What are the Historical Developments and Current Growth Metrics of the Smart Advisor Market?
The smart advisor market has seen considerable growth due to a variety of factors.
• In the past few years, the market size of smart advisors has seen immense growth. Projections indicate that it will surge from $5.59 billion in 2024 to $6.73 billion in 2025, boasting a compound annual growth rate (CAGR) of 20.4%.
The growth seen in the historical period can be linked to a few key factors - the swelling use of artificial intelligence, the emergence of machine learning algorithms, the widespread adoption of chatbots, growth of voice-assistant technologies, the trend towards personalized customer interactions, and an increasing preference for mobile-first solutions.
What is the Forecasted Market Size and CAGR for the Smart Advisor Market?
The smart advisor market is expected to maintain its strong growth trajectory in upcoming years.
• The market for smart advisors is predicted to undergo significant expansion in the coming years, reaching a value of $14.01 billion by 2029 with a compound annual growth rate (CAGR) of 20.1%.
Several factors are driving the forecasted growth including the increased need for automated customer service, the rise in investment in AI-based technology, the increased use of virtual assistants in the healthcare sector, the broadening of smart home integration, a higher need for round-the-clock customer support solutions, and the growing application of predictive analytics. Noteworthy trends expected within the forecast period encompass blending AI with augmented reality (AR) and virtual reality (VR), the growth of AI-dependent voice commerce, the uptake of AI-fueled smart advisors in small to medium enterprises (SMEs), the merging of AI smart advisors with wearable tech, and the creation of AI smart advisors tailored to elderly care.
What Key Factors and Trends Are Driving The Growth Smart Advisor Market?
The growth of the smart advisor market is predicted to be fueled by the proliferation of cloud computing and Software as a Service (SaaS) platforms. Cloud computing gives shared computing resources via the internet on-demand, while SaaS platforms provide software applications through the cloud based on a subscription model. The widespread adoption and growth of cloud computing and SaaS platforms is due to the rising demand for scalable, cost-effective, and adaptable IT infrastructure across various sectors. Smart Advisor bolsters cloud computing and SaaS platforms, offering smart, data-informed insights to augment performance, boost scalability, and stimulate user involvement. For example, in December 2023, Eurostat, a European intergovernmental organization, reported that 45.2% of EU businesses used cloud computing services, which is a rise of 4.2 percentage points from 2021. Therefore, the burgeoning of cloud computing and SaaS platforms contributes to the enlargement of the smart advisor market.
What Are The Market Segments In The Smart Advisor Market?
The smart advisor market covered in this report is segmented –
1) By Component: Software, Services
2) By Application: Websites, Social Media, Mobile Platform, Contact Centers
3) By End Use Industry: Banking, Financial Services, and Insurance (BFSI), Healthcare, Retail And E Commerce, Consumer Electronics, Education, Government, Hospitality, Other End User Industries
Subsegments:
1) By Software: AI-Based Smart Advisor Software, Virtual Assistant Software, Chatbot Software, Predictive Analytics Software
2) By Services: Smart Advisor Implementation Services, Smart Advisor Maintenance And Support Services, Smart Advisor Consulting Services, Integration Services
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Which Emerging Market Trends Are Altering The Smart Advisor Industry?
Major companies operating in the smart advisor market are focusing on the integration of artificial intelligence and machine learning technology, such as AI-powered financial advisors, to provide personalized financial guidance to enhance decision-making and optimize client portfolios. AI-powered financial advisors deliver tailored investment advice and financial planning solutions that enhance client engagement and optimize portfolio performance through advanced data analysis and automation. For instance, in July 2024, Mool.ai, an India-based financial technology company, launched a Birbal, an AI-powered financial advisor that delivers personalized financial guidance using generative AI, tailoring advice to each user's unique financial circumstances. It simplifies expense tracking by consolidating multiple bank accounts, allowing users to effectively monitor their spending habits. It offers zero-commission investing, enabling direct investments in curated portfolios without fees.
Who Are the Key Players In The Smart Advisor Market?
Major companies operating in the smart advisor market are:
• Microsoft Corporation
• Accenture plc
• International Business Machines Corporation
• SAP SE
• Salesforce.com Inc.
• Amazon Web Services Inc.
• Broadridge Financial Solutions Inc.
• Hexagon AB
• Genesys Telecommunications Laboratories Inc.
• Pega Systems Inc.
• Verint Systems Inc.
• Inbenta Technologies Inc.
• Kore.ai Inc.
• Gupshup Technologies India Pvt. Ltd.
• 24/7 Customer Inc.
• Ada Support Inc.
• LivePerson Inc.
• Creative Virtual Pvt. Ltd.
• Tidio LLC
• Haptik AI
• eGain Corporation
• Rasa Technologies Inc.
• Netformx Inc.
• Solvvy Inc.
What Are The Regional Insights Into The Smart Advisor Market?
North America was the largest region in the smart advisor market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart advisor market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
