What Has Been the Progress and Growth of the Conversational AI Market in Recent Years?
The conversational ai market has seen considerable growth due to a variety of factors.
• In recent times, the size of the conversational AI market has experienced exponential growth. Its expansion can be anticipated from $11.28 billion in 2024, and it is likely to reach $13.64 billion in 2025, with a compound annual growth rate (CAGR) of 20.9%.
The factors that have contributed to this growth in the past years include the proliferation of messaging platforms, automation in customer service, incorporation into business applications, and the emphasis on user engagement and customization.
What Can Be Expected from the Conversational AI Market in the Coming Years?
The conversational ai market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the market size of conversational AI is anticipated to expand significantly. A growth rate of 25.9% compound annual growth rate (CAGR) is expected, making the market worth $34.21 billion by 2029.
This growth during the forecast period can be credited to factors like multimodal conversational interfaces, AI-driven voice assistants, specialized industry solutions, and the incorporation of virtual and augmented reality. The potential trends to look out for during this period include progress in natural language processing (NLP), the emerging prominence of virtual assistants and chatbots, integration with message platforms, multimodal conversations, and the use of voice-activated devices and smart speakers.
What Main Forces Are Fueling Expansion In The Conversational AI Market?
The anticipated growth of the conversational AI market can be attributed to the heightened emphasis on customer engagement. This process, which involves engaging customers through a variety of channels to deepen relationships, has become a priority for numerous businesses keen on enhancing client experience to boost customer devotion and increase revenue. As outlined by Twilio's 2022 State of Customer Engagement Report, corporations that capitalized on digital consumer interaction experienced a 70% rise in revenue over the previous two years. Conversational AI, characterized by the application of messaging applications, voice-based aids, and chatbots to automate discussions and offer personalized interaction, is thus set to benefit from this growing focus on client engagement, propelling the market's expansion.
What Are The Primary Segments In The Global Conversational AI Market?
The conversational ai market covered in this report is segmented –
1) By Type: IVA, Chatbots
2) By Component: Platform, Services
3) By Deployment: Cloud, On-Premises
4) By Technology: Machine Learning, Deep Learning, NLP, Automated Speech Recognition
5) By End User: BFSI, Retail and E-commerce, Healthcare and Life Science, Travel and Hospitality, Telecom, Media and Entertainment, Other End-Users
Subsegments:
1) By IVA (Intelligent Virtual Assistants): Voice-Activated Assistants, Personal Assistants, Enterprise Virtual Assistants
2) By Chatbots: Rule-Based Chatbots, AI-Powered Chatbots, Hybrid Chatbots
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Which Key Trends Are Driving Changes In The Conversational AI Market?
Key players in the conversational AI sector are directing their efforts towards the creation of innovative solutions, such as those incorporating OpenAI's Realtime API. This facilitates more dynamic, context-sensitive interactions and provides users with immediate and convincingly human-like conversation experiences. OpenAI's Realtime API is a robust application programming interface that allows developers to incorporate real-time AI-facilitated conversation abilities into their applications, systems, or goods. For instance, in October 2024, US-based conversational AI platform Agora debuted its Conversational AI SDK integrated with OpenAI's Realtime API. This progressive evolution allows developers to form engaging, voice-powered AI experiences in diverse applications. The SDK facilitates uninterrupted interaction with OpenAI's conversational intelligence, utilizing its sophisticated language models for more natural user engagements.
Who Are the Key Players in the Conversational AI Market?
Major companies operating in the conversational ai market include:
• Google LLC
• International Business Machines Corporation (IBM)
• Amazon Web Services Inc.
• Artificial Solutions Holding ASH AB
• Baidu Inc.
• Haptik
• Microsoft Corporation
• Oracle Corporation
• SAP SE
• Conversica Inc.
• Nuance Communications Inc.
• Rasa Technologies GmbH
• Avaamo Inc.
• Kore. ai Inc.
• Cognitivescale Inc.
• Kasisto Inc.
• Creative Virtual Ltd.
• Inbenta Technologies Inc.
• Next IT Corporation
• Verint Systems Inc.
• 24/7 Customer Inc.
• Botpress
• Chatfuel
• Clinc Inc.
• DigitalGenius Inc.
• Exceed. ai
• Interactions LLC
• LivePerson Inc.
• Mindmeld Inc.
• Pypestream Inc.
What Is The Most Dominant Region In The Conversational AI Market?
North America was the largest region in the conversational AI market in 2024.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the conversational ai market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
