Conversational Systems Global Market Report 2025

Description

Conversational systems are computer programs specifically designed to mimic human-such as conversations with users through natural language. These systems are utilized to offer informed responses and assistance, facilitating direct channel interaction with the aim of guiding interactions and potentially providing real-time support.

The primary components found within conversational systems include compute platforms, solutions, and services. A compute platform serves as the data environment where software implementation takes place, with deployment options available for on-premise setups and large enterprises. These platforms support various applications such as customer support and personal assistants, branding and advertisement, data privacy and compliance, among others. End users span across sectors including banking, financial services, and insurance (BFSI), media and entertainment, retail and e-commerce, travel and hospitality, telecommunications, health and life sciences, and other verticals.

The conversational systems market research report is one of a series of new reports from The Business Research Company that provides conversational systems market statistics, including conversational systems industry global market size, regional shares, competitors with a conversational systems market share, detailed conversational systems market segments, market trends and opportunities, and any further data you may need to thrive in the conversational systems industry. This conversational systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The conversational systems market size has grown exponentially in recent years. It will grow from $19.21 billion in 2024 to $24.97 billion in 2025 at a compound annual growth rate (CAGR) of 30.0%. The growth in the historic period can be attributed to breakthrough research publications, foundational patents, regulatory approvals for research, genome editing milestones, media coverage and public awareness.

The conversational systems market size is expected to see exponential growth in the next few years. It will grow to $71.53 billion in 2029 at a compound annual growth rate (CAGR) of 30.1%. The growth in the forecast period can be attributed to therapeutic success stories, global healthcare spending, commercialization strategies, bioinformatics and data analytics, patient advocacy and awareness. Major trends in the forecast period include expanded therapeutic applications, customized Crispr platforms, increased clinical trials, regulatory framework maturation, multiplex gene editing advances.

The increasing demand for customer engagement is expected to propel the growth of the conversational systems market going forward. Customer engagement refers to the ongoing interactions and relationship between businesses and their customers, fostering loyalty and satisfaction. Conversational systems, such as chatbots and virtual assistants, are employed to facilitate two-way dialogues with customers, providing support, answering queries, and offering personalized recommendations. For example, in January 2024, the International Trade Administration, an Australia-based government agency, reported that the digital advertising market grew by 18% from 2022, reaching US$12.6 billion in 2023. With search advertising projected to account for US$5.7 billion of this total in 2023, the growth in digital advertising highlights the importance of customer engagement tools like conversational systems. As businesses increasingly prioritize enhancing their customer interactions, the demand for such systems is driving market growth.

Key players in the conversational systems market are actively developing innovative AI advancements such as ChatGPT to harness the potential of conversational AI technology. ChatGPT, based on the GPT-3.5 architecture, is a language model designed to comprehend and generate human-such as text based on input. For instance, in December 2022, OpenAI, a US-based artificial intelligence research organization, introduced ChatGPT, a new conversational AI system focused on natural language processing (NLP) capable of engaging in conversations with users. ChatGPT is adept at generating human-such as text and can be employed for various purposes including language translation, question answering, and text summarization. Noteworthy features of ChatGPT include enhanced natural language processing, seamless integration with diverse technologies, improved interpretability, stringent privacy and security measures, and support for voice and image capabilities.

In January, 2023, Insider Inc., a US-based online media company, acquired Mind Behind to bolster its capabilities in delivering end-to-end shopping experiences for brands and retailers. This strategic acquisition positions Insider to offer personalized support and enhance operational efficiency in customer engagement. Mind Behind, a US-based conversational commerce and messaging platform specializing in artificial intelligence (AI) technology, aligns with Insider's vision to elevate customer engagement experiences.

Major companies operating in the conversational systems market report are Amazon Web Services, Inc., Alphabet Inc., Microsoft Corporation, International Business Machines Corporation, Oracle Corporation, SAP SE, Hewlett Packard, Saffron Technology, Baidu, Inc., Snaps, Inc., TTEC Holdings, Inc., Tibco Software, Inbenta Technologies Inc., LivePerson, Inc., Heyday AI Inc., Rasa Technologies GmbH, Avaamo Inc., Solvvy Inc., Pypestream Inc., Rulai, Inc., Kasisto, Inc., ClInc., Inc., True AI Technologies Inc., Suki.AI, Cognigy GmbH

North America was the largest region in the conversational systems market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the conversational systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the conversational systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The conversational systems market consists of revenues earned by entities by providing services such as customer support, personal assistants, branding, and advertising. The market value includes the value of related goods sold by the service provider or included within the service offering. The conversational systems market also includes sales of voice-activated devices, smartphones, smart speakers, and smart displays. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Conversational Systems Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on conversational systems market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for conversational systems ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The conversational systems market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

The market characteristics section of the report defines and explains the market.
The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.

Market segmentations break down the market into sub markets.
The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:1) By Deployment: On-Premise; Large Enterprises
2) By Components: Compute Platforms; Solutions; Services
3) By Application: Customer Support And Personal Assistant; Branding And Advertisement; Data Privacy And Compliance; Other Applications
4) By Verticals: Banking Financial Services And Insurance (BFSI); Media And Entertainment; Retail And Ecommerce; Travel And Hospitality; Telecom; Health And Life Sciences; Other Verticals
Subsegments:
1) By On-Premise: Self-Hosted Solutions; Private Cloud Deployments; Customized In-House Systems
2) By Large Enterprises: Cloud-Based Solutions; Enterprise Resource Planning (ERP) Integrations; Scalable Multi-Tenant Systems
Companies Mentioned: Amazon Web Services Inc; Alphabet Inc; Microsoft Corporation; International Business Machines Corporation; Oracle Corporation
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery format: PDF, Word and Excel Data Dashboard.

Product Code: r27784

1. Executive Summary

2. Conversational Systems Market Characteristics

3. Conversational Systems Market Trends And Strategies

4. Conversational Systems Market - Macro Economic Scenario Including The Impact Of Interest Rates, Inflation, Geopolitics, Covid And Recovery On The Market

5. Global Conversational Systems Growth Analysis And Strategic Analysis Framework

5.1. Global Conversational Systems PESTEL Analysis (Political, Social, Technological, Environmental and Legal Factors, Drivers and Restraints)
5.2. Analysis Of End Use Industries
5.3. Global Conversational Systems Market Growth Rate Analysis
5.4. Global Conversational Systems Historic Market Size and Growth, 2019 - 2024, Value ($ Billion)
5.5. Global Conversational Systems Forecast Market Size and Growth, 2024 - 2029, 2034F, Value ($ Billion)
5.6. Global Conversational Systems Total Addressable Market (TAM)

6. Conversational Systems Market Segmentation

6.1. Global Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Compute Platforms
Solutions
Services
6.2. Global Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
On-Premise
Large Enterprises
6.3. Global Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Customer Support And Personal Assistant
Branding And Advertisement
Data Privacy And Compliance
Other Applications
6.4. Global Conversational Systems Market, Segmentation By Verticals, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Banking Financial Services And Insurance (BFSI)
Media And Entertainment
Retail And Ecommerce
Travel And Hospitality
Telecom
Health And Life Sciences
Other Verticals
6.5. Global Conversational Systems Market, Sub-Segmentation Of On-Premise, By Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Self-Hosted Solutions
Private Cloud Deployments
Customized In-House Systems
6.6. Global Conversational Systems Market, Sub-Segmentation Of Large Enterprises, By Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Cloud-Based Solutions
Enterprise Resource Planning (ERP) Integrations
Scalable Multi-Tenant Systems

7. Conversational Systems Market Regional And Country Analysis

7.1. Global Conversational Systems Market, Split By Region, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
7.2. Global Conversational Systems Market, Split By Country, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

8. Asia-Pacific Conversational Systems Market

8.1. Asia-Pacific Conversational Systems Market Overview
Region Information, Market Information, Background Information, Government Initiatives, Regulations, Regulatory Bodies, Major Associations, Taxes Levied, Corporate Tax Structure, Investments, Major Companies
8.2. Asia-Pacific Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
8.3. Asia-Pacific Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
8.4. Asia-Pacific Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

9. China Conversational Systems Market

9.1. China Conversational Systems Market Overview
9.2. China Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F,$ Billion
9.3. China Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F,$ Billion
9.4. China Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F,$ Billion

10. India Conversational Systems Market

10.1. India Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
10.2. India Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
10.3. India Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

11. Japan Conversational Systems Market

11.1. Japan Conversational Systems Market Overview
11.2. Japan Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
11.3. Japan Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
11.4. Japan Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

12. Australia Conversational Systems Market

12.1. Australia Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
12.2. Australia Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
12.3. Australia Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

13. Indonesia Conversational Systems Market

13.1. Indonesia Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
13.2. Indonesia Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
13.3. Indonesia Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

14. South Korea Conversational Systems Market

14.1. South Korea Conversational Systems Market Overview
14.2. South Korea Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
14.3. South Korea Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
14.4. South Korea Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

15. Western Europe Conversational Systems Market

15.1. Western Europe Conversational Systems Market Overview
15.2. Western Europe Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
15.3. Western Europe Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
15.4. Western Europe Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

16. UK Conversational Systems Market

16.1. UK Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
16.2. UK Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
16.3. UK Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

17. Germany Conversational Systems Market

17.1. Germany Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
17.2. Germany Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
17.3. Germany Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

18. France Conversational Systems Market

18.1. France Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
18.2. France Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
18.3. France Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

19. Italy Conversational Systems Market

19.1. Italy Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
19.2. Italy Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
19.3. Italy Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

20. Spain Conversational Systems Market

20.1. Spain Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
20.2. Spain Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
20.3. Spain Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

21. Eastern Europe Conversational Systems Market

21.1. Eastern Europe Conversational Systems Market Overview
21.2. Eastern Europe Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
21.3. Eastern Europe Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
21.4. Eastern Europe Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

22. Russia Conversational Systems Market

22.1. Russia Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
22.2. Russia Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
22.3. Russia Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

23. North America Conversational Systems Market

23.1. North America Conversational Systems Market Overview
23.2. North America Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
23.3. North America Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
23.4. North America Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

24. USA Conversational Systems Market

24.1. USA Conversational Systems Market Overview
24.2. USA Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
24.3. USA Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
24.4. USA Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

25. Canada Conversational Systems Market

25.1. Canada Conversational Systems Market Overview
25.2. Canada Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
25.3. Canada Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
25.4. Canada Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

26. South America Conversational Systems Market

26.1. South America Conversational Systems Market Overview
26.2. South America Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
26.3. South America Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
26.4. South America Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

27. Brazil Conversational Systems Market

27.1. Brazil Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
27.2. Brazil Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
27.3. Brazil Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

28. Middle East Conversational Systems Market

28.1. Middle East Conversational Systems Market Overview
28.2. Middle East Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
28.3. Middle East Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
28.4. Middle East Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

29. Africa Conversational Systems Market

29.1. Africa Conversational Systems Market Overview
29.2. Africa Conversational Systems Market, Segmentation By Components, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
29.3. Africa Conversational Systems Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
29.4. Africa Conversational Systems Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion

30. Conversational Systems Market Competitive Landscape And Company Profiles

30.1. Conversational Systems Market Competitive Landscape
30.2. Conversational Systems Market Company Profiles
- 30.2.1. Amazon Web Services Inc Overview, Products and Services, Strategy and Financial Analysis
- 30.2.2. Alphabet Inc Overview, Products and Services, Strategy and Financial Analysis
- 30.2.3. Microsoft Corporation Overview, Products and Services, Strategy and Financial Analysis
- 30.2.4. International Business Machines Corporation Overview, Products and Services, Strategy and Financial Analysis
- 30.2.5. Oracle Corporation Overview, Products and Services, Strategy and Financial Analysis

31. Conversational Systems Market Other Major And Innovative Companies

31.1. SAP SE
31.2. Hewlwtt packard
31.3. Saffron Technology
31.4. Baidu Inc
31.5. Snaps, Inc.
31.6. TTEC Holdings Inc.
31.7. Tibco Software
31.8. Inbenta Technologies Inc.
31.9. LivePerson Inc.
31.10. Heyday AI Inc.
31.11. Rasa Technologies GmbH
31.12. Avaamo Inc.
31.13. Solvvy Inc.
31.14. Pypestream Inc.
31.15. Rulai, Inc.

32. Global Conversational Systems Market Competitive Benchmarking And Dashboard

33. Key Mergers And Acquisitions In The Conversational Systems Market

34. Recent Developments In The Conversational Systems Market

35. Conversational Systems Market High Potential Countries, Segments and Strategies

35.1 Conversational Systems Market In 2029 - Countries Offering Most New Opportunities
35.2 Conversational Systems Market In 2029 - Segments Offering Most New Opportunities
35.3 Conversational Systems Market In 2029 - Growth Strategies
- 35.3.1 Market Trend Based Strategies
- 35.3.2 Competitor Strategies

36. Appendix

36.1. Abbreviations
36.2. Currencies
36.3. Historic And Forecast Inflation Rates
36.4. Research Inquiries
36.5. The Business Research Company
36.6. Copyright And Disclaimer