Report Overview

Global Conversational AI Market- Industry Trends & Forecast Report 2028

Global conversational AI market was worth USD 6.9 billion in 2021 and is further projected to reach USD 29.9 billion by the year 2028, growing at the CAGR of 23.4% in the forecast period of 2022-2028. The market is growing at a high rate owing to factors such as rising demand for customer support services due to increasing focus on boosting customer engagement and experience. Furthermore, increasing demand for cloud deployment along with the increasing popularity of online businesses is also anticipated to drive market growth in the forecast period.

Conversational AI - Overview

Global Conversational AI is a technology that supports automated messaging and speech-enabled applications and supports computer-human interaction. This technology combines natural language processing (NLP) with traditional software like chatbots, voice assistants, etc. The.y are gaining popularity over websites, messaging platforms, mobile apps, etc. Conversational AI is proving to be very effective in reducing low-end, repetitive tasks by 20%. Some of the world’s best conversational AI platforms are BotXO AI, SAP Conversational AI, Kore.ai, MindMeld, etc.

Global Conversational AI Market Forecast and Trends

Growth Drivers

Increasing Demand from the BFSI Sector

The increasing adoption of conversational AI in the BFSI sector is emerging as the major driving factor for the growth of the market. The integration of conversational AI in this sector is helping banks engage with their customers more conveniently for both parties. It is also assisting the customer to access different types of banking and financial services by resolving their queries and offering seamless interaction. Therefore, the flourishing BFSI sector worldwide is expected to present lucrative growth opportunities to the market in the forecast period.

Rising Adoption of Conversational AI Among SMEs

Global Conversational AI market is gaining huge popularity among small and medium-sized enterprises. It helped the businesses boost personal communication and target potential customers which positively impacted the overall growth. Along with this, conversational AI also proved cost-efficient as it eliminated the need to hire additional human resources such as handling basic queries and FAQs and emailing prospects with their 24x7 availability to chat. Furthermore, conversational AI also supports multilingualism which favors business expansion.

Restraints

Lack of Understanding in Human Conversation

One of the major limitations of conversational AI is that it is not capable of handling complex sentence structures and holding conversations with humans with a wide range of emotions. The scope of conversational AI is very limited to handling basic questions only and therefore, cannot contribute much to customer retention. The limited development in the field of machine learning and natural language processing is hindering its expansion and may limit the growth of the global conversational AI market in the upcoming years as well.

Global Conversational AI Market - By Component

Based on component, the global conversational AI market is segmented into solutions and services. The services segment is further classified into training and consulting services, system integration and implementation, and support and maintenance. The solution segment accounts for the largest market share in 2021 owing to its rising demand among various industries including BFSI, hospitality, healthcare, media, and entertainment, etc. However, the services segment is projected to witness the highest growth rate during the forecast period.

Conversational AI Market - By Type

Based on type, the global conversational AI market is categorized into intelligent virtual assistants and chatbots. The chatbots segment accounts for the largest market share in 2021 owing to their capability of handling a wider range of customers’ requests. These types of conversational AIs can also perform redundant and tedious tasks such as emailing prospects, answering FAQs, etc., which is favoring its market growth. However, intelligent virtual assistants also cover a substantial market share owing to the high popularity of Alexa, Google Assistant, and Siri of Apple.

Global Conversational AI Market - Regional Insights

Geographically, the global conversational AI market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle East & Africa. North America dominated the conversational AI market in 2021 owing to the rising focus on enhancing customer support services. Furthermore, a high concentration of leading solutions and service providers in this region such as Microsoft, IBM, Oracle, Google, etc., is also playing a crucial role in driving the market growth. However, the Asia-Pacific region is projected to witness the highest CAGR during the forecast period.

Competitive Landscape

The leading market players of the conversational AI market are Google, Microsoft, IBM, AWS, Baidu, Oracle, SAP, FIS, Artificial Solutions, Kore.ai, Conversica, Inbenta, Creative Virtual, SoundHound, Avaamo, Haptik, Solvvy, MindMeld, and other prominent players. The global conversational AI market is highly concentrated with the presence of leading industry players such as Google, IBM, Oracle, Microsoft, etc. However, several startups are also emerging and attracting significant investment to expand their presence. The companies constantly launch new upgrades and innovations to gain a competitive edge. Furthermore, the adoption of market strategies such as partnerships, mergers, acquisitions, collaborations, etc., is also prominent in this market.

Recent Development

• In January 2022, NLX, a self-service automation provider, announced it had raised USD 5 million in seed funding to further develop its automated, personalized customer self-service solution for managing customer interactions.

• In December 2021, Bavard AI, a US-based conversational AI platform, announced enhancements on its platform including being powered by Amazon Web Services (AWS), which is expected to make partner integrations and scalability convenient.

Scope of the Report

By Component

• Solutions

• Services

By Type

• Intelligent Virtual Assistants

• Chatbots

By Deployment Mode

• On-Premise

• Cloud

By Technology

• Machine Learning and Deep Learning

• Natural Language Processing

• Automatic Speech Recognition

By Organization Size

• Large enterprises

• Small and medium-sized enterprises (SMEs)

By Vertical

• Banking Finance Services and Insurance (BFSI)

• Healthcare and Life Sciences

• IT and Telecom

• Retail and eCommerce

• Others

By Mode of Integration

• Web-based

• App-based

• Telephonic

By Region

• North America

• Europe

• Asia-Pacific (APAC)

• Latin America (LATAM)

• Middle East & Africa (MEA)

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. Global Conversational AI Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Technological Landscape/Recent Development
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. Global Conversational AI Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Component
         1. Solutions
         2. Services
      2. By Type
         1. Chatbots
         2. Intelligent Virtual assistants
      3. By Deployment Mode
         1. Cloud
         2. On-premise
      4. By Technology
         1. Machine Learning (ML) and Deep Learning
         2. Natural Language Processing (NLP)
         3. Automatic Speech Recognition (ASR)
      5. By Organization Size
         1. Large enterprises
         2. Small and medium-sized enterprises (SMEs)
      6. By Vertical
         1. Banking Finance Services and Insurance (BFSI)
         2. Healthcare and Life Sciences
         3. IT and Telecom
         4. Retail and eCommerce
         5. Others
      7. By Mode of Integration
         1. Web-based
         2. App-based
         3. Telephonic
      8. By Region
         1. North America
         2. Europe
         3. The Asia Pacific
         4. Latin America
         5. The Middle East and Africa
6. North America Conversational AI Market
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Component
      2. By Type
      3. By Deployment Mode
      4. By Technology
      5. By Organization Size
      6. By Vertical
      7. By Mode of Integration
      8. By Country
         1. United States
         2. Canada
7. Europe Conversational AI Market
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Component
      2. By Type
      3. By Deployment Mode
      4. By Technology
      5. By Organization Size
      6. By Vertical
      7. By Mode of Integration
      8. By Country
         1. Germany
         2. United Kingdom
         3. Italy
         4. France
         5. Spain
         6. Rest of Europe
8. The Asia Pacific Conversational AI Market
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Component
      2. By Type
      3. By Deployment Mode
      4. By Technology
      5. By Organization Size
      6. By Vertical
      7. By Mode of Integration
      8. By Country
         1. China
         2. India
         3. Japan
         4. South Korea
         5. Rest of Asia Pacific
9. Latin America Conversational AI Market
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Component
      2. By Type
      3. By Deployment Mode
      4. By Technology
      5. By Organization Size
      6. By Vertical
      7. By Mode of Integration
      8. By Country
         1. Brazil
         2. Mexico
         3. Rest of Latin America
10. The Middle East & Africa Conversational AI Market
    1. Market Size & Forecast by Value, 2018-2028
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Component
       2. By Type
       3. By Deployment Mode
       4. By Technology
       5. By Organization Size
       6. By Vertical
       7. By Mode of Integration
       8. By Country
          1. Saudi Arabia
          2. UAE
          3. South Africa
          4. Rest of Middle East & Africa
11. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis, 2021
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Development (Merger, Acquisition, Partnership)
12. Impact of Covid-19 on Global Conversational AI Market Industry
13. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) **
    1. Google
    2. Microsoft
    3. IBM
    4. AWS
    5. Baidu
    6. Oracle
    7. SAP
    8. FIS
    9. Artificial Solutions
    10.  Kore.ai
    11. Conversica
    12. Inbenta
    13. Creative Virtual
    14. SoundHound
    15. Avaamo
    16. Haptik
    17. Solvvy
    18. MindMeld
    19. Other prominent players
14. Key Strategic Recommendations

*Financial information in case of non-listed companies is provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1        Global Conversational AI Segmentation

Figure 2        Global Conversational AI Market Value Chain Analysis

Figure 3        Company Market Share Analysis, 2021

Figure 4        Global Conversational AI Market Size, By Value (USD Million), 2018-2028

Figure 5        Global Conversational AI Market Share, By Component, By Value, 2018-2028

Figure 6        Global Conversational AI Market Share, By Type, By Value, 2018-2028

Figure 7        Global Conversational AI Market Share, By Deployment Mode, By Value, 2018-2028

Figure 8        Global Conversational AI Market Share, By Technology, By Value, 2018-2028

Figure 9        Global Conversational AI Market Share, By Organization Size, By Value, 2018-2028

Figure 10       Global Conversational AI Market Share, By Vertical, By Value, 2018-2028

Figure 11       Global Conversational AI Market Share, By Mode of Integration, By Value, 2018-2028

Figure 12       Global Conversational AI Market Share, By Region, By Value, 2018-2028

Figure 13       North America Conversational AI Market Size, By Value (USD Million), 2018-2028

Figure 14       North America Conversational AI Market Share, By Component, By Value, 2018-2028

Figure 15       North America Conversational AI Market Share, By Type, By Value, 2018-2028

Figure 16       North America Conversational AI Market Share, By Deployment Mode, By Value, 2018-2028

Figure 17       North America Conversational AI Market Share, By Technology, By Value, 2018-2028

Figure 18       North America Conversational AI Market Share, By Organization Size, By Value, 2018-2028

Figure 19       North America Conversational AI Market Share, By Vertical, By Value, 2018-2028

Figure 20       North America Conversational AI Market Share, By Mode of Integration, By Value, 2018-2028

Figure 21       North America Conversational AI Market Share, By Country, By Value, 2018-2028

Figure 22       Europe Conversational AI Market Size, By Value (USD Million), 2018-2028

Figure 23       Europe Conversational AI Market Share, By Component, By Value, 2018-2028

Figure 24       Europe Conversational AI Market Share, By Type, By Value, 2018-2028

Figure 25       Europe Conversational AI Market Share, By Deployment Mode, By Value, 2018-2028

Figure 26       Europe Conversational AI Market Share, By Technology, By Value, 2018-2028

Figure 27       Europe Conversational AI Market Share, By Organization Size, By Value, 2018-2028

Figure 28       Europe Conversational AI Market Share, By Vertical, By Value, 2018-2028

Figure 29       Europe Conversational AI Market Share, By Mode of Integration, By Value, 2018-2028

Figure 30       Europe Conversational AI Market Share, By Country, By Value, 2018-2028

Figure 31       The Asia-Pacific Conversational AI Market Size, By Value (USD Million), 2018-2028

Figure 32       The Asia-Pacific Conversational AI Market Share, By Component, By Value, 2018-2028

Figure 33       The Asia-Pacific Conversational AI Market Share, By Type, By Value, 2018-2028

Figure 34       The Asia-Pacific Conversational AI Market Share, By Deployment Mode, By Value, 2018-2028

Figure 35       The Asia-Pacific Conversational AI Market Share, By Technology, By Value, 2018-2028

Figure 36       The Asia-Pacific Conversational AI Market Share, By Organization Size, By Value, 2018-2028

Figure 37       The Asia-Pacific Conversational AI Market Share, By Vertical, By Value, 2018-2028

Figure 38       The Asia-Pacific Conversational AI Market Share, By Mode of Integration, By Value, 2018-2028

Figure 39       The Asia-Pacific Conversational AI Market Share, By Country, By Value, 2018-2028

Figure 40       Latin America Conversational AI Market Size, By Value (USD Million), 2018-2028

Figure 41       Latin America Conversational AI Market Share, By Component, By Value, 2018-2028

Figure 42       Latin America Conversational AI Market Share, By Type, By Value, 2018-2028

Figure 43       Latin America Conversational AI Market Share, By Deployment Mode, By Value, 2018-2028

Figure 44       Latin America Conversational AI Market Share, By Technology, By Value, 2018-2028

Figure 45       Latin America Conversational AI Market Share, By Organization Size, By Value, 2018-2028

Figure 46       Latin America Conversational AI Market Share, By Vertical, By Value, 2018-2028

Figure 47       Latin America Conversational AI Market Share, By Mode of Integration, By Value, 2018-2028

Figure 48       Latin America Conversational AI Market Share, By Country, By Value, 2018-2028

Figure 49       The Middle East & Africa Conversational AI Market Size, By Value (USD Million), 2018-2028

Figure 50       The Middle East & Africa Conversational AI Market Share, By Component, By Value, 2018-2028

Figure 51       The Middle East & Africa Conversational AI Market Share, By Type, By Value, 2018-2028

Figure 52       The Middle East & Africa Conversational AI Market Share, By Deployment Mode, By Value, 2018-2028

Figure 53       The Middle East & Africa Conversational AI Market Share, By Technology, By Value, 2018-2028

Figure 54       The Middle East & Africa Conversational AI Market Share, By Organization Size, By Value, 2018-2028

Figure 55       The Middle East & Africa Conversational AI Market Share, By Vertical, By Value, 2018-2028

Figure 56       The Middle East & Africa Conversational AI Market Share, By Mode of Integration, By Value, 2018-2028

Figure 57       The Middle East & Africa Conversational AI Market Share, By Country, By Value, 2018-2028

List of Tables

Table 1         Global Conversational AI Market Size, By Component, By Value, 2018-2028             

Table 2         Global Conversational AI Market Size, By Type, By Value, 2018-2028             

Table 3         Global Conversational AI Market Size, By Deployment Mode, By Value, 2018-2028              

Table 4         Global Conversational AI Market Size, By Technology, By Value, 2018-2028             

Table 5         Global Conversational AI Market Size, By Organization Size, By Value, 2018-2028               

Table 6         Global Conversational AI Market Size, By Vertical, By Value, 2018-2028

Table 7         Global Conversational AI Market Size, By Mode of Integration, By Value, 2018-2028  

Table 8         Global Conversational AI Market Size, By Region, By Value, 2018-2028          

Table 9         North America Conversational AI Market Size, By Component, By Value, 2018-2028            

Table 10        North America Conversational AI Market Size, By Type, By Value, 2018-2028           

Table 11        North America Conversational AI Market Size, By Deployment Mode, By Value, 2018-2028                  

Table 12        North America Conversational AI Market Size, By Technology, By Value, 2018-2028             

Table 13        North America Conversational AI Market Size, By Organization Size, By Value, 2018-2028                  

Table 14        North America Conversational AI Market Size, By Vertical, By Value, 2018-2028                  

Table 15        North America Conversational AI Market Size, By Mode of Integration, By Value, 2018-2028            

Table 16        North America Conversational AI Market Size, By Country, By Value, 2018-2028                 

Table 17        Europe Conversational AI Market Size, By Component, By Value, 2018-2028            

Table 18        Europe Conversational AI Market Size, By Type, By Value, 2018-2028            

Table 19        Europe Conversational AI Market Size, By Deployment Mode, By Value, 2018-2028             

Table 20        Europe Conversational AI Market Size, By Technology, By Value, 2018-2028            

Table 21        Europe Conversational AI Market Size, By Organization Size, By Value, 2018-2028              

Table 22        Europe Conversational AI Market Size, By Vertical, By Value, 2018-2028

Table 23        Europe Conversational AI Market Size, By Mode of Integration, By Value, 2018-2028

Table 24        Europe Conversational AI Market Size, By Country, By Value, 2018-2028                 

Table 25        The Asia-Pacific Conversational AI Market Size, By Component, By Value, 2018-2028           

Table 26        The Asia-Pacific Conversational AI Market Size, By Type, By Value, 2018-2028

Table 27        The Asia-Pacific Conversational AI Market Size, By Deployment Mode, By Value, 2018-2028            

Table 28        The Asia-Pacific Conversational AI Market Size, By Technology, By Value, 2018-2028           

Table 29        The Asia-Pacific Conversational AI Market Size, By Organization Size, By Value, 2018-2028                  

Table 30        The Asia-Pacific Conversational AI Market Size, By Vertical, By Value, 2018-2028                

Table 31        The Asia-Pacific Conversational AI Market Size, By Mode of Integration, By Value, 2018-2028            

Table 32        The Asia-Pacific Conversational AI Market Size, By Country, By Value, 2018-2028               

Table 33        Latin America Conversational AI Market Size, By Component, By Value, 2018-2028             

Table 34        Latin America Conversational AI Market Size, By Type, By Value, 2018-2028            

Table 35        Latin America Conversational AI Market Size, By Deployment Mode, By Value, 2018-2028                  

Table 36        Latin America Conversational AI Market Size, By Technology, By Value, 2018-2028              

Table 37        Latin America Conversational AI Market Size, By Organization Size, By Value, 2018-2028                  

Table 38        Latin America Conversational AI Market Size, By Vertical, By Value, 2018-2028                   

Table 39        Latin America Conversational AI Market Size, By Mode of Integration, By Value, 2018-2028            

Table 40        Latin America Conversational AI Market Size, By Country, By Value, 2018-2028                  

Table 41        The Middle East & Africa Conversational AI Market Size, By Component, By Value, 2018-2028            

Table 42        The Middle East & Africa Conversational AI Market Size, By Type, By Value, 2018-2028                  

Table 43        The Middle East & Africa Conversational AI Market Size, By Deployment Mode, By Value, 2018-2028              

Table 44        The Middle East & Africa Conversational AI Market Size, By Technology, By Value, 2018-2028            

Table 45        The Middle East & Africa Conversational AI Market Size, By Organization Size, By Value, 2018-2028              

Table 46        The Middle East & Africa Conversational AI Market Size, By Vertical, By Value, 2018-2028         

Table 47        The Middle East & Africa Conversational AI Market Size, By Mode of Integration, By Value, 2018-2028              

Table 48        The Middle East & Africa Conversational AI Market Size, By Country, By Value, 2018-2028                  

Table 49        Google Company Overview           

Table 50        Google Financial Overview            

Table 51        Microsoft Company Overview                  

Table 52        Microsoft Financial Overview         

Table 53        AWS Company Overview              

Table 54        AWS Financial Overview               

Table 55        Baidu Company Overview             

Table 56        Baidu Financial Overview              

Table 57        SAP Company Overview               

Table 58        SAP Financial Overview                

Table 59        Artificial Solutions Company Overview               

Table 60        Artificial Solutions Financial Overview                

Table 61        Kore.ai Company Overview          

Table 62        Kore.ai Financial Overview           

Table 63        Conversica Company Overview               

Table 64        Conversica Financial Overview                

Table 65        Inbenta Company Overview          

Table 66        Inbenta Financial Overview           

Table 67        Creative Virtual Company Overview         

Table 68        Creative Virtual Financial Overview          

Table 69        SoundHound Company Overview             

Table 70        SoundHound Financial Overview             

Table 71        Avaamo Company Overview         

Table 72        Avaamo Financial Overview          

Table 73        Haptik Company Overview           

Table 74        Haptik Financial Overview            

Table 75        Solvvy Company Overview           

Table 76        Solvvy Financial Overview            

Table 77        MindMeld Company Overview                 

Table 78        MindMeld Financial Overview