Conversational AI Market to Reach $32.62 Billion by 2030
Research firm Valuates Reports recently quantified the global conversational artificial intelligence market at $5.78 billion in 2020 and projects it to reach $32.62 billion by 2030, registering a compound annual growth rate of 20 percent.
The major factors driving the growth of the conversational AI market are an increase in demand for AI-based chatbot solutions and artificial intelligence-powered customer support services, according to Valuates. It also expects the conversational AI market to benefit from an increase in the deployment of omnichannel approaches, an increase in client involvement through social media platforms, technological advancements such as natural language processing, and an expanding 'chat-first strategy" being adopted by the service industry.
"Staffing a customer service department can be costly, especially if problems must be addressed outside of typical business hours. Small and medium-sized enterprises can save money on salaries and training by providing customer assistance using conversational interfaces. Chatbots and virtual assistants can respond instantly, allowing potential consumers to contact you at any time of day or night. Thus the cost-efficient feature is expected to drive the growth of the conversation AI market," the report noted.
"Enterprises' attention has turned away from offering customer care via emails or messages and toward AI-powered chatbots that help them improve customer experience and engagement," it went on to say. "NLP technology is used by AI-powered chatbots to conduct human-like interactions and provide real-time assistance to clients. AI-enabled chatbots and virtual agents can also be used to automate repetitive and manual activities, including order placement, balance inquiries, general queries, technical assistance, and other customer services."
Valuates also found that the COVID-19's outbreak accelerated the expansion of the conversational AI market.
Other findings noted in the report include the following:
- Based on deployment, in 2020, the cloud category generated the most revenue.
- Based on type, the chatbots sector had the greatest market share in 2020, and it is predicted to increase at a fast rate from 2021 to 2030.
- Based on technology, the NLP category dominated the market in 2020, and this trend is likely to continue during the forecast period.
- Based on end user, the retail and ecommerce segment was the most dominating in 2020, and it is expected to expand significantly during the projected period.The healthcare sector is also expected to be a big user of conversational AI.
The report identifies Amazon Web Services, Artificial Solutions, Baidu, Conversica, Haptik, IBM, Microsoft, Oracle, Google, and SAP as leaders in this market segment.