Conversational AI Market

Market Overview:

The global conversational AI market size reached US$ 10.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 117.0 Billion by 2032, exhibiting a growth rate (CAGR) of 30.69% during 2024-2032. The rising automation of business operations, burgeoning e-commerce industry, and the growing adoption of omnichannel deployment methods represent some of the key factors driving the market.

Conversational artificial intelligence (AI) refers to a type of technology that enables consumers to interact with computer applications to get a specific job done. It comprises advanced chatbots and virtual agents that engage with human to provide solutions for various problems and complete a particular task. It utilizes large volumes of data, machine learning (ML), and natural language processing to help imitate human interactions, recognize speech and text inputs, and translate their meanings to various languages. Conversational AI uses a spontaneous feedback loop with ML processes to improve the AI algorithms continuously. It integrates input generation, input analysis, dialogue management, and reinforcement learning to refine responses over time and ensure high accuracy. It can answer frequently asked questions (FAQs), troubleshoot issues, and conduct small talk with users. It is extensively utilized by businesses to enhance their customer experience, create a personalized experience for their targeted customers, and solve customer support tickets. Furthermore, as conversational AI increases productivity and saves time and money, its demand is increasing around the world.

Conversational AI Market Trends:

At present, the increasing demand for conversational AI due to the rising automation of business operations represents one of the key factors influencing the market positively. Besides this, the growing adoption of AI-powered customer support services to save time and costs associated with hiring employees is offering a favorable market outlook. In addition, the increasing utilization of conversational AI to aid businesses in adopting new techniques to communicate with their targeted audience is propelling the growth of the market. Apart from this, the increasing online shopping activities of individuals, coupled with the burgeoning e-commerce industry across the globe, is contributing to the growth of the market. Additionally, the rising adoption of omnichannel deployment methods, along with the decreasing cost of chatbot applications, is supporting the growth of the market. Moreover, the increasing employment of conversational AI in the healthcare industry to gather patient data and scale and glean actionable insights that are necessary for healthcare professionals to improve patient experience and offer personalized care and support is strengthening the market growth. Furthermore, the increasing demand for conversational AI in the banking, financial services, and insurance (BFSI) industry for automating repetitive processes or tasks that typically take a bank employee much longer to complete is bolstering the market growth.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global conversational AI market, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on component, type, technology, deployment, organization size, and end user.

Component Insights:

• Platform
• Services
  • Support and Maintenance
  • Training and Consulting
  • System Integration
     

The report has provided a detailed breakup and analysis of the conversational AI market based on the component. This includes platform and services (support and maintenance, training and consulting, system integration). According to the report, platform represented the largest segment.

Type Insights:

• Intelligent Virtual Assistant (IVA)
• Chatbots
   

A detailed breakup and analysis of the conversational AI market based on the type has also been provided in the report. This includes intelligent virtual assistant (IVA) and chatbots. According to the report, chatbots accounted for the largest market share.

Technology Insights:

• Machine Learning
• Deep Learning
• Natural Language Processing
• Automatic Speech Recognition
   

A detailed breakup and analysis of the conversational AI market based on the technology has also been provided in the report. This includes machine learning, deep learning, natural language processing, and automatic speech recognition. According to the report, natural language processing accounted for the largest market share.

Deployment Insights:

• Cloud-based
• On-premises
   

A detailed breakup and analysis of the conversational AI market based on the deployment has also been provided in the report. This includes cloud-based and on-premises. According to the report, on-premises accounted for the largest market share.

Organization Size Insights:

• Large Enterprises
• Small and Medium-sized Enterprises
   

A detailed breakup and analysis of the conversational AI market based on the organization size has also been provided in the report. This includes large enterprises and small and medium-sized enterprises.

End User Insights:

• BFSI
• Retail and E-commerce
• Healthcare and Life Science
• Travel and Hospitality
• Telecom
• Media and Entertainment
• Others
   

A detailed breakup and analysis of the conversational AI market based on the end user has also been provided in the report. This includes BFSI, retail and e-commerce, healthcare and life science, travel and hospitality, telecom, media and entertainment, and others. According to the report, retail and e-commerce accounted for the largest market share.

Regional Insights:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America was the largest market for conversational AI. Some of the factors driving the North America conversational AI market included the rising preferences for business automation, technological advancements, increasing demand for AI powered customer care services, etc.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global conversational AI market. Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the companies covered include Amazon Web Services Inc. (Amazon.com Inc.), Artificial Solutions, Avaamo Inc., Conversica Inc., Creative Virtual Ltd., Google LLC (Alphabet Inc.), Gupshup, International Business Machines Corporation, Jio Haptik Technologies Limited (Reliance Industries Limited), Kore.ai Inc., Nuance Communications Inc. (Microsoft Corporation), Oracle Corporation, Rasa Technologies Inc., SAP SE, etc. Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the conversational AI market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global conversational AI market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the conversational AI industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.