A recent report published by Infinium Global Research on conversational ai market provides in-depth analysis of segments and sub-segments in the global as well as regional conversational ai market. The study also highlights the impact of drivers, restraints, and macro indicators on the global and regional conversational ai market over the short term as well as long term. The report is a comprehensive presentation of trends, forecast and dollar values of global conversational AI market. According to the report, the global conversational AI market is projected to reach over USD 22.88 Billion by 2027 from USD 5.72 Billion in 2020, growing with a CAGR of 22.07% over the forecast period of 2021-2027.
Advancements in technology have led to several innovative products and services. AI is one of such products used by customers to streamline their business functions and improve the customer experience. Moreover, AI is been integrated with other technology solutions to boost their operations. Conversational AI is a set of algorithms designed to enable application software to process, understand, and respond to voice and text commands in a natural way. Moreover, conversation AI lets users interact with devices, websites, and applications through their voice, text, and gesture information. It is generally used in a combination with tools such as intelligent virtual agents or chatbots to interact with users in a faster and more reliable way. Further, the advances in machine algorithms are set to improve their response quality over time with improvement in learning.
The outbreak of the Covid-19 pandemic had a serious impact on the various industry across the world. Several industries were compelled to decrease or stop their business activities during the pandemic due to the government restrictions, and concerns over contracting the infection. The lower business operations and high losses incurred by the end-users resulted in dropped demand for conversational AI. However, industries such as e-commerce, healthcare, and entertainment registered higher growth during this crisis, driving the demand for conversational AI. Companies in these industries adopted conversational AI to offer enhanced consumer experience. This, in turn, propelled the growth of conversational AI during the pandemic. Furthermore, as the pandemic crisis came under control, the global economy was restored to its pre-pandemic condition. Several end-users started to invest in modern technologies such as AI to improve their productivity and sales. This is expected to boost the market growth over the forecast period.
The rising investment in advanced technologies such as AI, IoT, and Big Data by the leading companies in various industries is expected to drive the conversational AI market. For instance, the major retail companies including Wal-Mart, Costco, Tesco, and Amazon are investing heavily in the development of AI technology. With the help of AI, these companies are improving the consumer experience by offering them customized product recommendations and better discounts. Moreover, the increasing penetration of the internet and smartphones is further driving the adoption of conversational AI. Consumers use conversational AI solutions on their mobile devices over the internet. The higher penetration of the internet and smartphones provide access to conversational AI for a larger consumer base. However, the dearth of technological infrastructure required for integrating conversational AI is majorly hampering the growth of the market. It is difficult to integrate conversational AI in business operations in some developing economies due to a lack of availability or budget constraints.
In terms of region, North America generated the highest revenue for conversational AI. The dominance of North America in the global market is majorly attributed to the greater adoption of advanced technologies by consumers and organizations. Moreover, the higher investment by the leading companies in advanced technologies is anticipated to consolidate the domination of North America in the global market. On the other hand, the Asia Pacific conversational AI market is expected to grow at the highest rate owing to the booming industries in the region. Moreover, the improving technological environment in the Asia Pacific is augmenting the implementation of the conversational AI industry.
The report on global conversational ai market covers segments such as type, component, technology, deployment, and end-user. On the basis of type, the sub-markets include chatbots, and intelligent virtual assistants (IVA). On the basis of component, the sub-markets include solutions, and services. On the basis of technology, the sub-markets include machine learning, natural language processing (NLP), automatic speech recognition (ASR), and others. On the basis of deployment, the sub-markets include cloud, and on-premises. On the basis of end-user, the sub-markets include BFSI, retail & e-commerce, healthcare & life science, automotive, media & entertainment, and others.
The report provides profiles of the companies in the market such as Microsoft Corporation, Amazon.com, Inc., Alphabet Inc., SAP SE, Oracle Corporation, Baidu, Inc., Conversica Inc., Jio Haptik Technologies Limited, Artificial Solutions International AB, and Creative Virtual Ltd.
The report provides deep insights into the demand forecasts, market trends, and micro and macro indicators. In addition, this report provides insights into the factors that are driving and restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis given in the report brings an insight into the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter's five forces analysis and DRO analysis of conversational ai market. Moreover, the study highlights current market trends and provides forecast from 2021-2027. We also have highlighted future trends in the market that will affect the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings an insight into the market share of the leading players.