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Global Conversational Systems Market Size, Share, Trends, COVID-19 Impact & Growth Forecast Report – Segmented By Component (Compute Platforms, Solutions, Services), Type (Voice and Text), Application (Customer Support and Personal Assistant, Branding and Advertisement, and Compliance), Vertical (Telecommunications and Computing, Energy, Public Sector and Utilities, Retail, Manufacturing, Healthcare and Life Sciences, Education, and BFSI), and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Industry Analysis (2024 to 2029)

Published: March, 2023
ID: 9668
Pages: 150
Formats: report pdf report excel report power bi report ppt

Global Conversational Systems Market Size (2024 to 2029)

The global conversation systems market is predicted to reach USD 7.90 billion in 2024 and USD 30.48 billion by 2029, growing at a CAGR of 31% during the forecast period.

The conversational system is an interactive platform designed to communicate with humans with a specific coherent structure. These conversations are facilitated by gestures, haptic comments, and the like. Conversation systems implement the functionality of cognitive computing, artificial intelligence, the Internet of Things (IoT), and others. They are made up of hardware and software components used to generate appropriate output responses. The deployment models for this system are cloud-based and on-premises. In recent days, computers receive a voice note as input and therefore generate adequate output, but nowadays, techniques such as the conversational system are emerging with new opportunities to communicate with any form of input, such as sound and light, and can process the defined input justifiable output. The conversation system can process complex conversations, for example, by collecting verbal descriptions of witnesses and generating the suspect's sketch for police investigation.

Global Conversational Systems Market Drivers:

The increased need for advanced conversation tools, technological advances in new product development, the increased need for improved analysis tools, and the rising complexity associated with data processing are driving the global market for conversation systems. However, the presence of a low level of awareness of products and services should hamper market growth. The increased adoption by developing economies offers a great opportunity for market expansion. The availability of a large volume of data and the increasing complexity of data in the organization combine to stimulate demand in the market for conversation systems. Furthermore, the need for a self-learning system to mimic the human brain is the crucial parameter responsible for the development of the industry. In addition to the above, raw data, such as human language audio or video clips, images, and videos, are the few sources of information available to the organization. Therefore, transforming this data into valuable information stimulates market demand for conversation systems. Furthermore, the growing demand for advanced analytics tools that can replace human intervention is the key factor driving the growth of the global conversation systems market.

Most chat solution providers provide technical support and consulting services to manage the deployment of AI-based solutions in the market. The services guarantee faster and smoother implementation that maximizes the value of business investments. They ensure the end-to-end deployment of the conversational systems platform and respond to the required pre-deployment and post-deployment requests. Companies use the IT platform to raise awareness and publish announcements on the most recent and future products via this digital channel. Businesses can also use chat systems for cross-selling and up-selling, which reduces operating costs. With the implementation of the AI-based IT platform, companies can provide the first set of information to potential customers and recognize their level of interest. Businesses can determine customer behavior and purchasing trends in order to reach the right target audience for the branding and advertising of their new product.

Impact of COVID-19 on the global conversational systems market:

The coronavirus pandemic (COVID-19) has influenced all perspectives of life in the world. After COVID-19, cloud-based artificial intelligence (AI) will play an essential role in the transformation of three key sectors: warehousing and logistics, conversational AI, and medical and pharmaceutical products. The AI cloud also accelerates conversational AI. Voice has already made significant strides in the smart home space and in some business areas, combined with tips to minimize the transmission of COVID-19 from shared surfaces, which will help consolidate the benefits of smart home voice control for millions of consumers and businesses.

REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2023 to 2029

Base Year

2023

Forecast Period

2024 to 2029

CAGR

31%

Segments Covered

By Vertical, Component, Application, and Region

Various Analyses Covered

Global, Regional, & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa

Market Leaders Profiled

Google (United States), Microsoft (United States), IBM (United States), AWS (United States), Baidu (China), Oracle (United States), SAP (Germany), Nuance (United States), Artificial Solutions (Spain), Conversica (United States), Haptik (India), Rasa (Germany), Rulai (United States), Avaamo (United States), Kore.ai (United States), Solvvy (United States), Pypestream (United States), Inbenta (United States) and Saarthi.ai (India) and Others.

 

This research report on the global conversational systems market has been segmented and sub-segmented based on the vertical, component, application, and region.

Global Conversational Systems Market - By Vertical:

  • Telecommunications and Computing          

  • BFSI            

  • Energy      

  • Public Sector and Utilities 

  • Retail         

  • Manufacturing      

  • Healthcare and Life Sciences           

  • Education

 The global conversational systems market can be segmented into telecommunications and computing, energy, public sector and utilities, retail, manufacturing, healthcare and life sciences, education, and BFSI.

Global Conversational Systems Market - By Component:

  • Compute Platforms             

  • Solutions  

  • Services   

 The conversational systems market can be segmented into platforms, solutions, and services. The services segment accounts for a significant portion of the worldwide market.

Through implementation, the conversation systems market can be segmented into cloud-based services and on-premises software.

Global Conversational Systems Market - By Application:

  • Customer Support and Personal Assistant

  • Branding and Advertisement          

  • Compliance        

 The global market is separated into customer support and personal assistant, branding and advertisement, and compliance. Of these, the branding and advertisement sector is likely to expand with the highest CAGR in the future.

Global Conversational Systems Market - By Type:

  • Voice         

  • Text          

The conversation systems market can be bifurcated into type and text.

Global Conversational Systems Market - By Region:

  • North America

    • The United States

    • Canada

    • Rest of North America

  • Europe

    • The United Kingdom

    • Spain

    • Germany

    • Italy

    • France

    • Rest of Europe

  • The Asia Pacific

    • India

    • Japan

    • China

    • Australia

    • Singapore

    • Malaysia

    • South Korea

    • New Zealand

    • Southeast Asia

  • Latin America

    • Brazil

    • Argentina

    • Mexico

    • Rest of LATAM

  • The Middle East and Africa

    • Saudi Arabia

    • UAE

    • Lebanon

    • Jordan

    • Cyprus

Due to the presence of some of the major players in North America, the market should experience the highest revenue growth. Also, increasing technology penetration in countries like the United States and Canada is the crucial factor influencing market growth during the outlook period. Europe is expected to conquer the second-largest share in terms of turnover due to the strong participation of technology in various sectors, such as BSFI, Manufacturing, Education, and Health. In addition, North America and Europe are considered mature markets for technology adoption, and given the same, the market is foreseen to experience tremendous opportunistic growth during the next few years.

KEY MARKET PARTICIPANTS:

The major companies operating the global conversational systems market include Google (United States), Microsoft (United States), IBM (United States), AWS (United States), Baidu (China), Oracle (United States), SAP (Germany), Nuance (United States), Artificial Solutions (Spain), Conversica (United States), Haptik (India), Rasa (Germany), Rulai (United States), Avaamo (United States), Kore.ai (United States), Solvvy (United States ), Pypestream (United States), Inbenta (United States) and Saarthi.ai (India).

RECENT HAPPENINGS IN THE MARKET:

  • In January 2019, Oracle shook hands with Chatbox, an integrated messaging platform provider, to deliver a richer, more contextual user experience. The collaboration would offer customers with chatbots capable of delivering richer, more contextual user experiences.

  • Google is one of the main technological players in the global conversation systems market. Invests heavily in R&D to innovate in advertising, the cloud, ML, research, and new products and services. He has made significant investments and advances in AI. In April 2018, Google released Dialogflow in 2 versions, i.e., standard and business editions.

 

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FAQ's

How is the Conversational Systems Market evolving in terms of technology?

The market is witnessing a shift towards Natural Language Processing (NLP), sentiment analysis, and machine learning algorithms. Integrating advanced technologies enables conversational systems to understand context, emotions, and provide more personalized interactions.

Are there any regulatory challenges impacting the global Conversational Systems Market?

Yes, data privacy and security concerns pose regulatory challenges globally. Compliance with regional data protection laws such as GDPR in Europe and CCPA in the U.S. is crucial for conversational system providers.

How are conversational systems impacting customer experience across different regions?

Conversational systems enhance customer experience by providing instant and personalized responses, leading to increased customer satisfaction. This positive impact is observed globally across diverse industries.

What are the emerging trends in the global Conversational Systems Market for the coming years?

Trends include the integration of voice-enabled interfaces, multi-language support, and the use of conversational AI in smart home devices. Continuous advancements in AI technologies will shape the market's future landscape.

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