USD 6.32 billion
Global Conversational AI Market Size, Share, Growth Analysis, By Component(Platform, Services), By Type(Intelligent Virtual Assistants, and Chatbots), By Technology(Machine Learning and Deep Learning, Natural Language Processing), By Deployment Model(On-Premises and Cloud), By Organization Size(Large Enterprises, and Small and Medium-Sized Enterprises), By Application(Customer Support, Personal Assistant), By Business Function(Sales and Marketing, Finance), By Mode of Integration(Web-based, App-based), By End User(Banking, Financial Services) - Industry Forecast 2024-2031
Report ID:
SQMIG45F2072 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|
Tables:
260 |
Figures:
82
Global Conversational AI Market Insights
Conversational AI Market size was valued at USD 6.32 billion in 2019 and is poised to grow from USD 7.58 billion in 2023 to USD 32.62 billion by 2031, growing at a CAGR of 20% in the forecast period (2024-2031).
The market is growing as a consequence of technological development and advances in the area of artificial intelligence. In the market, there are a number of conversational AI solution providers that focus on developing chatbots and virtual assistants using open platforms with minimal user-specific characteristics. The market is also driven by the increasing adoption of omnichannel deployment methods and the low cost of chatbot applications.
Additionally, the rising use of AI-based customer services is driving market growth. Over the past few years, social media platforms like Facebook, Telegram, Twitter, Tumblr, and Skype have adopted conversational AI solutions. Many users, especially the younger generation, spend the majority of their time on social media platforms. Business and customer collaboration in branding and advertising go hand in hand. They help to spread product awareness via product reviews and the business' social network. The increasing use of bots by social media platforms has made it possible to employ conversational AI platforms that will facilitate the deployment of chatbots and virtual agents across various social media platforms.
However, some of the major restraints that are expected to stop the expansion of the conversation AI market have included a shortage of skilled professionals and a lack of awareness of the technology. The demand for conversational AI has increased as a result of COVID-19. In the conclusion, fewer people are working, particularly in, due to the widespread lockdowns and the growing popularity of working from home. The conversational AI has a number of advantages, including enhanced customer service, simple scalability, better data collection, and smaller average operational costs. The market is growing as a result of the increasing demand for assistance with customer service from banks, hospitals, and government organizations.
US Conversational AI Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Chatbots
Fastest Growth
Chatbots
Growth Rate
20% CAGR
Global Conversational AI Market ($ Bn)
Country Share for North America Region (%)
Global Conversational AI Market By Type ($ Bn)
Global Conversational AI Market By Type (%)
To get more reports on the above market click here to Buy The Report
Global Conversational AI Market Segmental Analysis
Global Conversational AI market is segmented on the basis of Component, Type, Deployment, Technology, Organization Size, Application, Business Function, Mode of Integration, End User, and region. By Component, the market is segmented into Platform, Services, Training and Consulting, Support and Maintenance, and Deployment and Integration. By Type, the market is segmented into Intelligent Virtual Assistants, and Chatbots. By Technology, the market is segmented into Machine Learning and Deep Learning, Natural Language Processing, and Automated Speech Recognition. By Deployment Model, the market is segmented into On-Premises, and Cloud. By Organization Size, the market is segmented into Large Enterprises, and Small and Medium-Sized Enterprises. By Application, the market is segmented into Customer Support, Personal Assistant, Branding and Advertisement, Customer Engagement and Retention, Onboarding and Employee Engagement, Data Privacy and Compliance. By Business Function, the market is segmented into Sales and Marketing, Finance, HR, Operations, IT Service Management. By Mode of Integration, the market is segmented into Web-based, App-based, Telephonic. By End User, the market is segmented into Banking, Financial Services, and Insurance, Retail and Ecommerce, Healthcare and Life Science, Travel and Hospitality, Telecom, Media and Entertainment. The market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America as according region.
Conversational AI Market Analysis by Type
In terms of revenue in 2021, the chatbots segment accounted for the largest a dominant 65.0% share. The segment's capacity to be a key component of customer support services is expected to help it maintain its top spot throughout the course of the forecast period. They are generally employed for data gathering. Customers can also communicate with chatbots to get clarity on any product or service or to make appointment reservations. There are many conversational AI service providers on the market, that are developing chatbots and virtual assistants with a limited set of user-personalized characteristics.
Conversational AI Market Analysis by Deployment
In terms of revenue, the cloud segment held a dominant share of more than 60.0% in 2021. This can be attributed to the flexibility offered to the customer, which results in a single transaction. Compared to the amount a consumer would spend on the cloud, the costs are significantly lower. Because cloud-based technologies and services are becoming more common in organizations around the world, the cloud segment is expected to develop significantly during the forecast period. Consumer services at first meant the users were looking for help through websites, emails, call centers, and applications. Although organizations are utilising conversational AI solutions and technologies to deliver customer service successfully as a result of advancements in the utilization of AI technology.
Global Conversational AI Market By Type, 2023 (%)
To get detailed analysis on other segments, Request For Free Sample Report
Global Conversational AI Market Regional Insights
In 2021, North America had the largest revenue share of over 30%. Market expansion in the region is being driven by the wide acceptance of new technology innovations and the rapidly rising need for customer support services powered by artificial intelligence. Additionally, the majority of businesses in North America are making investments in technological developments to meet and support the needs of their clients. The desire for conversational AI is also fueled by the population's constantly expanding health consciousness. In North America, the healthcare sector is developing to incorporate robotics, AI, and augmented and virtual reality. This would support the provision of knowledgeable services and technologies for evidence-based health care with a focus on preventive and collaborative care.
Due to the growing awareness among businesses of cutting-edge customer support services and technologies, the Asia Pacific region is anticipated to have the largest growth throughout the projection period. Additionally, growing e-commerce activity, increased retail technology use, technical advancements in consulting and healthcare, and rising internet penetration in this region are all driving demand and application for conversational AI.
Global Conversational AI Market By Region, 2024-2031
- Largest
- Fastest
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Global Conversational AI Market Dynamics
Conversational AI Market Drivers
The rise of AI-powered customer support services
- The market growth rate has been positively affected by growing knowledge about the potential of virtual robots and AI-powered chatbots to increase customer satisfaction and engagement rates, streamline corporate operations, and acquire deeper business insights. Furthermore, the combination of automated speech recognition and natural language processing technology will boost positive word of mouth all over the globe.
Growth and expansion
- The expansion and growth of many industries, including banking, financial services, insurance, retail and e-commerce, healthcare and life sciences, travel and hospitality, telecom, media and entertainment, and others, is the factor primarily driving the market's growth rate. If these industries invest more in enhancing customer care services, chances will grow.
Conversational AI Market Restraints
Concerns and issues with accuracy
- The main issue for the market will be the lack of accuracy in chatbots and virtual assistants. Low-cost or inexpensive chatbots frequently experience technical difficulties and accuracy issues. Because they can only respond to specific client queries with the data recorded in the database, chatbots and virtual assistants will take some time to achieve the appropriate degree of accuracy.
Lack of knowledge and technical ability
- The absence of technical know-how, expert knowledge, and general ignorance, particularly in developing nations, will make it difficult for the market to experience a steady increase in market value. The two countries that use cell phones the most, for instance, are India and Brazil, but they are less tech-savvy than developed nations like Europe and North America. Furthermore, only 37% of consumers are aware of AI, per a recent HubSpot survey.
Request Free Customization of this report to help us to meet your business objectives.
Global Conversational AI Market Competitive Landscape
The competitive environment for conversational artificial intelligence (AI) provides competitor-specific information. Financial information, revenue generated, market potential, R&D investment, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance are some of the specifics that are provided. The data points listed above are only relevant to the companies' market focus on conversational artificial intelligence (AI).
Conversational AI Market Top Player’s Company Profiles
- Google, LLC
- Microsoft
- IBM
- Amazon Web Services, Inc.
- Oracle Corporation
- Nuance Communications, Inc.
- SAP SE
- Artificial Solutions International AB
- Avaamo, Inc.
- Conversica, Inc.
- Haptik, Inc.
- Rasa Technologies GmbH
- KAI Technologies, Inc.
- Kasisto Inc.
- Rulai, Inc.
- Kore.ai, Inc.
- Cognitivescale Inc.
- Inbenta Technologies Inc.
- Botpress
- Baidu, Inc.
Conversational AI Market Recent Developments
- IN 2022, An AI-based technology business company Nuance Communications is purchased by Microsoft. Microsoft will enable healthcare beneficiaries with the power of ambient clinical intelligence and other Microsoft cloud services thanks to Nuance's contacts and expertise with EHR system providers and the combination of Nuance's technologies with Microsoft Cloud for Healthcare. Microsoft's expertise in transcription and voice recognition technology is strengthened by this acquisition.
Global Conversational AI Key Market Trends
- Intelligent software's paradigm shift has created efficient support services that have enhanced the growth of numerous businesses. The conversational AI industry is projected to experience exceptional growth due to the growing need for AI-based technologies in chat boxes and customer support services. The market for conversational artificial intelligence (AI) will grow as a consequence of the advanced integration of AI in speech. In several industries, AI and NLP are being used more and more. This development has led to an increase in the platform's agent services. The technology will have new integration possibilities in the future, based on the scope. One of the new elements that will increase conversational AI services is gesture recognition. The ability to recognize gestures has many advantages. Some of its applications enable intelligent, text- and silent discussions. Noise disruptions might become severe at times. The silent conversations without speech and texts are useful in these times.
Global Conversational AI Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global conversational AI market analysis, one of the main goals of any business or organization is to satisfy its customers’ needs. The big industries are concentrating on maximizing customer happiness while also enhancing the client retention rate. Modern technologies enable efficient customer service with chatbots and virtual assistants while not interfering with business operations.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 6.32 billion |
| Market size value in 2031 | USD 32.62 billion |
| Growth Rate | 20% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
| Historical Year | 2019 |
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Buy The Complete Report to read the analyzed strategies adopted by the top vendors either to retain or gain market share
Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Conversational AI Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Conversational AI Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Conversational AI Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Conversational AI Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Conversational AI Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Conversational AI Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Conversational AI Market Report Snapshots
Want to customize this report?
Our industry expert will work with you to provide you with customized data in a short amount of time.
REQUEST FREE CUSTOMIZATION
USA (+1) 351-333-4748
