Conversational AI Market to be worth $41.39 Billion by 2030 at CAGR 23.7% - Grand View Research, Inc.

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May 12, 2025, 11:05 ET

SAN FRANCISCO, May 12, 2025 /PRNewswire/ -- The global conversational AI market size is anticipated to reach USD 41.39 billion in 2030 and is anticipated to grow at a CAGR of 23.7% from 2025 to 2030. The market growth is driven by user engagement across platforms and the growing deployment of powerful AI technology. It shows that consumers and businesses alike see technology as a way to grow their operations. Since conversational AI is becoming a more important technology, businesses must apply virtual assistants or chatbots with the right goals in mind. The rapid expansion of the E-commerce sector and digitalization is creating ideal circumstances for the demand for customer support services.

Global market adoption of AI is boosted by omnichannel deployment, 24/7 improved customer service, real-time customized service, and lower customer service costs. A new enterprise CX Platform was launched by Jio platform's Haptik in October 2021 to support conversational AI solutions. With the help of this platform, businesses may quickly launch intelligent virtual assistants in a low-code environment. The market growth is predicted to be aided by the service sector's expanding 'Chat first' approach and technological advancements like natural language processing (NLP). In November 2021, with the introduction of new conversational AI technology by ZeroShotBot, chatbots of all sizes are now considered standard.

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With ZeroShotBot, anybody can create a fully functional chatbot without any coding knowledge due to innovative technology that eliminates the requirement for training data. Moreover, in January 2022, Visionstate Corp. introduced innovative Vicci 2.0, a state-of-the-art conversational chatbot AI-powered customer service kiosk. Visionstate is implementing this technology into its Vicci 2.0 platform to serve on-site customer service influenced by AI. The Vicci 2.0 platform can back a broad range of consumers through its modification capability to support various languages. However, the need for experts to handle conversational AI and a lack of awareness of conversational AI prevent conversational AI from becoming widely used.

Offering a top-notch digital experience is more important for businesses. Customer experience firms now can swiftly and efficiently address complicated questions and inquiries because of the development of conversational AI. Major players in the market are engaged in partnerships and strategic collaborations to enhance their products and service offerings and expand the consumer base. For instance, to upgrade omnichannel competencies like Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Supply Chain Management (SCM), and Human Resources Management System (HRMS), Yellow.ai and Tech Mahindra jointly develop next-generation conversational-AI technologies.

Conversational AI Market Report Highlights:

The solution segment led the conversational AI industry in 2024, accounting for 61.1% share of the global revenue.
The chatbot segment led the market in 2024, accounting for a significant share of the global revenue.
The on-premises segment led the market in 2024, accounting for a prominent share of the global revenue. This is attributable to the flexibility delivered to the customer, due to which the transaction is done only once.
The NLP segment led the conversational AI industry in 2024, accounting for a significant revenue share of global revenue.
Based on the end user, the retail and e-commerce segment led the market in 2024, accounting for a prominent share of global revenue.

Read full market research report on Conversational AI Market with TOC - Conversational AI Market Size, Share & Trends Analysis Report By Component (Solutions, Managed Services, Professional Services), By Type, By Deployment, By Technology, By End User, By Region, And Segment Forecasts, 2025 - 2030

Conversational AI Market Segmentation

Grand View Research has segmented the global conversational AI market report based on component, type, deployment, technology, end user, and region:

Conversational AI Market - Component Outlook (Revenue, USD Million; 2018 - 2030)

Solutions
Managed Services
Professional Services

Training and Consulting
System Integration and Implementation
Support and Maintenance

Conversational AI Market - Type Outlook (Revenue, USD Million; 2018 - 2030)

Chatbots
Intelligent virtual assistant (IVA)

Conversational AI Market - Deployment Outlook (Revenue, USD Million; 2018 - 2030)

On-Premises
Cloud

Conversational AI Market - Technology Outlook (Revenue, USD Million; 2018 - 2030)

Natural Language Processing (NLP)
ML and Deep Learning
Automatic Speech Recognition (ASR)

Conversational AI Market - End User Outlook (Revenue, USD Million; 2018 - 2030)

BFSI
Healthcare
IT and Telecom
Retail and eCommerce
Education
Media and Entertainment
Automotive
Others (Government, Hospitality, Manufacturing, etc.)

Conversational AI Market - Regional Outlook (Revenue, USD Million; 2018 - 2030)

North America

U.S.
Canada
Mexico

Europe

Germany
U.K.
France

Asia Pacific

China
Japan
India
Australia
South Korea

Latin America

Brazil

Middle East and Africa (MEA)

KSA
UAE
South Africa

List of Key Players in the Conversational AI Market

Google
Microsoft
Amazon Web Services, Inc.
IBM
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

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About Grand View Research

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