USD 7.8 billion
Conversational Artificial Intelligence (AI) Market Size, Share, Growth Analysis, By Component(Solutions, Services), By Technology(Machine Learning, Deep Learning, Natural Language Processing, Automated Speech Recognition), By Deployment(On-premises, Cloud), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45F2072 |
Region:
Global |
Published Date: August, 2024
Pages:
157
|Tables:
88
|Figures:
76
Conversational Artificial Intelligence (AI) Market Insights
Global Conversational Artificial Intelligence (AI) Market size was valued at USD 7.8 Billion in 2022, and is projected to rise from USD 9.5 Billion in 2023 to reach USD 48.81 Billion by 2031, growing at a CAGR of 22.60% in the forecast period (2024-2031).
Conversational artificial intelligence (AI) refers to AI models that can interact and respond to human input or queries. Advancements in artificial intelligence technologies and growing use of AI models for several user-based applications are contributing to the high market growth. Increasing acceptance of AI in multiple applications and growing demand for better human-machine interaction across various industry verticals are also estimated to bolster conversational artificial intelligence (AI) market development in the future. High use of AI-powered customer support and growing demand for automation around the world are also projected to boost the demand for conversational artificial intelligence (AI) going forward. However, challenges in understanding complex queries, data privacy issues, and resistance to adoption are slated to impede conversational artificial intelligence (AI) market growth potential in the long run.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Chatbots
Fastest Growth
Chatbots
Growth Rate
22.60% CAGR
Global Conversational AI Market ($ Bn)
Country Share for North America Region (%)
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Conversational Artificial Intelligence (AI) Market Segmental Analysis
The global conversational artificial intelligence (AI) market is segmented based on component, deployment, technology and regional type. In terms of components, the market is bifurcated into platform and services. Based on deployment, the market is divided into cloud and on-premises. Based on technology, the market is grouped into Machine Learning, deep learning, NLP and automated speech recognition. Based on region, the market is segmented into North America, Europe, Asia Pacific, Central & South America and Middle East & Africa. The continuous development of helps to expand the component.
Analysis by Deployment Mode
Cloud-based conversational artificial intelligence (AI) solutions are projected to account for a dominant share of the global market. Easy deployment and low costs are key benefits that allow this segment to remain popular among users. Advancements in cloud technologies and subscription-based models are also contributing to the high popularity of cloud-based conversational AI models.
On the other hand, the demand for on-premises deployment of conversational AI solutions is projected to increase at a rapid pace over the coming years. Enterprises that focus on data security and want more control of their AI models are projected to contribute to the market growth via this segment.
Analysis by Technology
Machine learning is estimated to account for a prominent chunk of the global conversational artificial intelligence (AI) market share. This technology helps AI models break down inputs to generate appropriate output and responses. Machine learning can also help AI models adapt better to users and create a personalized experience as well. Machine learning is also crucial in improving AI algorithms to keep the AI model updated with current trends.
On the other hand, the demand for natural language processing technology is slated to increase at a robust pace over the coming years. This technology helps AI models better understand the queries of user and improve human-machine interaction capabilities as well. Rising use of conversational AI models for customer support is projected to help this segment boost market growth in the future.
Global Conversational AI Market By Type
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Conversational Artificial Intelligence (AI) Market Regional Insights
High acceptance and rapid adoption of advanced technologies are making North America the leading market for conversational artificial intelligence (AI) companies. Growing number of organizations in this region are focusing on automation of their business, which is also boosting conversational artificial intelligence (AI) adoption in this region. Rising use of conversational AI models in healthcare industry is also creating new opportunities for conversational artificial intelligence (AI) companies in this region. Canada and the United States will be the top markets for conversational artificial intelligence (AI) providers in this region.
Rapidly increasing e-commerce activity and growing emphasis on improving customer support are projected to make the Asia Pacific region a highly opportune one going forward. India, China, and Japan are slated to be the key markets for conversational artificial intelligence (AI) companies in this region. Rising awareness regarding benefits of artificial intelligence and increasing acceptance of the same will also create new business scope for conversational artificial intelligence (AI) providers in the long run.
Global Conversational AI Market By Region
- Largest
- Fastest
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Conversational Artificial Intelligence (AI) Market Dynamics
Drivers
Demand for AI Customer Support
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Organizations around the world are focusing on improving their customer support and they are doing it by opting for automation using conversational AI models. Round the clock support and better response times with reduced errors are key benefits of AI-powered customer support driving market growth.
Advancements in Natural Language Processing (NLP)
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Natural language processing technology is advancing continually, and this has resulted in the development of better and more capable conversational AI models. New conversational AI models with advanced NLP technology are more capable of providing better responses and better human interaction capabilities.
Restraints
Complex Query Issues
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Artificial intelligence is highly advanced but conversational AI models are still struggling with complex queries. Improper responses or inaccurate output in response to complex queries is a common issue that hinders adoption of conversational artificial intelligence (AI) on a global level.
Resistance to Adoption
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Conversational artificial intelligence (AI) is faced with high resistance to adoption in multiple applications owing to concerns regarding its reliability and trustworthiness. These concerns need to be addressed to reduce resistance to adoption, which stands as a major constraint for global market development.
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Conversational Artificial Intelligence (AI) Market Competitive Landscape
Conversational artificial intelligence (AI) providers should focus on developing and launching new solutions to stay competitive in the market. Utilization of advanced AI algorithms will also be a prime area of interest for all conversational artificial intelligence (AI) companies going forward. Companies can also explore new applications for their offerings to maximize their business scope in the long run. Addressing reliability and data privacy concerns should be the primary target of all conversational AI companies to help unlock the full growth potential of the market.
Top Player’s Company Profiles
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Google, LLC (U.S.)
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Microsoft (U.S.)
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IBM (U.S.)
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Amazon Web Services, Inc. (U.S.)
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Baidu (China)
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Oracle (U.S.)
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SAP SE (Germany)
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FIS (U.S.)
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Artificial Solutions (Sweden)
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Kore.ai, Inc. (U.S.)
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Conversica, Inc. (U.S.)
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Inbenta Holdings Inc. (U.S.)
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Creative Virtual Ltd. (U.S.)
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SoundHound AI, Inc. (U.S.)
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Avaamo (U.S.)
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Jio Haptik Technologies Limited (India)
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Solvvy (U.S.)
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Cisco Systems, Inc. (U.S.)
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Kasisto (U.S.)
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Gupshup (U.S.)
Recent Developments
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In August 2024, Catipult.Ai announced the launch of a new conversational AI model called Aida designed specifically for business coaches. The new model leverages OpenAI’s APIs to provide conversational intelligence and uses a proprietary data library.
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Hume AI, a new company based in United States focused on developing novel AI solutions announced the launch of a new conversational voice AI in April 2024. The new AI model also featured emotional intelligence to promote the emotional well-being of its users.
Conversational Artificial Intelligence (AI) Key Market Trends
- Sentiment Analysis and Emotional Intelligence: Conversational AI companies should invest in developing better sentiment analysis and emotional intelligence capabilities for their AI models. AI solutions that can understand human emotions and recognize sentiments through voice input will make them more human-like and promote market growth in the long run.
Conversational Artificial Intelligence (AI) Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the growing popularity of AI solutions and rising use of AI in customer support are projected to bolster the demand for conversational artificial intelligence (AI) over the coming years. However, data privacy concerns and incorrect response for complex queries are projected to hamper market growth in the future. North America is slated to hold a dominant market share owing to high adoption of conversational AI models by businesses in this region and presence of key conversational artificial intelligence (AI) providers. Developing conversational artificial intelligence (AI) models with better emotional intelligence capabilities will pay off big time for conversational artificial intelligence (AI) companies in the long run.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 7.8 Billion |
| Market size value in 2031 | USD 48.81 Billion |
| Growth Rate | 22.60% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered | ’s Company Profiles
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Conversational Artificial Intelligence (AI) Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Conversational Artificial Intelligence (AI) Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Conversational Artificial Intelligence (AI) Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Conversational Artificial Intelligence (AI) Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Conversational Artificial Intelligence (AI) Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Conversational Artificial Intelligence (AI) Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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