USD 10.26 Billion
Conversational Systems Market Size, Share, Growth Analysis, By Component(Compute Platforms, Solutions, and Services), By Type(Text Assistant, Voice Assisted, and Others), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45H2047 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|Tables:
63
|Figures:
65
Conversational Systems Market Insights
Conversational Systems Market size was valued at USD 13.13 billion in 2022 and is poised to grow from USD 16.8 billion in 2023 to USD 121.1 billion by 2031, growing at a CAGR of 28% during the forecast period (2024-2031).
The conversational systems market is a rapidly growing segment within the broader field of artificial intelligence and technology-enabled communication. These systems, often powered by natural language processing (NLP) and machine learning, enable interactive and human-like conversations between computers and users. They find extensive applications in customer support, virtual assistants, chatbots, and even language translation services.
The market's expansion is driven by several factors. Firstly, businesses are increasingly adopting conversational systems to enhance customer experiences, streamline communication, and reduce operational costs. Secondly, advancements in NLP and AI technologies have improved the accuracy and capabilities of these systems, making them more effective and responsive. Thirdly, the proliferation of messaging apps and the desire for personalized and instant interactions are creating a demand for intelligent conversational solutions.
The regional landscape is dynamic, with North America leading due to technological advancements and early adoption. However, the Asia-Pacific region, with its growing tech-savvy population and expanding e-commerce markets, is also a significant contributor to the market's growth.
As businesses across industries seek to leverage the benefits of conversational systems to engage customers and optimize operations, the conversational systems market is poised for continuous expansion, innovation, and integration into various aspects of our digital lives.
US Conversational Systems Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Computer Platforms
Fastest Growth
Compute Platforms
Growth Rate
28% CAGR
Global conversational systems market ($ Bn)
Country Share for North America Region (%)
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Conversational Systems Market Segmental Analysis
The Global Conversational Systems Market is segmented by Component, Type, Application, End-use, and Regional. We are analyzing the market of these segments to identify which segment is the largest now and in the future, which segment has the highest growth rate, and the segment which offers the opportunity in the future. Based on Component the market is segmented as, Compute Platforms, Solutions, and Services. Based on Type the market is segmented as, Text Assistant, Voice Assisted, Others. Based on Application the market is segmented as, Branding & Advertising, Customer Support & Personal Assistant, Data Privacy & Compliance, Others. Based on End-use the market is segmented as, BFSI, Healthcare & Life Sciences, Media & Entertainment, Retail & E-commerce, Telecommunication, Travel & Hospitality, Others. Based on Regional the market is segmented as, North America, Asia Pacific, and Latin America.
Conversational Systems Market Analysis By Component
In 2022, the computer platforms segment emerged as the dominant force, capturing over 50% of the global revenue in the conversational systems market. The widespread adoption of voice assistants for interacting with computing systems has spurred numerous application developers to prioritize this vital functionality. Vendors are strategically focusing on delivering tailored text and voice interfaces on computer platforms. The appeal of this platform lies in its user-friendly nature, enabling agents to adeptly respond to evolving conversation dynamics.
Over the forecast period, the services segment is expected to experience the highest growth trajectory. As customer expectations evolve, businesses are embracing conversational services to provide immediate and high-quality support across diverse channels and languages, meeting their preferences. The rising global demand for superior customer services will likely drive the adoption of conversational services, further solidifying its growth potential.
Conversational Systems Market Analysis By Type
In 2022, the text assistant segment dominated the market, commanding over 60% of the global revenue. Text-assisted conversational systems employ a combination of graphs, Graphics Interchange Format (GIF) files, and text messages to engage with customers. Numerous online platforms, including chatbots, personal assistants, and live streaming solutions, rely on text as a primary medium for client interaction. These systems offer effective integration of accessible tools such as prompts, user text instructions, and user dictionaries, empowering representatives to enhance and model text output applications through easy data optimization.
Over the forecast period, the voice-assisted segment is poised to experience the most significant growth. Businesses widely employ voice-assisted conversational systems to identify words or phrases in user-spoken languages and convert that data into machine-readable formats. These AI-powered voice-assisted systems find applications in sales support, product marketing, and customer service. Advancements like powerful tuning tools, customizable voices, and multi-language capabilities are enhancing productivity, creating growth opportunities for the voice-assisted segment in the foreseeable future.
Global conversational systems market By Component
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Conversational Systems Market Regional Insights
In 2022, the North American region asserted its dominance in the market, contributing to over 30% of the global revenue share. The United States is a primary adopter of conversational systems within North America, leveraging deep learning, machine learning, and AI technologies as integral components of its business processes, leading to a competitive edge. The presence of global industry giants, such as IBM Corporation, Google LLC, Microsoft Corporation, and Amazon Web Services, Inc., significantly drives the widespread implementation of conversational system platforms in the region.
The Asia Pacific region is poised to emerge as the fastest-growing market over the forecast period. This growth is driven by the increasing technology adoption rates in emerging economies, notably China and India. The region's rising demand for smartphones presents valuable growth opportunities. Many small and medium enterprises in the Asia Pacific have begun integrating conversational systems into their business operations to effectively engage customers, generating more leads and enhancing their market presence.
Global conversational systems market By Geography
- Largest
- Fastest
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Conversational Systems Market Dynamics
Conversational Systems Market Drivers
Growing Demand for Enhanced Customer Experience:
- Businesses are increasingly leveraging conversational systems to provide seamless, personalized, and real-time interactions with customers, thereby enhancing customer satisfaction and loyalty.
Advancements in AI and NLP Technologies:
- Continuous improvements in artificial intelligence (AI) and natural language processing (NLP) technologies have expanded the capabilities of conversational systems, making them more sophisticated, accurate, and capable of understanding context, leading to wider adoption.
Conversational Systems Market Restraints
Privacy and Data Security Concerns:
- The collection and processing of user data for conversational systems raise privacy and security concerns. Striking the right balance between providing personalized experiences and ensuring data protection can be challenging.
Integration Challenges:
- Integrating conversational systems with existing IT infrastructure, databases, and applications can be complex, leading to implementation difficulties for some businesses.
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Conversational Systems Market Competitive Landscape
The competitive landscape of the conversational systems market is dynamic and evolving, driven by the increasing demand for advanced AI-driven communication solutions. Established tech giants like IBM Corporation, Google LLC, Microsoft Corporation, and Amazon Web Services, Inc., play a pivotal role, offering comprehensive platforms with robust AI capabilities. These companies not only compete for market share but also influence the direction of innovation through their research and development efforts. The competitive race extends beyond technology prowess, involving strategic partnerships, integrations, and expanding customer bases. Companies aim to provide seamless user experiences, improve response accuracy, and create value-added services. Additionally, addressing privacy concerns, data security, and compliance with regulatory standards are crucial elements of competition in this market, particularly as customers become more cautious about data usage.
Conversational Systems Market Top Player’s Company Profile
- Amazon Web Services, Inc.
- Artificial Solutions
- Baidu, Inc.
- Conversica, Inc.
- Google LLC
- IBM Corporation
- Microsoft Corporation
- Nuance Communications, Inc.
- Oracle Corporation
- SAP SE
Conversational Systems Market Recent Developments
- November 2022: Moveworks, a pioneer in corporate conversational AI, partnered with Wipro Ltd, a renowned technology services and consulting firm. Due to the partnership's collaborative solutions, customers may turn their IT departments from cost centers to strategic assets. These collaborative solutions offer a scalable, cost-effective IT solution that enhances operational efficiency and employee happiness.
- May 2022: DRUID, a global leader in conversational artificial intelligence (AI) technology for enterprise productivity, and BARQ Systems, one of the leading regional IT services providers serving business and government clients in the Middle East and Africa (MEA), announced a partnership to accelerate digital transformation and RPA implementations in the region. The combination of the two organizations' team expertise, strengths, and portfolios would provide measurable value to businesses in the public sector, enterprise, finance, insurance, health industry, and services.
Conversational Systems Key Market Trends
- Omnichannel Integration: Businesses are increasingly adopting conversational systems to enable seamless interactions across various channels, including websites, mobile apps, social media platforms, and messaging apps. This trend ensures consistent customer experiences and streamlines communication.
Conversational Systems Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Component types team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global conversational systems market analysis, The conversational systems market is experiencing rapid growth, driven by the demand for enhanced customer interactions and automation across various industries. The text assistant segment dominated the market, utilizing text messages and graphical elements for customer engagement. The voice-assisted segment is expected to witness significant growth, catering to voice interactions, especially in applications like sales support and customer service.
Regionally, North America leads the market, with the U.S. as a major adopter, leveraging advanced AI technologies. The presence of global vendors like IBM, Google, Microsoft, and Amazon significantly contributes to the market's development in this region. Meanwhile, the Asia-Pacific market is poised for the fastest growth, spurred by increasing technology adoption in emerging economies, particularly China and India. The rising demand for smartphones and the integration of conversational systems by small and medium enterprises for customer engagement drive the market's expansion. Overall, conversational systems are a transformative force, providing personalized interactions and automation in the digital age.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 10.26 Billion |
| Market size value in 2031 | USD 94.63 billion |
| Growth Rate | 28% |
| 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 |
|
| 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 Systems 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 Systems 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 Systems 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 Systems 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 Systems Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Conversational Systems 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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