Conversational AI Market by Type, Deployment Mode, Component, Technology, Vertical, Application

List of Tables

[186 Pages Report] The Conversational AI Market size was estimated at USD 8.27 billion in 2023 and expected to reach USD 11.59 billion in 2024, at a CAGR 42.91% to reach USD 100.75 billion by 2030.

Conversational AI is an artificial intelligence (AI) based platform that simulates human conversation. It is made possible by natural language processing (NLP), a field of AI that allows computers to understand and process human language. Conversational AI deals with the utilization of speech-based assistance and chatbots to automate communication and messaging apps and to craft individualized customer experiences. The growing focus of businesses to deliver improved customer service and to retain maximum consumers is accelerating the use of conversational AI. The end-use sectors in the U.S. are increasingly employing innovative business models such as conversational AI to help streamline support processes, increase self-serve rates, reduce wait times, and increase the efficiency of the business by providing a contactless customer experience. However, the inability of conversational AI to handle complex customer queries and data breach concerns may adversely impact their adoption by businesses. Moreover, the rapid expansion of 5G networks and digitalization of SMEs, along with improvements in the conversational AI platform to overcome security issues, are expected to encourage the use of conversational AI by the end-use sectors.

KEY MARKET STATISTICS
Base Year [2023]	USD 8.27 billion
Estimated Year [2024]	USD 11.59 billion
Forecast Year [2030]	USD 100.75 billion
CAGR (%)	42.91%

Regional Insights

In the Americas, there is rapid adoption of conversational AI technologies with significant investment in AI-driven platforms, primarily due to the presence of leading technology firms and a robust digital infrastructure. Industries such as finance, healthcare, and retail are integrating Conversational AI to enhance customer service, streamline operations, and provide personalized user experiences. English and Spanish are the primary languages featured in these AI systems. The Asia-Pacific region is experiencing fast-paced growth in Conversational AI, driven by its large population and increasing internet penetration. Countries such as China, Japan, South Korea, and India are major players. In APAC, conversational AI is used in customer service and sectors, including e-commerce and banking, to cater to a diverse customer base. The technology here deals with various languages and dialects, which presents unique challenges and opportunities for growth. In the European, Middle East, and African regions, conversational AI is developing at a steady pace with a keen focus on adhering to strict data protection regulations such as GDPR. European countries with advanced technology infrastructures, including Germany, the UK, and France, are leading in adoption. The technology is used across multiple languages due to the linguistic diversity of the region. In the Middle East and parts of Africa, there is growing interest and implementation, particularly in sectors including tourism, banking, and public services.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Conversational AI Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers
- Increasing chatbot implementation by businesses to provide enhanced customer services
- Shift towards self-service models and business choices for low operational costs

Market Restraints
- Limitations to handling complex queries or holding conversations with humans

Market Opportunities
- Recent technological advancements in conversational AI
- Emerging 5G technology and hyper-automation

Market Challenges
- Data privacy and security concerns associated with the use of conversational AI

Market Segmentation Analysis
- Type: Growing usage of chatbots to respond to user inquiries
- Vertical: High potential of conversational AI in the banking, financial services, & insurance (BFSI) sectors to handle tasks such as checking account balances, processing payments

Market Disruption Analysis
Porter's Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Conversational AI Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Conversational AI Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Strategic Alliance Between Cognigy and Foundever Aims to Transform Contact Center Operations

Cognigy and Foundever have entered a strategic partnership to enhance conversational AI applications within contact centers. This collaboration will leverage Cognigy's advanced technologies and Foundever's expertise in customer engagement solutions to deliver more personalized and efficient customer interactions. The integration of their resources and capabilities is expected to significantly improve customer service experiences, thereby setting new standards in the contact center industry. Both companies are dedicated to providing exceptional customer experiences, positioning their partnership as a potentially transformative force in the marketplace. [Published On: 2023-03-27]

Strategic Expansion of Customer Engagement Technologies through LinkLive and Kasisto Partnership

LinkLive expanded its partnership with Kasisto, innovators in conversational AI. This collaboration aims to enhance customer interaction by integrating Kasisto's state-of-the-art AI technology into LinkLive's platform. This integration enables real-time customer inquiry responses and provides personalized engagement, combining LinkLive's customer service expertise with Kasisto's AI proficiency to elevate the customer experience and stimulate business growth. [Published On: 2023-03-09]

Strategic Collaboration between Artificial Solutions and Neudesic to Enhance Business Efficiency through Conversational AI

Artificial Solutions International AB has partnered with Neudesic to create and implement advanced conversational AI technologies for businesses across multiple sectors. This collaboration aims to enrich customer interactions and optimize communication efficiencies by integrating personalized, interactive AI-driven dialogues into customer service processes. The initiative reflects a strategic move to harness Artificial Solutions' conversational AI expertise, ensuring clients can offer more responsive and tailored experiences to their customers. [Published On: 2023-01-17]

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Conversational AI Market. This critical assessment involves a thorough analysis of the organization's resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Conversational AI Market, highlighting leading vendors and their innovative profiles. These include Amazon Web Services, Inc., Amelia US LLC, Avaamo, Inc., Baidu, Inc, Conversica, Inc., Creative Virtual Ltd., Google by Alphabet Inc., iLink Digital, Inc., Inbenta Holdings Inc., Infosys Limited, Interactions LLC, International Business Machines Corporation, Kore.ai, Inc., LivePerson, Inc., LTIMindtree Limited, Microsoft Corporation, Nuance Communications, Inc., Oracle Corporation, Persistent Systems Limited, Posh Technologies Inc., Pypestream Inc., Rasa Technologies, Inc., Rulai Inc., ServiceNow, Inc., SoundHound Inc., Tata Consultancy Limited, Tech Mahindra Ltd, Uniphore Technologies Inc., and Wipro Limited.

Market Segmentation & Coverage

This research report categorizes the Conversational AI Market to forecast the revenues and analyze trends in each of the following sub-markets:

Type
- Chatbots
- Intelligent Virtual Assistants

Deployment Mode
- Cloud
- On-premises

Component
- Platform
- Services
  - Support & Maintenance
  - System Integration & Deployment
  - Training & Consulting
Technology
- Automated Speech Recognition
- Machine Learning & Deep Learning
- Natural Language Processing

Vertical
- Banking, Financial Services, & Insurance
- Healthcare & Life Sciences
- Media & Entertainment
- Retail & Ecommerce
- Telecom
- Travel & Hospitality

Application
- Branding & Advertisement
- Customer Engagement & Retention
- Customer Support
- Data Privacy & Compliance
- Onboarding & Employee Engagement
- Personal Assistant

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

Product Code: MRR-380AB250ABD5

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Increasing chatbot implementation by businesses to provide enhanced customer services
  - 5.1.1.2. Shift towards self-service models and business choices for low operational costs
- 5.1.2. Restraints
  - 5.1.2.1. Limitations to handling complex queries or holding conversations with humans
- 5.1.3. Opportunities
  - 5.1.3.1. Recent technological advancements in conversational AI
  - 5.1.3.2. Emerging 5G technology and hyper-automation
- 5.1.4. Challenges
  - 5.1.4.1. Data privacy and security concerns associated with the use of conversational AI
5.2. Market Segmentation Analysis
- 5.2.1. Type: Growing usage of chatbots to respond to user inquiries
- 5.2.2. Vertical: High potential of conversational AI in the banking, financial services, & insurance (BFSI) sectors to handle tasks such as checking account balances, processing payments
5.3. Market Disruption Analysis
5.4. Porter's Five Forces Analysis
- 5.4.1. Threat of New Entrants
- 5.4.2. Threat of Substitutes
- 5.4.3. Bargaining Power of Customers
- 5.4.4. Bargaining Power of Suppliers
- 5.4.5. Industry Rivalry
5.5. Value Chain & Critical Path Analysis
5.6. Pricing Analysis
5.7. Technology Analysis
5.8. Patent Analysis
5.9. Trade Analysis
5.10. Regulatory Framework Analysis

6. Conversational AI Market, by Type

6.1. Introduction
6.2. Chatbots
6.3. Intelligent Virtual Assistants

7. Conversational AI Market, by Deployment Mode

7.1. Introduction
7.2. Cloud
7.3. On-premises

8. Conversational AI Market, by Component

8.1. Introduction
8.2. Platform
8.3. Services

9. Conversational AI Market, by Technology

9.1. Introduction
9.2. Automated Speech Recognition
9.3. Machine Learning & Deep Learning
9.4. Natural Language Processing

10. Conversational AI Market, by Vertical

10.1. Introduction
10.2. Banking, Financial Services, & Insurance
10.3. Healthcare & Life Sciences
10.4. Media & Entertainment
10.5. Retail & Ecommerce
10.6. Telecom
10.7. Travel & Hospitality

11. Conversational AI Market, by Application

11.1. Introduction
11.2. Branding & Advertisement
11.3. Customer Engagement & Retention
11.4. Customer Support
11.5. Data Privacy & Compliance
11.6. Onboarding & Employee Engagement
11.7. Personal Assistant

12. Americas Conversational AI Market

12.1. Introduction
12.2. Argentina
12.3. Brazil
12.4. Canada
12.5. Mexico
12.6. United States

13. Asia-Pacific Conversational AI Market

13.1. Introduction
13.2. Australia
13.3. China
13.4. India
13.5. Indonesia
13.6. Japan
13.7. Malaysia
13.8. Philippines
13.9. Singapore
13.10. South Korea
13.11. Taiwan
13.12. Thailand
13.13. Vietnam

14. Europe, Middle East & Africa Conversational AI Market

14.1. Introduction
14.2. Denmark
14.3. Egypt
14.4. Finland
14.5. France
14.6. Germany
14.7. Israel
14.8. Italy
14.9. Netherlands
14.10. Nigeria
14.11. Norway
14.12. Poland
14.13. Qatar
14.14. Russia
14.15. Saudi Arabia
14.16. South Africa
14.17. Spain
14.18. Sweden
14.19. Switzerland
14.20. Turkey
14.21. United Arab Emirates
14.22. United Kingdom

15. Competitive Landscape

15.1. Market Share Analysis, 2023
15.2. FPNV Positioning Matrix, 2023
15.3. Competitive Scenario Analysis
- 15.3.1. Strategic Alliance Between Cognigy and Foundever Aims to Transform Contact Center Operations
- 15.3.2. Strategic Expansion of Customer Engagement Technologies through LinkLive and Kasisto Partnership
- 15.3.3. Strategic Collaboration between Artificial Solutions and Neudesic to Enhance Business Efficiency through Conversational AI
15.4. Strategy Analysis & Recommendation

16. Competitive Portfolio

16.1. Key Company Profiles
16.2. Key Product Portfolio