Conversational AI Market till 2035: Distribution by Type of Component, Conversational AI, Deployment, Conversational AI Modality, Technology, End User, Enterprise, Business Model, and Key Geographical Regions: Industry Trends and Global Forecasts
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Conversational AI Market Overview
As per Roots Analysis, the global conversational AI market size is estimated to grow from USD 12.82 billion in the current year to USD 136.41 billion by 2035, at a CAGR of 23.98% during the forecast period, till 2035.
The opportunity for conversational AI market has been distributed across the following segments:
Type of Component
Managed Services
Professional Services
Solutions
Type of Conversational AI
AI Chatbots
Generative AI Agents
Intelligent Virtual Assistant (IVA)
Type of Deployment
Cloud
Hybrid
On-Premises
Type of Conversational AI Modality
Multimodal
Text-based
Voice-based
Type of Technology
Automatic Speech Recognition
ML and Deep Learning
Natural Language Processing
Type of End-Users
Automotive
BFSI
Education
Healthcare
IT & Telecom
Media & Entertainment
Retail & E-Commerce
Others
Type of Enterprise
Large Enterprises
Small and Medium Enterprises
Geographical Regions
North America
US
Canada
Mexico
Other North American countries
Europe
Austria
Belgium
Denmark
France
Germany
Ireland
Italy
Netherlands
Norway
Russia
Spain
Sweden
Switzerland
UK
Other European countries
Asia
China
India
Japan
Singapore
South Korea
Other Asian countries
Latin America
Brazil
Chile
Colombia
Venezuela
Other Latin American countries
Middle East and North Africa
Egypt
Iran
Iraq
Israel
Kuwait
Saudi Arabia
UAE
Other MENA countries
Rest of the World
Australia
New Zealand
Other countries
CONVERSATIONAL AI MARKET: GROWTH AND TRENDS
Conversational AI is a technology that allows machines to interact with users in a natural, human-like manner through text or voice interfaces. With the advent of artificial general intelligence, conversational AI integrates various methods such as natural language processing, machine learning, and deep learning to comprehend user input, produce suitable replies, and replicate human conversational styles. This technology encompasses sophisticated chatbots and virtual agents that interact with people to offer solutions to diverse issues and accomplish specific tasks by utilizing extensive data sets.
The growth of AI-driven customer support services is significantly propelling the expansion of the conversational AI market. As consumers increasingly demand swift, efficient, and personalized interactions, businesses are finding ways to evolve their support frameworks beyond traditional call centers. This trend is expected to further accelerate the conversational AI market with a growing need for AI chatbots and virtual assistants designed to manage large volumes of repetitive inquiries through natural language interactions round the clock.
Furthermore, many major companies are investing in advanced AI solutions that do more than respond to inquiries; they also address problems by executing necessary actions. Overall, considering these factors, the global conversational AI market is expected to experience significant growth during this forecast period.
CONVERSATIONAL AI MARKET: KEY SEGMENTS
Market Share by Type of Component
Based on type of component, the global conversational AI market is segmented into managed services, professional services, and solutions. According to our estimates, currently, the solutions segment captures the majority share of the market. This can be attributed to the significant internal installations of conversational AI technology for businesses. Moreover, AI-powered support systems are more effective in granting customers access to services and providing assistance around the clock.
Market Share by Type of Conversational AI
Based on type of conversational AI, the conversational AI market is segmented into AI chatbots, generative AI agents, and intelligent virtual assistants (IVA). According to our estimates, currently, the chatbot segment captures the majority of the market. This can be attributed to the significant advancements in machine learning and natural language processing (NLP) technologies.
Chatbots, once primarily used for data collection, now possess the ability to understand and generate human-like language due to rapid developments in NLP. On the other hand, the IVA segment is expected to grow at a relatively higher CAGR during the forecast period.
Market Share by Type of Deployment
Based on type of deployment, the conversational AI market is segmented into cloud, hybrid and on premises. According to our estimates, currently, cloud deployment segment captures the majority share of the market. This can be attributed to the growing significance of cloud-based technologies and services in businesses worldwide. Additionally, the continuous updates of cloud conversational AI platforms with new features, improvements, and advancements in machine learning and language processing are also driving the growth of this segment.
Market Share by Type of Conversational AI Modality
Based on type of conversational ai modality, the conversational AI market is segmented into multimodal, text-based and voice-based. According to our estimates, currently, the text-based segment captures the majority share of the market, owing to its extensive use in chatbots and virtual assistants.
On the other hand, the voice-based segment is expected to grow at a relatively higher CAGR during the forecast period, driven by advancements in natural language processing (NLP) and a growing consumer inclination towards voice interactions.
Market Share by Type of Technology
Based on type of technology, the conversational AI market is segmented into automatic speech recognition, ML and deep learning, and natural language processing. According to our estimates, currently, the natural language processing segment captures the majority share of the market, owing to the enhanced efficiency and precision of NLP in handling substantial amounts of natural language data and optimizing documentation procedures.
On the other hand, the automatic speech recognition segment is expected to grow at a relatively higher CAGR during the forecast period. This growth is linked to the advancements of speech user interfaces for conversational AI that is supported by ASR.
Market Share by Type of End-Users
Based on type of end-users, the conversational AI market is segmented into automotive, BFSI, education, healthcare, IT & telecom, media & entertainment, retail & e-commerce, and others. According to our estimates, currently, the retail and e-commerce segment captures the majority share of the market. This can be attributed to the considerable attention that conversational AI has received in the retail and e-commerce fields, owing to its ability to enhance customer interaction, optimize operations, and elevate the overall shopping experience.
Market Share by Type of Enterprise
Based on type of enterprise, the conversational AI market is segmented into large and small and medium enterprise. According to our estimates, currently, the large enterprise segment captures the majority share of the market. On the other hand, the small and medium enterprise segments is expected to grow at a relatively higher CAGR during the forecast period. This can be attributed to their greater affordability, specialized opportunities within the conversational AI market, adaptability, and support from the government.
Market Share by Geographical Regions
Based on geographical regions, the conversational AI market is segmented into North America, Europe, Asia, Latin America, Middle East and North Africa, and the rest of the world. According to our estimates, currently, North America captures the majority share of the market, owing to its extensive use of advanced technology and the surging demand for AI-driven customer support services. Moreover, many businesses in the US are investing in innovative technology to better cater to their clients' needs.
Example Players in Conversational AI Market
7.ai
Amelia
Avaamo
Artificial Solutions
AWS
Baidu
Boost.ai
Cognigy
Conversica
Creative Virtual
Clinc
eGain
Exceed.ai
FIS
Google
Gupshup
Haptik
IBM
Inbenta
Kore.ai
Kasisto
Laiye
LivePerson
MindMeld
Microsoft
Nuance Communications
OpenAI
Pypestream
Quiq
Rasa
Rulai
SAP SE
Saarthi.ai
Senseforth.ai
SoundHound
Solvvy
Sprinklr
Twilio
Yellow.ai
CONVERSATIONAL AI MARKET: RESEARCH COVERAGE
The report on the Conversational AI market features insights on various sections, including:
Market Sizing and Opportunity Analysis: An in-depth analysis of the Conversational AI market, focusing on key market segments, including [A] type of component, [B] type of conversational ai, [C] type of deployment, [D] type of conversational ai modality, [E] type of technology, [F] type of end user, [G] type of enterprise, [H] type of business model, and [I] key geographical regions.
Competitive Landscape: A comprehensive analysis of the companies engaged in the Conversational AI market, based on several relevant parameters, such as [A] year of establishment, [B] type of enterprise, [C] location of headquarters and [D] ownership structure.
Company Profiles: Elaborate profiles of prominent players engaged in the Conversational AI market, providing details on [A] location of headquarters, [B]type of enterprise, [C] company mission, [D] company footprint, [E] management team, [F] contact details, [G] financial information, [H] operating business segments, [I] conversational AI portfolio, [J] moat analysis, [K] recent developments, and an informed future outlook.
SWOT Analysis: An insightful SWOT framework, highlighting the strengths, weaknesses, opportunities and threats in the domain. Additionally, it provides Harvey ball analysis, highlighting the relative impact of each SWOT parameter.
Value Chain Analysis: A comprehensive analysis of the value chain, providing information on the different phases and stakeholders involved in the Conversational AI market.
KEY QUESTIONS ANSWERED IN THIS REPORT
How many companies are currently engaged in conversational AI market?
Which are the leading companies in this market?
What factors are likely to influence the evolution of this market?
What is the current and future market size?
What is the CAGR of this market?
How is the current and future market opportunity likely to be distributed across key market segments?
REASONS TO BUY THIS REPORT
The report provides a comprehensive market analysis, offering detailed revenue projections of the overall market and its specific sub-segments. This information is valuable to both established market leaders and emerging entrants.
Stakeholders can leverage the report to gain a deeper understanding of the competitive dynamics within the market. By analyzing the competitive landscape, businesses can make informed decisions to optimize their market positioning and develop effective go-to-market strategies.
The report offers stakeholders a comprehensive overview of the market, including key drivers, barriers, opportunities, and challenges. This information empowers stakeholders to stay abreast of market trends and make data-driven decisions to capitalize on growth prospects.
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TABLE OF CONTENTS
1. PREFACE
1.1. Introduction
1.2. Market Share Insights
1.3. Key Market Insights
1.4. Report Coverage
1.5. Key Questions Answered
1.6. Chapter Outlines
2. RESEARCH METHODOLOGY
2.1. Chapter Overview
2.2. Research Assumptions
2.3. Database Building
2.3.1. Data Collection
2.3.2. Data Validation
2.3.3. Data Analysis
2.4. Project Methodology
2.4.1. Secondary Research
2.4.1.1. Annual Reports
2.4.1.2. Academic Research Papers
2.4.1.3. Company Websites
2.4.1.4. Investor Presentations
2.4.1.5. Regulatory Filings
2.4.1.6. White Papers
2.4.1.7. Industry Publications
2.4.1.8. Conferences and Seminars
2.4.1.9. Government Portals
2.4.1.10. Media and Press Releases
2.4.1.11. Newsletters
2.4.1.12. Industry Databases
2.4.1.13. Roots Proprietary Databases
2.4.1.14. Paid Databases and Sources
2.4.1.15. Social Media Portals
2.4.1.16. Other Secondary Sources
2.4.2. Primary Research
2.4.2.1. Introduction
2.4.2.2. Types
2.4.2.2.1. Qualitative
2.4.2.2.2. Quantitative
2.4.2.3. Advantages
2.4.2.4. Techniques
2.4.2.4.1. Interviews
2.4.2.4.2. Surveys
2.4.2.4.3. Focus Groups
2.4.2.4.4. Observational Research
2.4.2.4.5. Social Media Interactions
2.4.2.5. Stakeholders
2.4.2.5.1. Company Executives (CXOs)
2.4.2.5.2. Board of Directors
2.4.2.5.3. Company Presidents and Vice Presidents
2.4.2.5.4. Key Opinion Leaders
2.4.2.5.5. Research and Development Heads
2.4.2.5.6. Technical Experts
2.4.2.5.7. Subject Matter Experts
2.4.2.5.8. Scientists
2.4.2.5.9. Doctors and Other Healthcare Providers
2.4.2.6. Ethics and Integrity
2.4.2.6.1. Research Ethics
2.4.2.6.2. Data Integrity
2.4.3. Analytical Tools and Databases
3. ECONOMIC AND OTHER PROJECT SPECIFIC CONSIDERATIONS
3.1. Forecast Methodology
3.1.1. Top-Down Approach
3.1.2. Bottom-Up Approach
3.1.3. Hybrid Approach
3.2. Market Assessment Framework
3.2.1. Total Addressable Market (TAM)
3.2.2. Serviceable Addressable Market (SAM)
3.2.3. Serviceable Obtainable Market (SOM)
3.2.4. Currently Acquired Market (CAM)
3.3. Forecasting Tools and Techniques
3.3.1. Qualitative Forecasting
3.3.2. Correlation
3.3.3. Regression
3.3.4. Time Series Analysis
3.3.5. Extrapolation
3.3.6. Convergence
3.3.7. Forecast Error Analysis
3.3.8. Data Visualization
3.3.9. Scenario Planning
3.3.10. Sensitivity Analysis
3.4. Key Considerations
3.4.1. Demographics
3.4.2. Market Access
3.4.3. Reimbursement Scenarios
3.4.4. Industry Consolidation
3.5. Robust Quality Control
3.6. Key Market Segmentations
3.7. Limitations
4. MACRO-ECONOMIC INDICATORS
4.1. Chapter Overview
4.2. Market Dynamics
4.2.1. Time Period
4.2.1.1. Historical Trends
4.2.1.2. Current and Forecasted Estimates
4.2.2. Currency Coverage
4.2.2.1. Overview of Major Currencies Affecting the Market
4.2.2.2. Impact of Currency Fluctuations on the Industry
4.2.3. Foreign Exchange Impact
4.2.3.1. Evaluation of Foreign Exchange Rates and Their Impact on Market
4.2.3.2. Strategies for Mitigating Foreign Exchange Risk
4.2.4. Recession
4.2.4.1. Historical Analysis of Past Recessions and Lessons Learnt
4.2.4.2. Assessment of Current Economic Conditions and Potential Impact on the Market
4.2.5. Inflation
4.2.5.1. Measurement and Analysis of Inflationary Pressures in the Economy
4.2.5.2. Potential Impact of Inflation on the Market Evolution
4.2.6. Interest Rates
4.2.6.1. Overview of Interest Rates and Their Impact on the Market
4.2.6.2. Strategies for Managing Interest Rate Risk
4.2.7. Commodity Flow Analysis
4.2.7.1. Type of Commodity
4.2.7.2. Origins and Destinations
4.2.7.3. Values and Weights
4.2.7.4. Modes of Transportation
4.2.8. Global Trade Dynamics
4.2.8.1. Import Scenario
4.2.8.2. Export Scenario
4.2.9. War Impact Analysis
4.2.9.1. Russian-Ukraine War
4.2.9.2. Israel-Hamas War
4.2.10. COVID Impact / Related Factors
4.2.10.1. Global Economic Impact
4.2.10.2. Industry-specific Impact
4.2.10.3. Government Response and Stimulus Measures
4.2.10.4. Future Outlook and Adaptation Strategies