Digital Human Global Market Opportunities and Strategies to 2034

This report describes and explains the digital human market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global digital human market reached a value of nearly $33.95 billion in 2024, having grown at a compound annual growth rate (CAGR) of 38.00% since 2019. The market is expected to grow from $33.95 billion in 2024 to $184.15 billion in 2029 at a rate of 40.23%. The market is then expected to grow at a CAGR of 39.68% from 2029 and reach $979.07 billion in 2034.

Growth in the historic period resulted from the growing adoption of artificial intelligence (AI) and natural language processing (NLP), demand for gaming industry, increased use in entertainment and media and growth in e-learning. Factors that negatively affected growth in the historic period were high development and implementation costs and privacy and data security concerns.

Going forward, the increasing retail industry, expansion of digital health and telemedicine, increasing demand for virtual assistants and increasing use in training and simulation will drive the growth. Factors that could hinder the growth of the digital human market in the future include lack of human touch and empathy, limited public awareness and acceptance and impact of trade and tariff.

North America was the largest region in the digital human market, accounting for 40.28% or $13.67 billion of the total in 2024. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the digital human market will be Asia Pacific and South America where growth will be at CAGRs of 49.09% and 43.32% respectively. These will be followed by Africa and Middle East where the markets are expected to grow at CAGRs of 41.82% and 38.98% respectively.

The global digital human markets is fairly fragmented, with large number of players operating in the market. The top 10 competitors in the market made up 14.63% of the total market in 2023. Epic Games Inc. was the largest competitor with a 2.23% share of the market, followed by Nvidia Corporation with 2.21%, Microsoft Corporation with 2.15%, Meta Platforms Inc. with 2.09%, Amazon.com Inc. with 1.85%, Tencent Holdings Limited with 1.76%, iFLYTEK Corporation with 1.72%, Digital Domain Holdings Limited with 0.29%, Synthesia Ltd. with 0.21% and De-Identification Ltd. with 0.11%

The digital human market is segmented by product type into interactive digital human avatar and non-interactive digital human avatar. The interactive digital human avatar market was the largest segment of the digital human market segmented by product type, accounting for 62.12% or $21.09 billion of the total in 2024. Going forward, the interactive digital human avatar segment is expected to be the fastest growing segment in the digital human market segmented by product type, at a CAGR of 37.96% during 2024-2029.

The digital human market is segmented by technology into 3D scanning, 3D modelling, natural language processing (NLP), natural language generation (NLG) and artificial intelligence (AI). The artificial intelligence (AI) market was the largest segment of the digital human market segmented by technology, accounting for 39.64% or $13.46 billion of the total in 2024. Going forward, the artificial intelligence (AI) segment is expected to be the fastest growing segment in the digital human market segmented by technology, at a CAGR of 42.02% during 2024-2029.

The digital human market is segmented by application into virtual agents, virtual assistants, virtual influencers, virtual companions and virtual characters. The virtual characters market was the largest segment of the digital human market segmented by application, accounting for 25.40% or $8.62 billion of the total in 2024. Going forward, the virtual characters segment is expected to be the fastest growing segment in the digital human market segmented by application, at a CAGR of 43.23% during 2024-2029.

The digital human market is segmented by industry into gaming, entertainment, banking, financial services and insurance (BFSI), information technology (IT) and telecommunication, education, automotive, advertisement, health and sports and other industries. The entertainment market was the largest segment of the digital human market segmented by industry, accounting for 18.28% or $6.2 billion of the total in 2024. Going forward, the advertisement segment is expected to be the fastest growing segment in the digital human market segmented by industry, at a CAGR of 49.26% during 2024-2029.

The top opportunities in the digital human market segmented by product type will arise in the interactive digital human avatar segment, which will gain $98.76 billion of global annual sales by 2029. The top opportunities in the digital human market segmented by technology will arise in the artificial intelligence (AI) segment, which will gain $64.31 billion of global annual sales by 2029. The top opportunities in the digital human market segmented by application will arise in the virtual characters segment, which will gain $43.36 billion of global annual sales by 2029. The top opportunities in the digital human market segmented by industry will arise in the gaming segment, which will gain $32.74 billion of global annual sales by 2029. The digital human market size will gain the most in the USA at $50.01 billion.

Market-trend-based strategies for the digital human market include transforming customer engagement with AI-powered avatars, AI-powered systems redefining customer interaction, improving advancing human-computer interaction through natural interfaces and empowering brands with next-generation development capabilities.

Player-adopted strategies in the digital human market include focus on strengthening business capabilities through new product developments, focus on strengthening business capabilities through strategic partnerships and focus on strengthening operational capabilities through new product launches.

To take advantage of the opportunities, the analyst recommends the digital human market companies to focus on enhancing practical value and market integration of digital human solutions, focus on expanding commercial applications and measurable outcomes, focus on advancing natural user interfaces for inclusive user engagement, focus on accelerating deployment through scalable SDK integration, focus on the non-interactive digital human avatar segment, focus on the artificial intelligence segment, expand in emerging markets, focus on expanding direct and partnered digital distribution channels, focus on tiered and value-based pricing aligned with customer segments, focus on data-driven and multi-channel promotion strategies, focus on building brand awareness and thought leadership, focus on the virtual characters segment and focus on the advertisement segment.

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