Conversational Systems Market Outlook 2031:
The global conversational systems market size was valued at USD 11.56 Billion in 2022 and is projected to reach USD 94.53 Billion by 2031, expanding at a CAGR of 26.3% during the forecast period 2023 - 2031. The growth of the market is attributed to the increasing adoption of Artificial Intelligence (AI) in customer support services.
Conversational systems is used for cognitive computing services, which can process simple text and voice dialogs and bidirectional text into the meaning output. The systems employ advanced models on the basis of multiple modalities such as sound, sight, and tactile to provide communication in digital device network including IoT systems, sensors, and appliances.
Several contact centers are emphasizing on acceptance of conversational systems as it permits contact centers to automate speech-enabled messages and applications for interactions between humans and computers.
Additionally, the systems decrypt customer intent in different languages and reply to their queries accordingly. Various users around the world are using speech-based assistants and messaging platforms to connect with businesses. Thus the messaging platforms and speech-based are substituting traditional web apps and mobile apps to develop the new interactive medium for conversations.
Increasing demand for smartphones along with the rise in customer engagement via several social media platforms is estimated to boost the market growth. Large number of businesses are concentrating on collaborating their social media marketing strategies with conversational systems.
The smart chatbots is a conversational systems are utilized to automate customer services on social media platforms. Moreover, the bots provide customers with a smart assistant as well as help them rapidly access the information required.
The COVID-19 outbreak has positively impacted the market. The rising demand for clarity has caused large spike in customer calls, which is growing the pressure on contact centers. Because of this, it is expected a rise in the acceptance of conversational solutions in contact centers.
The systems enables the customers to use the information through text-based or voice interaction platforms, thus propelling the use of the new communication channels during the COVID-19 pandemic.
Conversational Systems Market Trends, Drivers, Restraints, and Opportunities
- Rising improvement in dialog-exchanging tools and Natural Language Processing (NLP) is anticipated to push the conversational systems market growth.
- The use of AI-powered customer support services assists organizations to improve several aspects such as brand reputation, preventive assistance, online customer experience, loyalty, and even generation of revenue streams. This is estimated to boost the market in the near future.
- Rising usage of machine-to-machine technologies is estimated to boost the conversational systems market growth.
- Absence of accuracy in chatbots and virtual assistants is key restraint of the market growth.
- Inadequate awareness of emerging technologies along with the heavy dependency of these systems on deployment platforms is estimated to restrict the conversational systems market growth.
- Growing deployment of the cloud-based and web business applications is anticipated to push the use of NLP tools, thereby creating growth opportunities for the market.
Scope of Conversational Systems Market Report
The report on the global conversational systems market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Conversational Systems Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016 – 2021
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Forecast Period
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2023 – 2031
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Segmentation
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Components (Compute Platforms, Solutions, and Services), Types (Text Assistant, Voice Assisted, and Others), Applications (Branding & Advertisement, Customer Support & Personal Assistant, Data Privacy & Compliance, and Others), End-users (BFSI, Healthcare & Life Sciences, Media & Entertainment, Retail & E-commerce, Telecommunication, Travel & Hospitality, and Others),
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Amazon Web Services, Inc.; Artificial Solutions; Baidu, Inc.; Conversica, Inc.; Google LLC; IBM Corporation; Microsoft Corporation; Nuance Communications, Inc.; Oracle Corporation; and SAP SE
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Conversational Systems Market Segment Insights
Compute platforms segment is expected to grow at a rapid pace
Based on components, the global conversational systems market is divided into compute platforms, solutions, and services. The compute platforms segment is expected to grow at a rapid pace. The segment showed revenue share of 50% in year 2019. This growth is attributed to great adoption of voice assistants for interacting with the computing systems.
The several application developers are ready to deliver this progressively vital functionality. Additionally, retailers are concentrating on offering voice interfaces and customized text on compute platforms. Owing to its user-friendly interface and offers agents to efficiently react to the altering state of conversations businesses are widely adopting this.
The services segment is estimated to register the significant growth in the near future. With changing times, customers are expecting quality service on the channel of their preference, anytime, anywhere, and in the language of their choice.
Organizations are highly adopting conversational services as to give immediate assistance to their customers and provide advanced quality of customer service. Rising demand for customer services around the world expected to boost the acceptance in the coming years.
Text assistant segment is anticipated to expand at a considerable CAGR
On the basis of types, the global market is segregated into text assistant, voice assisted, and others. The text assistant segment is anticipated to expand at a considerable CAGR. The segment recorded revenue share of more than 60% in 2019. The text assisted conversational systems, Graphics Interchange Format (GIF) files, graphs, and text messages are used to interact with consumers.
Several website platforms, such as personal assistant or chatbots and live streaming solutions use text as one of the most important mediums to communicate with their clients. The text assistant systems can efficiently collaborate various accessible tools, such as user text instructions, user dictionaries, and prompts, to allow representatives to increase and model text output applications by ease of forming optimization data.
The voice assisted segment is expected to register the significant development in the near future. The voice assisted conversational systems are highly utilised by organizations to detect phrases or words in user spoken languages and transform that data as machine-readable format.
These AI-enabled voice assisted systems are highly applied in several applications, such as product marketing, sales support, and customer service applications. Multi-language capabilities, custom voices, and powerful turning tools, are enabling retailers to improve their voice assisted conversational systems’ productivity, this factor boost the market segment growth during the forecast period.
Customer support & personal assistant segment is expected to grow at a significant rate
On the basis of applications, the global market is segmented into branding & advertisement, customer support & personal assistant, data privacy & compliance, and others. The customer support & personal assistant segment is expected to grow at a significant rate.
The segment recorded the revenue share of more than 35% in year 2019. Conversational systems solutions are greatly used in personal assistant and customer support applications as it resolves customer queries quickly and simultaneously routes complex queries to assists agents. Moreover, these empower representatives and systems support to increase customer service quality and enhance organizational efficacy.
Furthermore, these systems helps support agents to concentrate on delivering personalized customer experiences. The branding and advertisement segment is estimated to record the great growth in the coming years.
Businesses are leveraging the conversational systems platform to generate ads and awareness regarding the forthcoming and latest products by this digital channel. Additionally, the systems are used by businesses for cross-selling and up-selling purposes resulting a drop in the operational cost.
Telecommunication segment is anticipated to show lucrative growth
Based on end-users, the global conversational systems market is divided into BFSI, healthcare & life sciences, media & entertainment, retail & e-commerce, telecommunication, travel & hospitality, and others. The telecommunication segment is anticipated to show lucrative growth.
The segment showed revenue share of 25% in year 2019. Telecommunication industry players are greatly acceptance conversational systems to provide enhanced value to their customers. Telecommunication businesses are progressively serving greater areas and user bases.
Currently, for the telecommunication industry, provides phone and internet services are not enough. Rising emphasis on accepting new digital technologies along with the increasing focus on enhancing customer experience is driving the market in the telecommunication segment.
The retail & e-commerce segment is projected to record the fastest growth during the forecast period. Retail and e-commerce industry is accepting conversational systems as they held allowed live chat assistance at the point of drive and sale customer purchase decisions with related recommendations.
It also duplicates in-store support on several digital channels, with a multilingual voice assistant. Additionally, it helps e-commerce businesses and retail in saving customer assistance costs by automating common user questions to an enhanced live agent system.
North America is anticipated to constitute a key market share
In terms of regions, the global conversational systems market share is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.
North America is anticipated to constitute a key market share. The market of the region has revenue share of greater than 30% in 2019 in the global market. As the region has the presence of major players, such as Microsoft Corporation, Google LLC, IBM Corporation, and Amazon Web Services, Inc. The regions has leveraged machine learning, deep learning, and AI technologies as the part of their present organization processes to gain high grow in the market.
Asia Pacific market is anticipated to grow at a considerable pace. The growth of the region is because of the rising acceptance of technology by the developing countries, such as India and China. The rising demand for the smartphones is also contributing for the development of the market in the region.
Segments
The global conversational systems market has been segmented on the basis of
Components
- Compute Platforms
- Solutions
- Services
Types
- Text Assistant
- Voice Assisted
- Others
Applications
- Branding & Advertisement
- Customer Support & Personal Assistant
- Data Privacy & Compliance
- Others
End-users
- BFSI
- Healthcare & Life Sciences
- Media & Entertainment
- Retail & E-commerce
- Telecommunication
- Travel & Hospitality
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
The key players in the global conversational systems market are IBM Corporation; Oracle Corporation; Amazon Web Services, Inc.; Microsoft Corporation; Artificial Solutions; Baidu, Inc.; Conversica, Inc.; Nuance Communications, Inc.; Google LLC; and SAP SE.
These key players have adopted a series of market strategies including new product launching, entering into partnership, collaboration, and production expansion to enhance their market position and expand their consumer base.
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