Virtual Human Market to Grow at 45.1% Annual Rate by 2033... Virtual Idols Reaching K-pop Idol Levels of Popularity

According to global market research firm Allied Market Research, the virtual human market is expected to expand at an extremely rapid pace. It is projected to grow from $43.3 billion in 2023 to $1,827.65 billion by 2033, representing a super-high average annual growth rate (CAGR) of 45.1%. The most successful example of virtual humans are virtual idols, particularly those flourishing in South Korea, a country renowned for its idol industry. In 2021, virtual idols created using AI technology such as “Eternity” and “Han Yu-ah” appeared in the country, but they were difficult to consider true idols capable of building dedicated fanbases and sustaining long-term popularity. However, the situation changed as entertainment agencies with relevant expertise entered the field full-force. BLAST’s virtual idol group PLAVE, which made its Debut in March 2023, has gained popularity comparable to that of real K-pop idols, going beyond being mere virtual characters. By combining 3D modeling with AI technology, it achieves realistic expressions and movements, while also delivering outstanding musical talent and performances. On February 3 of last year, its Title Track “Dash” reached number one on Melon Top 100. The emergence of virtual idols is also transforming existing fan culture. Fans can communicate with virtual idols in real time through digital platforms and experience new forms of fan activities such as attending concerts directly in the metaverse. The sale of digital goods using NFT technology and AI-based real-time voice and video communication have further expanded traditional fan culture. Virtual idol fans consume personalized content, offering an experience distinct from the conventional entertainment industry. For entertainment companies as well, virtual idols bring significant advantages. First and foremost, labor and operational costs are drastically reduced. While managing real idol groups requires continuous expenses for training trainees, providing accommodations, and staffing, virtual idols only incur initial development costs with relatively lower maintenance expenses afterward. Additionally, virtual idols have no risk of scandals and flexible schedules, allowing companies to produce various content at any time they desire. They are not limited to specific regions and can communicate smoothly with international fans through AI translation and voice synthesis technologies, making global expansion easier. An industry insider explained, “Virtual idols face minimal constraints in terms of time and space, giving them high marketing potential. Thanks to this, they can be actively utilized not only in the entertainment industry but also in various fields such as advertising, fashion, and gaming.”