The global conversational AI market size was exhibited at USD 7.68 billion in 2022 and is projected to hit around USD 64.91 billion by 2032, growing at a CAGR of 5.9% during the forecast period 2023 to 2032.
Key Pointers:
- North America held the largest revenue share of more than 32.0% in 2022.
- The Asia Pacific region is projected to witness the highest growth during the forecast period
- The solutions segment held the largest revenue share of over 61.5% in 2022.
- The chatbots segment accounted for a dominant share of over 66.7% in 2022.
- The on-premise segment held the dominant share of over 61.0% in 2022.
- The NLP (Natural Language Processing) segment held the leading revenue share of more than 46.0% in 2022.
- The retail and e-commerce segment held a leading revenue share of more than 21.0% in 2022.
Conversational AI Market Report Scope
The market growth is primarily influenced by the rising adoption of advanced AI technologies and consumer interaction via multiple platforms. It indicates that businesses and their customers view technology as a mode to expand their businesses.
With the growing market penetration of conversational AI as a crucial technology, it is significant that companies set the correct parameters and objectives while adopting chatbots or virtual assistants. Rapidly growing e-commerce and digitalization have been providing favorable conditions for the requirement of customer support service. Omnichannel Deployment, enhanced customer care 24/7, real-time customized service, and the decreased cost to serve customers boost market penetration of AI globally. In October 2022, Jio platform's Haptik introduced a new enterprise CX Platform to enable Conversational AI solutions. This platform aids brands in building Intelligent Virtual Assistants in a low code environment and going live within just a few days.
The growing ‘Chat first’ method by the service sector and technological enhancements like natural language processing are anticipated to boost the market growth. In November 2022, ZeroShotBot launched new conversational AI technology, which normalizes chatbots for companies of all sizes. ZeroShotBot provides a new technology for building chatbots that don’t need training data, permitting anybody with zero coding experience to generate a chatbot that is fully functional algorithms. Moreover, in January 2020, AWS created Amazon Lex chatbot integration, available in Amazon Connect in the Asia Pacific (Sydney) AWS. This chatbot assists consumers in scheduling an appointment, changing passwords, and bringing up requested account balances. Instead of calling out a number from a list of options, this is done by vocalizing a prompt.
Although, the requirement of trained professionals to handle conversational AI, along with a lack of knowledge about conversational AI, hinders the penetration of conversational AI. Providing a top-quality digital experience is a higher priority for businesses, and consumers like their voices to be heard. The growth of conversational AI now provides companies with the customer experience and the power to resolve complex queries and inquiries quickly and effectively.
Conversational AI is far from a new phenomenon nowadays. Both consumers and companies have grown more accustomed to the profitable outcomes of fast, enhanced, 24/7 customer support service, permitting many businesses to serve on the promise of enhanced technologies to improve customer satisfaction, lower costs, and increase revenues. Product managers access the capabilities to manufacture a successful Intelligent Virtual Assistant (IVA) with emerging AI advancements.
Key players in the market are focused on strategic collaborations and partnerships to enhance their products and service offerings and expand the consumer base. For instance, Yellow.ai and Tech Mahindra together work to develop next-gen conversational-AI technologies, as part of the deal, to upgrade omnichannel competencies like Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Supply Chain Management (SCM), and Human Resources Management System (HRMS).
Some of the prominent players in the Conversational AI Market include:
- Google
- Microsoft
- Amazon Web Services, Inc.
- IBM
- Oracle
- Nuance Communications, Inc.
- FIS
- SAP SE
- Artificial Solutions
- Kore.ai, Inc.
- Avaamo
- Conversica, Inc.
- Jio Haptik Technologies Limited
- Rasa Technologies Inc.
- Solvvy
- Pypestream Inc.
- Kasisto
- Cognigy
Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global conversational AI market.
By Component
- Solutions
- Managed Services
- Professional Services
- Training and Consulting
- System Integration and Implementation
- Support and Maintenance
By Type
- Chatbots
- Intelligent virtual assistant (IVA)
By Deployment
By Technology
- Natural Language Processing (NLP)
- ML and Deep Learning
- Automatic Speech Recognition (ASR)
By End-user
- BFSI
- Healthcare
- IT and Telecom
- Retail and eCommerce
- Education
- Media and Entertainment
- Automotive
- Others (Government, Hospitality, Manufacturing, etc.)
By Region
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa (MEA)
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