Conversational AI Market Insights and Forecast 2020-2025 - Rising Demand for AI-based Chatbots to Stay Connected and Informed during the COVID-19 Pandemic
DUBLIN, Aug. 18, 2020 /PRNewswire/ -- The "Conversational AI Market by Component (Platform and Services), Type (IVA and Chatbots), Technology (ML and Deep Learning, NLP, and ASR), Application, Deployment Mode (Cloud and On-premises), Vertical, and Region - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.
The Global Conversational AI Market is Expected to Grow from 4.8 Billion in 2020 to USD 13.9 Billion by 2025, at a Compound Annual Growth Rate (CAGR) of 21.9% During the Forecast Period.
Increasing demand for AI-powered customer support services, omnichannel deployment, and reduced chatbot development cost to drive the growth of Conversational AI market
The upcoming trend of customer engagement through social media platforms and increasing integration of advanced AI capabilities are the major factors adding value to the conversational AI offerings, which is expected to provide opportunities for enterprises operating in various verticals in the conversational AI market. The lack of accuracy in chatbots and virtual assistants is a major challenge in the conversational AI market. Moreover, the lack of awareness of conversational AI acts as a key restraining factor in the market.
As the COVID-19 or coronavirus crisis has dragged on, understaffed government agencies, grocery stores, and financial services have all scrambled to set up chatbots and other conversational AI solutions for handling a new influx of calls. IBM witnessed a 40% increase in traffic to Watson Assistant from February to April of this year. In April, Google launched the Rapid Response Virtual Agent, a special version of its Contact Center AI, and lowered the price of its services in response to client demand. While call centers have long been a frontier of workplace automation, the pandemic has accelerated the process.
Organizations under pressure are more willing to try new tools. AI firms that are keen on taking advantage of the situation are sweetening the incentives. Over the last few years, advances in NLP have also dramatically improved on the clunky automated call systems of the past. The latest generation of chatbots and voice-based agents are easier to build, faster to deploy, and more responsive to user inquiries. Once adopted, in other words, these systems are most likely to stay, proving their value through their ease of use and affordability.
Among the services, the training and consulting services segment is expected to account for the higher market share during the forecast period
By service, the market size of the training and consulting segment is expected to be the largest during the forecast period. Consulting services include highly qualified industry experts, security professional, and domain experts to help and motivate organizations in minimizing risks, preventing revenue losses, and upgrading the existing conversational AI solutions in the market.
Consulting services primarily focus on managing the operations revolution programs and the latest technology updates to help the client achieve strategic business goals through technical and professional improvements. Technology consulting helps the client achieve strong business mechanism and decision-making. Nowadays, several enterprises are fully aware of AI capabilities, the supremacy they can offer, and how they can transform the business processes to add more value.
Among the type of conversational AI platforms and solutions, the Intelligent Virtual Assistants (IVA)segment to record the higher growth rate during the forecast period
In the conversational AI market by type, the Intelligent Virtual Assistants (IVA) segment is expected to record the higher CAGR during the forecast period. The growth is attributed to the increasing demand for IVA among enterprises for proving customers better and personalized experience, thus strengthening customer engagement and retention imperatives. IVA utilizes advanced NLP, NLU, and dialog management techniques to achieve high levels of automation without sacrificing accuracy.
With the help of IVA, complex customer queries can be handled effectively. It consists of an advanced dialogue management engine so that users can get full control over the conversational flow. Virtual assistants are, therefore, also capable of understanding customers' intent, regardless of the order in which the data is given throughout the conversation. Virtual agents are designed to provide customer services, product information, marketing, support, sales, order placing, reservations, and other custom services.
Among regions, APAC to grow at the highest CAGR during the forecast period
APAC is expected to grow at the highest CAGR during the forecast period. The major factors fueling the growth of the conversational AI market in APAC are the increasing amount of business data across verticals in this region and growing need to resolve customer queries in real-time and offer omnichannel customer experience in China, Japan, Australia, and India. These countries are leveraging information-intensive AI technologies, and conversational AI is one of the leading technology trends.
IBM, Microsoft, Google, and AWS account for the majority of shares in the conversational AI market in this region. The region has the presence of several other significant conversational AI solution providers. SMEs and large enterprises in the APAC region have become more aware of government regulations and compliances and started adopting AI-based solutions proactively. The adoption of AI technology by different verticals such as BFSI, travel &hospitality, and retail is expected to contribute to the high growth of the conversational AI market.
Key Topics Covered
1 Introduction
2 Research Methodology
3 Executive Summary
4 Premium Insights
4.1 Attractive Market Opportunities in the Conversational AI Market
4.2 Conversational AI Market: Top Three Applications
4.3 Conversational AI Market, by Region
4.4 Conversational AI Market in North America, by Service and Technology
5 Market Overview and Industry Trends
5.1 Introduction
5.2 Market Dynamics
5.2.1 Drivers
5.2.1.1 Increasing Demand for AI-Powered Customer Support Services
5.2.1.2 Omnichannel Deployment and Reduced Chatbot Development Cost
5.2.1.3 Rising Demand for AI-Based Chatbots to Stay Connected and Informed During the COVID-19 Pandemic
5.2.2 Restraints
5.2.2.1 Lack of Awareness About Conversational AI Solutions
5.2.3 Opportunities
5.2.3.1 Rise in Customer Engagement Through Social Media Platforms
5.2.3.2 Integration of Advanced AI Capabilities to Add Value to Existing Conversational AI Offerings
5.2.4 Challenges
5.2.4.1 Lack of Accuracy in Chatbots and Virtual Assistants
5.2.4.2 Maintaining Business Continuity During the COVID-19 Pandemic
5.3 Cumulative Growth Analysis
5.4 Adjacent/Related Markets Snapshot
5.5 Use Cases
5.6 Regulatory Implications
5.6.1 Introduction
5.6.2 General Data Protection Regulation
5.6.3 Health Insurance Portability and Accountability Act
5.6.4 Payment Card Industry Data Security Standard
5.6.5 Financial Industry Regulatory Authority
5.6.6 Service Organizational Control
5.6.7 Markets in Financial Instruments Directive II
5.7 Conversational AI, Architecture
6 Conversational AI Market: COVID-19 Impact
7 Conversational AI Market, by Component
7.1 Introduction
7.2 Platform
7.3 Services
8 Conversational AI Market, by Type
8.1 Introduction
8.2 Intelligent Virtual Assistants
8.3 Chatbots
9 Conversational AI Market, by Technology
9.1 Introduction
9.2 Machine Learning and Deep Learning
9.3 Natural Language Processing
9.4 Automated Speech Recognition
10 Conversational AI Market, by Deployment Mode
10.1 Introduction
10.2 Cloud
10.3 On-Premises
11 Conversational AI Market, by Application
11.1 Introduction
11.2 Customer Support
11.3 Personal Assistant
11.4 Branding and Advertisement
11.5 Customer Engagement and Retention
11.6 Onboarding and Employee Engagement
11.7 Data Privacy and Compliance
11.8 Others
12 Conversational AI Market, by Vertical
12.1 Introduction
12.2 Banking, Financial Services, and Insurance
12.3 Retail and Ecommerce
12.4 Healthcare and Life Sciences
12.5 Travel and Hospitality
12.6 Telecom
12.7 Media and Entertainment
12.8 Others
13 Conversational AI Market, by Region
13.1 Introduction
13.2 North America
13.3 Europe
13.4 Asia-Pacific
13.5 Middle East and Africa
13.6 Latin America
14 Competitive Landscape
14.1 Competitive Leadership Mapping
14.1.1 Visionary Leaders
14.1.2 Innovators
14.1.3 Dynamic Differentiators
14.1.4 Emerging Companies
14.2 Strength of Product Portfolio
14.3 Business Strategy Excellence
14.4 Market Ranking Analysis, by Company
15 Company Profiles
15.1 Google
15.2 Microsoft
15.3 AWS
15.4 IBM
15.5 Oracle
15.6 Nuance
15.7 Baidu
15.8 SAP
15.9 Artificial Solutions
15.10 Kore.ai
15.11 Avaamo
15.12 Conversica
15.13 Haptik
15.14 Rasa
15.15 Solvvy
15.16 Pypestream
15.17 Inbenta
15.18 Rulai
15.19 Creative Virtual
15.20 Saarthi.ai
15.21 FIS
15.22 Amplifyreach
15.23 Interactions
15.24 Quosphere
15.25 Exceed.ai
15.26 Cognigy
15.27 Soundhound Inc.
15.28 Kasisto
15.29 Mindsay
15.30 Clinc
For more information about this report visit https://www.researchandmarkets.com/r/tpxhd
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