Global Conversational AI Market Worth $13.9 Billion by 2025 - Revenues/Shares by Component, Type, Technology, Application, Deployment Mode, Vertical and Region -

DUBLIN--()--The "Conversational AI Market by Component (Platform and Services), Type (IVA and Chatbots), Technology (ML and Deep Learning, NLP, and ASR), Application, Deployment Mode (Cloud and On-premises), Vertical, and Region - Global Forecast to 2025" report has been added to's offering.

The Global Conversational AI Market is Expected to Grow from 4.8 Billion in 2020 to USD 13.9 Billion by 2025, at a Compound Annual Growth Rate (CAGR) of 21.9% During the Forecast Period.

Increasing demand for AI-powered customer support services, omnichannel deployment, and reduced chatbot development cost to drive the growth of Conversational AI market

The upcoming trend of customer engagement through social media platforms and increasing integration of advanced AI capabilities are the major factors adding value to the conversational AI offerings, which is expected to provide opportunities for enterprises operating in various verticals in the conversational AI market. The lack of accuracy in chatbots and virtual assistants is a major challenge in the conversational AI market. Moreover, the lack of awareness of conversational AI acts as a key restraining factor in the market.

As the COVID-19 or coronavirus crisis has dragged on, understaffed government agencies, grocery stores, and financial services have all scrambled to set up chatbots and other conversational AI solutions for handling a new influx of calls. IBM witnessed a 40% increase in traffic to Watson Assistant from February to April of this year. In April, Google launched the Rapid Response Virtual Agent, a special version of its Contact Center AI, and lowered the price of its services in response to client demand. While call centers have long been a frontier of workplace automation, the pandemic has accelerated the process.

Organizations under pressure are more willing to try new tools. AI firms that are keen on taking advantage of the situation are sweetening the incentives. Over the last few years, advances in NLP have also dramatically improved on the clunky automated call systems of the past. The latest generation of chatbots and voice-based agents are easier to build, faster to deploy, and more responsive to user inquiries. Once adopted, in other words, these systems are most likely to stay, proving their value through their ease of use and affordability.

Among the services, the training and consulting services segment is expected to account for the higher market share during the forecast period

By service, the market size of the training and consulting segment is expected to be the largest during the forecast period. Consulting services include highly qualified industry experts, security professional, and domain experts to help and motivate organizations in minimizing risks, preventing revenue losses, and upgrading the existing conversational AI solutions in the market.

Consulting services primarily focus on managing the operations revolution programs and the latest technology updates to help the client achieve strategic business goals through technical and professional improvements. Technology consulting helps the client achieve strong business mechanism and decision-making. Nowadays, several enterprises are fully aware of AI capabilities, the supremacy they can offer, and how they can transform the business processes to add more value.

Among the type of conversational AI platforms and solutions, the Intelligent Virtual Assistants (IVA)segment to record the higher growth rate during the forecast period

In the conversational AI market by type, the Intelligent Virtual Assistants (IVA) segment is expected to record the higher CAGR during the forecast period. The growth is attributed to the increasing demand for IVA among enterprises for proving customers better and personalized experience, thus strengthening customer engagement and retention imperatives. IVA utilizes advanced NLP, NLU, and dialog management techniques to achieve high levels of automation without sacrificing accuracy.

With the help of IVA, complex customer queries can be handled effectively. It consists of an advanced dialogue management engine so that users can get full control over the conversational flow. Virtual assistants are, therefore, also capable of understanding customers' intent, regardless of the order in which the data is given throughout the conversation. Virtual agents are designed to provide customer services, product information, marketing, support, sales, order placing, reservations, and other custom services.

Among regions, APAC to grow at the highest CAGR during the forecast period

APAC is expected to grow at the highest CAGR during the forecast period. The major factors fueling the growth of the conversational AI market in APAC are the increasing amount of business data across verticals in this region and growing need to resolve customer queries in real-time and offer omnichannel customer experience in China, Japan, Australia, and India. These countries are leveraging information-intensive AI technologies, and conversational AI is one of the leading technology trends.

IBM, Microsoft, Google, and AWS account for the majority of shares in the conversational AI market in this region. The region has the presence of several other significant conversational AI solution providers. SMEs and large enterprises in the APAC region have become more aware of government regulations and compliances and started adopting AI-based solutions proactively. The adoption of AI technology by different verticals such as BFSI, travel &hospitality, and retail is expected to contribute to the high growth of the conversational AI market.

Key Topics Covered

1 Introduction

2 Research Methodology

3 Executive Summary

4 Premium Insights

4.1 Attractive Market Opportunities in the Conversational AI Market

4.2 Conversational AI Market: Top Three Applications

4.3 Conversational AI Market, by Region

4.4 Conversational AI Market in North America, by Service and Technology

5 Market Overview and Industry Trends

5.1 Introduction

5.2 Market Dynamics

5.2.1 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 the COVID-19 Pandemic

5.2.2 Restraints Lack of Awareness About Conversational AI Solutions

5.2.3 Opportunities Rise in Customer Engagement Through Social Media Platforms Integration of Advanced AI Capabilities to Add Value to Existing Conversational AI Offerings

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

5.3 Cumulative Growth Analysis

5.4 Adjacent/Related Markets Snapshot

5.5 Use Cases

5.6 Regulatory Implications

5.6.1 Introduction

5.6.2 General Data Protection Regulation

5.6.3 Health Insurance Portability and Accountability Act

5.6.4 Payment Card Industry Data Security Standard

5.6.5 Financial Industry Regulatory Authority

5.6.6 Service Organizational Control

5.6.7 Markets in Financial Instruments Directive II

5.7 Conversational AI, Architecture

6 Conversational AI Market: COVID-19 Impact

7 Conversational AI Market, by Component

7.1 Introduction

7.2 Platform

7.3 Services

8 Conversational AI Market, by Type

8.1 Introduction

8.2 Intelligent Virtual Assistants

8.3 Chatbots

9 Conversational AI Market, by Technology

9.1 Introduction

9.2 Machine Learning and Deep Learning

9.3 Natural Language Processing

9.4 Automated Speech Recognition

10 Conversational AI Market, by Deployment Mode

10.1 Introduction

10.2 Cloud

10.3 On-Premises

11 Conversational AI Market, by Application

11.1 Introduction

11.2 Customer Support

11.3 Personal Assistant

11.4 Branding and Advertisement

11.5 Customer Engagement and Retention

11.6 Onboarding and Employee Engagement

11.7 Data Privacy and Compliance

11.8 Others

12 Conversational AI Market, by Vertical

12.1 Introduction

12.2 Banking, Financial Services, and Insurance

12.3 Retail and Ecommerce

12.4 Healthcare and Life Sciences

12.5 Travel and Hospitality

12.6 Telecom

12.7 Media and Entertainment

12.8 Others

13 Conversational AI Market, by Region

13.1 Introduction

13.2 North America

13.3 Europe

13.4 Asia-Pacific

13.5 Middle East and Africa

13.6 Latin America

14 Competitive Landscape

14.1 Competitive Leadership Mapping

14.1.1 Visionary Leaders

14.1.2 Innovators

14.1.3 Dynamic Differentiators

14.1.4 Emerging Companies

14.2 Strength of Product Portfolio

14.3 Business Strategy Excellence

14.4 Market Ranking Analysis, by Company

15 Company Profiles

15.1 Google

15.2 Microsoft

15.3 AWS

15.4 IBM

15.5 Oracle

15.6 Nuance

15.7 Baidu

15.8 SAP

15.9 Artificial Solutions


15.11 Avaamo

15.12 Conversica

15.13 Haptik

15.14 Rasa

15.15 Solvvy

15.16 Pypestream

15.17 Inbenta

15.18 Rulai

15.19 Creative Virtual


15.21 FIS

15.22 Amplifyreach

15.23 Interactions

15.24 Quosphere


15.26 Cognigy

15.27 Soundhound Inc.

15.28 Kasisto

15.29 Mindsay

15.30 Clinc

For more information about this report visit

Laura Wood, Senior Press Manager
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

Laura Wood, Senior Press Manager
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900