Conversational AI Market by Devlpoment and Geography - Forecast and Analysis - 2022-2026
| Published: Sep 2022 | Pages: 127 | SKU: IRTNTR74460 |
Conversational AI Market Forecast 2022-2026
The conversational AI market share is expected to increase by USD 1.14 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a compound annual growth rate (CAGR) of 21.6%. The growth of the market depends on factors such as growth in natural language processing (NLP), machine learning (ML), and AI technologies, and increasing need for customer engagement.
What will the Market Size be During the Forecast Period?
Download Report Sample to Unlock More
Market Dynamics
The growth in natural language processing (NLP), machine learning (ML), and AI technologies is notably driving the market's growth, although factors such as resistance to using chatbots may impede the market. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Driver
The growth in natural language processing (NLP), machine learning (ML), and AI technologies are some of the key factors driving the market. AI, also known as machine intelligence, is a technology that has grown significantly in the past decade and is now capable of developing computers and robots that can explain data contextually to provide the requested information, data analysis, or trigger activities based on the findings. Through ML and neural network techniques, companies across the globe are investing in teaching machines to think more like humans. AI helps reduce human errors, creating more precise analytic models, and turning data-collecting devices into powerful analytic tools. Apart from connecting companies and customers, such technologies can be applied to make customer services more efficient during purchase as well as post-purchase activities. Advances in AI approaches have led to the development of applications that are built with AI/ML algorithms, which aim at finding meaningful insights easily for analysts and users. These factors will positively impact the growth of the market during the forecast period.
Key Trend
The increasing need for customer engagement will fuel the market. A major factor driving the market is the increasing demand for AI-powered customer support services. With tightening market competition, it is becoming even more important for companies to maintain their customer base and continue adding new customers. To gain customer loyalty, it is very important for companies to keep customer services more engaging and have a constant touchpoint to maintain that contact. It is easier to sell to an existing customer than to gain a new customer, which makes it important for businesses to provide a good post-purchase experience as that can act as a lead for the next purchase. Nowadays, investments in AI, NLP, and ML are increasing and have widened the scope for providing effective chatbots and voiceover software applications for Internet users. The applications of chatbots range from the automation of front-line call centers to providing virtual assistance on products and FAQs. In the long run, they help companies in reducing their operational expenses. Such benefits are making various organizations adopt chatbots and other such applications, which will drive the growth of the global market during the forecast period.
Key Challenge
Resistance to using chatbots is a major challenge to the global market. The lack of accuracy in chatbots, along with technical issues in their integration, is leading to resistance from many end-users and customers, thus posing a challenge to the market. Consumers have shown concerns over companies quickly moving to chatbots to reduce costs, as it makes it harder to interact with actual representatives when needed. The technical challenges faced during the deployment of chatbots and virtual assistants (VAs) are also major challenges for enterprises, leading to resistance. Especially in an unstructured conversation, chatbots find more difficulty in interpreting and providing answers in different languages. Business customers also have reportedly highlighted some of the very important aspects of using chatbots, including bots redirecting users to frequently asked questions (FAQs) that have already been referred to and have not been helpful. Other concerns that are commonly highlighted by customers include that the conversation feels impersonal, and the issues are so complex that a bot is not helpful and needs human assistance. The above factors will hinder the market growth during the forecast period.
This market research and growth report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on market growth. The actionable insights on the trends and challenges will help companies evaluate and develop strategies for 2022-2026.
Who are the Major Conversational AI Market Companies?
The market growth and trends report analyzes the market’s competitive landscape and offers information on several market companies, including:
- Alphabet Inc.
- Amazon.com Inc.
- AmplifyReach India
- Artificial Solutions International AB
- Avaamo Inc.
- Baidu Inc.
- Cognigy GmbH
- Conversica Inc.
- Creative Virtual Ltd.
- Fidelity National Information Services Inc.
- Gamut Analytics Pvt. Ltd.
- Inbenta Holdings Inc.
- International Business Machines Corp.
- Jio Haptik Technologies Ltd.
- Kasisto Inc.
- Kore.ai Inc.
- Microsoft Corp.
- Oracle Corp.
- Rasa Technologies Inc.
- SAP SE
- SoundHound Inc.
This statistical study of the market encompasses successful business strategies deployed by the key companies. The market is fragmented, and the companies are deploying organic and inorganic strategies to compete in the market.
Product Insights and News
- Alphabet Inc. - The company offers a wide range of software products and platforms.
The vendor profiles are designed to help clients improve their market position and information on production and sustainability along with this the market research report provides a detailed analysis of several leading companies.
Value Chain Analysis
Our In-house experts produce extensive information on the value chain and parent market of the market, which companies can leverage to gain a competitive advantage during the forecast period. The Value Chain information provides an end-to-end understanding of product insight and profit and also the optimization and evaluation of business strategies The players across the value chain includes selective data and analysis from entire research findings as per the scope of the market growth and forecasting report.
The value chain of the global IT software market includes the following core components:
- Inputs
- Inbound logistics
- Operations
- Outbound logistics
- Marketing and sales
- Service
- Support activities
- Innovation
The market forecasting report has further elucidated other innovative approaches being followed by service providers to ensure a sustainable market presence.
Regional Analysis
For more insights on the market share of various regions Request PDF Sample now!
33% of the market’s growth will originate from North America during the forecast period. The US and Canada are the key markets for the market in North America. The market in this region will be slower than the growth of the market in other regions.
The growth in natural language processing (NLP), machine learning (ML), and AI technologies will facilitate the market's growth in North America over the forecast period. This market growth analysis report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for companies, which will assist in creating efficient business plans.
Segmentation Analysis
To gain further insights on the market contribution of various segments Request a PDF Sample
The market share growth by the on-premise segment will be significant during the forecast period. One of the major drivers for the growth of the segment is the increasing need for security. Buyers want to have complete control over their hardware and software. Thus, they prefer on-premises AI infrastructure over cloud-based AI infrastructure. Many major clients across the world require AI infrastructure to be installed on-premises. This increases the security level of the data that is being processed. Several firms are adopting on-premises AI.
This market trends and analysis report provides an accurate prediction of the contribution of all the segments to the growth of the market size and actionable market insights.
Market Analyst Overview
The conversational AI market experiences a surge in demand, driven by factors like rising chatbot development costs and omnichannel deployment. AI-powered messaging, including speech-based apps, caters to diverse platforms like mobile and web applications. Hybrid models combining generative and discriminative methods enable tasks like picture classification and language translation. Development initiatives focus on enterprise use cases, enhancing generative AI businesses for human-like responses and conversational context.
Public sector organizations prioritize digital transformation to improve citizen experience, especially among digital native populations. Cognitive competencies streamline the purchase journey across English and regional languages, with solutions like Google Assistant and Bot-in-a-Box dominating the market alongside managed service segments offered by Accenture and Conversational AI Platform providers.
|
Conversational AI Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
120 |
|
Base year |
2021 |
|
Forecast period |
2022-2026 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 21.6% |
|
Market growth 2022-2026 |
USD 1.14 billion |
|
Market structure |
Fragmented |
|
YoY growth (%) |
21.2 |
|
Regional analysis |
North America, Europe, APAC, the Middle East and Africa, and South America |
|
Performing market contribution |
North America at 33% |
|
Key consumer countries |
US, Canada, China, India, Germany, and Italy |
|
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
|
Key companies profiled |
Alphabet Inc., Amazon.com Inc., AmplifyReach India, Artificial Solutions International AB, Avaamo Inc., Baidu Inc., Cognigy GmbH, Conversica Inc., Creative Virtual Ltd., Fidelity National Information Services Inc., Gamut Analytics Pvt. Ltd., Inbenta Holdings Inc., International Business Machines Corp., Jio Haptik Technologies Ltd., Kasisto Inc., Kore.ai Inc., Microsoft Corp., Oracle Corp., Rasa Technologies Inc., SAP SE, and SoundHound Inc |
|
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
|
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
What are the Key Data Covered in this Market Report?
- CAGR of the market during the forecast period 2022-2026
- Detailed information on factors that will drive market growth during the next five years
- Precise estimation of the market size and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behavior
- The growth of the industry across North America, Europe, APAC, the Middle East and Africa, and South America
- A thorough analysis of the market’s competitive landscape and detailed information on companies
- Comprehensive details of factors that will challenge the growth of market companies
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
- 1.1 Market overview
- Exhibit 01: Executive Summary – Chart on Market Overview
- Exhibit 02: Executive Summary – Data Table on Market Overview
- Exhibit 03: Executive Summary – Chart on Global Market Characteristics
- Exhibit 04: Executive Summary – Chart on Market by Geography
- Exhibit 05: Executive Summary – Chart on Market Segmentation by Deployment
- Exhibit 06: Executive Summary – Chart on Incremental Growth
- Exhibit 07: Executive Summary – Data Table on Incremental Growth
- Exhibit 08: Executive Summary – Chart on Vendor Market Positioning
2 Market Landscape
- 2.1 Market ecosystem
- Exhibit 09: Parent market
- Exhibit 10: Market Characteristics
3 Market Sizing
- 3.1 Market definition
- Exhibit 11: Offerings of vendors included in the market definition
- 3.2 Market segment analysis
- Exhibit 12: Market segments
- 3.3 Market size 2021
- 3.4 Market outlook: Forecast for 2021-2026
- Exhibit 13: Chart on Global - Market size and forecast 2021-2026 ($ million)
- Exhibit 14: Data Table on Global - Market size and forecast 2021-2026 ($ million)
- Exhibit 15: Chart on Global Market: Year-over-year growth 2021-2026 (%)
- Exhibit 16: Data Table on Global Market: Year-over-year growth 2021-2026 (%)
4 Five Forces Analysis
- 4.1 Five forces summary
- Exhibit 17: Five forces analysis - Comparison between 2021 and 2026
- 4.2 Bargaining power of buyers
- Exhibit 18: Chart on Bargaining power of buyers – Impact of key factors 2021 and 2026
- 4.3 Bargaining power of suppliers
- Exhibit 19: Bargaining power of suppliers – Impact of key factors in 2021 and 2026
- 4.4 Threat of new entrants
- Exhibit 20: Threat of new entrants – Impact of key factors in 2021 and 2026
- 4.5 Threat of substitutes
- Exhibit 21: Threat of substitutes – Impact of key factors in 2021 and 2026
- 4.6 Threat of rivalry
- Exhibit 22: Threat of rivalry – Impact of key factors in 2021 and 2026
- 4.7 Market condition
- Exhibit 23: Chart on Market condition - Five forces 2021 and 2026
5 Market Segmentation by Deployment
- 5.1 Market segments
- Exhibit 24: Chart on Deployment - Market share 2021-2026 (%)
- Exhibit 25: Data Table on Deployment - Market share 2021-2026 (%)
- 5.2 Comparison by Deployment
- Exhibit 26: Chart on Comparison by Deployment
- Exhibit 27: Data Table on Comparison by Deployment
- 5.3 On-premise - Market size and forecast 2021-2026
- Exhibit 28: Chart on On-premise - Market size and forecast 2021-2026 ($ million)
- Exhibit 29: Data Table on On-premise - Market size and forecast 2021-2026 ($ million)
- Exhibit 30: Chart on On-premise - Year-over-year growth 2021-2026 (%)
- Exhibit 31: Data Table on On-premise - Year-over-year growth 2021-2026 (%)
- 5.4 Cloud - Market size and forecast 2021-2026
- Exhibit 32: Chart on Cloud - Market size and forecast 2021-2026 ($ million)
- Exhibit 33: Data Table on Cloud - Market size and forecast 2021-2026 ($ million)
- Exhibit 34: Chart on Cloud - Year-over-year growth 2021-2026 (%)
- Exhibit 35: Data Table on Cloud - Year-over-year growth 2021-2026 (%)
- 5.5 Market opportunity by Deployment
- Exhibit 36: Market opportunity by Deployment ($ million)
6 Customer Landscape
- 6.1 Customer landscape overview
- Exhibit 37: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
7 Geographic Landscape
- 7.1 Geographic segmentation
- Exhibit 38: Chart on Market share by geography 2021-2026 (%)
- Exhibit 39: Data Table on Market share by geography 2021-2026 (%)
- 7.2 Geographic comparison
- Exhibit 40: Chart on Geographic comparison
- Exhibit 41: Data Table on Geographic comparison
- 7.3 North America - Market size and forecast 2021-2026
- Exhibit 42: Chart on North America - Market size and forecast 2021-2026 ($ million)
- Exhibit 43: Data Table on North America - Market size and forecast 2021-2026 ($ million)
- Exhibit 44: Chart on North America - Year-over-year growth 2021-2026 (%)
- Exhibit 45: Data Table on North America - Year-over-year growth 2021-2026 (%)
- 7.4 Europe - Market size and forecast 2021-2026
- Exhibit 46: Chart on Europe - Market size and forecast 2021-2026 ($ million)
- Exhibit 47: Data Table on Europe - Market size and forecast 2021-2026 ($ million)
- Exhibit 48: Chart on Europe - Year-over-year growth 2021-2026 (%)
- Exhibit 49: Data Table on Europe - Year-over-year growth 2021-2026 (%)
- 7.5 APAC - Market size and forecast 2021-2026
- Exhibit 50: Chart on APAC - Market size and forecast 2021-2026 ($ million)
- Exhibit 51: Data Table on APAC - Market size and forecast 2021-2026 ($ million)
- Exhibit 52: Chart on APAC - Year-over-year growth 2021-2026 (%)
- Exhibit 53: Data Table on APAC - Year-over-year growth 2021-2026 (%)
- 7.6 Middle East and Africa - Market size and forecast 2021-2026
- Exhibit 54: Chart on Middle East and Africa - Market size and forecast 2021-2026 ($ million)
- Exhibit 55: Data Table on Middle East and Africa - Market size and forecast 2021-2026 ($ million)
- Exhibit 56: Chart on Middle East and Africa - Year-over-year growth 2021-2026 (%)
- Exhibit 57: Data Table on Middle East and Africa - Year-over-year growth 2021-2026 (%)
- 7.7 South America - Market size and forecast 2021-2026
- Exhibit 58: Chart on South America - Market size and forecast 2021-2026 ($ million)
- Exhibit 59: Data Table on South America - Market size and forecast 2021-2026 ($ million)
- Exhibit 60: Chart on South America - Year-over-year growth 2021-2026 (%)
- Exhibit 61: Data Table on South America - Year-over-year growth 2021-2026 (%)
- 7.8 US - Market size and forecast 2021-2026
- Exhibit 62: Chart on US - Market size and forecast 2021-2026 ($ million)
- Exhibit 63: Data Table on US - Market size and forecast 2021-2026 ($ million)
- Exhibit 64: Chart on US - Year-over-year growth 2021-2026 (%)
- Exhibit 65: Data Table on US - Year-over-year growth 2021-2026 (%)
- 7.9 China - Market size and forecast 2021-2026
- Exhibit 66: Chart on China - Market size and forecast 2021-2026 ($ million)
- Exhibit 67: Data Table on China - Market size and forecast 2021-2026 ($ million)
- Exhibit 68: Chart on China - Year-over-year growth 2021-2026 (%)
- Exhibit 69: Data Table on China - Year-over-year growth 2021-2026 (%)
- 7.10 Germany - Market size and forecast 2021-2026
- Exhibit 70: Chart on Germany - Market size and forecast 2021-2026 ($ million)
- Exhibit 71: Data Table on Germany - Market size and forecast 2021-2026 ($ million)
- Exhibit 72: Chart on Germany - Year-over-year growth 2021-2026 (%)
- Exhibit 73: Data Table on Germany - Year-over-year growth 2021-2026 (%)
- 7.11 Italy - Market size and forecast 2021-2026
- Exhibit 74: Chart on Italy - Market size and forecast 2021-2026 ($ million)
- Exhibit 75: Data Table on Italy - Market size and forecast 2021-2026 ($ million)
- Exhibit 76: Chart on Italy - Year-over-year growth 2021-2026 (%)
- Exhibit 77: Data Table on Italy - Year-over-year growth 2021-2026 (%)
- 7.12 Canada - Market size and forecast 2021-2026
- Exhibit 78: Chart on Canada - Market size and forecast 2021-2026 ($ million)
- Exhibit 79: Data Table on Canada - Market size and forecast 2021-2026 ($ million)
- Exhibit 80: Chart on Canada - Year-over-year growth 2021-2026 (%)
- Exhibit 81: Data Table on Canada - Year-over-year growth 2021-2026 (%)
- 7.13 India - Market size and forecast 2021-2026
- Exhibit 82: Chart on India - Market size and forecast 2021-2026 ($ million)
- Exhibit 83: Data Table on India - Market size and forecast 2021-2026 ($ million)
- Exhibit 84: Chart on India - Year-over-year growth 2021-2026 (%)
- Exhibit 85: Data Table on India - Year-over-year growth 2021-2026 (%)
- 7.14 Market opportunity by geography
- Exhibit 86: Market opportunity by geography ($ million)
8 Drivers, Challenges, and Trends
- 8.1 Market drivers
- 8.2 Market challenges
- 8.3 Impact of drivers and challenges
- Exhibit 87: Impact of drivers and challenges in 2021 and 2026
- 8.4 Market trends
9 Vendor Landscape
- 9.1 Overview
- 9.2 Vendor landscape
- Exhibit 88: Overview on Criticality of inputs and Factors of differentiation
- 9.3 Landscape disruption
- Exhibit 89: Overview on factors of disruption
- 9.4 Industry risks
- Exhibit 90: Impact of key risks on business
10 Vendor Analysis
- 10.1 Vendors covered
- Exhibit 91: Vendors covered
- 10.2 Market positioning of vendors
- Exhibit 92: Matrix on vendor position and classification
- 10.3 Alphabet Inc.
- Exhibit 93: Alphabet Inc. - Overview
- Exhibit 94: Alphabet Inc. - Business segments
- Exhibit 95: Alphabet Inc. - Key news
- Exhibit 96: Alphabet Inc. - Key offerings
- Exhibit 97: Alphabet Inc. - Segment focus
- 10.4 Amazon.com Inc.
- Exhibit 98: Amazon.com Inc. - Overview
- Exhibit 99: Amazon.com Inc. - Business segments
- Exhibit 100: Amazon.com Inc. - Key news
- Exhibit 101: Amazon.com Inc. - Key offerings
- Exhibit 102: Amazon.com Inc. - Segment focus
- 10.5 Artificial Solutions International AB
- Exhibit 103: Artificial Solutions International AB - Overview
- Exhibit 104: Artificial Solutions International AB - Product / Service
- Exhibit 105: Artificial Solutions International AB - Key offerings
- 10.6 Baidu Inc.
- Exhibit 106: Baidu Inc. - Overview
- Exhibit 107: Baidu Inc. - Business segments
- Exhibit 108: Baidu Inc. - Key offerings
- Exhibit 109: Baidu Inc. - Segment focus
- 10.7 Fidelity National Information Services Inc.
- Exhibit 110: Fidelity National Information Services Inc. - Overview
- Exhibit 111: Fidelity National Information Services Inc. - Business segments
- Exhibit 112: Fidelity National Information Services Inc. - Key news
- Exhibit 113: Fidelity National Information Services Inc. - Key offerings
- Exhibit 114: Fidelity National Information Services Inc. - Segment focus
- 10.8 International Business Machines Corp.
- Exhibit 115: International Business Machines Corp. - Overview
- Exhibit 116: International Business Machines Corp. - Business segments
- Exhibit 117: International Business Machines Corp. - Key offerings
- Exhibit 118: International Business Machines Corp. - Segment focus
- 10.9 Kore.ai Inc.
- Exhibit 119: Kore.ai Inc. - Overview
- Exhibit 120: Kore.ai Inc. - Key offerings
- 10.10 Microsoft Corp.
- Exhibit 121: Microsoft Corp. - Overview
- Exhibit 122: Microsoft Corp. - Business segments
- Exhibit 123: Microsoft Corp. - Key news
- Exhibit 124: Microsoft Corp. - Key offerings
- Exhibit 125: Microsoft Corp. - Segment focus
- 10.11 Oracle Corp.
- Exhibit 126: Oracle Corp. - Overview
- Exhibit 127: Oracle Corp. - Business segments
- Exhibit 128: Oracle Corp. - Key news
- Exhibit 129: Oracle Corp. - Key offerings
- Exhibit 130: Oracle Corp. - Segment focus
- 10.12 SAP SE
- Exhibit 131: SAP SE - Overview
- Exhibit 132: SAP SE - Business segments
- Exhibit 133: SAP SE - Key news
- Exhibit 134: SAP SE - Key offerings
- Exhibit 135: SAP SE - Segment focus
11 Appendix
- 11.1 Scope of the report
- 11.2 Inclusions and exclusions checklist
- Exhibit 136: Inclusions checklist
- Exhibit 137: Exclusions checklist
- 11.3 Currency conversion rates for US$
- Exhibit 138: Currency conversion rates for US$
- 11.4 Research methodology
- Exhibit 139: Research methodology
- Exhibit 140: Validation techniques employed for market sizing
- Exhibit 141: Information sources
- 11.5 List of abbreviations
- Exhibit 142: List of abbreviations
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
- Manufacturers and suppliers
- Channel partners
- Industry experts
- Strategic decision makers
Secondary sources
- Industry journals and periodicals
- Government data
- Financial reports of key industry players
- Historical data
- Press releases
DATA ANALYSIS
Data Synthesis
- Collation of data
- Estimation of key figures
- Analysis of derived insights
Data Validation
- Triangulation with data models
- Reference against proprietary databases
- Corroboration with industry experts
REPORT WRITING
Qualitative
- Market drivers
- Market challenges
- Market trends
- Five forces analysis
Quantitative
- Market size and forecast
- Market segmentation
- Geographical insights
- Competitive landscape
PURCHASE FULL REPORT OF
conversational ai market
Key Questions Answered
- What are the key global market and the regional market share?
- What are the revenue-generating key market segments?
- What are the key factors driving and challenging this market’s growth?
- Who are the key market vendors and their growth strategies?
- What are the latest trends influencing the growth of this market?
- What are the variables influencing the market growth in the primary regions?
- What are the factors influencing the growth of the parent market?
Why should you prefer Technavio's market insights report?
- Off-the-shelf research reports
- Reports can be tailored to meet the customer's needs
- Trusted by more than 100 fortune 500 organizations
- Information about the market's key drivers, trends, and challenges
- Parent market analysis
- Every week, 50,000 people visit our subscription platform
- Detailed vendors report with competitive landscape
- Covid-19 impact and recovery analysis
- Data on revenue-generating market segments
- Details on the market shares of various regions
- Five-force market analysis