Conversational Commerce Market by Offering, Technology, Deployment Mode, Enterprise Size, Application, End-User

List of Tables

The Conversational Commerce Market was valued at USD 7.06 billion in 2023, expected to reach USD 8.17 billion in 2024, and is projected to grow at a CAGR of 16.23%, to USD 20.25 billion by 2030.

Conversational Commerce (c-commerce) refers to the intersection of messaging apps and shopping, where consumers can interact with businesses via conversational interfaces, such as chatbots, voice assistants, or messaging platforms. This form of commerce reflects a shift in consumer behavior, as people increasingly prefer real-time, personalized, and frictionless interactions. The necessity of conversational commerce arises from the demand for improved customer experiences, driving business to engage customers effectively and efficiently. Its application spans multiple industries including retail, banking, and service sectors, enabling businesses to conduct customer service, sales, and support through conversational interfaces. End-use includes enhanced customer engagement, reduced friction in customer service processes, and increased conversion rates by guiding consumers through purchase decisions.

KEY MARKET STATISTICS
Base Year [2023]	USD 7.06 billion
Estimated Year [2024]	USD 8.17 billion
Forecast Year [2030]	USD 20.25 billion
CAGR (%)	16.23%

Market growth is fueled by several factors, including advancements in AI and natural language processing, increased use of smartphones and messaging apps, and consumer demand for personalized shopping experiences. Key opportunities lie in leveraging AI to refine chatbots for more complex interactions and expanding use cases in new sectors like healthcare and education. To seize these opportunities, companies should invest in developing AI capabilities and creating partnerships with tech firms. Despite its potential, the growth of c-commerce faces limitations such as data privacy concerns, technological barriers in accurately understanding human language, and the need for significant initial investments.

Moreover, regional disparities in digital infrastructure and varying levels of consumer trust in tech-based interactions present additional challenges. Innovative research areas include exploring multilingual interfaces, improving sentiment analysis in customer interactions, and integrating c-commerce with augmented reality to enhance customer experiences. Businesses should focus on creating seamless omnichannel strategies that blend conversational commerce with other digital channels. The market's nature is dynamic, with fast-paced technological changes requiring constant adaptation and innovation. Companies that prioritize customer experience while addressing privacy and data security concerns will likely emerge as leaders in the conversational commerce landscape.

Market Dynamics: Unveiling Key Market Insights in the Rapidly Evolving Conversational Commerce Market

The Conversational Commerce Market is undergoing transformative changes driven by a dynamic interplay of supply and demand factors. Understanding these evolving market dynamics prepares business organizations to make informed investment decisions, refine strategic decisions, and seize new opportunities. By gaining a comprehensive view of these trends, business organizations can mitigate various risks across political, geographic, technical, social, and economic domains while also gaining a clearer understanding of consumer behavior and its impact on manufacturing costs and purchasing trends.

Market Drivers
- Rising penetration of Internet and eCommerce platform
- Increasing utilization of conversational commerce to enhance user experience and convenience
Market Restraints
- High cost and technological limitations of conversation commerce solutions
Market Opportunities
- Growing integration of advanced technologies to enhance the performance of conversational commerce
- Favourable ecosystem for startups focusing on developing conversational commerce
Market Challenges
- Issues associated with data privacy and security of consumer

Porter's Five Forces: A Strategic Tool for Navigating the Conversational Commerce Market

Porter's five forces framework is a critical tool for understanding the competitive landscape of the Conversational Commerce Market. It offers business organizations with a clear methodology for evaluating their competitive positioning and exploring strategic opportunities. This framework helps businesses assess the power dynamics within the market and determine the profitability of new ventures. With these insights, business organizations can leverage their strengths, address weaknesses, and avoid potential challenges, ensuring a more resilient market positioning.

PESTLE Analysis: Navigating External Influences in the Conversational Commerce Market

External macro-environmental factors play a pivotal role in shaping the performance dynamics of the Conversational Commerce Market. Political, Economic, Social, Technological, Legal, and Environmental factors analysis provides the necessary information to navigate these influences. By examining PESTLE factors, businesses can better understand potential risks and opportunities. This analysis enables business organizations to anticipate changes in regulations, consumer preferences, and economic trends, ensuring they are prepared to make proactive, forward-thinking decisions.

Market Share Analysis: Understanding the Competitive Landscape in the Conversational Commerce Market

A detailed market share analysis in the Conversational Commerce Market provides a comprehensive assessment of vendors' performance. Companies can identify their competitive positioning by comparing key metrics, including revenue, customer base, and growth rates. This analysis highlights market concentration, fragmentation, and trends in consolidation, offering vendors the insights required to make strategic decisions that enhance their position in an increasingly competitive landscape.

FPNV Positioning Matrix: Evaluating Vendors' Performance in the Conversational Commerce Market

The Forefront, Pathfinder, Niche, Vital (FPNV) Positioning Matrix is a critical tool for evaluating vendors within the Conversational Commerce Market. This matrix enables business organizations to make well-informed decisions that align with their goals by assessing vendors based on their business strategy and product satisfaction. The four quadrants provide a clear and precise segmentation of vendors, helping users identify the right partners and solutions that best fit their strategic objectives.

Strategy Analysis & Recommendation: Charting a Path to Success in the Conversational Commerce Market

A strategic analysis of the Conversational Commerce Market is essential for businesses looking to strengthen their global market presence. By reviewing key resources, capabilities, and performance indicators, business organizations can identify growth opportunities and work toward improvement. This approach helps businesses navigate challenges in the competitive landscape and ensures they are well-positioned to capitalize on newer opportunities and drive long-term success.

Key Company Profiles

The report delves into recent significant developments in the Conversational Commerce Market, highlighting leading vendors and their innovative profiles. These include Chatfuel, Conversica, Inc., Drift.com, Inc. by Salesloft, Intercom R&D Unlimited Company, International Business Machines Corporation, Jio Haptik Technologies Limited, LivePerson, Inc., ManyChat, Inc., Meta Platform, Inc., Microsoft Corporation, Oracle Corporation, Pypestream Inc., Quiq, Inc., Rep AI Technologies, Reply S.p.A., Sinch AB, Sprinklr, Inc., Text Aspect, Vonage America, LLC, WeChat by Tencent Holdings Ltd., Yalo, and Zendesk, Inc..

Market Segmentation & Coverage

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

Based on Offering, market is studied across Services and Software.
Based on Technology, market is studied across Chatbots, Messaging Platforms, Natural Language Processing, and Voice Assistants.
Based on Deployment Mode, market is studied across Cloud and On-premises.
Based on Enterprise Size, market is studied across Large Enterprises and Small & Medium Enterprises.
Based on Application, market is studied across Appointment Scheduling, Customer Support, Payments & Transactions, Personal Assistant, Product Discovery & Purchase, and Sales & Marketing.
Based on End-User, market is studied across Banking, Financial Services, & Insurance, Healthcare, Retail & eCommerce, and Travel & Hospitality.
Based on Region, market is studied across Americas, Asia-Pacific, and Europe, Middle East & Africa. The Americas is further studied across Argentina, Brazil, Canada, Mexico, and United States. The United States is further studied across California, Florida, Illinois, New York, Ohio, Pennsylvania, and Texas. The Asia-Pacific is further studied across Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. The Europe, Middle East & Africa is further studied across Denmark, Egypt, Finland, France, Germany, Israel, Italy, Netherlands, Nigeria, Norway, Poland, Qatar, Russia, Saudi Arabia, South Africa, Spain, Sweden, Switzerland, Turkey, United Arab Emirates, and United Kingdom.

The report offers a comprehensive analysis of the market, covering key focus areas:

1. Market Penetration: A detailed review of the current market environment, including extensive data from top industry players, evaluating their market reach and overall influence.

2. Market Development: Identifies growth opportunities in emerging markets and assesses expansion potential in established sectors, providing a strategic roadmap for future growth.

3. Market Diversification: Analyzes recent product launches, untapped geographic regions, major industry advancements, and strategic investments reshaping the market.

4. Competitive Assessment & Intelligence: Provides a thorough analysis of the competitive landscape, examining market share, business strategies, product portfolios, certifications, regulatory approvals, patent trends, and technological advancements of key players.

5. Product Development & Innovation: Highlights cutting-edge technologies, R&D activities, and product innovations expected to drive future market growth.

The report also answers critical questions to aid stakeholders in making informed decisions:

1. What is the current market size, and what is the forecasted growth?

2. Which products, segments, and regions offer the best investment opportunities?

3. What are the key technology trends and regulatory influences shaping the market?

4. How do leading vendors rank in terms of market share and competitive positioning?

5. What revenue sources and strategic opportunities drive vendors' market entry or exit strategies?

Product Code: MRR-99555D550517

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. Rising penetration of Internet and eCommerce platform
  - 5.1.1.2. Increasing utilization of conversational commerce to enhance user experience and convenience
- 5.1.2. Restraints
  - 5.1.2.1. High cost and technological limitations of conversation commerce solutions
- 5.1.3. Opportunities
  - 5.1.3.1. Growing integration of advanced technologies to enhance the performance of conversational commerce
  - 5.1.3.2. Favourable ecosystem for startups focusing on developing conversational commerce
- 5.1.4. Challenges
  - 5.1.4.1. Issues associated with data privacy and security of consumer
5.2. Market Segmentation Analysis
- 5.2.1. Technology: Growing usage of conversational commerce services to create a more engaging and personalized shopping experience
- 5.2.2. End-User: High potential of conversational commerce in banking, financial services, and insurance (BFSI) for automating tasks
5.3. Porter's Five Forces Analysis
- 5.3.1. Threat of New Entrants
- 5.3.2. Threat of Substitutes
- 5.3.3. Bargaining Power of Customers
- 5.3.4. Bargaining Power of Suppliers
- 5.3.5. Industry Rivalry
5.4. PESTLE Analysis
- 5.4.1. Political
- 5.4.2. Economic
- 5.4.3. Social
- 5.4.4. Technological
- 5.4.5. Legal
- 5.4.6. Environmental

6. Conversational Commerce Market, by Offering

6.1. Introduction
6.2. Services
6.3. Software

7. Conversational Commerce Market, by Technology

7.1. Introduction
7.2. Chatbots
7.3. Messaging Platforms
7.4. Natural Language Processing
7.5. Voice Assistants

8. Conversational Commerce Market, by Deployment Mode

8.1. Introduction
8.2. Cloud
8.3. On-premises

9. Conversational Commerce Market, by Enterprise Size

9.1. Introduction
9.2. Large Enterprises
9.3. Small & Medium Enterprises

10. Conversational Commerce Market, by Application

10.1. Introduction
10.2. Appointment Scheduling
10.3. Customer Support
10.4. Payments & Transactions
10.5. Personal Assistant
10.6. Product Discovery & Purchase
10.7. Sales & Marketing

11. Conversational Commerce Market, by End-User

11.1. Introduction
11.2. Banking, Financial Services, & Insurance
11.3. Healthcare
11.4. Retail & eCommerce
11.5. Travel & Hospitality

12. Americas Conversational Commerce Market

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

13. Asia-Pacific Conversational Commerce 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 Commerce 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. Gupshup launches ONDC-based conversational commerce app on WhatsApp to revolutionize the food and beverage shopping experience
- 15.3.2. Bloomreach enhances AI capabilities with the acquisition of Radiance Commerce
- 15.3.3. Vonage enhances conversational commerce with innovative solutions
- 15.3.4. Enhancing digital shopping experiences through Zendesk's conversational commerce
- 15.3.5. Introducing Bobble Super for seamless in-app purchases
15.4. Strategy Analysis & Recommendation

Companies Mentioned

1. Chatfuel
2. Conversica, Inc.
3. Drift.com, Inc. by Salesloft
4. Intercom R&D Unlimited Company
5. International Business Machines Corporation
6. Jio Haptik Technologies Limited
7. LivePerson, Inc.
8. ManyChat, Inc.
9. Meta Platform, Inc.
10. Microsoft Corporation
11. Oracle Corporation
12. Pypestream Inc.
13. Quiq, Inc.
14. Rep AI Technologies
15. Reply S.p.A.
16. Sinch AB
17. Sprinklr, Inc.
18. Text Aspect
19. Vonage America, LLC
20. WeChat by Tencent Holdings Ltd.
21. Yalo
22. Zendesk, Inc.