Virtual Influencers Market: Current Analysis and Forecast (2024-2032)

Report Description

The Virtual Influencers market was valued at approximately USD 16 billion in 2023 and is expected to grow at a substantial CAGR of around 23% during the forecast period (2024-2032) owing to the rapid developments in artificial intelligence and computer-generated imagery.

Virtual Influencers Market Analysis

Virtual influencers are avatars created specifically for using social media platforms to routinely engage with their audiences like typical influencers. These accounts are built and developed through very intricate computer-generated interfaces and artificial intelligence so that they look very real and simulate interaction with the followers by responding to posts, videos, and comments. Marketed and controlled by companies or their respective creators, virtual influencers endorse, engage in, and contribute to brands and campaigns. The advantages for advertisers include consistent communication with consumers, repeatedly presenting the brand in question, and evoking no ‘scandals’ connected with people.

In the field of the virtual influencer industry, companies are using sophisticated Artificial Intelligence and Computer-Generated Imagery features to come up with virtual influencers that are appealing to the target market. To attain consumer interaction, they are applying data analytics to adapt to the customer preference hence, making these digital miracles more friendly. The brands are also getting associated with well-known virtual influencers to target specific groups particularly Gen Z and millennial audiences through social media. Besides, companies are using virtual influencers as part of overarching digital campaigns like the metaverse and virtual reality for increased brand recognition and a new means of consumer interaction. Moreover, the major key players are pursuing strategic mergers and acquisitions to acquire innovative tech firms specializing in AI and CGI, enhancing their capabilities in creating virtual influencers. For instance, on December 19, 2023, Vertiqal Studios announced the acquisition of digital media assets from Offbeat Media and a non-brokered offering. The acquisition adds 68 digital media channels to Vertiqal’s channel offering, making it one of the largest OTT networks in Canada. The network will total 134 channels, with 52 million followers residing in North America, the UK, and Australia.

Virtual Influencers Market Trends

This section discusses the key market trends influencing the various segments of the Virtual Influencers market as identified by our research experts.

Animated Human Avatar Transform Virtual Influencers Industry

The animated human avatar held a significant share of the market in 2023. These avatars, created with professional CGI and supported by various AI features, can have realistic movements, feelings, and communication with others and thus can be considered friendly by consumers. For instance, in 2022, ‘Zero’ – the virtual human in question – was created by Offbeat Media Group. This brand describes itself as “one of the leading content hubs for the digital generation. They provide brands with complete control over messaging, ensuring consistent brand representation without the risks associated with human influencers, such as scandals or unpredictable behavior. 

North America leads the market in 2023.

North America, especially the USA, is a leading market for virtual influencers because of the region’s technological advancement coupled with a society that is increasingly going digital. The technology leaders in this region are inside multiple startups and tech companies working toward the innovation of advanced AI & CGI technologies which are essential for original and interactivity with Virtual Influencer. Moreover, consumers in North America frequently use the social media platforms like Instagram, TikTok, and YouTube, which are the perfect platforms for the promotion of virtual influencers and the mentioned groups of consumers are Millennials and Gen Z. For instance, On August 13, 2024, Vertiqal Studios, owners of the largest gaming and lifestyle network on social media in the U.S. and Canada, signed a strategic representation agreement with 6ixbuzztv, the Toronto-based media company behind cutting-edge Canadian entertainment. Vertiqal Studios and 6ixbuzztv, two of the largest distributors of entertainment for Gen Z and young Millennials in Canada, are aiming to jointly become the leaders of all things culture in the Canadian marketplace. Through this joint venture, 6ixbuzztv will team with Vertiqal Studios to develop original content series, brand campaigns, and experiential activations. This is because brands in North America find it convenient to work with these demographics using virtual influencers as it helps in storytelling, creating round-the-clock engagements while keeping the brand’s image intact. It is for this reason that the region’s increased emphasis on digital marketing and consumer interaction will continue to make virtual influencers a significant player in marketing in North America.

Virtual Influencers Industry Overview

The Virtual Influencers market is competitive, with several global and international players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are Dapper Labs, Inc., CASTLEBERRY, UNIT9, Aww Inc., Vertiqal Studios, Pinscreen, Soul Machines, SUPERPLASTIC, Viral Nation Inc., NeoReach.

Virtual Influencers Market News

• In December 2023, China’s hyper-realistic virtual influencer Ayayi officially launched her eponymous brand this year. Building on years of cultivation in digital content and virtual technology, Ayayi proposes the phygital brand concept, combining physical and digital substantial presence to create a unique style and product forms exclusive to the brand.
• In May 2023, Myntra introduced its first virtual influencer whose name is Maya. The company has already set up her Instagram profile under the username, “maya_unlimited,” where she has over one lakh followers. Myntra adds its virtual influencer that advocates body positivity, mental health, and inclusivity. She is also said to have no “physical or geographic limitations.”.
• In September 2023, Telkomsel enhanced the capabilities of its virtual assistant customer service channel “Veronika” with the integration of Microsoft Azure OpenAI Service.
• In August 2023, Xhadow Media Pvt. Ltd., a pioneering player in the realms of Artificial Intelligence (AI) and 3D visualization technologies, leaped into the future by unveiling their latest creation – ‘Sanvii’, the first female virtual influencer on Instagram in India.
• In June 2023, Hamburg launched the virtual AI influencer named KAI who posts weekly AI news on the Linkedin job network. This unusual influence will shed light on the possible use of AI in media and allow users to weigh up the pros and cons of the technology.
• In August 2022, Pacsun continues to grow its digital presence by collaborating with the first known virtual influencer, Miquela. As a leader within the metaverse, the addition of virtual influencers into its campaign initiatives is a natural next step for the retailer.
• In April 2022, ‘Zero’ – the virtual human in question – was created by Offbeat Media Group. This brand describes itself as “one of the leading content hubs for the digital generation.

Virtual Influencers Market Report Coverage

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

The global virtual influencers market can be customized further as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.

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Research Methodology

Research Methodology for the Virtual Influencers Market Analysis (2022-2032)

Analyzing the historical market, estimating the current market, and forecasting the future market of the global Virtual Influencers market were the three major steps undertaken to create and analyze the adoption of Virtual Influencers in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global Virtual Influencers market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

A detailed secondary study was conducted to obtain the historical market size of the Virtual Influencers market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Virtual Influencers market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as type, application, platform, and regions. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the virtual influencers market. Further, we conducted factor analysis using dependent and independent variables such as type, application, platform, and regions of the Virtual Influencers market. A thorough analysis was conducted of demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Virtual Influencers market sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Virtual Influencers market, and market shares of the segments. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the Virtual Influencers market across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the global Virtual Influencers market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global virtual influencers market. Data was split into several segments and sub-segments after studying various parameters and trends in the type, application, platform, and regions of the global Virtual Influencers market.

The main objective of the Global Virtual Influencers Market Study

The current & future market trends of the global Virtual Influencers market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the Virtual Influencers market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
• Segments in the study include areas of the type, application, platform, and regions.
• Define and analyze the regulatory framework for the Virtual Influencers
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the Virtual Influencers market for the major region.
• Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
• Company profiles of the Virtual Influencers market and the growth strategies adopted by the market players to sustain the fast-growing market.
• Deep dive regional level analysis of the industry

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