Conversational Artificial Intelligence (AI) Market Research Report - Global Forecast till 2027

Global Conversational Artificial Intelligence (AI) Market, by Component (Platform, Services (System Integration and Deployment, Support and Maintenance, Training and Consulting), by Type (Intelligent Virtual Assistants, Chatbots), by Technology (Machine Learning and Deep Learning, Natural Language Processing, Automated Speech Recognition) by Deployment (Cloud, On-Premise), By Organization Size (Large enterprises, SMEs), by Application (Personal Assistants, Customer Engagement and Support, Branding and Marketing, Others), by Vertical (BF...

ID: MRFR/ICT/6441-HCR | November 2022 | Region: Global | 111 Pages         

Conversational Artificial Intelligence (AI) Market

The Conversational Artificial Intelligence (AI) market is estimated to reach USD 15.82 billion, growing at a CAGR of 30.32% during the forecast period 2020–2027

Segmentation

By Component Solutions Services Support Training Consulting Maintenance Implementation
By Type Intelligent virtual assiant Chatbots
By Organisation Size Large scale Small scale orgnisation
By Web-Based Telephonic Webb based App-based

Key Players

  • 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

Drivers

  • Amazon Alexa in its cars enabling drivers to perform tasks like checking tire pressure
  • Gas requirements
  • Maintenance of cars with the help of conversational artificial intelligence
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Conversational AI Market Synopsis:


The conversational artificial intelligence (AI) market is expected to reach USD 15.82 billion and grow at a CAGR of 30.32% during the forecast period 2019-2024. The conversational AI utilizes chatbots and speech assistance. Automation messaging is a crucial task of the conversational artificial intelligence market. This technology is used to enhance customer experiences in various industries. Artificial intelligence is capable to interact with websites, applications, and devices.


The modes of its commutation are text, speech, voice gesture. Vital open assistance is offered by these AI technologies. This software can combine both natural language and machine language to support business tasks. In many businesses, customers require personalized interactions. The amount of customer satisfaction due to the use of conversational artificial intelligence is higher. In many organisations the deployment of this technology is rapid.


AI can easily understand the customer’s requirements. Providing appropriate answers and solutions are the crucial tasks of this technology. Through these chatbots customers get a real time customer experience. They are high-end technologies that can identify the sentiment behind a chat. Seamless integration of back end data is possible through this software. Nowadays, end to end chats in the business are rising to increase customer infraction. As per the Conversational Artificial Intelligence (AI) Market Report, these factors will increase the value of this market. 


COVID Analysis 


The effects of covid 19 are massive on global markets. The business operations are hundred n many regions. Supply chain disruptions, low demand and production are serious threats in the markets. However, the conversational artificial intelligence market is witnessing high growth. There is a surge in the market in recent years.


Due to lockdown, work from home is prevalent in many regions. Especially, BPO is working remotely. It is increasing the need for AI in these industries. Instead, of humans, the AI chatbots communicate with the customers. Demand from the health industry is higher for the conversational artificial intelligence market. Also, capability, efficiency and productivity are increasing due to conversational artificial intelligence. These factors will bring exceptional growth opportunities Global Conversational Artificial Intelligence (AI).


Market Dynamics 



  • Crucial Market Drivers 


The growing use of conversational intelligence in user-based services is the crucial driver of the conversational artificial intelligence market. Social media platforms have higher adoption of AI. The sites such as Facebook, Instagram, Twitter and telegram have higher utilization of conversational artificial intelligence. The collaborations in these sites lead to more interaction with customers. The social markets record-high spending for the conversational artificial intelligence market.


The demand from this user end is advantageous for the overall growth. The branding and businesses in these social platforms are leading to higher demand. Many businesses in these platforms adopt AI for better interaction with customers. Especially, developing business has higher queries about the product.


It is driving the demand for conversational AI in these sectors. Further, rising awareness about AI is another driving factor in the conversational artificial intelligence market. The reviews and exposure are creating more awareness about conversational AI. The rising exposure in the emerging nation is beneficial for the market demand. The Conversational Artificial Intelligence (AI) Market Profit is growing higher due to these reasons. The need for virtual support in SMEs is another diver for the market. All these market drivers wail yield high profitability for the market. 



  • The Market Growth Opportunities 


The advanced integration of AI in conversation will lead to Conversational Artificial Intelligence (AI) Market Growth. The growing use of AI and NLP are prevalent in many sectors. The agent’s services of the platform are increasing due to this improvement. There is a future scope that opens new integration capabilities for the technology. Gesture recognition is one of the added features that will enhance conversational AI services. The gesture recognition capabilities have plenty of benefits. Some of the applications of it control smart, conversations without text or speech. Sometimes, noise disturbances are high. In these times the noiseless conversations without speech and texts are helpful. 


Conversational AI services support a limited number of languages. In the upcoming years, it will support many languages. The development of regional AI conversational support will attract many end-users. Through regional support, many small enterprises and SMEs will have adoption of conversational AI. New growth opportunities and developments are available in merging nations. Regional language support by this software is useful for many sectors. Food, clothing, eCommerce and much more industries will benefit from the regional language support feature of AI. 



  • The Market Restraints 


The awareness about conversational AI technology is low in many regions. The lack of awareness can hamper the overall growth of the conversational artificial intelligence market. Lack of awareness in leading nations can decline demand. Also, less significance of this technology can lead to the adoption of alternatives. 


Conversational AI is a high need technology. Decreasing awareness can hamper the expansion rate of the conversational artificial intelligence market. The emerging enterprises have adoption of conversational AI. The lesser penetration into developing economies and markets can lead to high threats for the market. The revenue is hampered due to these factors. Also, the deployment of such AI chant bots will reduce in upcoming years. 



  • The Market Challenge 


Lack of accuracy is a challenging factor of the conversational artificial intelligence market. There are set of instructions fed to these APIs. There is less accuracy expected in this market. The AI Chabot can provide repetitive replies. It only answers from the set of replies fed to them. The key players are making the AI Chabot more real. Real conversations will happen in the conversational AI market in upcoming years. However, this challenge of the conversational artificial intelligence market can hinder the adoption rate. Less feed by any enterprise can affect the customer experience. These challenges of the market reduce the efficiency of these chatbots. 



  • The Cumulative Growth Analysis 


The Conversational Artificial Intelligence (AI) Market Analysis shows positive growth trend period. The services segment is accountable for high market shares. The conversational AI services are essential in media entertainment, travel and hospitality markets. Enhanced customer support is witnessed due to the utilization of this software in these markets.


Further, the market drivers such as the growing use of conversational intelligence in customer service are driving high demand. The lack of accuracy remains a challenge for the market. Also, less awareness can reduce expansion. However, promising growth opportunities are witnessed with more AI integrations. 



  • Value Chain Analysis 


North America will lead the conversational AI market with more than 50% shares. There are plenty of Conversational Artificial Intelligence businesses that led to growth. The customer services in North America are well established. It is easier to adopt AI in this customer service department. 


Also, there is plenty of large scale enterprise that requires high efficiency in customer service. Further, US and Canada are making plenty of developments in the market. These crucial countries are investing more for future market developments. The expansion rate is high in the market. Also, North America is expected to reach a high revenue rate for conversational AI. 


Segment Overview 


Conversational Artificial Intelligence (AI) Market Segments


By Component 



  • Solutions 

  • Services 

  • Support 

  • Training 

  • Consulting 

  • Maintenance 

  • Implementation 


By Type 



  • Intelligent virtual assiant 

  • Chatbots 


By Organisation Size 



  • Large scale 

  • Small scale orgnisation 


By Web-Based 



  • Telephonic 

  • Webb based 

  • App-based 


By Technology 



  • AI 

  • MI 

  • Deep learning 


By Function 



  • Sales 

  • IT 

  • HR 


By Vertical 



  • Retail 

  • Automotive 

  • Media and entertainment 

  • Travel 

  • Hospitality 


By Region 



  • Europe 

  • North America 

  • Asia pacific 


Competitive Landscape 


Conversational AI recruitment market competition will increase in the forecast period. Market developments, acquisitions and expansions are key strategies of the competitive landscape. There is going to be plenty of technological advancements in the conversational artificial intelligence market


Regional Analysis 


The conversational AI market is fragmented into Asia Pacific, North America and Europe. North America is a leading nation with highest Conversational Artificial Intelligence (AI) market shares. The need for quality customer service is driving demand in this market. Several eCommerce sectors have higher adoption of this technology.


The Asia Pacific is a region witnessing the highest growth in the market. The customer service and Bops’ are rising. Also, the adoption of conversational AI in social media platforms is high. A high expansion rate is exacted in this market during the forecast. Also, Europe is emerging as a profitable. Market. The demand from SMEs is driving demand in the conversational AI market. 


The key players of the conversational artificial intelligence market are 



  • Google (US) 

  • Mindsay (US)

  • Microsoft (US)

  • AWS (US)

  • IBM (US)

  • Oracle (US)

  • Invent (US)

  • Pypestream (US) 

  • Artificial Solutions (Spain)

  • SAP (Germany)

  • Baidu (China)


Recent Developments 



  1. Google is developing its conversational artificial intelligence market in upcoming years. Integration of ML and AI will happen in this market. 



  1. The key players are developing conversational artificial intelligence with voice recognition. It leads to higher developments and expansion in the market. 


Report Overview 



  1. Market Overview Highlights 

  2. Analysis Based Upon COVID 19

  3. Explanation Upon The Market Dynamics

  4. Value Chain Analysis

  5. Market Segmentation Overview

  6. The Regional Analysis

  7. Competitive Landscape Analysis

  8. Recent Developments      


 



Report Scope:

Report Attribute/Metric Details
  Market Size   USD 15.82 Billion (2024)
  CAGR   30.32% (2019-2024)
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  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.


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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.