$6.8 Bn Conversational AI Market by Component, Type, Technology, Business Function and Region

DUBLIN, Nov. 26, 2021 /PRNewswire/ -- The "Conversational AI Market by Component (Solutions and Services), Type (Chatbots and IVA), Technology (NLP and ASR), Business Function (Sales and Marketing, and Operations), Mode of Integration, Vertical, and Region - Global Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.

The global conversational AI market size to grow from USD 6.8 billion in 2021 to USD 18.4 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 21.8% during the forecast period. Various factors such as increasing demand for AI-powered customer services, omnichannel deployment and reduce chatbot deployment cost, and rising demand for

AI-based chatbots to stay informed and connected during Covid-19 are expected to drive the growth of Conversational AI market

The COVID-19 pandemic has impacted trading activities across regions. It has had a moderate impact on all the elements of the technology sector. The hardware business is predicted to be the most impacted in the IT industry. Owing to the slowdown of hardware supply and reduced manufacturing capacity, the IT infrastructure growth has slowed down. Businesses providing solutions and services are also expected to slow down for a short period. However, the adoption of collaborative applications, analytics, security solutions, and AI is set to increase in the remaining part of the year. Verticals such as manufacturing, retail, and energy and utilities have witnessed a moderate slowdown, whereas BFSI, government, and healthcare and life sciences verticals have witnessed a minimal impact.

The Cloud segment to have the larger market size during the forecast period

Conversational AI market is segmented on the basis of deployment mode which includes on-premises and cloud. The cloud segment is expected to account for a larger market share during the forecast period. Using cloud-based applications, SMEs can collect and analyze data easily to improve their customers' experience. Organizations with more reliance on data security and privacy move toward the on-premises deployment mode to gain more control over their data and its security.

The SMEs segment to hold higher CAGR during the forecast period

On the basis of organization size the Conversational AI market has been segmented into large enterprises and SMEs. The SMEs segment is projected to record a higher CAGR during the forecast period. Verticals focus on adopting technologically advanced solutions and processes at a lower cost would drive the adoption of conversational AI solutions and services among SMEs. The availability of conversational AI technologies such as AI, ML, and deep learning will enable large enterprises to offer employees insights about customers' buying behavior for a better customer experience.

The web-based segment to have the largest market size during the forecast period

On the basis of mode of integration, the conversational AI market has been segmented into web-based segment,app-based segment and telephonic. The web-based segment is estimated to hold the largest market size during the forecast period. Conversational AI offers round-the-clock customer service as it answers commonly asked customer questions, resolves problems, and provides solutions in real-time. The app-based segment is expected to have the highest CAGR during the forecast period as conversational AI enables brands to detect consumer intents in real-time, build chatbots to fulfill those intents at scale alongside human experts, and deploy these AI-powered engagements across the most popular messaging channels.

Among regions, North America to hold higher CAGR during the forecast period

North America is projected to hold a higher CAGR during the forecast period. In North America, conversational AI solutions and services are highly effective in most organizations and verticals due to the increasing need to handle customer queries and enhance user experience. Europe is gradually advancing toward incorporating conversational AI within its market. APAC is showing a substantial rise in the adoption of conversational AI solutions and services during the forecast period, while Latin America and MEA are slowly picking up conversational AI due to its benefits for various industries to get user insights.

Premium Insights

• Attractive Market Opportunities in the Conversational AI Market
• Increasing Demand for AI-Powered Customer Support Services to Drive the Growth of the Market
• Operations Business Function to Grow at the Highest CAGR During the Forecast Period
• North America to Hold the Largest Market Share in 2021
• Web-Based Mode of Integration and Sales and Marketing Business Function to Account for the Largest Shares in the Market in 2021

Market Overview

Drivers

• Increasing Demand for AI-Powered Customer Support Services
• Omnichannel Deployment and Reduced Chatbot Development Cost
• Rising Demand for AI-Based Chatbots to Stay Connected and Informed During COVID-19
• Increasing Focus on Customer Engagement

Restraints

• Lack of Awareness About Conversational AI Solutions
• Inability to Recognize Customer Intent and Respond Effectively

Opportunities

• Integration of Advanced AI Capabilities to Add Value to Existing Conversational AI Offerings
• Growing Demand for Online Shopping During the Onset of COVID-19

Challenges

• Lack of Accuracy in Chatbots and Virtual Assistants
• Maintaining Business Continuity During the COVID-19 Pandemic

Cumulative Growth Analysis

• Conversational AI Market: COVID-19 Impact

Industry Trends/Case Study Analysis

Banking, Financial Services, and Insurance: Use Cases

• Use Case 1: The Global Financial Services Firm Implemented Kore.AI Conversational AI Platform to Resolve Customer Queries
• Use Case 2: Insuretech Adopted Teneo Conversational AI Platform for Better Customer Experience and Services
• Use Case 3: Mutual of Omaha Modernize Its Legacy Contact Center Technology with the Help of Amazon Lex
• Use Case 4: Rest Deployed a V-PersonT Virtual Agent on Their Website to Enrich the Customer Experience and Enhance Customer Engagement
• Use Case 5: Zurich Middle East Enable Faster Query Resolution and Service Request with the Implementation of Haptik's Iva Named Zuri

Retail and Ecommerce: Use Cases

• Use Case 1: Microsoft Offers Dixons Carphone a Bot Framework Platform for Building Cami to Optimize Their Workloads
• Use Case 2: Google Supports Dominos to Scale and Accommodate the Number of Intents and Simple Customer Interactions
• Use Case 3: Tata Cliq Deployed Haptik's Shopping Assistant Cliq Genie to Automate the Customer Interactions and Enhance Personalization

Media and Entertainment: Use Cases

• Use Case 1: Google Support Ticketmaster by Providing Faster and More Personalized Services for Ticket Buyers
• Use Case 2: Kindred Deployed Teneo Conversational AI Platform to Simplify Betting Process

Healthcare and Life Sciences: Use Cases

• Use Case 1: Artificial Solutions Offer Global Med Tech a Enhance Conversational AI Solution to Enable Automation of Resource Intensive and Complex Tasks
• Use Case 2: Creative Virtual Supported Healthcare Providers During Pandemic to Improve Operational Efficiencies

Automotive: Use Cases

• Use Case 1: Skoda Deployed Teneo to Deliver a Superior Customer Service Experience, Enhance Customer Journey and Improve Website Conversion Rates

Energy and Utilities: Use Cases

• Use Case 1: Shell Implemented Teneo Platform from Artificial Solutions to Build Digital Employees to Answer Complex Questions
• Use Case 2: Engie Implemented to Enhance Communication Between HR and Other Stakeholders

IT and Telecom: Use Cases

• Use Case 1: Creative Virtual Supports the Telecommunications Company to Enhance User Experience and Handle Multiple Transactions Per Day
• Use Case 2: Telenor Group Deployed Artificial Solutions Virtual Assistants to Reduce Customer Service Traffic and Overall Costs
• Use Case 3: AWS Supports Citibot to Quickly Get Answers to City-Related Questions in Real-Time
• Use Case 4: Starhub Deployed Haptik Conversational AI Solutions to Deliver Prompt Support and Enhance Cx on Messaging Channels

Travel and Hospitality: Use Cases

• Use Case 1: Aws Offers Redawning a Conversational AI Solution Amazon Lex for Better Customer Experience

Companies Mentioned

• AmplifyReach
• Artificial Solutions
• Avaamo
• AWS
• Baidu
• Clinc
• Cognigy
• Conversica
• Creative Virtual
• Exceed.ai
• FIS
• Google
• Gupshup
• Haptik
• IBM
• Inbenta
• Kasisto
• Kore.ai
• Microsoft
• Mindmeld
• Mindsay
• Oracle
• Pypestream
• Rasa
• Rulai
• Saarthi.ai
• SAP
• Senseforth.ai
• Solvvy
• SoundHound

For more information about this report visit https://www.researchandmarkets.com/r/k105lv

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