The global conversational AI market accounted for a value of USD 3.2 billion in 2019. The conversational AI market is projected to grow at a CAGR of 18.9% during forecast period.
COVID-19 has impacted conversational AI market significantly. The spending in global ICT is expected to decline by 5% by the end of 2020. The IT infrastructure growth has slowed down due to reduced manufacturing capacity and slowdown of hardware supply. The solution and service providing businesses are estimated to showcase decline for a short time whereas the adoption of analytics, AI, security and collaboration is expected to foresee growth in this pandemic.
For more details, visit: Global Conversational AI Market By Component (Platform, Services), By Technology (Automatic Speech Recognition, Natural Language Processing, Others), By Deployment Type (Cloud, On-Premises), By Region–Forecast & Opportunities to 2026
Customer services implies for customer looking for help from emails, applications, websites call centers and so on. The advancement in use of AI technology, enterprises are utilizing conversational AI solution to offer efficient services to customer. More number of organizations is adopting conversational AI. Thus drives growth in conversational AI market.
On the basis of component, the conversational AI market is segmented into platform and services. The services segment is estimated to hold highest market share during the forecast period. The adoption of conversational AI is increasing worldwide to enhanced customer support due to which the demand is increasing for managed and professional services worldwide. The conversational AI helps in build application that resolver customer’s queries and provides recommendation and suggestions using NLP technology. The service providers for conversational AI help in implementing technology for effective customer engagement and intelligent automation.
On the basis of technology, the conversational AI market is segmented into ASR, NLP and ML & deep learning. The ML & deep learning technology is projected to register growth at highest CAGR during the forecast period. The AI enables machine to perform activities same as human beings. Many market opportunities have been opened up in multiple areas. The major technological advancement has been taken place in deep learning. It includes use of crude-simulated neurons to process data. The AI technology development requirements are increasing in different verticals such as healthcare, BFSI, retail, ecommerce, telecom and life science etc. The increasing demand of ML & deep learning has attributed growth in this segment.
On the basis of deployment type, conversational AI market is segmented into cloud and on-premises. The cloud deployment is projected to witness growth at highest CAGR during the forecast period. Conversational AI can be deployed on one deployment mode on the basis of scalability, availability and security. Clouds deployment in conversational AI is higher than others due to its advantages such as low installation cost, low maintenance cost and pay-per-use. This is likely to drive growth in cloud deployment in conversational AI market during the forecast period.
North America region is expected to hold largest market size during the forecast period. The increasing demand for improving the customer services to strengthen the initiatives for customer retention. The number of market players is increasing in this region. These factors are expected drive growth in North America region in conversational AI market during the forecast period.
The key market players in conversational AI market are Google, Microsoft, SAP, IBM, Oracle, Haptik, Nuance, Artificial Solution, Conversica, Solvvy, Inbenta, Rulai, Avaamo, Rasa, Kore.ai, Amplify Reach, and Creative Virtual.
- What are the expected industry trends over the next three to five years?
- Which of the conversational AI technology is likely to lead by 2025?
- Which of the deployment type segments is expected to have the maximum potential to during the forecast period?
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- What are different organic and inorganic strategies implemented by companies to gain increased market share?