It is expected to reach the global conversational AI market size $41.39 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to grow at a CAGR of 23.6% from 2022 to 2030. The market growth is primarily influenced by the increasing adoption of advanced AI technologies and consumer interaction across multiple platforms. It indicates that companies and their customers look to technology as a means to expand their business.
Key industry insights and takeaways from the report:
- North America is expected to dominate the market during the forecast period due to the massive adoption of forthcoming technological advancements in the region and the rapidly growing demand for artificial intelligence based customer support services.
- The key factors influencing the growth of the market are increasing demand, reduced chatbot development costs, AI-powered customer support services, and omnichannel adoption.
- The introduction of enhanced AI capabilities to add value to current conversational AI offerings and the ever-growing demand for online shopping during COVID-19 have presented opportunities for market growth.
- However, the need for trained professionals to handle conversational AI as well as a lack of knowledge about conversational AI is hampering the market penetration of conversational AI.
- Currently, companies’ focus has shifted from providing customer support services via messages or emails to AI-enhanced chatbots. These chatbots help companies improve consumer interaction and experience.
Get more insights from 100-page market research report “Conversational AI Market Size, Share & Trends Analysis Report By Component (Solutions, Managed Services, Professional Services), By Type, By Deployment, By Technology, By End-User, By Region, And Segment Forecasts, 2022 – 2030,” published by Grand View Research.
Conversational AI market growth and trends
With the growing penetration of conversational AI as a crucial technology, it is important that companies set the right parameters and goals while using chatbots or virtual assistants. The rapidly growing e-commerce and digitization offer favorable conditions for the need for customer care. Omnichannel delivery, improved 24/7 customer support, real-time customized service, and reduced customer support costs are fueling AI market penetration globally. in the October 2021, Haptik of the Jio platform introduced a new enterprise CX platform to enable conversational AI solutions. This platform helps brands to develop intelligent virtual assistants in a low-code environment and go live within days.
The growing “chat first” method of the service sector and technological improvements such as natural language processing are expected to boost the market growth. in the November 2021ZeroShotBot introduced new conversational AI technology that normalizes chatbots for businesses of all sizes. ZeroShotBot offers a new technology for building chatbots that don’t need any training data, so anyone with no coding experience can build a chatbot with fully working algorithms. Also in January 2020AWS created the Amazon Lex chatbot integration that is available in Amazon Connect in the Asia Pacific (Sydney) AWS. This chatbot assists consumers in scheduling appointments, changing passwords, and getting requested account balances. Instead of calling a number from a list of options, it does so by speaking a prompt.
However, the need for trained professionals to handle conversational AI combined with a lack of knowledge about conversational AI hinders the penetration of conversational AI. Delivering a quality digital experience is a higher priority for businesses, and consumers want their voice to be heard. The growth of conversational AI now offers businesses the customer experience and ability to resolve complex questions and queries quickly and effectively.
Conversational AI is anything but a new phenomenon these days. Both consumers and businesses have become increasingly accustomed to the profitable results of fast, enhanced, 24/7 customer service that enables many businesses to deliver on the promise of enhanced technologies to improve customer experiences, reduce costs, and increase revenue. Product managers are accessing the opportunities to craft a successful Intelligent Virtual Assistant (IVA) with emerging AI advances.
Key players in the market are focusing on strategic collaborations and partnerships to enhance their product and service offerings and expand customer bases. For example, Yellow.ai and Tech Mahindra are collaborating to develop next-generation conversational AI technologies to enhance omnichannel capabilities such as customer relationship management (CRM), enterprise resource planning (ERP), and supply chain management as part of the deal (SCM) and Human Resources Management System (HRMS).
Market Segmentation for Conversational AI
Grand View Research has segmented the global Conversational AI market based on Component, Type, Deployment, Technology, End-User and Region:
Conversational AI Market – Components Outlook (Revenue, $Bn, 2017-2030)
- Managed Services
- Professional Services
- training and advice
- System integration and implementation
- support and maintenance
Conversational AI Market – Type Outlook (Revenue, $Bn, 2017-2030)
- Intelligent Virtual Assistant (IVA)
Conversational AI Market – Deployment Outlook (Revenue, USD bn, 2017 – 2030)
Conversational AI Market – Technology Outlook (Revenue, $Bn, 2017-2030)
- Natural Language Processing (NLP)
- ML and Deep Learning
- Automatic Speech Recognition (ASR)
Conversational AI Market – End User Outlook (Revenue, $Bn, 2017-2030)
- IT and Telecom
- Retail and Ecommerce
- media and entertainment
- Other (government, hospitality, manufacturing, etc.)
Conversational AI Market – Regional Outlook (Revenue, $Bn, 2017-2030)
- North America
- Asia Pacific
- South America
- middle East and Africa (MEA)
List of Major Players in Conversational AI Market
- Amazon Web Services, Inc.
- Nuance Communications, Inc.
- Artificial solutions
- Kore.ai, Inc.
- Converseca, Inc.
- Jio Haptic Technologies Limited
- Rasa Technologies Inc.
- pypestream inc
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