Conversational AI Market Is Expected To Deliver Dynamic Progression Till 2030

Conversational AI Market Growth & Trends

The global conversational AI market size is expected to reach USD 41.39 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 23.6% from 2022 to 2030. The market growth is primarily influenced by the rising adoption of advanced AI technologies and consumer interaction via multiple platforms. It indicates that businesses and their customers view technology as a mode to expand their businesses.

Conversational AI Market Segmentation

Grand View Research has segmented the global conversational AI market based on component, type, deployment, technology, end-user, and region:

Based on the Component Insights, the market is segmented into Solutions, Managed Services, Professional Services.

• The solutions segment held the largest revenue share of over 60.0% in 2021. The leading share is attributed to companies’ large-scale implementation of in-house conversational AI technologies.
• Managed services and professional services are projected to expand at a prominent growth rate during the forecast period. The services play a crucial part in the way conversational AI solutions function. With diverse and rich human languages, human interactions are often complex. Customers from distinct demographic classes express the same intent/sentiment differently. Hence, chatbots are required to be trained to learn the common intent.
• Many companies offer diverse and large training datasets for a chatbot used for sufficient training chatbots to recognize various ways people express the same purpose. Major players in the market, like Accenture, offer wholesome AI training and system integration services to enable businesses to implement AI advancements in their communication services.

Based on the Type Insights, the market is segmented into Chatbots and Intelligent virtual assistant (IVA).

• In terms of revenue, the chatbots segment accounted for a dominant share of over 65.0% in 2021. The segment is estimated to retain its leading position over the forecast period owing to its ability to play a central role in customer support service. They are primarily used for collecting data. In addition, customers can engage with chatbots to obtain clarity about any product or service or if they need to book any appointments. There are numerous conversational AI service providers in the market, developing virtual assistants and chatbots with restricted user-personalized characteristics.

Based on the Deployment Insights, the market is segmented into Cloud and On-premise.

• In terms of revenue, the on-premise segment held the dominant share of over 60.0% in 2021. This is attributed to the flexibility delivered to the customer, due to which the transaction is done only once. The costs are relatively cheaper than expenditures incurred on the cloud by the consumer.
• The cloud segment is projected to witness prominent growth during the forecast period owing to the rising prominence of cloud-based technologies and services in businesses across the globe.

Based on the Technology Insights, the market is segmented into Natural Language Processing (NLP), ML and Deep Learning and Automatic Speech Recognition (ASR).

• The NLP (Natural Language Processing) segment held the leading revenue share of more than 45.0% in 2021. NLP can ensure the processing of large quantities of natural language data. It also enables streamlining of the documentation processes to enhance their efficiency, including documentation accuracy.
• Currently, the focus of businesses has deviated from delivering customer support services through messages or emails to AI-enhanced chatbots. These chatbots aid companies improve consumer interaction and experience. AI-enabled chatbots use NLP technology to assist customers and conduct human-like interactions in real-time.

Based on the Technology Insights, the market is segmented into BFSI, Healthcare, IT and Telecom, Retail and eCommerce, Education, Media and Entertainment, Automotive, Others (Government, Hospitality, Manufacturing, etc.).

• The retail and e-commerce segment held a leading revenue share of more than 20.0% in 2021. Through persuasive, more expressive, and intelligent conversational AI tools and techniques, retail and e-commerce industries serve customers better.
• The BFSI segment is expected to witness significant growth during the forecast period owing to various factors like the penetration of AI chatbots into the financial and banking services industry that is used to assist consumers in making their payments safely and by interacting in communication.
• The automotive industry will witness the highest growth over the forecast period. AI voice assistants can serve vehicle controls, alerts, real-time recommendations, and much more, catering to passengers and drivers for a more convenient daily commute.
• Healthcare chatbots are one of the most influential and mature AI-powered healthcare technologies established so far, which stands to radically change the way patients, payers, and medical care providers interact with one another.

Conversational AI Regional Outlook

• North America
• Europe
• Asia Pacific
• South America
• Middle East and Africa (MEA)

Market Share Insights

• April 2021: Microsoft acquired Nuance Communications, an AI-based technology company. With the benefit of Nuance’s relationships and expertise with EHR systems providers and by combining Nuance’s solutions with Microsoft Cloud for Healthcare, Microsoft will permit healthcare benefactors with the power of ambient clinical intelligence and other Microsoft cloud services.

Key Companies Profile & Market Share Insights

The global market is fragmented, with several medium-large to small-sized market vendors capturing the most revenue share. Major market players adopt numerous strategies such as contracts, agreements, mergers, and acquisitions, implementing more improved technologies in conversational AI applications, and creating, testing, and launching new and enhanced solutions.

Some of the prominent players operating in the global conversational AI market include,

• Google
• Microsoft
• Amazon Web Services, Inc.
• IBM
• Oracle
• Nuance Communications, Inc.
• FIS
• SAP SE
• Artificial Solutions
• ai, Inc.
• Avaamo
• Conversica, Inc.
• Jio Haptik Technologies Limited
• Rasa Technologies Inc.
• Solvvy
• Pypestream Inc.
• Kasisto
• Cognigy

Order a free sample PDF of the Conversational AI Market Intelligence Study, published by Grand View Research.