Conversational AI Market - Forecasts from 2024 to 2029

The conversational AI market is estimated to grow at a CAGR of 26.10% during the forecast period.

Due to the increasing need for chatbots, the declining cost of developing them, the availability of customer support services that use AI technology, and the ability to deploy them across multiple channels, among other reasons, this market’s growth is being further accelerated. Speech and messaging applications based on AI technology are replacing existing web and mobile applications at a rapid rate, hence the assumption that they will be an alternate medium of interaction. An increasing number of hybrid conversational models that embrace both discriminative and generative methods are being advanced. These models might also be more effective and efficient in accomplishing certain tasks such as natural language processing, translating languages, and even classifying images.

Moreover, several initiatives are underway to ensure the efficiency and effectiveness of these technologies in addressing related business use cases. The demand for generative AI companies has grown as AIs have been able to casually respond to queries like a person would. While this is useful, it can also completely change people’s relationship with technology by enabling more customized and human-sounding interpersonal conversations. The public sector is also looking to adapt to conversational AI platforms as government agencies worldwide are embracing contemporary technology effectively to enhance citizens’ engagement.

Conversational AI market drivers

The increasing need for customer support services is fueling the conversational AI market growth

As the tech kept developing, more companies started employing sophisticated conversational AI to enhance service to their customers. Nowadays, businesses have adopted the use of digital bots within their systems to enhance customer experience instead of fixing an email or sending an SMS regarding customer relations. Customers expect intelligent chatbots, which reach out to them with speech recognition features, to engage in sultry conversation and show understanding while selling their services.

They use this information to help the company know customers' concerns, wants, and buying habits to provide foresight and more individualized services. For instance, AI-based chatbots are enabled within the business to reduce the manual efforts needed for typical placing an order, checking balances, responding to general inquiries, technical assistance, and other customer support operations. As a result, a company can enhance its productivity level thanks to automation but with fewer workforce hires, pushing the industry's growth.

Conversational AI market geographical outlook

Asia Pacific is witnessing exponential growth during the forecast period

The Asia Pacific region is expected to hold a significant share of the conversational AI market due to various factors. These factors include a large population, expanding smartphone penetration, and more digitalization across industries, promoting conversational AI adoption in countries such as South Korea, China, Japan, and India.

Additionally, large IT companies in China are significantly investing in conversational AI, and the sector is seeing tremendous advancements in chatbots and voice assistants. The region also offers prospects for conversational AI applications in industries including banking, healthcare, and e-commerce. The Asia Pacific might have critical development because of associations' developing information on state-of-the-art client assistance administrations and advances.

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Report Coverage:

• Historical data & forecasts from 2022 to 2029
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

The Conversational AI market is analyzed into the following segments:

By Component

• Solutions
• Managed Services
• Professional Services
• Training & Consulting
• System Integration & Implementation
• Support & Maintenance

By Deployment

• On-premises
• Cloud

By Type

• Chatbots
• Intelligent Virtual Assistant (IVA)

By Technology

• Natural Language Processing (NLP)
• ML and Deep Learning
• Automatic Speech Recognition (ASR)

By End-user

• BFSI
• Media & Entertainment
• Retail
• IT & Telecommunication
• Healthcare
• Automotive
• Travel and Tourism
• Food & Beverages
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Others