India Conversational Ai Market
India Conversational AI Market, By Component (Solutions, Managed Services, Professional Services); By Type (Chatbots, Intelligent Virtual Assistants (IVA)); By Deployment Mode (Cloud, On-Premises); By Technology (Natural Language Processing (NLP), ML & Deep Learning (DL), Automatic Speech Recognition (ASR)); By Region (North India, South India, East India, West India), Trend Analysis, Competitive Landscape & Forecast, 2019–2029
- Published Date: September 2023
- Report ID: BWC23787
- Available Format: PDF
- Page: 200
Report Overview
A growing focus on developing and providing AI-driven customer support solutions and an increasing emphasis on engaging and retaining customers are projected to propel the expansion of the India Conversational AI Market during the forecast period between 2023 and 2029.
India Conversational AI Market - Industry Trends & Forecast Report, 2029
India conversational AI (artificial intelligence) market size was estimated at USD 274.5 million in 2022. During the forecast period between 2023 and 2029, the size of India conversational AI (artificial intelligence) market is projected to grow at a CAGR of 24.58% reaching a value of USD 1,037.3 million by 2029. Major growth drivers for the India conversational AI (artificial intelligence) market include the rising demand for seamless customer experiences, increased internet and smartphone penetration, a growing e-commerce sector, and the need for cost-effective customer support solutions. The flourishing e-commerce sector in India has played a pivotal role in driving the expansion of conversational AI. As online shopping continues to gain traction, businesses are increasingly turning to AI-powered chatbots and virtual assistants to provide efficient and personalized customer support, ultimately enhancing the overall shopping experience. The market is further benefiting from continuous advancements in natural language processing (NLP) technology. This progress has been accelerated by innovations like Microsoft-backed OpenAI's ChatGPT, which are catalyzing the development of conversational AI solutions at an unprecedented pace. Also, the adoption of conversational AI is not limited to any particular industry, with sectors ranging from e-commerce to finance and healthcare embracing this technology. This widespread adoption reflects the recognition of conversational AI's potential to boost user engagement, streamline operations, and improve customer satisfaction by offering intelligent and personalized interactions. These drivers collectively contribute to the market's robust growth, positioning conversational AI as a transformative force in enhancing user engagement and customer support in the Indian business landscape.
India Conversational AI Market – Overview
India conversational AI Market refers to the specific segment of the artificial intelligence (AI) market in India that focuses on the development, deployment, and utilization of conversational AI technologies. Conversational AI involves the use of AI-powered chatbots, virtual assistants, and natural language processing (NLP) systems to facilitate human-like conversations between machines and users. In the Indian context, this market encompasses businesses, organizations, and service providers that leverage conversational AI solutions to enhance customer experiences, streamline operations, and improve engagement across various industries, such as e-commerce, finance, healthcare, and customer support. The India conversational AI market addresses the growing demand for intelligent and personalized interactions, driven by deepening internet and smartphone penetration, the need for cost-effective customer support solutions, and advancements in NLP technology. It encompasses the development, deployment, and integration of AI-driven conversational tools to cater to diverse user needs and industry requirements within the Indian business landscape.
India Conversational AI Market
Growth Drivers
Increasing Focus on Customer Engagement and Retention
AI voice agents like Siri, Cortana, and Alexa have become increasingly popular, showcasing remarkable advancements. These agents are now smarter, more attuned to emotions, and adept at swiftly and accurately resolving customer queries. Various industries, including education, healthcare, banking, and insurance, are adopting advanced voice agents to elevate their customer support. In this context, the paramount importance of customer engagement and retention cannot be overstated. Businesses are leveraging AI to gain profound insights into customer needs, preferences, and lifestyles. Salesforce’s research indicates that 51% of companies are harnessing AI to hyper-personalize the customer experience, optimizing everything from data analysis to speech recognition. AI voice conversations offer unrivaled convenience, providing 24/7 customer support, reducing wait times, and enhancing the overall customer experience. While human agents have their limitations, AI-powered voice agents can efficiently handle multiple inquiries simultaneously, improving customer satisfaction. In conclusion, the rise of AI voice agents signifies a fundamental shift in the business landscape, where customer engagement and retention are paramount. Businesses that effectively utilize AI to harness customer-centric information and big data are poised to deliver exceptional customer experiences and gain a competitive edge across various industries, with independent AI voice agents democratizing the playing field for businesses of all sizes.
Restraints
Limited Awareness about Conversational AI Solutions
India conversational AI market faces a significant constraint in the form of limited awareness about these innovative solutions. Despite the immense potential and benefits they offer, many businesses and individuals in India remain unaware of conversational AI technology. This lack of awareness hinders the widespread adoption and utilization of conversational AI solutions across various sectors, including customer support, e-commerce, and healthcare. To fully unlock the market's growth potential, efforts are needed to educate and inform businesses and consumers about the advantages and applications of conversational AI, ultimately driving its increased integration into India's digital landscape.
Impact of COVID-19 on India Conversational AI Market
Covid-19 pandemic had positive impact on the India conversational AI market. With the pandemic accelerating the shift towards digital engagement, businesses across various sectors, such as healthcare, e-commerce, and customer support, have increasingly turned to conversational AI solutions to meet evolving customer needs and ensure uninterrupted services. This surge in demand for AI-driven virtual assistants and chatbots has driven market growth. However, the economic challenges posed by the pandemic have also led to budget constraints for some businesses, affecting their adoption of conversational AI.
India Conversational AI Market
Segmental Coverage
India Conversational AI Market – By Component
By component, the India conversational AI market is divided into Solutions, Managed Services, and Professional Services segments. The solutions segment held a highest share in the India conversational AI market by component. The solutions segment covers a wide range of applications, including chatbots, virtual assistants, and voice recognition systems, tailored to meet diverse industry needs. They offer businesses the tools to engage with customers, automate processes, and enhance user experiences, driving their widespread adoption across various sectors. Also, the robust capabilities and customizable features of conversational AI solutions make them highly attractive to businesses seeking efficient customer service, streamlined operations, and improved overall satisfaction, contributing significantly to the segment's dominance in the market.
India Conversational AI Market – By Type
Based on type, the India conversational AI market is bifurcated into Chatbots and Intelligent Virtual Assistants (IVA) segments. The chatbots segment held a higher share in the India conversational AI market by type, due to the versatility and widespread adoption of chatbots across various industries. Chatbots offer businesses a cost-effective and efficient way to provide round-the-clock customer support, automate routine tasks, and engage with users in real-time through text-based interactions. Their ability to handle a wide range of queries, coupled with advancements in natural language processing (NLP) technology, has made them a preferred choice for enhancing customer service and operational efficiency. As a result, businesses across sectors are increasingly leveraging chatbots to improve user engagement, reduce response times, and streamline their operations, contributing to the segment's higher market share.
India Conversational AI Market – By Deployment Mode
Based on deployment mode, the India conversational AI market is split into Cloud and On-Premises segments. The on-premises segment holds a higher share in the India conversational AI market by deployment during the forecast period, due to the data security and compliance preferences of many Indian businesses. On-premises solutions allow organizations to have greater control over their data and ensure it remains within their own physical infrastructure, addressing concerns related to data privacy and regulatory compliance. Also, some industries, such as banking and finance, have stringent security requirements, making on-premises deployments the preferred choice. This heightened emphasis on data security and compliance is driving the demand for on-premises conversational AI solutions in the Indian market.
India Conversational AI Market – By Technology
On the basis of technology, the India conversational AI market is segmented as Natural Language Processing (NLP), ML & Deep Learning (DL), Automatic Speech Recognition (ASR) segments. The NLP segment holds the highest share in the India conversational AI market by technology during the forecast period. This prominence can be attributed to the critical role that NLP plays in enabling machines to understand, interpret, and generate human-like text and speech. NLP technology is the backbone of conversational AI, allowing chatbots and virtual assistants to engage in meaningful and context-aware conversations with users. As businesses in India increasingly seek to provide personalized and efficient customer interactions, the demand for NLP-driven conversational AI solutions is on the rise. This technology enables more natural and intuitive communication, enhancing user experiences across various industries, including customer support, e-commerce, and healthcare.
India Conversational AI Market – By Region
Regionally, the India conversational AI Market is divided into North India, South India, East India, and West India.
Competitive Landscape
Major players operating in the India conversational AI market include Haptik, Upshup, Yellow Messenger, Active.Ai, Engati, Kore.ai, Senseforth.ai, Verloop.io, Zoho SalesIQ, and CropIn. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
Recent Developments
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In August 2023 – The Reserve Bank of India, the central bank of the country, proposed to introduce conversational payments on unified payments interface (UPI) through AI in the country.
Scope of the Report
Attributes |
Details |
Years Considered |
Historical Data – 2019–2022 |
Base Year – 2022 |
|
Estimated Year – 2023 |
|
Forecast Period – 2023–2029 |
|
Facts Covered |
Revenue in USD Million |
Market Coverage |
India |
Product/ Service Segmentation |
Component, Type, Deployment, Technology, Region |
Key Players |
Haptik, Upshup, Yellow Messenger, Active.Ai, Engati, Kore.ai, Senseforth.ai, Verloop.io, Zoho SalesIQ, CropIn |
By Component
-
Solutions
-
Managed Services
-
Professional Services
By Type
-
Chatbots
-
Intelligent Virtual Assistants (IVAs)
By Deployment
-
Cloud
-
On-Premises
By Technology
-
Natural Language Processing (NLP)
-
ML & Deep Learning (DL)
-
Automatic Speech Recognition (ASR)
By Region
-
North India
-
South India
-
East India
-
West India
- Research Framework
- Research Objective
- Technology Overview
- Market Segmentation
- Executive Summary
- India Conversational AI Market Insights
- Industry Value Chain Analysis
- DROC Analysis
- Growth Drivers
- Rising demand for AI-powered customer support services
- Increasing focus on customer engagement and retention
- Restraints
- Lack of awareness about conversational AI solutions
- Increasing privacy and security breaches
- Opportunities
- Surge in integration of advanced AI capabilities
- Increasing usage of generative models in conversational AI
- Challenges
- Lack of accuracy in chatbots and virtual assistants
- Inability to effectively recognize customer intent and behavior
- Growth Drivers
- Technological Advancements/Recent Developments
- Regulatory Framework
- Porter’s Five Forces Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of New Entrants
- Threat of Substitutes
- Intensity of Rivalry
- India Conversational AI Market Overview
- Market Size & Forecast, 2019–2029
- By Value (USD Million)
- Market Share & Forecast
- By Component
- Solutions
- Managed Services
- Professional Services
- By Type
- Chatbots
- Intelligent Virtual Assistants (IVAs)
- By Deployment
- Cloud
- On-Premises
- By Technology
- Natural Language Processing (NLP)
- ML & Deep Learning
- Automatic Speech Recognition (ASR))
- By Region
- North India
- South India
- East India
- West India
- By Component
- Market Size & Forecast, 2019–2029
- North India Conversational AI Market
- Market Size & Forecast, 2019–2029
- By Value (USD Million)
- Market Share & Forecast
- By Component
- By Type
- By Deployment
- By Technology
- Market Size & Forecast, 2019–2029
- South India Conversational AI Market
- Market Size & Forecast, 2019–2029
- By Value (USD Million)
- Market Share & Forecast
- By Component
- By Type
- By Deployment
- By Technology
- Market Size & Forecast, 2019–2029
- East India Conversational AI Market
- Market Size & Forecast, 2019–2029
- By Value (USD Million)
- Market Share & Forecast
- By Component
- By Type
- By Deployment
- By Technology
- Market Size & Forecast, 2019–2029
- West India Conversational AI Market
- Market Size & Forecast, 2019–2029
- By Value (USD Million)
- Market Share & Forecast
- By Component
- By Type
- By Deployment
- By Technology
- Market Size & Forecast, 2019–2029
- Competitive Landscape
- List of Key Players and Their Offerings
- India Conversational AI Company Market Share Analysis, 2022
- Competitive Benchmarking, By Operating Parameters
- Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
- Impact of Covid-19 on India Conversational AI Market
- Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
- Haptik
- Upshup
- Yellow Messenger
- Active.Ai
- Engati
- Kore.ai
- Senseforth.ai
- Verloop.io
- Zoho SalesIQ
- CropIn
- Other Prominent Players
- Key Strategic Recommendations
- Research Methodology
- Qualitative Research
- Primary & Secondary Research
- Quantitative Research
- Market Breakdown & Data Triangulation
- Secondary Research
- Primary Research
- Breakdown of Primary Research Respondents, By Region
- Assumption & Limitation
- Qualitative Research
*Financial information of non-listed companies will be 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 India Conversational AI Market Segmentation
Figure 2 India Conversational AI Market Value Chain Analysis
Figure 3 Company Market Share Analysis, 2022
Figure 4 India Conversational AI Market Size, By Value (USD Million), 2019–2029
Figure 5 India Conversational AI Market Share, By Component, By Value, 2019–2029
Figure 6 India Conversational AI Market Share, By Type, By Value, 2019–2029
Figure 7 India Conversational AI Market Share, By Deployment, By Value, 2019–2029
Figure 8 India Conversational AI Market Share, By Technology, By Value, 2019–2029
Figure 9 India Conversational AI Market Share, By Region, By Value, 2019–2029
Figure 10 North India Conversational AI Market Size, By Value (USD Million), 2019–2029
Figure 11 North India Conversational AI Market Share, By Component, By Value, 2019–2029
Figure 12 North India Conversational AI Market Share, By Type, By Value, 2019–2029
Figure 13 North India Conversational AI Market Share, By Deployment, By Value, 2019–2029
Figure 14 North India Conversational AI Market Share, By Technology, By Value, 2019–2029
Figure 15 South India Conversational AI Market Size, By Value (USD Million), 2019–2029
Figure 16 South India Conversational AI Market Share, By Component, By Value, 2019–2029
Figure 17 South India Conversational AI Market Share, By Type, By Value, 2019–2029
Figure 18 South India Conversational AI Market Share, By Deployment, By Value, 2019–2029
Figure 19 South India Conversational AI Market Share, By Technology, By Value, 2019–2029
Figure 20 East India Conversational AI Market Size, By Value (USD Million), 2019–2029
Figure 21 East India Conversational AI Market Share, By Component, By Value, 2019–2029
Figure 22 East India Conversational AI Market Share, By Type, By Value, 2019–2029
Figure 23 East India Conversational AI Market Share, By Deployment, By Value, 2019–2029
Figure 24 East India Conversational AI Market Share, By Technology, By Value, 2019–2029
Figure 25 West India Conversational AI Market Size, By Value (USD Million), 2019–2029
Figure 26 West India Conversational AI Market Share, By Component, By Value, 2019–2029
Figure 27 West India Conversational AI Market Share, By Type, By Value, 2019–2029
Figure 28 West India Conversational AI Market Share, By Deployment, By Value, 2019–2029
Figure 29 West India Conversational AI Market Share, By Technology, By Value, 2019–2029
List of Tables
Table 1 India Conversational AI Market Size, By Value (USD Million), 2019–2029
Table 2 India Conversational AI Market Share, By Component, By Value, 2019–2029
Table 3 India Conversational AI Market Share, By Type, By Value, 2019–2029
Table 4 India Conversational AI Market Share, By Deployment, By Value, 2019–2029
Table 5 India Conversational AI Market Share, By Technology, By Value, 2019–2029
Table 6 India Conversational AI Market Share, By Region, By Value, 2019–2029
Table 7 North India Conversational AI Market Size, By Value (USD Million), 2019–2029
Table 8 North India Conversational AI Market Share, By Component, By Value, 2019–2029
Table 9 North India Conversational AI Market Share, By Type, By Value, 2019–2029
Table 10 North India Conversational AI Market Share, By Deployment, By Value, 2019–2029
Table 11 North India Conversational AI Market Share, By Technology, By Value, 2019–2029
Table 12 South India Conversational AI Market Size, By Value (USD Million), 2019–2029
Table 13 South India Conversational AI Market Share, By Component, By Value, 2019–2029
Table 14 South India Conversational AI Market Share, By Type, By Value, 2019–2029
Table 15 South India Conversational AI Market Share, By Deployment, By Value, 2019–2029
Table 16 South India Conversational AI Market Share, By Technology, By Value, 2019–2029
Table 17 East India Conversational AI Market Size, By Value (USD Million), 2019–2029
Table 18 East India Conversational AI Market Share, By Component, By Value, 2019–2029
Table 19 East India Conversational AI Market Share, By Type, By Value, 2019–2029
Table 20 East India Conversational AI Market Share, By Deployment, By Value, 2019–2029
Table 21 East India Conversational AI Market Share, By Technology, By Value, 2019–2029
Table 22 West India Conversational AI Market Size, By Value (USD Million), 2019–2029
Table 23 West India Conversational AI Market Share, By Component, By Value, 2019–2029
Table 24 West India Conversational AI Market Share, By Type, By Value, 2019–2029
Table 25 West India Conversational AI Market Share, By Deployment, By Value, 2019–2029
Table 26 West India Conversational AI Market Share, By Technology, By Value, 2019–2029
Table 27 Haptik Company Overview
Table 28 Haptik Financial Overview
Table 29 Upshup Company Overview
Table 30 Upshup Financial Overview
Table 31 Yellow Messenger Company Overview
Table 32 Yellow Messenger Financial Overview
Table 33 Active.Ai Company Overview
Table 34 Active.Ai Financial Overview
Table 35 Engati Company Overview
Table 36 Engati Financial Overview
Table 37 Kore.ai Company Overview
Table 38 Kore.ai Financial Overview
Table 39 Senseforth.ai Company Overview
Table 40 Senseforth.ai Financial Overview
Table 41 Verloop.io Company Overview
Table 42 Verloop.io Financial Overview
Table 43 Zoho SalesIQ Company Overview
Table 44 Zoho SalesIQ Financial Overview
Table 45 CropIn Company Overview
Table 46 CropIn Financial Overview
Market Segmentation
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