|Status : Published||Published On : Nov, 2019||Report Code : VRICT5138||Industry : ICT & Media||Available Format :||Page : 179|
The global conversational AI market is projected to reach USD 16.2 billion by 2024, registering a CAGR of 29.2% during the forecast period. Rising demand for AI-powered customer support services, omni-channel deployment, and reduced chatbot development cost, propelling the growth of the market.
Insight by Component
On the basis of component, the global conversational AI market is categorized into platform and service, wherein platform category held a larger share in the market in 2018.
Further, service category is sub-segmented into support and maintenance, training and consulting, and system integration. Of all, the support and maintenance service category is expected to witness faster growth during the forecast period. The growth of this segment is attributed towards rising need for automation, upgrades and technical advancements, and optimize work operations.
Insight by Deployment
Based on deployment, the conversational AI market is segmented into cloud-based, and on-premises. Among these segments, cloud-based category held larger share in the market in 2018, and is also expected to exhibit faster growth during the forecast period. The growth of this segment is attributed towards rising demand for scalability, 24X7 service, and easy maintenance.
Insight by Type
On the basis of type, the conversational AI market is segmented into chatbot, intelligent virtual assistant (IVA), intelligent interactive voice response (IVR) system. Among these segments, chatbot category held largest share in the market in 2018. The growth of this segment is attributed towards rising demand for integration of chatbot with social media platforms, increasing penetration of mobile application and websites, and increasing preference for intelligent customer engagement.
Global conversational AI market has been driven by several key factors, predominantly increasing demand for AI-powered customer support services, increasing adoption of artificial intelligence (AI) solutions in customer service application, continuous focus of government on spending in AI-based technologies in developed countries, increasing number of solution providers in the conversational AI market, and positive Return on Investment (ROI) for companies deploying conversational AI solutions.
High deployment cost of AI-powered chatbots hindering the adoption in small and medium enterprises (SMEs), and low accuracy of AI Chatbots in handling customer queries are hindering the growth of the conversational AI market, globally.
Integration of chatbots for employee retention and engagement and usage of conversational AI tools/chatbots for improved customer engagement are the major key opportunities witnessed in the market, globally.
Geographically, North America has accounted for the largest share in the conversational AI market, globally and is predicted to grow significantly during the forecast period. The growth of this market is attributed towards the existence of a large number of established players such as Google LLC, International Business Machines Corporation, Oracle Corporation, and Microsoft Corporation, increasing number of investments related to integration of machine learning and NLP, rapid technological advancements, and continuous focus of government on spending in AI-based technologies in the region.
Some of the key players operating in the global conversational AI market are Nuance Communications Inc., Haptik Inc., Oracle Corporation, Google LLC, Microsoft Corporation, International Business Machines Corporation, SAP SE, Baidu Inc., Conversica Inc., Amazon.com Inc., Solvvy Inc., Creative Virtual Ltd., Avaamo Inc., Inbenta Technologies Inc., Artificial Solutions International AB, and Kore.ai Inc.
- Identifying variables and establishing market impact.
- Establishing market trends regionally.
- Analyzing opportunities and market penetration rates by understanding product commercialization, regional expansion.
- Analyzing demand and supply trends and changes in industry dynamics to establish future growth.
- Analyzing sustainability strategies adhered by market participants in an attempt to determine future course of the market.
- Analyzing historical market trends and super-imposing them on the current and future variables to determine year-on-year trend.
- Understanding adoption, production, export, import and regulatory framework.
- Estimated and forecasted data was validated through industry experts.
- Apart from industry experts, data triangulation methods were used for validation.
- Bottom up and top down approach has been used for estimation and forecast of market data, whereas top down approach was used for validation.
- Demand, as well as supply-side surveys, were conducted in order to understand the industry dynamics and data validation.
VynZ Research conducts extensive primary research to understand the market dynamics, validate market data and have key opinions from the industry experts. The key profiles approached within the industry include CEO, CFO, CTO, President, Vice President, Product Managers, Regional Heads, and Others. Also, end-user surveys comprising of consumers are also conducted to understand consumer behaviour.
Source: VynZ Research
Source: VynZ Research