Conversational AI Market is projected to reach USD 20,418 Million by 2027, exhibiting a CAGR of 21.4% during forecast period.

Conversational AI is a set of technologies that enables the computers to understand, process, and respond to the text or voice inputs in natural ways. This includes the set of technologies behind speech-enabled or automated messaging applications, which interacts like human beings. It is majorly used in aggregation with intelligent virtual assistants or chatbots. It provides a straightforward and direct pipeline for addressing the concerns, sorting the customer’s problems, and reach the goals. The market for conversational AI has been categorized on the basis of type such as chatbots and intelligent virtual assistants.

To have an edge over the competition by knowing the market dynamics and current trends of “Conversational AI Market,” request for Sample Report here

The global conversational AI market is anticipated to witness an upsurge in the demand over the forecast period due to the accelerating demand for AI-powered customer support services and chatbots across various industries, including banking, finance service, and insurance, retail & eCommerce, travel and hospitality, and other sectors. Simultaneously, several research & development activities and technological advancements for the conversation of AI solution to enhance the service offering for better customer experience is creating immense opportunities in the market. The governments across various nations have been heavily investing in integrating the AI capabilities or solutions in their environment. All these factors, along with the rising penetration of social media platforms across several countries, will energize the growth of the market in the coming years.

The conversational AI offers exceptional benefits, such as enhanced customer experience & agent efficiency, easy scalability, optimized data collection, 24/7 customer service, and reduces the operational cost. The rapid emergence of COVID-19 has surged the demand for conversational AI. The continuous lockdown across numerous countries and the rising emphasis on staying at home have eventually decreased the number of working people, especially in the BPOs. The drastic increase in the demand for customer service assistance in banks, hospitals, and civil bodies is directly accelerating the demand of the market. On the other end of the spectrum, the lack of awareness regarding the technology and its benefits is likely to restrain the market growth.

Do you want to know more about the Research process and detailed Methodology, Request Research Methodology of this report

Based on the type, the Chatbots segment is expected to increase at a higher CAGR during the forecast period owing to the rising adoption of chatbots among several industries as a result of rising emphasis towards improving customer engagement by the use of several channels. Moreover, inclination towards the development of self-learning chatbots for enhancing the conversational experience and the ability of chatbots to offer 24*7 customer support at a reduced cost are some other key factors driving the growth of the market in this segment.

Based on the technology, the Machine Learning & Deep Learning segment is anticipated to grow at a higher CAGR over the forecast period owing to the rising technological advancements and several benefits associated with the use of this technology. The Machine Learning & Deep Learning technology offers exceptional advantages such as the ability to handle multi-variety & multi-dimensional data, elimination of the need of human intervention, enhanced reliability, less requirement of data & computing power, and increased consistency.

In case, any of your pain points areas are not covered in the current scope of this report, Request for Customization here

Based on the region, the North America region is expected to grow at a higher compound annual growth rate during the forecast period owing to the rising adoption of conversational AIs as a result of rising advancements and the presence of major key manufacturers in this region. Furthermore, the expanding number of government initiatives to increase the adoption of AI and rising demand for machine learning and artificial intelligence technologies from the private & public sectors will further energize the market growth in this region. For example, The General Services Administration, Information Technology (ITC), and Federal Acquisition Service (FAS) have kept various acquisition solutions placed in the present to procure augmented/automated intelligence products, professional services, and solutions.

Various notable players operating in the market include Microsoft, Google, IBM Corporation, Amazon Web Services, Inc., Nuance Communications, Inc., Oracle, SAP SE, Baidu, Kore.ai, Inc., and Artificial Solutions, among others.

Key Developments:

• • In 2019, Microsoft launched a dialogue generative pre-trained transformer (DialoGPT); this is a pre-trained deep learning NLP model that has the ability of automatic conversation response generation. This model is set up on GPT-2 transformer architecture and is trained using a dataset scraped from Reddit comment threads.
  • In 2020, Nuance Communications, Inc. launched NuanceMix, which is an open enterprise-grade, software-as-a-service tooling suite and is used for creating advanced conversational experiences that power the IVR & VA by using the cloud-agnostic conversational AI of the company.

The global conversational AI market has been segmented on the basis of component, type, technology, deployment mode, application, vertical, and region. Based on the component, the market is segmented into services and platform. The services segment is further categorized into systems integration & deployment, training & consulting, and support & maintenance. Based on the type, the market is segmented into chatbots and intelligent virtual assistants. Based on the technology, the market is segmented into natural language processing, machine learning & deep learning, and automated speech recognition. Based on the deployment mode, the market is segmented into on-premises and cloud. Based on the application, the market is segmented into a personal assistant, customer support, customer engagement & retention, branding & advertisement, data privacy & compliance, onboarding & employee engagement, and others. Based on the vertical, the market is segmented into retail & ecommerce, BFSI, travel & hospitality, healthcare & life sciences, media & entertainment, telecom, and others.

For detailed scope of the “Conversational AI Market” report request a Sample Copy of the report

Key questions answered in this research report:

• • At what pace is the global conversational AI market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in the global conversational AI market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global conversational AI market?
  • Which type generated maximum revenues in 2019 and identify the most promising type during the forecast period?
  • What are the various application areas of conversational AI market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Report Coverage	Details
Market Base Year	2019
Market Forecast Period	2020-2027
Market Revenues (2027)	USD 20,418 Million
Base Year & Forecast Units	Value (USD Million)
Market Segment	By Component, By Type, By Technology, By Deployment Mode, By Application, By Vertical, By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	Microsoft, Google, IBM Corporation, Amazon Web Services, Inc., Nuance Communications, Inc., Oracle, SAP SE, Baidu, Kore.ai, Inc., and Artificial Solutions, among others; a total of 10 companies covered
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation:

Global Conversational AI Market by Component

• • Services
    • Systems Integration & Deployment
    • Training & Consulting
    • Support & Maintenance
  • Platform

Global Conversational AI Market by Type

• • Chatbots
  • Intelligent Virtual Assistants
  • Global Conversational AI Market by Technology
  • Natural Language Processing
  • Machine Learning & Deep Learning
  • Automated Speech Recognition

Global Conversational AI Market by Deployment Mode

• • On-Premises
  • Cloud

Global Conversational AI Market by Application

• • Personal Assistant
  • Customer Support
  • Customer Engagement & Retention
  • Branding & Advertisement
  • Data Privacy & Compliance
  • Onboarding & Employee Engagement
  • Others

Global Conversational AI Market by Vertical

• • Retail & Ecommerce
  • BFSI
  • Travel & Hospitality
  • Healthcare & Life Sciences
  • Media & Entertainment
  • Telecom
  • Others

Global Conversational AI Market by Region

• • North America Conversational AI Market (Option 1: As a part of the free 25% customization)
    • North America Market by Component
    • North America Market by Type
    • North America Market by Technology
    • North America Market by Deployment Mode
    • North America Market by Application
    • North America Market by Vertical
    • United States of America (US) Market All-Up
    • Canada Market All-Up
  • Europe Conversational AI Market (Option 2: As a part of the free 25% Customization)
    • Europe Market by Component
    • Europe Market by Type
    • Europe Market by Technology
    • Europe Market by Deployment Mode
    • Europe Market by Application
    • Europe Market by Vertical
    • United Kingdom (UK) Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up
  • Asia-Pacific Conversational AI Market (Option 3: As a part of the free 25% Customization)
    • Asia-Pacific Market by Component
    • Asia-Pacific Market by Type
    • Asia-Pacific Market by Technology
    • Asia-Pacific Market by Deployment Mode
    • Asia-Pacific Market by Application
    • Asia-Pacific Market by Vertical
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up
  • RoW Conversational AI Market (Option 4: As a part of the free 25% Customization)
    • RoW Market by Component
    • RoW Market by Type
    • RoW Market by Technology
    • RoW Market by Deployment Mode
    • RoW Market by Application
    • RoW Market by Vertical
    • Brazil Market All-Up
    • South Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating the Conversational AI (Option 5: As a part of the free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Microsoft
  • Google
  • IBM Corporation
  • Amazon Web Services, Inc.
  • Nuance Communications, Inc.
  • Oracle
  • SAP SE
  • Baidu
  • Kore.ai, Inc.
  • Artificial Solutions