The global conversational AI market anticipates reaching US$ 32billion by 2030, registering a compound annual growth rate (CAGR) of 19% during the forecast period from 2021-2030. The global conversational AI market size was estimated at ~US$5.72 billion in 2020.
Conversational AI consists of a set of technologies that enables automated messaging and speech applications. The technologies are used to build interaction between computers and humans.
Factors Influencing
Several factors have fueled the growth of the global conversational AI market, including rising demand for AI-powered customer support services, increasing adoption of artificial intelligence (AI) solutions in various segments for customer service. Moreover, continuously growing government investment in AI-based technologies would further boost the growth of the market during the analysis period. The market is witnessing the growing adoption of conversational AI tools/chatbots for enhancing the customer interaction experience. Moreover, the integration of chatbots for client engagement would potentially boost the growth of the global conversational AI market during the analysis period.
On the contrary, the high deployment cost of AI-powered chatbots together with accuracy concerns related to the use of technology, would negatively impact the adoption of the technologies. Thus, it can impact the growth of the global conversational AI market during the forecast period.
Regional Analysis
On the basis of region, North America is expected to hold the largest share of the global conversational AI market. The regional contribution is expected to develop due to the presence of prominent players such as Oracle Corporation, Google LLC, International Business Machines Corporation, and Microsoft Corporation in the region. Moreover, the market is witnessing a growing number of investments for advancements in machine learning and natural language processing (NLP) in the region. Thus, the rapid technological advancements and government initiatives to promote AI-based technologies would positively enhance the market growth during the analysis period.
Covid-19 Impact Analysis
The sudden onset of the COVID-19 pandemic negatively influenced the growth of IT infrastructure. This, in turn, impacted the growth of the overall market during the pandemic period. The decline in the market growth is attributed to the abrupt decrease in hardware supply and reduced manufacturing capacity. Businesses providing solutions and services also witnessed a temporary slowdown, which halted the overall activities. However, the growing use of collaborative applications, analytics, security solutions, and artificial intelligence (AI) is expected to recover the market growth during the analysis period.
Market Segmentation
By Component
By Type
By Deployment Mode
By Technology
By End-User
Based on region
Competitors in the Market
