ID: MRFR/ICT/6441-HCR | February 2021 | Region: Global | 111 pages
Conversational AI Market Synopsis:
The market for Conversational Artificial Intelligence (AI) is estimated to reach a market value of USD 15.82 billion by 2024 growing at a CAGR of 30.32% during the forecast period 2019–2024. The market has witnessed growth with the rising adoption of conversational AI-based chatbots among various enterprises to offer enhanced customer support services. Increasing deployment of conversational AI chatbots in connected cars also contributes to the market growth. Additionally, rising investments in the development of conversational AI-powered voice-based solutions by key players such as Facebook Inc., Google LLC, Apple Inc., Amazon Web Services, IBM Corporation, and Microsoft Corporation and their adoption in various countries also contribute significantly towards the market growth.
Artificial intelligence-based conversational interfaces are rapidly transforming customer service interactions across various industries and sectors such as banking, financial services, and insurance, automotive, retail and e-commerce, and healthcare. Conversational AI solutions such as Apple Siri, Amazon Alexa, and Google virtual assistant have seen tremendous adoption among consumers. Chatbot solutions leveraging natural language processing to connect with users and perform tasks have proliferated customer messaging platforms such as Facebook Messenger and WeChat. The development of artificial intelligence in recent years including machine learning, natural language processing, image recognition, and speech recognition have promoted conversational AI applications allowing users to interact with businesses through desktops, laptops, and smartphones. Conversational AI is capable of accomplishing various tasks such as providing shopping assistance, product recommendations, answering customer queries; booking plane, train, bus, and movie tickets; setting up business meetings; checking booking status; providing information related to weather, local events and news and entertainment. Enterprises are increasingly adopting conversational AI solutions to offer immediate online assistance to improve online sales conversion rates. Various benefits of conversational AI in business-to-business applications, widespread adoption of messaging apps, enterprises focusing on enhanced customer experience, and rising adoption of virtual assistants are other factors promoting the market growth.
In January 2017, Ford Motor Company, an American multinational automotive company integrated Amazon Alexa in its cars enabling drivers to perform tasks like checking tire pressure, gas requirements, and overall maintenance of cars with the help of conversational artificial intelligence. In March 2017, Progressive Corporation, an American insurance company, offers insurance tips to its customers with the help of Google Home. Another breakthrough in the adoption of conversational artificial intelligence was when Starbucks Corporation, an American coffee company, implemented conversational artificial intelligence based chatbot in its My Starbucks Barista app allowing customers to place orders through messaging or voice commands. In order to stay competitive Domino's Pizza, Inc., an American pizza company, launched a Facebook Messenger chatbot for ordering pizzas.
However, the inability chatbots in processing complex and large amount of information pose a major challenge for the conversational artificial intelligence (AI) platform and solution providers.
Conversational AI Market Key Players:
MRFR recognizes the key market players in Conversational Artificial Intelligence (AI) as Google LLC, Microsoft Corporation, IBM Corporation, Oracle Corporation, Amazon Web Services, Nuance Communications, Baidu Inc., SAP SE, Facebook Inc., Artificial Solutions, Avaamo Technologies Pvt Ltd., Conversica Inc., Haptik, Solvvy, Pypestream and Creative Virtual Ltd.
Global Conversational Artificial Intelligence (AI) Market, 2018-2024 (USD Million)
Source: MRFR Website
Conversational AI Market Regional Analysis:
The market for global conversational artificial intelligence (AI) is estimated to grow at a significant rate during the forecast period from 2019 to 2024. The geographical analysis of the market has been studied for 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).
At present, North America accounts for the largest market share in terms of adoption and development of conversational AI solutions. Growing investments in artificial intelligence technologies in terms of machine learning, deep learning, and natural language processing in the US, Canada, and Mexico drive the market growth in this region. Furthermore, the region also has many emerging start-ups offering conversational AI solutions also propels the market growth in this region.
Europe region accounts for the second-largest market share in the global conversational AI market due to increasing adoption of intelligent virtual assistants in countries such as the UK, Germany, France, Spain, Italy, and other European countries.
Asia-Pacific region accounted for the third-largest market share and is expected to attain the highest growth due to rising adoption of conversational AI solutions in China, Japan, India, Australia, Singapore, South Korea, and the Philippines. The market is also expected to generate revenue from industries and sectors such as retail and e-commerce, automotive, banking, media and entertainment, IT & telecom and healthcare in the Asia-Pacific region.
The conversational AI market in the Middle East and Africa region is expected to achieve a considerable growth with the adoption of chatbots and virtual assistants in countries such as Saudi Arabia, Turkey, Oman, UAE, South Africa, Zimbabwe, Nigeria, and other African countries.
|Market Size||USD 15.82 Billion (2024)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||by Component, by Type|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Google LLC, Microsoft Corporation, IBM Corporation, Oracle Corporation, Amazon Web Services, Nuance Communications, Baidu Inc., SAP SE, Facebook Inc., Artificial Solutions, Avaamo Technologies Pvt Ltd., Conversica Inc., Haptik, Solvvy, Pypestream and Creative Virtual Ltd.|
|Key Market Opportunities||The market has witnessed growth with the rising adoption of conversational AI-based chatbots among various enterprises to offer enhanced customer support services.|
|Key Market Drivers||American multinational automotive company integrated Amazon Alexa in its cars enabling drivers to perform tasks like checking tire pressure, gas requirements, and overall maintenance of cars with the help of conversational artificial intelligence.|
Frequently Asked Questions (FAQ) :
A 30.32% CAGR is estimated to enhance the market in the forecast period.
The income of USD 15.82 billion by 2024 is estimated to be achieved by the market in the coming years.
The constraint of chatbots in handling complex and the huge amount of information is estimated to slow down the market’s growth.
Amazon Web Services, Nuance Communications, Baidu Inc., Oracle Corporation, SAP SE, Avaamo Technologies Pvt Ltd., Facebook Inc., and Artificial Solutions are the contenders in the market.
The demand to improve online sales conversion rates is predicted to enhance the overall development of the market in the coming years.