Conversational Systems Global Market Report 2024

The conversational systems market size has grown exponentially in recent years. It will grow from $14.7 billion in 2023 to $19.21 billion in 2024 at a compound annual growth rate (CAGR) of 30.6%. The growth observed during the historical period can be attributed to several factors, including breakthrough research publications, foundational patents, regulatory approvals for research, milestones in genome editing, as well as increased media coverage and public awareness.

The conversational systems market size is expected to see exponential growth in the next few years. It will grow to $54.88 billion in 2028 at a compound annual growth rate (CAGR) of 30%. The projected growth in the upcoming period can be attributed to several factors, including therapeutic success stories, global healthcare spending trends, commercialization strategies, advancements in bioinformatics and data analytics, and increased patient advocacy and awareness. Key trends expected in the forecast period encompass expanded therapeutic applications of genome editing, the development of customized CRISPR platforms, a rise in clinical trial activities, maturation of regulatory frameworks, and advancements in multiplex gene editing techniques.

The anticipated rise in demand for customer engagement is set to drive the growth of the conversational systems market in the future. Customer engagement entails the continuous interaction and rapport between businesses and their customers. Conversational systems play a crucial role in customer engagement by facilitating two-way dialogues with customers, offering assistance, addressing inquiries, and delivering personalized recommendations. For example, data from reports published by ServiceBell, Inc., a US-based internet platform, indicated that in 2023, 41% of customers opted for live chat support, while 32% preferred telephone assistance. Moreover, over 50% of customers tend to return to businesses that offer live chat support. Consequently, the increasing demand for customer engagement serves as a catalyst for the growth of the conversational systems market.

Key players in the conversational systems market are actively developing innovative AI advancements such as ChatGPT to harness the potential of conversational AI technology. ChatGPT, based on the GPT-3.5 architecture, is a language model designed to comprehend and generate human-such as text based on input. For instance, in December 2022, OpenAI, a US-based artificial intelligence research organization, introduced ChatGPT, a new conversational AI system focused on natural language processing (NLP) capable of engaging in conversations with users. ChatGPT is adept at generating human-such as text and can be employed for various purposes including language translation, question answering, and text summarization. Noteworthy features of ChatGPT include enhanced natural language processing, seamless integration with diverse technologies, improved interpretability, stringent privacy and security measures, and support for voice and image capabilities.

In January, 2023, Insider Inc., a US-based online media company, acquired Mind Behind to bolster its capabilities in delivering end-to-end shopping experiences for brands and retailers. This strategic acquisition positions Insider to offer personalized support and enhance operational efficiency in customer engagement. Mind Behind, a US-based conversational commerce and messaging platform specializing in artificial intelligence (AI) technology, aligns with Insider's vision to elevate customer engagement experiences.

Major companies operating in the conversational systems market report are Amazon Web Services, Inc, Alphabet Inc, Microsoft Corporation, International Business Machines Corporation, Oracle Corporation, SAP SE, Hewlwtt packard, Saffron Technology, Baidu, Inc, Snaps, Inc., TTEC Holdings, Inc., Tibco Software, Inbenta Technologies Inc., LivePerson, Inc., Heyday AI Inc., Rasa Technologies GmbH, Avaamo Inc., Solvvy Inc., Pypestream Inc., Rulai, Inc., Kasisto, Inc., Clinc, Inc., True AI Technologies Inc, Suki.AI, Cognigy GmbH.

North America was the largest region in the conversational systems market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the conversational systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the conversational systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The conversational systems market consists of revenues earned by entities by providing services such as customer support, personal assistants, branding, and advertising. The market value includes the value of related goods sold by the service provider or included within the service offering. The conversational systems market also includes sales of voice-activated devices, smartphones, smart speakers, and smart displays. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Conversational systems are computer programs specifically designed to mimic human-such as conversations with users through natural language. These systems are utilized to offer informed responses and assistance, facilitating direct channel interaction with the aim of guiding interactions and potentially providing real-time support.

The primary components found within conversational systems include compute platforms, solutions, and services. A compute platform serves as the data environment where software implementation takes place, with deployment options available for on-premise setups and large enterprises. These platforms support various applications such as customer support and personal assistants, branding and advertisement, data privacy and compliance, among others. End users span across sectors including banking, financial services, and insurance (BFSI), media and entertainment, retail and e-commerce, travel and hospitality, telecommunications, health and life sciences, and other verticals.

The conversational systems market research report is one of a series of new reports that provides conversational systems market statistics, including conversational systems industry global market size, regional shares, competitors with a conversational systems market share, detailed conversational systems market segments, market trends and opportunities, and any further data you may need to thrive in the conversational systems industry. This conversational systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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