Status : Published | Published On : Jan, 2021 | Report Code : VRICT5138 | Industry : ICT & Media | Available Format :
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Industry Overview
The Global Conversational AI Market is projected to reach USD 17.2 billion by 2030, registering a CAGR of 30.2% 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.
Market Segmentation
Insight by Component
On the basis of components, the global conversational AI market is categorized into platform and service, wherein the platform category held a larger share of the market in 2022.
Further, the 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 to the rising need for automation, upgrades, 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, the cloud-based category held a larger share in the market in 2022 and is also expected to exhibit faster growth during the forecast period. The growth of this segment is attributed to 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 assistants (IVA), and intelligent interactive voice response (IVR) systems. Among these segments, the chatbot category held the largest share of the market in 2022. The growth of this segment is attributed to the rising demand for the integration of chatbots with social media platforms, increasing penetration of mobile applications and websites, and increasing preference for intelligent customer engagement.
Conversational AI Market Report Coverage
Report Metric |
Details |
Historical Period |
2018–2022 |
Base Year Considered |
2022 |
Forecast Period |
By 2030 |
Market Size in 2022 |
$X.XX Billion |
Revenue Forecast in 2030 |
$17.2 Billion |
Growth Rate |
CAGR 30.2% |
Segments Covered in the Report |
By Component, By Deployment, By Type |
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
Regions Covered in the Report |
North America, Europe, Asia-Pacific, Middle East, and Rest of the World |
Industry Dynamics
Growth Drivers
The 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 applications, the 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.
Conversational AI technologies include chatbots, virtual assistants, voice recognition systems, and natural language processing (NLP) capabilities. These technologies are designed to understand and respond to human language, whether it's in written or spoken form and provide intelligent and contextually relevant answers or assistance.
The conversational AI market has experienced significant growth in recent years, driven by advancements in natural language processing, machine learning, and cloud computing. Organizations across various industries, such as healthcare, finance, e-commerce, customer service, and more, are adopting conversational AI solutions to enhance their customer interactions, streamline processes, and improve efficiency.
Restraints
The high deployment cost of AI-powered chatbots hindering the adoption in small and medium enterprises (SMEs), and the low accuracy of AI Chatbots in handling customer queries are hindering the growth of the conversational AI market, globally.
Opportunities
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.
Geography Insight
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 to 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 the integration of machine learning and NLP, rapid technological advancements, and continuous focus of government on spending in AI-based technologies in the region.
Competitive Insight
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.
Forecast Parameters
- Identifying variables and establishing market impact.
- Establishing market trends regionally.
- Analyzing opportunities and market penetration rates by understanding product commercialization, and regional expansion.
- Analyzing demand and supply trends and changes in industry dynamics to establish future growth.
- Analyzing sustainability strategies adhered to by market participants in an attempt to determine the future course of the market.
- Analyzing historical market trends and super-imposing them on the current and future variables to determine year-on-year trends.
- Understanding adoption, production, export, import, and regulatory framework.
Data Validation
- 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 the estimation and forecast of market data, whereas the 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.
Primary Research
VynZ Research conducts extensive primary research to understand the market dynamics, validate market data and have key opinions from 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 consumers are also conducted to understand consumer behavior.
Source: VynZ Research
Source: VynZ Research
Conversational AI Market