Conversational Artificial Intelligence (AI) Market Is Expected to Reach USD 32.4 Billion by 2030 Growing at a CAGR of 22.60% from 2023 to 2030

Market Research Future Published a Half-Cooked Research Report on the Global Conversational Artificial Intelligence (AI) Market.

Market Highlights

The conversational artificial intelligence (AI) market industry is projected to grow from USD 9.5 Billion in 2023 to USD 32.4 billion by 2030,exhibiting a compound annual growth rate (CAGR) of 22.60% during the forecast period (2023 - 2030). Conversational artificial intelligence (AI) is revolutionizing the way enterprises interact with customers. Intelligent virtual assistants and chatbots help organizations to resolve repetitive customer queries and proactively offer suggestions to make real-time decisions. With advances in artificial intelligence, machine learning, deep learning, natural language processing, and speech and image recognition technologies, machines are capable of addressing customer queries and providing online solutions. Chatbots are rapidly being implemented for business-to-business and internal applications in enterprises. For instance, in India, HDFC bank has partnered with Niki, an artificial intelligence company based in Bengaluru, to introduce conversational banking with the help of chatbots to facilitate banking transactions from the chat window. In April, 2019, Nuance Communications Inc., and Morris Garages (MG) Car Company Ltd announced a partnership to implement Naunce’s conversational AI-powered mobility assistant in their cars, with MG Hector being India’s first internet-enabled car with voice-enabled features.

Key Players

MRFR recognizes the key market players in conversational artificial intelligence (AI) as Oracle Corporation, Amazon Web Services, Google LLC, IBM Corporation, Baidu Inc., SAP SE, Creative Virtual Ltd, Facebook Inc., Microsoft Corporation, Nuance Communications, Artificial Solutions, Avaamo Technologies Pvt Ltd, Conversica Inc., Haptik, Solvvy, and Pypestream.

The prominent players keep innovating and investing in research and development to present a cost-effective product portfolio. There has been recent mergers and acquisitions among the key players, a strategy the business entities leverage to strengthen their reach to the customers.

Regional Analysis

The global market for conversational artificial intelligence (AI) is estimated to grow at a significant rate during the forecast period from 2020 to 2027. The geographical analysis of conversational artificial intelligence (AI) market is covered for the regions namely North America (the US, Canada, Mexico), Europe (the UK, Germany, France, Spain, Italy, the rest of Europe), Asia-Pacific (China, Japan, India, Singapore, Australia, the rest of Asia-Pacific) and the rest of the world (the Middle East and Africa and South America).

North America holds the largest market share owing to the increasing adoption of conversational artificial intelligence (AI) solutions by enterprises in verticals such as banking, financial services and insurance, retail & e-commerce, IT & telecom, automotive, healthcare, and media & entertainment. The region has a presence of key market players such as Google LLC, Microsoft Corporation, IBM Corporation, Oracle Corporation, Amazon Web Services, Facebook Inc. and others that constantly invest and develop conversational AI platforms and solutions promoting the market growth in the region. Adoption of intelligent virtual assistants and chatbots is growing in countries such as the US, Canada, and Mexico generating high revenue for the market. North America is a leader in the implementation of machine learning and deep learning-based voice-assistant systems to offer enhanced customer experience which is driving the market growth in this region. Rising usage of mobile messengers such as Facebook Messenger, WhatsApp, WeChat and others are tremendously contributing towards the market growth in North America.

Europe region accounted for the second largest market share owing to the increasing demand for conversational artificial intelligence (AI) solutions among the automotive industry in the UK and Germany. Various banks in the UK, Germany, France, Spain, Italy, Portugal, Sweden, and Norway are also implementing virtual assistants and chatbots to offer enhanced customer service. The market is also expected to attain growth due to rising adoption of conversational AI solutions for branding and marketing purpose among various enterprises driving the market growth in Europe. Applications of conversational AI in the European healthcare vertical is also expected to promote the market growth in the region.

Asia-Pacific region accounted for the third-largest market share due to rising adoption of conversational artificial intelligence (AI) solutions in China, Japan, India, Australia, Singapore, South Korea, and the Philippines. Various banks, financial services, and insurance companies in the Asian countries are partnering with artificial intelligence solution providers to implement chatbots offering enhanced customer service and employee engagement. Growing investments by key market players in emerging economies in the Asia-Pacific region also promotes the market growth. Automotive industry in this region is already implementing conversational AI-based assistants such as Alexa, further contributing to the market growth in this region.  

The conversational AI market in the Middle East and Africa region is expected to achieve a considerable growth owing to adoption of personal assistants and chatbots in countries such as UAE, Saudi Arabia, Turkey, South Africa, Zimbabwe, Kenya, Nigeria, and other African countries. The region witnesses immense adoption of artificial intelligence-based messengers and smart speakers. This region presents numerous investment and growth opportunities for key market players.