Conversational Artificial Intelligence (AI) Market: Global Industry Trends and Forecast to 2027.

Conversational Artificial Intelligence (AI) Market was valued at US$ 5.8 Bn. in 2020 and is expected to reach US$ 22.05 Bn. by 2027, at a CAGR of 21.02% during a forecast period.

Conversational Artificial Intelligence (AI) Market Overview:

The conversational Artificial Intelligence (AI) Market was valued at US$ 5.8 Bn. in 2020. The market's growth is being fueled by technological advancements and innovations in the field of artificial intelligence. There are a number of conversational AI solution providers on the market who specialize in developing catboats and virtual assistants using open platforms with limited user-specific features. Other factors driving the market's growth include the increased adoption of Omnichannel deployment methodologies and the low cost of Chabot applications. The conversational AI industry is being propelled ahead by rising demand for AI-powered customer support services, Omnichannel adoption, and decreased Chabot development costs. Furthermore, rising demand for AI-based Chatbots to stay connected and informed, as well as a growing focus on customer engagement, are key factors adding value to conversational AI offerings, which is expected to provide opportunities for companies in various verticals in the conversational AI market during COVID-19. Conversational Artificial Intelligence (AI) Market To know about the Research Methodology :- Request Free Sample Report

Conversational AI Market Definition:

Conversational AI is concerned with the use of speech-based help, Chabot’s to automate conversation, messaging apps, and the personalization of consumer experiences. Conversational AI is a type of AI that enables individuals to engage with programmers, websites, and devices on a daily basis using voice, text, touch, or gesture information. It is crucial in open conversations and activities involving personal support. By merging natural language understanding (NLU) with machine learning (ML) in AI applications, businesses can grow exponentially with clear information. The report has covered the market trends from 2016 to forecast the market through 2027. 2020 is considered a base year. Special attention is given to 2020 and the effect of lockdown on the demand and supply, and also the impact of lockdown for the next two years on the market. Some companies have done well in lockdown also and specific strategic analysis of those companies is done in the report.

COVID-19 impact on the Conversational AI market:

Many organizations suffered a large rise in consumer pressure during the epidemic, but their number of available personnel was reduced. Many contact centers were unable to meet demand or were forced to close due to lockdown restrictions, resulting in high wait times for customer support queries and a negative impact on the customer experience. Businesses are taking a more strategic approach to their continuing operations, bringing flexibility and scalability to their operations. Conversational AI is rising to the forefront of technology enablement while also aiming to improve operational efficiencies. For example, at the height of the pandemic's first wave, the Norwegian Labor and Welfare Administration automated over 270,000 enquiries, with a success rate of over 80%.

Global Conversational Artificial Intelligence (AI) Market Dynamics:

Increasing demand for AI-powered customer support services: Customer service used to mean customers seeking assistance via call centers, websites, emails, and apps. Organizations are now using conversational AI solutions to provide effective customer support, thanks to breakthroughs in AI technology. Enterprises' attention has turned away from offering customer care via emails or messages and toward AI-powered Chabot’s that help them improve customer experience and engagement. AI-powered Chabot’s uses natural language processing (NLP) to perform human-like conversations and provide real-time help to clients. They let businesses collect data on customer preferences, opinions, and purchase behaviors, allowing them to make proactive recommendations and provide more personalized experiences based on their account activity. AI-enabled Order placement, balance inquiries, general queries, technical assistance, and other customer services can all be automated with Chabot’s and virtual agents. Lack of awareness about conservational AI solutions: Conversational AI solutions are becoming more popular across industries because they provide a variety of benefits, such as content consumption, customer service, and other productive interaction models. Consumers, on the other hand, are unfamiliar with Chabot’s, virtual assistants, and digital personal assistants, as well as their benefits. India and Brazil, for example, are the largest smartphone consumers, but their knowledge of the benefits of technology is lower than in industrialized nations such as Europe and North America. Furthermore, according to a recent Hub Spot poll, consumer knowledge of AI is only 37%, and over 63 % are unaware that they are already employing AI technologies. Conversational Artificial Intelligence (AI) Market 1 Lack of accuracy in Chabot’s and virtual assistants: There are various conversational AI solution providers on the market who employ open platforms with limited user-specific attributes to construct Chabot’s and virtual assistants. An API is intended for general use and does not include any specific functionality. As a result, bots created using generalist APIs may fall short of the required accuracy standards. Chabot’s and virtual assistants can only respond to queries that are kept in a database since their responses are designed with a certain set of instructions. The ideal conversational AI interface would provide responses in such a way that a user would be impossible to tell whether they were speaking with a human or a virtual assistant.

Global Conversational Artificial Intelligence (AI) Market segment analysis:

Based on component, service segment held the largest market share of xx% in2 020. Conversational AI solutions rely heavily on the services segment to work properly. Solution and service providers handle these services, which are an important part of adopting technology solutions. The demand for conversational AI solutions is growing across major verticals such as BFSI, media and entertainment, and travel and hospitality, as customers expect better customer service. Based on type, Due to the increased need for AI-powered Chabot’s that evaluate client insights in real-time, the Chabot’s category is expected to have a greater market size. The projects can employ AI-based Chabot’s to study user behavior, purchase habits, and preferences over time and, as a result, respond to enquiries. Conversational Artificial Intelligence (AI) Market 2 Based on technology, Because of the increased demand for automated communication and individualized consumer experiences, the Machine Learning and Deep Learning segment is expected to grow at the fastest rate over the forecast period. Based on vertical, throughout the forecast period, the retail and ecommerce industry will grow at the fastest CAGR. Customer loyalty, retention, enhanced conversion rate, and reduced shopping cart abandonment are all benefits of superior consumer service in the retail and ecommerce industries. To meet the demand for tech-savvy consumers, the vertical must develop customer engagement methods. Because of the tremendous growth of mobile subscribers, ecommerce has become increasingly important in the retail and ecommerce industries. It improves the customer experience, employee productivity, and the general operation of the company. Conversational Artificial Intelligence (AI) Market 3

Global Conversational Artificial Intelligence (AI) Market Regional Insight:

The North America region held largest market share of xx% in 2020. The increasing demand for improving customer support services to boost client retention activities is a key driver influencing the growth of the conversational AI market in North America. Furthermore, the growing number of companies across various geographies is projected to propel the conversational AI market forward. During the forecast period, the APAC region is expected to grow at the fastest rate. Moreover, during the projection period, the conversational AI market is likely to see significant developments and acceptance of solutions across the APAC region. During the projected period, the European area is also expected to be the second-largest in terms of market size. In Europe, the increased need to minimise enterprise tasks related to customer engagement and retention is driving the use of conversational AI solutions. Conversational Artificial Intelligence (AI) Market 4 The objective of the report is to present a comprehensive analysis of the global Conversational Artificial Intelligence (AI) market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants. PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers. The report also helps in understanding the global Conversational Artificial Intelligence (AI) market dynamics, structure by analyzing the market segments and projects the global Conversational Artificial Intelligence (AI) market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the global Conversational Artificial Intelligence (AI) market make the report investor’s guide.

Global Conversational Artificial Intelligence (AI) Market Scope: Inquire before buying

Conversational Artificial Intelligence (AI) Market 5

Global Conversational Artificial Intelligence (AI) Market, by Region

• North America • Europe • Asia Pacific • Middle East and Africa • South America

Global Conversational Artificial Intelligence (AI) Market Key Players

• Google • Microsoft • AWS • IBM • Oracle • Nuance • Baidu, Inc • SAP • Artificial Solutions • Kore.AI • Avaamo • Conversica • Haptik • Rasa Technologies GmbH • Solvvy • Pypestream Inc • Inbenta • Rulai, Inc. • Creative Virtual • Saarthi.AI

Frequently Asked Questions:

1. Which region has the largest share in Global Conversational Artificial Intelligence (AI) Market? Ans: North America region holds the highest share in 2020. 2. What is the growth rate of Global Conversational Artificial Intelligence (AI) Market? Ans: The Global Conversational Artificial Intelligence (AI) Market is growing at a CAGR of 21.02% during forecasting period 2021-2027. 3. What segments are covered in Global Conversational Artificial Intelligence (AI) market? Ans: Global Conversational Artificial Intelligence (AI) Market is segmented into component, type, deployment mode, technology, application, vertical and region. 4. Who are the key players in Global Conversational Artificial Intelligence (AI) market? Ans: The important key players in the Global Conversational Artificial Intelligence (AI) Market are – Google, Microsoft, AWS, IBM, Oracle, Nuance, Baidu, Inc, SAP, Artificial Solutions, Kore.AI, Avaamo, Conversica. 5. What is the study period of this market? Ans: The Global Conversational Artificial Intelligence (AI) Market is studied from 2020 to 2027.
1. Global Conversational Artificial Intelligence (AI) Market: Research Methodology 2. Global Conversational Artificial Intelligence (AI) Market: Executive Summary 2.1. Market Overview and Definitions 2.1.1. Introduction to Global Conversational Artificial Intelligence (AI) Market 2.2. Summary 2.2.1. Key Findings 2.2.2. Recommendations for Investors 2.2.3. Recommendations for Market Leaders 2.2.4. Recommendations for New Market Entry 3. Global Conversational Artificial Intelligence (AI) Market: Competitive Analysis 3.1. MMR Competition Matrix 3.1.1. Market Structure by region 3.1.2. Competitive Benchmarking of Key Players 3.2. Consolidation in the Market 3.2.1 M&A by region 3.3. Key Developments by Companies 3.4. Market Drivers 3.5. Market Restraints 3.6. Market Opportunities 3.7. Market Challenges 3.8. Market Dynamics 3.9. PORTERS Five Forces Analysis 3.10. PESTLE 3.11. Regulatory Landscape by region • North America • Europe • Asia Pacific • The Middle East and Africa • Latin America 3.12. COVID-19 Impact 4. Global Conversational Artificial Intelligence (AI) Market Segmentation 4.1. Global Conversational Artificial Intelligence (AI) Market, by Component (2020-2027) • Platform • Services o Training and Consulting o System Integration and Deployment o Support and Maintenance 4.2. Global Conversational Artificial Intelligence (AI) Market, by Type (2020-2027) • Intelligent Virtual Assistants • Chatbots 4.3. Global Conversational Artificial Intelligence (AI) Market, by Technology (2020-2027) • Machine Learning and Deep Learning • Natural Language Processing • Automated Speech Recognition 4.4. Global Conversational Artificial Intelligence (AI) Market, by Deployment mode(2020-2027) • Cloud • On-Premises 4.5. Global Conversational Artificial Intelligence (AI) Market, by Application(2020-2027) • Customer Support • Personal Assistant • Branding and Advertisement • Customer Engagement and Retention • Onboarding and Employee Engagement • Data Privacy and Compliance • Others 4.6. Global Conversational Artificial Intelligence (AI) Market, by Vertical(2020-2027) • Banking, Financial Services, and Insurance • Retail and Ecommerce • Healthcare and Life Sciences • Travel and Hospitality • Telecom • Media and Entertainment 5. North America Conversational Artificial Intelligence (AI) Market(2020-2027) 5.1. North America Conversational Artificial Intelligence (AI) Market, by Component (2020-2027) • Platform • Services o Training and Consulting o System Integration and Deployment o Support and Maintenance 5.2. North America Conversational Artificial Intelligence (AI) Market, by Type (2020-2027) • Intelligent Virtual Assistants • Chatbots 5.3. North America Conversational Artificial Intelligence (AI) Market, by Technology (2020-2027) • Machine Learning and Deep Learning • Natural Language Processing • Automated Speech Recognition 5.4. North America Conversational Artificial Intelligence (AI) Market, by Deployment mode(2020-2027) • Cloud • On-Premises 5.5. North America Conversational Artificial Intelligence (AI) Market, by Application(2020-2027) • Customer Support • Personal Assistant • Branding and Advertisement • Customer Engagement and Retention • Onboarding and Employee Engagement • Data Privacy and Compliance • Others 5.6. North America Conversational Artificial Intelligence (AI) Market, by Vertical(2020-2027) • Banking, Financial Services, and Insurance • Retail and Ecommerce • Healthcare and Life Sciences • Travel and Hospitality • Telecom • Media and Entertainment 5.7. North America Conversational Artificial Intelligence (AI) Market, by Country (2020-2027) • United States • Canada • Mexico 6. European Conversational Artificial Intelligence (AI) Market (2020-2027) 6.1. European Conversational Artificial Intelligence (AI) Market, by Component (2020-2027) 6.2. European Conversational Artificial Intelligence (AI) Market, by Deployment Type (2020-2027) 6.3. European Conversational Artificial Intelligence (AI) Market, by Technology (2020-2027) 6.4. European Conversational Artificial Intelligence (AI) Market, by Deployment mode(2020-2027) 6.5. European Conversational Artificial Intelligence (AI) Market, by Application(2020-2027) 6.6. European Conversational Artificial Intelligence (AI) Market, by vertical(2020-2027) 6.7. European Conversational Artificial Intelligence (AI) Market, by Country (2020-2027) • UK • France • Germany • Italy • Spain • Sweden • Austria • Rest Of Europe 7. Asia Pacific Conversational Artificial Intelligence (AI) Market (2020-2027) 7.1. Asia Pacific Conversational Artificial Intelligence (AI) Market, by Component (2020-2027) 7.2. Asia Pacific Conversational Artificial Intelligence (AI) Market, by Deployment Type (2020-2027) 7.3. Asia Pacific Conversational Artificial Intelligence (AI) Market, by Technology (2020-2027) 7.4. Asia Pacific Conversational Artificial Intelligence (AI) Market, by Deployment mode(2020-2027) 7.5. Asia Pacific Conversational Artificial Intelligence (AI) Market, by Application(2020-2027) 7.6. Asia Pacific Conversational Artificial Intelligence (AI) Market, by vertical(2020-2027) 7.7. Asia Pacific Conversational Artificial Intelligence (AI) Market, by Country (2020-2027) • China • India • Japan • South Korea • Australia • ASEAN • Rest Of APAC 8. Middle East and Africa Conversational Artificial Intelligence (AI) Market (2020-2027) 8.1. Middle East and Africa Conversational Artificial Intelligence (AI) Market, by Component (2020-2027) 8.2. Middle East and Africa Conversational Artificial Intelligence (AI) Market, by Deployment Type (2020-2027) 8.3. Middle East and Africa Conversational Artificial Intelligence (AI) Market, by Technology (2020-2027) 8.4. Middle East and Africa Conversational Artificial Intelligence (AI) Market, by Deployment mode(2020-2027) 8.5. Middle East and Africa Conversational Artificial Intelligence (AI) Market, by Application(2020-2027) 8.6. Middle East and Africa Conversational Artificial Intelligence (AI) Market, by vertical(2020-2027) 8.7. Middle East and Africa Conversational Artificial Intelligence (AI) Market, by Country (2020-2027) • South Africa • GCC • Egypt • Nigeria • Rest Of ME&A 9. Latin America Conversational Artificial Intelligence (AI) Market (2020-2027) 9.1. Latin America Conversational Artificial Intelligence (AI) Market, by Component (2020-2027) 9.2. Latin America Conversational Artificial Intelligence (AI) Market, by Deployment Type (2020-2027) 9.3. Latin America Conversational Artificial Intelligence (AI) Market, by Technology (2020-2027) 9.4. Latin America Conversational Artificial Intelligence (AI) Market, by Deployment mode(2020-2027) 9.5. Latin America Conversational Artificial Intelligence (AI) Market, by Application(2020-2027) 9.6. Latin America Conversational Artificial Intelligence (AI) Market, by vertical(2020-2027) 9.7. Latin America Conversational Artificial Intelligence (AI) Market, by Country (2020-2027) • Brazil • Argentina • Rest Of Latin America 10. Company Profile: Key players 10.1. Google 10.1.1. Financial Overview 10.1.2. Global Presence 10.1.3. Capacity Portfolio 10.1.4. Business Strategy 10.1.5. Recent Developments 10.2. Microsoft 10.3. AWS 10.4. IBM 10.5. Oracle 10.6. Nuance 10.7. Baidu, Inc 10.8. SAP 10.9. Artificial Solutions 10.10. Kore.AI 10.11. Avaamo 10.12. Conversica 10.13. Haptik 10.14. Rasa Technologies GmbH 10.15. Solvvy 10.16. Pypestream Inc 10.17. Inbenta 10.18. Rulai, Inc. 10.19. Creative Virtual 10.20. Saarthi.AI

About This Report

Report ID 28034
Category Information Technology & Telecommunication
Published Date March 2019
Updated Date Nov 2021
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