The primary way of communication has changed drastically since the past few years. From face to face communication to communicating over calls, technology has brought us in the age of AI that enables the communication between machines and humans. In addition, the growing adoption of smartphones messaging and social media applications are also growing which are in turn fuelling the demand for chatbots. Moreover, the conversational AI platform comprises technologies that allow machines to understand human languages in the form of text, gesture, and speech.
The global Conversational AI Platform market size is expected to reach close to USD 41.39 billion by 2029 with an annualized growth rate of 23.6 % through the projected period.
The global conversational AI platform market size is anticipated to surpass USD 17 billion by 2025. This can be attributed to the reduced chatbot development costs and the increasing adoption of conversational platforms among numerous industry verticals. In addition, increasing the adoption of social media and messaging apps is also one of the key factors fueling the demand for conversational AI platform solutions
Furthermore, technological advancements in conversational platforms are anticipated to provide major opportunities for market growth in forthcoming years. However, growing data privacy concerns are expected to hinder the overall market growth.
Conversational AI Platform Market Scope
|Revenue forecast in 2029
|USD 41.39 billion
|CAGR of 23.6 % during 2019-2029
|By Component Type, Technology, Application, End User, Region.
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Google; Microsoft; Amazon Web Services, Inc.; IBM; Oracle; Nuance Communications, Inc.; FIS; SAP SE; Artificial Solutions; Kore.ai, Inc.; Avaamo; Conversica, Inc.; Jio Haptik Technologies Limited; Rasa Technologies Inc.; Solvvy; Pypestream Inc.; Kasisto; Cognigy
Key Segment Of The Conversational AI Platform Market
By Component, (USD Million)
Type, (USD Million)
• Intelligent Virtual Assistants
Technology, (USD Million)
• Machine Learning and Deep Learning
• Natural Language Processing
• Automated Speech Recognition
Application, (USD Million)
• Customer Support
• Personal Assistant Branding and Advertisement
• Customer Engagement and Retention
• Onboarding and Employee Engagement
• Data Privacy and Compliance
Regional Overview, (USD Million)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
Middle East and South Africa
Frequently Asked Questions (FAQ) :
With the emergence of the internet of things (IoT) and the evolving digital landscape, the conversational AI platform market is experiencing a huge demand globally. Growing penetration of smartphones especially in developing countries including India, China, Japan, is resulting in increased adoption of messaging and social media apps which in turn fuelling the demand for conversational AI platforms. Furthermore, numerous major players functioning in the Information & Communication Technology (ICT) sector and businesses are investing heavily in AI integrated conversational platforms. With such heavy investments, businesses are simplifying their business processes at the same time reducing human efforts to provide customer support and solve queries.
On the basis of technology, the market is categorized into Machine Learning, Automated Speech Recognition, Natural Language Processing, Natural Language Generation, and others. The Machine Learning segment dominated the overall conversational AI platform which occupied close to 40% share in 2019 and is expected to maintain its position over the forecast period 2020 -2025. Moreover, the Natural Language Processing segment is anticipated to accumulate the highest CAGR of 34% during the forecast period.
Based on the type, the market is segmented into text-based and voice-based segments. In 2019, the market for text-based had the highest revenue valuing at nearly 3 billion and is expected to dominate the conversational AI platform market throughout the forecast period.
On the basis of application, the market is bifurcated into IT, customer service, administrative/business management, marketing/advertising, and others. In 2019, the IT segment had the highest revenue and it is anticipated to dominate the conversational AI platform market throughout the forecast period. However, customer service is projected to gather the highest CAGR of close to 32% during the forecast period.
Based on the geographical front, North America dominated the global conversational AI platform market in 2019 and is expected to dominate the market throughout the forecast period 2020–2025. It is expected to have the largest market revenue with over 1 billion, in 2019. The growth of this region is mainly accredited to the presence of major market players such as Google, Microsoft, Oracle, IBM, and others in this region. In addition, the rapid technological adoption and advancements are also one of the prime reasons behind the propelled demand for a conversational AI platform in North America.
Moreover, followed by North America, Europe is expected to hold the major market share. On the contrary, the Asia-pacific region is anticipated to gather the highest CAGR close to 34% during the forecast period.
The major players of the global Conversational AI platform market are Amazon Web Services (AWS), Google (Alphabet, Inc.), IBM, Microsoft Corporation, Oracle Corporation, SAP, Nuance Communication Inc., Baidu, Haptik, Facebook. Moreover, the other potential players in the Conversational AI platform market are DigitalGenius, Drift.com, Inc., Twyla GmbH, SnatchBot, Zendesk, and others. As of 2019, the conversational AI platform market is consolidated with the existence of established global and domestic players across the globe. In addition, the established companies are coming up with new innovative conversational AI platform solutions and services. For instance, In April 2019, Nuance Communications Inc., partnered with Avaya, communication, and collaboration service provider to integrate Nuance’s Conversational AI technology into Avaya’s IX Contact Center solutions.