Global Conversational AI Market Size, Share, and COVID-19 Impact Analysis, By Component (Platform and Services), By Deployment (Cloud and On-Premises), By Type (IVA and Chatbots), By Technology (Machine Learning, Deep Learning, NLP, and Automated Speech Recognition), By End User (BFSI, Retail & E-commerce, Healthcare & Life Science, Telecom, Media & Entertainment, and Others), and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2022-2030

KEY MARKET INSIGHTS

The Global Conversational AI Market is projected to grow from USD 6.8 billion in 2021 to USD 22.8 billion by 2030 at a CAGR of 21.8%.

Conversational AI is a type of technology that makes use of speech-based assistants to improve interactions and engagement at a massive scale across platforms and users. It combines speech-based techniques, natural language processing, and machine learning into a unified platform that can be used to develop and construct applications for a variety of verticals and use cases. Due to an increase in demand for AI-powered customer support services, the market share is predicted to grow significantly throughout the forecast period. Furthermore, the market has grown due to an increase in demand for artificial intelligence based Gartner chatbots solutions. Furthermore, during the projection period, a surge in the implementation of Omni-channel approaches is predicted to boost the conversational AI market growth.   

COVID-19 ANALYSIS         

During the outbreak, many businesses experienced a significant increase in customer pressure, yet their number of available employees decreased. Due to lockdown restrictions, several contact centers were unable to meet demand or were forced to close, leading in long wait times for customer support enquiries and a severe impact on the customer experience. Businesses are adopting a more strategic approach to their ongoing operations, allowing for greater flexibility and scalability. Conversational AI is gaining traction as a way to increase operational savings while also enabling technology.

TREND  

Integration of Advanced AI Capabilities to Improve Value of Existing Conversational AI  

The industries can now create intelligent agents, provide services, and carry out tasks that are connected to several platforms owing to the growing usage of AI and NLP technologies. New capabilities, such as gesture detection, can be integrated into conversational AI solutions in the future. Users will be able to control smart, conversational gadgets without touching or speaking if gesture detection capabilities are added to the conversational AI offering. Gesture recognition will assist users in controlling smart, conversational devices in situations when there is a lot of noise or disturbance, or the user's accent or tone is unrecognizable. 

DRIVERS  

 Increased Demand for Ai-Powered Customer Support Services Propel Market Growth

During COVID-19, the growing need for AI-based chatbots to stay connected and informed has had a direct impact on the growth of the conversational artificial intelligence (AI) industry. The conversational artificial intelligence (AI) sector is also thriving due to Omni-channel implementation and low chatbot development costs. The market's growth is also being aided by the increased demand for AI-powered customer support services. Furthermore, the conversational artificial intelligence (AI) market is benefiting from significant technological advancements and breakthroughs in the field of artificial intelligence.

RESTRAINT

Lack of Awareness Among Population Hamper Market Growth

The lacks of skilled professionals and lack of technological awareness among population are major roadblocks to the rise of conversational AI in the forecasted period, while the lack of precision in virtual assistants and chatbots may pose a challenge to the market growth during the forecast period.      

SEGMENTATION INSIGHT      

The Global Conversational AI Market is segmented by Component, Deployment, Type, Technology, End User, and Region. Based on the Component, the market is categorized into Platform and Services. Based on Deployment, the market is categorized into Cloud and On-Premises. Based on Type, the market is categorized into IVA and Chatbots. Based on the Technology, the market is categorized into Machine Learning, Deep Learning, NLP, and Automated Speech Recognition. Based on the End User, the market is categorized into BFSI, Retail & E-commerce, Healthcare & Life Science, Telecom, Media & Entertainment, and Others. Based on the Region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.           

Component insight

Based on the Component Type, the market is categorized into Platform and Services. To function successfully, AI solutions depend heavily on the services segment. The service is a key element of implementing technology solutions, is handled by service and solution providers. As customers anticipate improved customer service, demand for conversational AI solutions is expanding across major industries such as media and entertainment, BFSI, and travel.       

Deployment Insight

Based on the Deployment Type, the market is divided into On-Premises and Cloud. Due to the cloud-based technologies and services are becoming increasingly popular in organizations throughout the world, the cloud segment is expected to develop significantly during the forecast period.      

REGIONAL INSIGHTS   

The Global Conversational AI Market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.         

North America is expected to dominate the global conventional AI market during the forecast period owing to the widespread adoption of impending technological breakthroughs and a fast expanding need for artificial intelligence-powered customer support services. In addition, most businesses in North America are investing in technical improvements in order to meet and assist their consumers' needs. Conversational AI is in high demand due to the public's rising awareness of health issues. In North America, the healthcare business is making strides in implementing augmented and virtual reality, robotics, and artificial intelligence. This would allow cognitive services and technology to be delivered for evidence-based health, with a focus on preventive and collaborative treatment.    

Asia Pacific region is expected to grow the highest CAGR during the projection period due to increased awareness among enterprises about new customer support services and technologies. Furthermore, expanding e-commerce development, rising technology acceptability in the retail business, technical innovation in consulting and healthcare, and increasing internet penetration in this region are all fueling conversational AI use and demand.

LIST OF KEY COMPANIES PROFILED:

• Google
• Microsoft
• Amazon Web Services, Inc.
• IBM Corporation
• Oracle
• Nuance Communications, Inc.
• FIS.
• SAP SE
• Artificial Solutions
• Kore.ai, Inc.
• Avaamo
• Conversica, Inc.
• Jio Haptik Technologies Limited
• Rasa Technologies Inc.
• Solvvy
• Pypestream Inc.
• Kasisto
• Cognigy

KEY INDUSTRY DEVELOPMENTS:  

• In March 2021, Google, Vertex AI, a managed machine learning (ML) platform that helps enterprises to expedite the development and maintenance of artificial intelligence (AI) models, will be generally available according to Google Cloud.
• In April 2021, Microsoft announced the acquisition of Nuance Communications, an AI-based technology company, for USD 19.7 billion in an all-cash transaction. Microsoft's voice recognition and transcription skills will be enhanced with the acquisition of Nuance.  

SEGMENTATION INSIGHT

By Component

• Platform
• Services

By Deployment

• Cloud
• On-Premises

By Type

• IVA
• Chatbots

By Technology

• Machine Learning
• Deep Learning
• NLP
• Automated Speech Recognition

By End User

• BFSI
• Retail & E-commerce
• Healthcare & Life Science
• Telecom
• Media & Entertainment
• Others

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy, Spain, Rest of Europe
• Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
• South America- Brazil, Argentina, Colombia, Rest of South America 
• The Middle East and Africa- GCC, South Africa, Rest of Middle East & Africa