselves as leaders in this emerging industry. Some of the key factors influencing competition include innovation in artificial intelligence technology, investment in platform development, strategic partnerships with brands and agencies, and effective marketing and branding strategies. As the market continues to expand and consumer interest in virtual influencers grows, companies are focusing on differentiating themselves through unique offerings and compelling content to attract and retain a larger audience.

Top Market Players:

1. VirtualHumans.org

2. Brud

3. Daz 3D

4. Kidd

5. AI Foundation

6. Unreal Engine

7. Rascali

8. Aww.inc

9. Soul Machines

10. Fable Studio