Status : Published Published On : Mar, 2024 Report Code : VRICT5138 Industry : ICT & Media Available Format : Page : 179
2025
2030

Global Conversational AI Market – Analysis and Forecast (2025-2030)

Industry Insights by Component (Platform, Service [Support & Maintenance, Training & Consulting, System Integration]), by Deployment (Cloud-Based, On-Premises), by Type (Chatbot, Intelligent Virtual Assistant {IVA}, Intelligent Interactive Voice Response {IVR} System), by Business (HR, ITSM, Finance and Accounting, Sales & Marketing and Operations and Supply Chain, By Technology (Natural Language Processing, Machine Learning, Automated Speech Recognition, Computer Vision, Video Recognition, Others)

Industry Overview

The global conversational AI market is projected to reach USD 17.2 billion by 2030 from USD 11.7 billion, registering a CAGR of 30.2% during the forecast period.

The global conversational AI market is expected to grow due to the growing demand for AI-powered customer support services, chatbot deployment, omnichannel deployment, and lower chatbot development costs. It is also expected that the world will adopt a new mode of communication in speech-based apps and AI-powered messaging in place of traditional web and mobile apps.

Better conversational AI models will be created by combining discriminative and generative techniques which will be much more efficient and effective in performing specific tasks, such as language translation, picture classification, and natural language processing (NLP).

Several businesses are taking innovative development initiatives to solve their problems using the power of AI to respond to any conversation in a human style. This will ensure better communication and human-like discussions to meet unique tasks and requirements.

Conversational AI Market Highlights

Moreover, a large number of public sector organizations will adopt conversational AI platforms to improve processes, efficiency, and productivity. This will broaden digital transformation on a large scale and redefine user experience since the native population will be able to interact with the governments instantly online.

In short, conversational AI offers support for regional languages and therefore there is a rising deployment of such solutions across the globe.

Market Segmentation

Insight by Component

The global conversational AI market is divided into platform and service segments based on the components, where the former dominates the market.

On the other hand, the service category is also expected to grow significantly at a faster rate during the forecast period, especially the support and maintenance of this category, which will outdo others such as system integration, training, and consulting. This is mainly attributed to the growing need for upgrades, automation, technical advancements, and optimization of work operations.

Insight by Deployment

Based on deployment, the global conversational AI market is divided into on-premises and cloud-based segments, where the latter will hold a larger share and will grow at a faster rate during the forecast period due to growing demand for 24/7 service, scalability, and easy maintenance.

Insight by Type

The global conversational AI market is divided into chatbots, intelligent virtual assistants (IVA), and intelligent interactive voice response (IVR) systems according to the different types. Out of these, the chatbot segment is supposed to be the larger contributor to the market due to the growing demand for the integration of chatbots with social media platforms, rising penetration of websites and mobile applications, and rising preference for intelligent customer engagement.

Insight by Business Function

According to the business, the global conversational AI market is divided into HR, ITSM, finance and accounting, sales & marketing, and operations and supply chain. Out of these, the HR segment will grow significantly during the forecast period because the companies will be able to monitor and organize digital HR assistants and intelligent bots with AI to handle a large number of queries in real time more accurately and cost-effectively. They will get the relevant information from the website regarding the prospective employees with these chatbots.

Insight by Technology

The global conversational AI market is divided into natural language processing, machine learning, automated speech recognition, computer vision, video recognition, and others based on the technology used. Out of these, the NLP segment is expected to lead the market since it can handle large amounts of natural language data. It will also improve operational efficiency by streamlining the documentation procedures without affecting its accuracy.

Global Conversational AI Market Report Coverage

Report Metric

Details

Historical Period

2018 - 2023

Base Year Considered

2024

Forecast Period

2025 - 2030

Market Size in 2023

U.S.D.  11.7 Billion

Revenue Forecast in 2030

U.S.D.  17.2 Billion

Growth Rate

30.2%

Segments Covered in the Report

By Component, By Deployment, By Industry, By Technology, By Type, and By Application

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

Several factors drive the growth of the global conversational AI market. This includes the rise in the demand for AI-based customer support services, the adoption of AI solutions in customer service applications, the number of service providers in this market, the growing emphasis of government on investing in AI-powered technologies in developed countries, and the positive ROI for companies using conversational AI solutions.

The specific attributes of these solutions also influenced the market growth. For example, conversational AI technologies can understand human language and respond precisely whether it is in written form or spoken form. It can provide assistance or answers to queries that are relevant to the context.

With such benefits offered, a large number of organizations across different industry verticals, such as finance, healthcare, e-commerce, customer service, and others are adopting these solutions to enhance their efficiency, productivity, and customer interactions with more streamlined processes. It is also helping the global conversational AI market to grow. 

Restraints

The high cost of deployment of AI-powered chatbots does not allow small and medium enterprises (SMEs) to use them, which hinders the growth of the global conversational AI market. Also, these chatbots cannot handle customer queries with 100% accuracy.

However, developments are ongoing to overcome these hindrances and drive the global conversational AI market to the right growth track.

Opportunities

Of late, the most significant opportunities for the global conversational AI market are created by the integration of chatbots for employee engagement and retention along with the extensive use of conversational AI tools by different organizations to improve customer satisfaction and engagement.

Geography Insight

North America is the leading region and a larger contributor to the global conversational AI market and will also continue to grow at a rapid rate during the forecast period due to higher investments in the interaction of NLP and ML, the existence of a large number of major players such as IBM, Google LLC, Microsoft, Oracle, and others, growing investments in AI-powered technologies by the government, and rapid technological advancements.

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.

Recent Developments by Key Players

Oracle has collaborated with Microsoft to support the explosive growth of AI services. Microsoft is using Oracle Cloud Infrastructure (OCI) AI infrastructure, along with Microsoft Azure AI infrastructure, for inferencing of AI models that are being optimised to power Microsoft Bing conversational searches.

IBM and NTT DATA Business Solutions have established a Center of Excellence (CoE) for the watsonx generative AI platform. The joint CoE will focus on the use of the IBM watsonx AI and data platform with watsonx AI assistants for the development of embedded generative AI solutions for clients and accelerate the impact of generative AI.

The Conversational AI Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.

Segments Covered in the Report

  • By Component
    • Platform
    • Service
      • Support & Maintenance
      • Training & Consulting
      • System Integration
  • By Type
    • Chatbot
    • Intelligent Virtual Assistant (IVA)
    • Intelligent Interactive Voice Response (IVR) System
  • By Deployment
    • On-Premises
    • Cloud-Based
  • By Industry
    • Banking, Financial Services, and Insurance (BFSI)
    • Retail and E-commerce
    • Healthcare
    • Hospitality
    • Telecom
    • Media and Entertainment
    • Energy & Utilities
    • Oil & Gas
    • Government
    • Others
  • By Technology
    • Natural Language Processing
    • Machine Learning
    • Automatic Speech Recognition
    • Computer Vision
    • Video Recognition
    • Others
  • By Application
    • Customer Support
    • Personal Assistant
    • Branding & Advertisement
    • Customer Engagement & Retention
    • Onboarding & Employee Engagement

Region Covered in the Report

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia-Pacific (APAC)
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
  • Rest of the World (RoW)
    • Brazil
    • Saudi Arabia
    • South Africa
    • U.A.E.
    • Other Countries

Conversational AI Market Size

Source: VynZ Research

Conversational AI Market Analysis

Source: VynZ Research

Frequently Asked Questions

On the basis of type, chatbot category held largest share in the market in 2020.
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.
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.
The global conversational AI market is registering a CAGR of 30.2% during the forecast period.
The global conversational AI market is projected to reach USD 17.2 billion by 2027.

Place an order

Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle

CONNECT WITH OUR SALES TEAM

Key Takeaways