Conversational Artificial Intelligence Market Size, Share, and Growth Analysis, By Offering, By Business Function, By Conversational Agent Type, By Integration Mode, By Vertical, By Region

Description

Conversational Artificial Intelligence (AI) Market size was valued at USD 13.2 billion in 2023 and is poised to grow from USD 16.05 billion in 2024 to USD 76.73 billion by 2032, growing at a CAGR of 21.6% during the forecast period (2025-2032).

The conversational artificial intelligence (AI) market is experiencing significant growth, driven by advancements in AI technologies and increasing adoption across various industries. The rising demand for enhanced human-machine interactions and AI capabilities in user-centric applications is further fueling this expansion. With an increasing reliance on AI-powered customer support systems and a global trend towards automation, the market is poised for continued development. However, challenges such as limitations in comprehending complex queries, data privacy concerns, and resistance to technology adoption could hinder long-term growth potential. As companies navigate these obstacles, the future of conversational AI will depend on addressing these issues while leveraging opportunities for innovation and enhanced user experience.

Top-down and bottom-up approaches were used to estimate and validate the size of the Conversational Artificial Intelligence (Ai) market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Conversational Artificial Intelligence (Ai) Market Segments Analysis

Global Conversational Artificial Intelligence (AI) Market is segmented by Offering, Business Function, Conversational Agent Type, Integration Mode, Vertical and region. Based on Offering, the market is segmented into Software and Services. Based on Business Function, the market is segmented into Sales & Marketing, Finance & Accounting, Operations & Supply Chain, Human Resources (HR) and IT Service Management (ITSM). Based on Conversational Agent Type, the market is segmented into AI Chatbots, Voice Bots, Interactive Voice Assistants (IVA) and Generative AI Agents. Based on Integration Mode, the market is segmented into Internal Enterprise Systems and External Communication Channels. Based on Vertical, the market is segmented into BFSI, Retail & Ecommerce, Education, Media & Entertainment, Healthcare & Life Sciences, Travel & Hospitality, Automotive, IT/ ITEs, Government & Defense and Other Verticals. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Conversational Artificial Intelligence (Ai) Market

The growth of the Conversational Artificial Intelligence (AI) market is primarily fueled by organizations globally prioritizing enhancements in customer support. In their pursuit of automation, many businesses are adopting conversational AI models to facilitate continuous service availability and improve response times. This technology not only streamlines customer interactions but also minimizes human error, which significantly boosts overall efficiency and satisfaction. The benefits of AI-driven customer support-such as enhanced service quality and availability-are pivotal in driving market expansion and encouraging more companies to integrate these innovative solutions into their operational frameworks.

Restraints in the Conversational Artificial Intelligence (Ai) Market

The Conversational Artificial Intelligence (AI) market faces several restraints that impede its growth. Despite the significant advancements in artificial intelligence, conversational AI models often grapple with handling complex queries effectively. This results in improper responses or inaccurate outputs, which can lead to user frustration and decreased trust in the technology. Such limitations in understanding nuanced or sophisticated inquiries hinder the widespread adoption of conversational AI on a global scale. As companies strive to enhance their AI capabilities, addressing these shortcomings is essential to maximize the potential of conversational AI and ensure its successful integration into various sectors.

Market Trends of the Conversational Artificial Intelligence (Ai) Market

The Conversational Artificial Intelligence (AI) market is poised for significant growth, fueled by advancements in sentiment analysis and emotional intelligence. Companies are increasingly recognizing the need for AI models that can interpret human emotions through voice input, enabling more natural and engaging interactions. As consumers seek more personalized experiences, AI solutions equipped with heightened emotional understanding will not only enhance user satisfaction but also foster brand loyalty. This trend towards emotionally intelligent AI is likely to drive innovation, as businesses invest in developing advanced capabilities that mimic human-like conversations, ultimately propelling the conversational AI market to new heights.

Product Code: SQMIG45F2072

Introduction

Objectives of the Study
Scope of the Report
Definitions

Research Methodology

Information Procurement
Secondary & Primary Data Methods
Market Size Estimation
Market Assumptions & Limitations

Executive Summary

Global Market Outlook
Supply & Demand Trend Analysis
Segmental Opportunity Analysis

Market Dynamics & Outlook

Market Overview
Market Size
Market Dynamics
- Drivers & Opportunities
- Restraints & Challenges
Porters Analysis
- Competitive rivalry
- Threat of substitute
- Bargaining power of buyers
- Threat of new entrants
- Bargaining power of suppliers

Key Market Insights

Key Success Factors
Degree of Competition
Top Investment Pockets
Market Ecosystem
Market Attractiveness Index, 2024
PESTEL Analysis
Macro-Economic Indicators
Value Chain Analysis
Pricing Analysis
Patent Analysis
Regulatory Analysis
Technology Analysis
Case Studies

Global Conversational Artificial Intelligence (AI) Market Size by Offering & CAGR (2025-2032)

Market Overview
Software
- Software By Technology
- ML
- NLP
- ASR
- Data mining
- Software By Modality
- Text
- Speech
- Multimodal
- Deployment Mode
- On-premises
- Cloud
Services
- Professional Services
- Consulting & advisory services
- Integration & deployment services
- Support & maintenance services
- Training & education services
- Managed Services

Global Conversational Artificial Intelligence (AI) Market Size by Business Function & CAGR (2025-2032)

Market Overview
Sales & Marketing
- Contact Center Automation
- Branding & Advertisement
- Campaign Management
- Customer Engagement & Retention
Finance & Accounting
- Virtual Financial Advisors
- Expense Tracking & Reporting
- Data Privacy & Compliance Management
- Automated Invoice Processing
Operations & Supply Chain
- Workflow Optimization
- Scheduling & Routing
- Inventory Management
- Vendor Management
Human Resources (HR)
- Employee Engagement & Onboarding
- Performance Management
- Document Management
- Recruitment Assistants & Screening
IT Service Management (ITSM)
- Incident Management
- Cost Optimization
- Query Handling
- Knowledge Management

Global Conversational Artificial Intelligence (AI) Market Size by Conversational Agent Type & CAGR (2025-2032)

Market Overview
AI Chatbots
Voice Bots
Interactive Voice Assistants (IVA)
Generative AI Agents

Global Conversational Artificial Intelligence (AI) Market Size by Integration Mode & CAGR (2025-2032)

Market Overview
Internal Enterprise Systems
- CRM
- KBS
External Communication Channels
- Mobile Apps
- IVR Systems
- Messaging Services/Platforms
- Websites

Global Conversational Artificial Intelligence (AI) Market Size by Vertical & CAGR (2025-2032)

Market Overview
BFSI
- Automated Customer Support
- Virtual Financial Assistants
- Portfolio Management
- Voice-Based Digital Banking
- Others
Retail & Ecommerce
- Voice Commerce
- Personalized Recommendations
- In-Store Assistance
- Automated Surveys
- Automated Order Tracking & Updates
- Others
Education
- Admission Query Resolution
- Administrative Task Automation
- Virtual Learning/Course Assistants
- Personalized Learning Support
- Conversational Campus
- Others
Media & Entertainment
- Content Personalization
- Personalized Content Delivery
- Immersive Conversational Gaming
- Advertising & Promotions
- Content Localization And Translation
- Others
Healthcare & Life Sciences
- Automated Appointment Booking
- Patient Engagement & Follow-Ups
- Self-Health Management
- Health Tracking & Medication Management
- Symptom Assessment & Triage Management
- Others
Travel & Hospitality
- Virtual Travel Assistance
- Personalized Travel Planning
- Conversational Check-Ins
- Voice-Based Bookings/Orderings
- Others
Automotive
- Virtual Car Showroom Assistants
- AI-Powered Navigation and Route Optimization
- Purchase Assistance
- AI-Driven Predictive Maintenance
- Vehicle Configuration & Customization
- Others
IT/ ITEs
- IT Helpdesk Support & Troubleshooting
- Software & Application Support
- Project Management & Task Tracking
- Virtual IT Procurement Assistants
- IT Security Incident Response & Threat Intelligence Analysis
- Others
Government & Defense
- E-Governance Services
- Public Safety Information Dissemination
- Virtual Training Assistants for Defense Personnel
- Citizen Engagement Surveys & Feedback Collections
- Others
Other Verticals

Global Conversational Artificial Intelligence (AI) Market Size & CAGR (2025-2032)

North America (Offering, Business Function, Conversational Agent Type, Integration Mode, Vertical)
- US
- Canada
Europe (Offering, Business Function, Conversational Agent Type, Integration Mode, Vertical)
- Germany
- Spain
- France
- UK
- Italy
- Rest of Europe
Asia Pacific (Offering, Business Function, Conversational Agent Type, Integration Mode, Vertical)
- China
- India
- Japan
- South Korea
- Rest of Asia-Pacific
Latin America (Offering, Business Function, Conversational Agent Type, Integration Mode, Vertical)
- Brazil
- Rest of Latin America
Middle East & Africa (Offering, Business Function, Conversational Agent Type, Integration Mode, Vertical)
- GCC Countries
- South Africa
- Rest of Middle East & Africa

Competitive Intelligence

Top 5 Player Comparison
Market Positioning of Key Players, 2024
Strategies Adopted by Key Market Players
Recent Developments in the Market
Company Market Share Analysis, 2024
Company Profiles of All Key Players
- Company Details
- Product Portfolio Analysis
- Company's Segmental Share Analysis
- Revenue Y-O-Y Comparison (2022-2024)

Key Company Profiles

Google, LLC (U.S.)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments
Microsoft (U.S.)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments
IBM (U.S.)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments
Amazon Web Services, Inc. (U.S.)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments
Baidu (China)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments
Oracle (U.S.)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments
SAP SE (Germany)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments
FIS (U.S.)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments
Artificial Solutions (Sweden)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments
Kore.ai, Inc. (U.S.)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments
Conversica, Inc. (U.S.)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments
Inbenta Holdings Inc. (U.S.)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments
Creative Virtual Ltd. (U.S.)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments
SoundHound AI, Inc. (U.S.)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments
Avaamo (U.S.)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments
Cisco Systems, Inc. (U.S.)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments
Kasisto (U.S.)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments
Gupshup (U.S.)
- Company Overview
- Business Segment Overview
- Financial Updates
- Key Developments

Conversational Artificial Intelligence Market Size, Share, and Growth Analysis, By Offering, By Business Function, By Conversational Agent Type, By Integration Mode, By Vertical, By Region - Industry Forecast 2025-2032