Snippets: Smart Digital Industry Analysis

November 2019

These are the snippets from our report on Smart Digital Assistant Industry Analysis and Opportunities for Technology Service Providers (TSP)

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Source : DRAUP 1 Draup empowers sales teams with comprehensive industry, account & stakeholder intelligence to enable microtargeting

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Source : DRAUP 2 AGENDA

01 Smart Digital Market Overview

➢ This section provides an overview of : 02 Smart Digital Assistant Segmentation ❑ Market Overview

03 Smart Digital Assistant Footprint ❑ Market Trends

❑ Smart Digital Assistant Use Cases

04 Smart Digital Assistant - End User Industry ❑ Key comparison of market capabilities across Top Players

05 Focus Areas & Key Services Opportunities

Topics covered in the Snippets Report

Topics covered only in the Full Report

Send your requests to [email protected] to receive the Full Report 33 Source: Draup Overview: Increasing smart homes, usage of coupled with growing demand for home assistance and automation in customer service sectors are projected to drive the demand for

Key Findings 25 ❖ North America held a substantial share of the global intelligent virtual assistant market in 2018, due to the increasing adoption of smart home 20 technology. 15 10 ❖ Pervasive computing () is emerging these days, which is creating the new opportunity for M2M (machine to machine ) and 5 M2H (machine to human) interaction, thus enabling positive growth opportunities for virtual personal assistants market in the forthcoming 0 period 2018 2025 ❖ Text to speech technology emerged as the largest segment in 2018 and is estimated to generate revenue over USD 14.37 billion by 2025. ❖ In the last few years, consumer product brands have adopted intelligent virtual assistants. Furthermore, continuous advancements and innovation with virtual assistant products designed for healthcare clients using AI and Natural Language Processing (NLP) are anticipated to ~2.3 Billion(USD)

entice the end-user for enhancing the customer experience, thereby propelling market growth. Overall Digital Assistant Market Revenue[1]

Major Trends[2] Talent Split By Experience[3] Intelligent Virtual Assistant (IVA) Market By Technology[5] Leaders[6]

10+ years Automatic ❖ Smart Homes Speech 6-10 years 39% Recognition, ❖ Automation 0 - 5 years Text based, 10% ❖ Self learning assistants 28% 27%

❖ Cross sell / Up-sell services 33% ❖ Voice based business [4] assistants Major Job Roles AI Software Engineer ❖ Increasing Popularity of Text to Voice Developer Voice Commerce Speech, Machine Learning Engineer 63%

(1) The Smart Digital Assistant Market size is based on the cost estimation module of DRAUP’s internal data team for past year. (2) Major Trends were curated from the news, journals and other 44 similar sources. (3) The talents were analysed based on the experience are represented. (4) The above mentioned job roles are very high demanded roles across Virtual Digital Assistant industry. (5) Colour differentiation represents the overall revenue of Digital Assistant Players by Technology. (6) The companies represented are considered as the top leaders Source: Draup Smart Digital Assistant: Market Trends

Increasing Popularity of Voice Commerce Voice based business assistants Voice commerce allows consumers to give a voice command to • Enterprises are deploying voice based digital assistants as an smart speakers that are equipped with virtual assistants such as • extension to their business units such as marketing, customer Alexa, and Assistant, while buying products online. support etc. The voice based assistants provide customers a Therefore, the growing popularity of voice commerce is expected to unique and burden-free process of purchasing a product/service, be one of the key market trends that will fuel the registering a service request, seeking information etc. market growth during the forecast period. Smart Homes Automation

• Increasing smart homes, usage of smartphones coupled with growing • Demand for automation in service based companies and Integration demand for home assistance and automation in customer service Market of (AI) and Internet of Things (IoT) coupled with sectors is projected to drive the demand for IVA. The virtual assistants the hyper usage of smartphones is anticipated to drive the IVA can carry out a range of tasks, including training, scheduling Trends growth. Moreover, automation technologies such as Robotic Process appointments, and many other individual as well as business activities. Automation (RPA) and AI are proliferating in the healthcare sector.

Mobile apps – conversational interfaces Cross sell / Up-sell services

• Enterprises are building digital assistants based on a conversational • Virtual Assistants are increasingly being used by businesses to interface capable of using natural language processing and voice cross sell and upsell services. The virtual assistant identifies technology to address customer requests. These are integrated with customer preferences and patterns based on previous a mobile application to provide a superior experience to customers. interactions to offer relevant services to the customers. Self learning assistants

• Virtual Assistants are supported with predictive analytics mechanisms which ensure that the knowledge base is updated after each customer interaction. The virtual assistant accesses the knowledge base to improve its responses based on previous customer interactions.

55 Note - Above analysis is based on the DRAUP’s proprietary services module, updated in November, 2019. Source: Draup Major Use Cases of Smart Digital Assistant

Home Automation Smart Office Medical Advice

Automated meeting Health Tips for a Better Placing calls Drive hands-free Perform calculations coordination Lifestyle

Connecting with Live Info about Get help shopping Manage Timers and Productivity Answer our questions customers Healthcare Provider

Translations and Assuring Medicine Get to know our routines Access connected devices Managing infrastructure Conversations Adherence for Patients

Remainders and Insurance Purchase and Synchronisation Notifications Claim Management

Get information about Giving everyone access to Voice Activated Day to day updates Read audiobooks the weather digital tools Instructions for First-Aid

Manage timers and Helping Patients to News Updates Entertainment Tell jokes productivity Manage Diabetes

Traffic Updates Play a song or a genre of Diagnostic Suggestions music using AI

Note: Analysis is based on the DRAUP’s proprietary engineering database, updated in November, 2019 66 Note: The above Use Cases list is not exhaustive Source: Draup Intelligent Assistant Vs Use Cases

Consumer Adoption Voice Technology Top Intelligent Assistants Vs Major use cases Searching for a quick fact 68% Asking for directions 65% Searching for a business 48% Google Alexa Researching a product or service 44% Making a shopping list 39% Voice Comparing products or service 31% Recognition Adding item to a shopping cart 27% Making purchase 25% Contacting customer service or 21% Success of support Queries Providing feedback for a 18% product/service Top Digital Personal Assistant By Users Ability to understand context

52% 51% 50% 43% Smart Home Play Music or Receive Receive Remind Integration Radio weather Search results personal forecast appointments Extendability with TPA

37% 37% 28% 19% 3% Capability Read out emails Receive traffic Ordering Calling a taxi Others Intensity or messages news goods Low High Note: The insights are curated through various strategic and tactical signals triggered in Draup Platform from news articles, journals and other similar 77 sources Source: Draup AGENDA

01 Smart Digital Market Overview

02 Smart Digital Assistant Segmentation ➢ Market Growth By Product Type:

03 Smart Digital Assistant Footprint ❑ Smart Speakers

❑ Chatbots 04 Smart Digital Assistant - End User Industry ➢ Competitive Analysis of Product Type

05 Focus Areas & Key Services Opportunities ➢ Key Collaborations & Initiatives

Topics covered in the Snippets Report

Topics covered only in the Full Report

Send your requests to [email protected] to receive the Full Report 88 Source: Draup Increasing smart homes, usage of smartphones coupled with growing demand for home assistance and automation in customer service sectors are projected to drive the demand for Digital Assistants

Key Insights Product Type

➢ Smart speakers are likely to grow notably in the future, owing to increasing product demand in developing 20 economies, such as China and India. 15 ➢ Furthermore, the growing investments by companies in developing improved IVA technology by the help of

artificial intelligence and machine learning to support automated decision-making systems are expected to 10 Chatbots fuel the market across North America during the forecast period. Smart Speakers ➢ Text to speech technology emerged as the largest segment in 2018 and is estimated to generate revenue over 5 USD 15.37 billion by 2025. 2018 2019 2020 2021 2022 Market Product – By Regions Market Products - By EndUser Smart Speakers Chatbots

27%

18%

82%

73% 2018

High Medium Low 2022 Personal Business

99 Note: The above insights are curated through various strategic and tactical signals triggered in Draup Platform from news articles, journals and other similar sources. Source: Draup Competitive Analysis of Top Smart Speaker & Chatbots

Competitive Analysis of Top Digital Assistant Players Contenders Leaders

High Amazon

Google Sonos IBM Nuance Apple Communications Bose

Xiaomi Next IT Corp

Alibaba Group Inbenta Technologies Inc. Codebaby (Idavatars), Inc.

eGain Corporation Value Value Delivered

Panasonic LG Corporation

Creative Virtual Ltd Factors considered: considered: Market Adoption and Factors

Artificial Solutions [24]7.ai MEOKAY Market: Anboto

Plantronics Botsify Aivo Low Low Capability: Factors considered: Vision & Strategy, Innovation & Investments and Delivery footprint High

Smart Speakers Chatbots

10 Note: Analysis is based on the DRAUP’s proprietary engineering database, updated in November 2019 10 Note: Primary and secondary research sources have been used to analyse the capabilities and market position of each player Source: Draup Chatbot: In 2019, chatbots have become more AI-driven, capable of handling complex human interaction with ease and are now taking over traditional conversational services Market Trends Key Insights

❑ Chatbot market is growing at a CAGR of 9% in Asia Pacific followed by North America and Europe, with 31.2 % and 30.4% CAGR, respectively. Use of AI in contact centers High expansion possibility of this market across the globe is the key factor to accelerate the market growth during forecast period across all regions. ❑ As of 2018, application in Banking segment is dominating Chatbots market, which holds 24% of the global market. North America regional Messaging platforms as a growth driver market is the chief revenue generating source for this product segment, followed by Europe and Asia-Pacific regions. ❑ By 2022, banks can automate up to 90% of their client interactions via chatbots. ❑ Associated high maintenance costs related to Chatbots and lack of interface knowledge among users is likely to hinder the market growth. Voice bots

Market Usage By Region – Challenges • Misunderstanding requests: Chatbots often misinterpret the Automate Payments 45% 28% 27% requests because they are not able to understand the right intent of America APAC EMEA the customer. Top Impacting Factors Market – By End User • Misunderstanding the nuances of human dialogue: Due to lack of conversational intelligence, chatbots often fail to interpret the ❖ Growth in need to improve customer BFSI Healthcare nuances of the dialogue and that leads to an inaccurate conversation. 40.72% 10.32% relationship management (CRM) • Execute inaccurate commands: Chatbots fail to answer any technical commands made by the customers. ❖ Advantages of chatbots over other customer

Retail & Government & Difficulty in understanding accents: Chatbots are still not capable of support option Others • E-Commerce understanding accents or cultural dialect to understand the right 34.4% ❖ Rise in integration of chatbots with social media 14.56% intent.

1111 Note: The above insights are curated through various strategic and tactical signals triggered in Draup Platform from news articles, journals and other similar sources. Source: Draup Smart Speakers: Smart speaker makers will sell about 94 million devices in 2019 increasing the installed base to 207.9 million by year-end

Key Insights Market Trends ➢ Privacy and security concerns and localization of ❑ Amazon was the leading vendor in the global smart speaker market, having a market share of 21.9 percent in 2018. Google is Amazon’s languages spoken by the intelligent virtual assistant restrain the market growth. closest competitor, with a share of 18.5 percent in the same. Chinese vendors Baidu, Alibaba and Xiaomi have become strong players in ➢ Competition is rising rapidly as companies are coming up recent quarters. with new launches. ❑ Growing necessity of smart speakers in households Consumers are increasingly investing in making residences digitally connected by ➢ Upper-income households are more likely to own installing smart home devices such as smart speakers. devices. Households with income below the national average are 20.6% more likely to own a Google smart speaker. ➢ Increasing use of smart speakers is pushing growth

towards the voice commerce. Vendor Market Usage – By Region • Amazon Echo • Raven H & R • Echo Plus • Google Home • Homepod • AliGenieXL • Mi AI speaker 42% 31% 27%

Device • Xiaodu Zijia • Dot America APAC EMEA

• Alexa • • Siri • Genie AI • DuerOS • Xiao AI Top Impacting Factors VA VA Used • Join meetings from • Control your devices • Supports Apple’s • visual- • improve user • capable of conference rooms and your smart home Podcasts Catalog recognition interaction controlling several ❖ Proliferation of Smart Home Devices • Book conference • Find information • Ask Siri Just About capability • make a complex smart home rooms online Anything • voice ordering world simpler products ❖ Increase in Demand for Multifunctional Devices Auto dial into Play content on your Control Your and delivery through technology Control to • • • • ❖ Privacy and Security Concern conference calls Chromecast or other HomeKit Devices capabilities • control intelligent • Manage shared compatible devices • Speaker for Apple TV • AI and voice devices at home Temperature and ❖ Localization of Languages Key Features Key devices • Make appointments Content print payment • expanding Humidity sensor by • Build private skills and send messages • Trigger Siri Shortcuts technology ecosystem of smart the voice command ❖ Establishment of 5G Infrastructure Send Real-time spoken With HomePod hardware products • • ❖ Advancement in Natural Language Processing (NLP) Announcements translations

1212 Note: The above insights are curated through various strategic and tactical signals triggered in Draup Platform from news articles, journals and other similar sources. Source: Draup Key Initiatives & Collaborations

User Experience High performance bots Utilization purpose Speech recognition IBM introduced Tone Analyzer, Yes Bank partnered with Microsoft to TuneIn partnered with Apple to Bring which is expected to make chatbots Nuance launched Dragon Medical One, a bolster its chatbot services. As part of Global Slate of Radio Stations to more astute to emotions, which is universal cloud-based speech recognition the partnership, Microsoft has Apple Music and All Siri-Enabled expected to boost the utilization and platform to enable physicians to quickly developed an artificial intelligence Devices help the company to garner higher and conveniently capture a patient’s (AI)-enabled chatbot for the bank. market share across the world. complete story at the point of care. Cloud Solution Quick & Fast Access Video Cooking Smart Mirror

eGain launched Solve, a solution for Walmart partnered with Apple to SideChef partnered with Samsung's AI launched three new Amazon Connect based AWS cloud make its voice order grocery voice assistant bringing voice- iterations of Genie, China’s most- infrastructure, which is expected to shopping service available on Siri activated video cooking guides within popular smart speaker, including a enhance the consumer experience where customers can start adding Bixby capsules, which are Samsung'-controlled smart mirror tailored and mitigate the latency. items directly to their accounts. equivalent to skills. to beauty consumers. Smart Lamp smart speaker Smart Assistant Patient Communication Harman collaborated with Microsoft Sonos partnered with Ikea for new Baidu launched new AI Home Theater UCB collaborated with Verint Systems to integrate Cortana into Invoke smart Symfonisk-brand lamp and bookshelf System to build AI assistant services that created an app for patients with speaker. Users can play their favorite speakers looks to bring Sonos' sound are everywhere, improve user interaction Parkinson's disease that includes an AI music, manage calendars and activities to Ikea's smart home plans. with devices, and make a complex world assistant “April” which can communicate and access the latest news simpler through technology. with users either by text or speech. Real time interactions Visual-recognition Non-cash Payments Intelligent voice-control Alibaba AI Labs launched – the updated Digital banking group, Fidor solutions, Chatbots.Studio unveiled Alibaba A.I. Labs will incorporate its human – computer interaction system, announced its new chatbot developed a partnership with Visa in which Auto smart speaker into AliGenie 2.0 that will enable Tmall Genie in collaboration with Finn AI to deliver Chatbots.Studio will leverage Visa’s Chinese internet cars from Audi, X1, the Labs’ first smart speaker with personalised and efficient interactions payments rails to help SMBs increase Renault and Honda, giving drivers visual- recognition capability, to scan and with users in real-time their non-cash payments. access to intelligent voice-controlled read over 100 sets of children’s books information and services.

1313 Note: The above insights are curated through various strategic and tactical signals triggered in Draup Platform from news articles, journals and other similar sources in the last 2 years Source: Draup AGENDA

01 Smart Digital Market Overview

➢ Market Size of Smart Digital Assistant and share of Key players 02 Smart Digital Assistant Segmentation ➢ Market Activities across End User Industry:

❑ BFSI 03 Smart Digital Assistant Footprint ❑ Retail ❑ Healthcare 04 Smart Digital Assistant - End User Industry ❑ Automotive ❑ Telecommunication

05 Focus Areas & Key Services Opportunities ➢ Key Services Opportunities:

❑ Customer Care Bots Topics covered in the Snippets Report ❑ End User Market Topics covered only in the Full Report ❑ Improvising Partnerships ❑ Voice Technology Development These sections are covered in the Full Report

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