In 2018, the conversational artificial intelligence (AI) market generated $3.2 billion and is predicted to reach $15 billion in 2024, advancing at a 30.2% CAGR during 2019-2024.
The market is growing due to the rising demand for AI-powered customer support services, positive return on investment (ROI) for companies deploying conversational AI solutions, and increasing number of solution providers in the market. Conversational AI refers to the application of intelligent virtual assistants (IVA), intelligent interactive voice response (IVR), and chatbots in different industries for automating interactions with the customer and creating a personalized customer experience.
On the basis of technology, the conversational AI market is divided into automated speech recognition, natural language processing, machine learning, and others (which include cognitive computing, computer vision, image processing, and video recognition). During the forecast period, the machine learning division is predicted to witness the fastest growth. The reason for this is that the conversational AI solutions are able to learn from previous responses to several queries, with the help of this technology, which further increases the ability of machines in answering questions.
In terms of application, the conversational AI market is categorized into onboarding and employee engagement, branding and advertisement, customer support, customer engagement and retention, and personal assistant. The personal assistant category is predicted to grow at the fastest CAGR, of 31%, during the forecast period. This is because of the conversational AI solutions, such as IVA and chatbots, that act as a personal assistant and are able to control one's schedule and organize social and business meetings on behalf of the person. The technology further conveys such details to the person through webpage, calendar, and inbox.
Key Topics Covered
Chapter 1. Research Background 1.1 Research Objectives 1.2 Market Definition 1.3 Research Scope 1.3.1 Market Segmentation by Component 1.3.2 Market Segmentation by Deployment 1.3.3 Market Segmentation by Type 1.3.4 Market Segmentation by Industry 1.3.5 Market Segmentation by Technology 1.3.6 Market Segmentation by Application 1.3.7 Market Segmentation by Region 1.3.8 Analysis Period 1.3.9 Market Data Reporting Unit 184.108.40.206 Value 1.4 Key Stakeholders
Chapter 2. Research Methodology
Chapter 3. Executive Summary
Chapter 4. Introduction 4.1 Definition of Market Segments 4.1.1 By Component 220.127.116.11 Platform 18.104.22.168 Service 22.214.171.124.1 Support and maintenance 126.96.36.199.2 Training and consulting 188.8.131.52.3 System integration 4.1.2 By Deployment 184.108.40.206 Cloud 220.127.116.11 On-premises 4.1.3 By Type 18.104.22.168 Chatbot 22.214.171.124 IVA 126.96.36.199 Intelligent IVR system 4.1.4 By Industry 188.8.131.52 BFSI 184.108.40.206 Retail and e-commerce 220.127.116.11 Healthcare 18.104.22.168 Hospitality 22.214.171.124 Telecom 126.96.36.199 Media and entertainment 188.8.131.52 Others 4.1.5 By Technology 184.108.40.206 NLP 220.127.116.11 Machine learning 18.104.22.168 ASR 22.214.171.124 Others 4.1.6 By Application 126.96.36.199 Customer Support 188.8.131.52 Personal Assistant 184.108.40.206 Branding and Advertisement 220.127.116.11 Customer Engagement and Retention 18.104.22.168 Onboarding and Employee Engagement 4.2 Value Chain Analysis 4.3 Market Dynamics 4.3.1 Trends 22.214.171.124 Increasing Adoption of AI Solutions in Customer Service Applications 126.96.36.199 Rising Implementation of Chatbots and IVAs for Healthcare Applications 4.3.2 Drivers 188.8.131.52 Rising Number of Solution Providers 184.108.40.206 Growing Demand for AI-Powered Customer Support Services 220.127.116.11 Positive Return on Investment (ROI) for Companies Deploying Conversational AI Solutions 18.104.22.168 Impact Analysis of Drivers on Market Forecast 4.3.3 Restraints 22.214.171.124 High Deployment Cost of AI Chatbots Hindering Their Adoption in Small and Medium Enterprises (SMEs) 126.96.36.199 Low Accuracy of AI Chatbots in Handling Customer Queries 188.8.131.52 Impact Analysis of Restraints on Market Forecast 4.3.4 Opportunities 184.108.40.206 Usage of Conversational AI Chatbots for Improved Customer Engagement 220.127.116.11 Integration of Conversational AI Chatbots for Employee Retention and Engagement 4.4 Porter's Five Forces Analysis
Chapter 5. Global Market Size and Forecast 5.1 By Component 5.1.1 Service, by Type 5.2 By Deployment 5.3 By Type 5.4 By Industry 5.5 By Technology 5.6 By Application 5.7 By Region
Chapter 6. North America Market Size and Forecast
Chapter 7. Europe Market Size and Forecast
Chapter 8. APAC Market Size and Forecast
Chapter 9. MEA Market Size and Forecast
Chapter 10. LATAM Market Size and Forecast
Chapter 11. Competitive Landscape 11.1 List of Key Players and Their Offering 11.2 Competitive Analysis of Key Players 11.3 Competitive Benchmarking of Key Players 11.4 Recent Activities of Key Players 11.5 Strategic Developments of Key Players 11.5.1 Product Launches 11.5.2 Partnerships 11.5.3 Mergers and Acquisitions 11.5.4 Client Wins 11.5.5 Other Developments
Chapter 12. Company Profiles 12.1 International Business Machines (IBM) Corporation 12.1.1 Business Overview 12.1.2 Product and Service Offerings 12.1.3 Key Financial Summary 12.2 Nuance Communications Inc. 12.3 Conversica Inc. 12.4 Haptik Inc. 12.5 Amazon Web Services Inc. 12.6 Microsoft Corporation 12.7 SAP SE 12.8 Oracle Corporation 12.9 Google LLC 12.10 Baidu Inc.