The global conversational AI market is projected to generate USD 41,890 million revenue by 2030, advancing at a CAGR of 22.20% during 2022–2030. This can be ascribed to the rapid technological developments and digitization, the growing penetration of internet, the rising number of tech companies focusing on AI across the globe, and the surging need for enhanced customer support services.
Based on technology, the market is classified into NLP, machine learning, ASR, and others. Among these, the NLP category accounted for the largest revenue share in 2022. This is ascribed to the increasing demand for NLP-integrated conversational AI solutions, which are able to train themselves based on different interactions and support the streamlining of responses.
Based on industry, the market is categorized into retail and e-commerce, BFSI, healthcare, media and entertainment, hospitality, telecom, and others. Of these, the BFSI category will register the fastest growth during the forecast period. This can be attributed to the high penetration of chatbots in banking and finance organizations to assist customers and the rising customer preference for digital facilities.
The IVA category, based on type, will witness the fastest growth during the predicted period, owing to the surging smartphone and internet penetration, high demand from large enterprises, and benefits offered by IVA in terms of customer satisfaction, consistent support, and reduction in service costs.
Based on application, the customer support category held the largest revenue share in 2022, and it is further expected to maintain its position during the predicted period. This is due to the rising adoption of advanced technologies along with technological advancements, the increasing number of companies using customer support applications, the surging awareness among organizations on customer retention, and the mounting need for more friendly platforms as per customer requirements.
The healthcare category, based on industry, will witness significant growth in the market in the coming years. This can be because these AI-based solutions facilitate communication between patients, insurance providers, and healthcare professionals. These bots may also be crucial in ensuring that individuals receive crucial medical information at the right time. Chatbots for medicine or healthcare can be used to accomplish a range of objectives, from enhancing the patient experience and supporting medical professionals to boosting healthcare systems and providing insightful data. Also, medical chatbots are poised to transform how payers, healthcare professionals, and patients interact with one another.
Geographically, the APAC market will register the fastest growth in the coming years. This can be ascribed to the rising number of tech companies in emerging nations, the increasing adoption rate of advanced technologies, the surging demand for tailor-made customer services, and rapid digitization across the region.
On the other hand, North America contributed the majority of revenue in 2022, and it is further expected to maintain its position during the forecast period. This is due to the well-developed IT infrastructure, the presence of established players, a rise in focus on the utilization of conversational solutions to automate work operations, and high investment by industry players in the region.
Some of the major players in the conversational AI market are Microsoft Corporation, International Business Machines Corporation, SAP SE, Oracle Corporation, Google LLC, Nuance Communications Inc., Jio Haptik Technologies Limited, Conversica Inc., Amazon.com Inc., and Baidu Inc.