Conversational AI Market, By Component, By Type, By Deployment Mode, By Technology, By Organization Size, By Vertical, By Mode of Integration, By Region, Trend Analysis, Competitive Market Share & Forecast, 2018

Conversational AI Market to Witness a CAGR of 23.4% through 2028

The conversational AI market is growing at a high CAGR because of the rising demand for customer support services by businesses to improve customer experience along with the increasing adoption of conversational AI among various verticals.

This recent study revealed that the conversational AI market was worth USD 6.9 billion in the year 2021. It is estimated to grow at a CAGR of 23.4%, earning revenue of around USD 29.9 billion by the end of 2028. The conversational AI market is flourishing at a high rate owing to the rising demand for customer support services by businesses to improve customer experience. Furthermore, the increasing adoption of conversational AI among various verticals including BFSI, media and entertainment, healthcare and life sciences, travel and hospitality, etc., is anticipated to present lucrative growth opportunities to the market in the forecast period.

Rising Demand for Cloud Deployment is Driving the Conversational AI Market

Based on deployment, the conversational AI market is segmented into on-premise and cloud. The cloud deployment segment holds the largest market share as it proves to be flexible as well as cost-effective compared to the on-premise deployment. Therefore, this type of deployment mode is popular among SMEs. However, most large enterprises opt for on-premise deployment owing to their higher financial capability and advanced security. The on-premise deployment restricts external access to data, which acts in favor of hitting market growth.

Increasing Popularity of App-Based Integration is Propelling the Conversational AI Market Growth

Based on mode of integration, the conversational AI market is segmented into web-based, app-based, and telephonic. The app-based segment accounts for the largest market share in 2021. Technologies such as Google Assistant, Alexa, Siri, etc., are some of the most popular conversational AIs in the world and they work on app-based integration. However, the web-based mode of integration also covers a substantial market share. The increasing number of websites from the SMEs and rising demand for chat services for customer support are driving its overall market growth.

Conversational AI Market - By Technology

Based on technology, the conversational AI market is segmented into machine learning and deep learning, natural language processing, and automatic speech recognition. Natural language processing (NLP) accounts for the largest market share in 2021. Conversational AI combines natural language processing with traditional software such as chatbots or voice assistants to create a chat or voice communication interface. The NLP helps the system understand the meaning of the human language and decrypts it to provide an answer or assistance.

Conversational AI Market - Regional Insights

Geographically, the 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. However, the Asia-Pacific region is projected to witness the highest CAGR during the period owing to the increasing number of SMEs and startups and the rising adoption of conversational AI to cater to customer query requests and boost efficiency. Europe is also growing at a substantial rate owing to the presence of multinational conglomerates.

Impact of COVID-19 on Conversational AI Market

The conversational AI market witnessed tremendous growth after the COVID-19 pandemic outbreak. the number of customer service requests over websites and applications significantly spiked during this period. However, the lack of sufficient working employees and restrictions on the customer care centers due to social distancing norms imposed a huge burden on the human customer care executives, which negatively impacted the customer experience. Due to this, the organizations quickly shifted towards conversational AI to cater to the increasing number of service queries and deliver solutions timely.

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 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.

Don’t miss the business opportunity of the conversational AI market. Consult the report to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the conversational AI market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the conversational AI market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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1. Research Framework
1.1. Research Objective
1.2. Product Overview
1.3. Market Segmentation

2. Research Methodology
2.1. Qualitative Research
2.1.1. Primary & Secondary Research
2.2. Quantitative Research
2.3. Market Breakdown & Data Triangulation
2.3.1. Secondary Research
2.3.2. Primary Research
2.4. Breakdown of Primary Research Respondents, By Region
2.5. Assumption & Limitation

3. Executive Summary

4. Global Conversational AI Market Insights
4.1. Industry Value Chain Analysis
4.2. DROC Analysis
4.2.1. Growth Drivers
4.2.2. Restraints
4.2.3. Opportunities
4.2.4. Challenges
4.3. Technological Landscape/Recent Development
4.4. Regulatory Framework
4.5. Porter’s Five Forces Analysis
4.5.1. Bargaining Power of Suppliers
4.5.2. Bargaining Power of Buyers
4.5.3. Threat of New Entrants
4.5.4. Threat of Substitutes
4.5.5. Intensity of Rivalry

5. Global Conversational AI Market Overview
5.1. Market Size & Forecast by Value, 2018-2028
5.1.1. By Value (USD Million)
5.2. Market Share & Forecast
5.2.1. By Component
5.2.1.1. Solutions
5.2.1.2. Services
5.2.2. By Type
5.2.2.1. Chatbots
5.2.2.2. Intelligent Virtual assistants
5.2.3. By Deployment Mode
5.2.3.1. Cloud
5.2.3.2. On-premise
5.2.4. By Technology
5.2.4.1. Machine Learning (ML) and Deep Learning
5.2.4.2. Natural Language Processing (NLP)
5.2.4.3. Automatic Speech Recognition (ASR)
5.2.5. By Organization Size
5.2.5.1. Large enterprises
5.2.5.2. Small and medium-sized enterprises (SMEs)
5.2.6. By Vertical
5.2.6.1. Banking Finance Services and Insurance (BFSI)
5.2.6.2. Healthcare and Life Sciences
5.2.6.3. IT and Telecom
5.2.6.4. Retail and eCommerce
5.2.6.5. Others
5.2.7. By Mode of Integration
5.2.7.1. Web-based
5.2.7.2. App-based
5.2.7.3. Telephonic
5.2.8. By Region
5.2.8.1. North America
5.2.8.2. Europe
5.2.8.3. The Asia Pacific
5.2.8.4. Latin America
5.2.8.5. The Middle East and Africa

6. North America Conversational AI Market
6.1. Market Size & Forecast by Value, 2018-2028
6.1.1. By Value (USD Million)
6.2. Market Share & Forecast
6.2.1. By Component
6.2.2. By Type
6.2.3. By Deployment Mode
6.2.4. By Technology
6.2.5. By Organization Size
6.2.6. By Vertical
6.2.7. By Mode of Integration
6.2.8. By Country
6.2.8.1. United States
6.2.8.2. Canada

7. Europe Conversational AI Market
7.1. Market Size & Forecast by Value, 2018-2028
7.1.1. By Value (USD Million)
7.2. Market Share & Forecast
7.2.1. By Component
7.2.2. By Type
7.2.3. By Deployment Mode
7.2.4. By Technology
7.2.5. By Organization Size
7.2.6. By Vertical
7.2.7. By Mode of Integration
7.2.8. By Country
7.2.8.1. Germany
7.2.8.2. United Kingdom
7.2.8.3. Italy
7.2.8.4. France
7.2.8.5. Spain
7.2.8.6. Rest of Europe

8. The Asia Pacific Conversational AI Market
8.1. Market Size & Forecast by Value, 2018-2028
8.1.1. By Value (USD Million)
8.2. Market Share & Forecast
8.2.1. By Component
8.2.2. By Type
8.2.3. By Deployment Mode
8.2.4. By Technology
8.2.5. By Organization Size
8.2.6. By Vertical
8.2.7. By Mode of Integration
8.2.8. By Country
8.2.8.1. China
8.2.8.2. India
8.2.8.3. Japan
8.2.8.4. South Korea
8.2.8.5. Rest of Asia Pacific

9. Latin America Conversational AI Market
9.1. Market Size & Forecast by Value, 2018-2028
9.1.1. By Value (USD Million)
9.2. Market Share & Forecast
9.2.1. By Component
9.2.2. By Type
9.2.3. By Deployment Mode
9.2.4. By Technology
9.2.5. By Organization Size
9.2.6. By Vertical
9.2.7. By Mode of Integration
9.2.8. By Country
9.2.8.1. Brazil
9.2.8.2. Mexico
9.2.8.3. Rest of Latin America

10. The Middle East & Africa Conversational AI Market
10.1. Market Size & Forecast by Value, 2018-2028
10.1.1. By Value (USD Million)
10.2. Market Share & Forecast
10.2.1. By Component
10.2.2. By Type
10.2.3. By Deployment Mode
10.2.4. By Technology
10.2.5. By Organization Size
10.2.6. By Vertical
10.2.7. By Mode of Integration
10.2.8. By Country
10.2.8.1. Saudi Arabia
10.2.8.2. UAE
10.2.8.3. South Africa
10.2.8.4. Rest of Middle East & Africa

11. Competitive Landscape
11.1. List of Key Players and Their Offerings
11.2. Market Share Analysis, 2021
11.3. Competitive Benchmarking, By Operating Parameters
11.4. 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) **
13.1. Google
13.2. Microsoft
13.3. IBM
13.4. AWS
13.5. Baidu
13.6. Oracle
13.7. SAP
13.8. FIS
13.9. Artificial Solutions
13.10. Kore.ai
13.11. Conversica
13.12. Inbenta
13.13. Creative Virtual
13.14. SoundHound
13.15. Avaamo
13.16. Haptik
13.17. Solvvy
13.18. MindMeld
13.19. 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 deliverableList 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