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Global Conversational Systems Market Analysis by Type (Voice Assisted, Text Assisted, and Others); by Deployment (On-Premise, and Cloud); by Enterprise Size (Small, Medium, and Large Enterprises); and by Verticals (IT & Telecommunication, BFSI, Government, Retail, Energy, and Power) – Global Supply & Demand Analysis & Opportunity Outlook 2022-2031

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IN THE NEWS

  • May 25, 2022: International Business Machines Corporation (IBM Corp.) joined forces with MBZUAI to advance AI research with the New Center of Excellence focusing on NLP, AI applications in the healthcare industry, and sustainability.
  • May 11, 2022- Google LLC CEO Sundar Pichai has announced the new advancements of Google in enhancing knowledge and computing that include the addition of 24 google translation languages, auto summarization in chats, visual improvements, auto-translation of YouTube content, and a publicly available machine learning hub for Google cloud customers.

Global Conversational Systems Market Size, Forecast, and Trend Highlights Over 2022 - 2031

Conversational Systems Market Forecast & CAGR Value

The global conversational systems market is estimated to garner a revenue of ~USD 35 billion by the end of 2031 by growing at a CAGR of ~27% over the forecast period, i.e., 2022 – 2031. Further, the market generated a revenue of ~USD 7 billion in the year 2021. The growth of the market can be attributed to the increasing adoption of natural language processing, artificial intelligence chatbots, and advancements in cloud services during the forecast period. As per International Finance Corporation, over 70 billion IoT devices were available across the globe in 2020 and are further projected to be tripled in the upcoming 5 years.

Conversational Systems Market Global Overview To 2031

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A conversational system market is a form of relational and digital marketing that will allow brands to build strong and long-lasting relationships with their consumers with the help of voice or text-assisted automation technology. Major growth drivers estimated for the global conversational systems market are the advanced artificial intelligence and NLP tools with an increased demand for AI support services. The market growth can be further attributed to the increasing deep neural networks, and machine learning technology used for application across various verticals like retail, BFSI, IT, telecommunications, and health care segments. Based on the data provided by UNESCO, AI was projected to generate an almost added value of USD 4 trillion by 2022. The global conversational systems market is based on artificial intelligence that can understand various languages and will start a written or verbal communication with the customer. Hence, all these factors are estimated to hike the growth of the market over the forecast period.

Global Conversational Systems Market: Growth Drivers and Challenges

Growth Drivers

  • Increasing Demand for AI Customer Service- For instance, in 2020, about 7 out of 10 businesses were observed to be planning and implementing AI customer service solutions. Artificial intelligence has improved customer interaction with brands. The AI-enabled customer service is beneficial in improving trust, perceiving sacrifice, and building a relationship commitment.
  • Higher Adoption of Artificial Intelligence Chat Bots- As of 2018, approximately 75% of the organizations were noticed to be utilizing AI chat bots.
  • Up-Surged in Dialog Exchanging ToolsIt was observed that the Government of China increased its expenditure on R&D by more than 10% in 2021 to become the world’s first AI innovation center.
  • Growing Demand for Texting Insights like Chatbots and GIFs.- For instance, approximately 65% of increment was observed in the adoption of chat bots by multiple organizations between 2018 and 2020.
  • Growing AI Applications in Business and Marketing- The utilization of chatbots is expected to reduce business costs to around USD 6 billion by the year 2022.

Challenges

  • Lack of Awareness and Misuse of Technology
  • High Dependency on Deployment Platforms
  • Lack of Accuracy in Virtual Assistants

The global conversational systems market is segmented and analyzed for demand and supply by type into voice assisted, text assisted, and others. Out of these sub-segments, the voice assisted segment is anticipated to hold the largest market size by the end of 2031 during the forecast period on account of advancements in Artificial Intelligence (AI) technologies.  Increased adoption of new technologies along with improving customer experience is estimated to drive market growth in the telecommunication segment during the forecast period. As per data provided by the World Bank states that with the usage of chatbots banks globally will save about USD 7 billion in operating costs by 2023.

Major Macro-Economic Indicators Impacting the Market Growth

Conversational Systems Market Growth

The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in the ICT sector has significantly contributed to GDP growth, labour productivity, and R&D spending among other transformations of economies in different nations around the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.

Global Conversational Systems Market Regional Synopsis

Regionally, the global conversational systems market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in North America region is projected to hold the largest market share by the end of 2031 on the back of the development of deep neural networks, machine learning, and other technological advancements. The increasing research and development activities in North America contribute to the growth of the market over the forecast period. The major segment of deep machine learning is software, hardware, and services. For instance, in the United States, the software segment is estimated to reach approximately USD 900 million while hardware and services are projected to reach respectively around USD 350 million and USD 750 million by 2025.

Conversational Systems Market Share 2031

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The global conversational systems market is further classified on the basis of region as follows:

  • North America (U.S. & Canada) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
  • Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
  • Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC (Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
  • Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
  • Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook

Market Segmentation

Our in-depth analysis of the global conversational systems market includes the following segments:

By Type

  • Voice Assisted
  • Text Assisted
  • Others

By Deployment

  • On-Premise
  • Large Enterprises

By Enterprise Size

  • Small
  • Medium
  • Large Enterprises

By Verticals

  • IT & Telecommunication
  • BFSI
  • Government
  • Retail
  • Energy
  • Power

Top Featured Companies Dominating the Global Conversational Systems Market

  • Google LLC
    • Company Overview
    • Business Strategy
    • Key Product Offerings
    • Financial Performance
    • Key Performance Indicators
    • Risk Analysis
    • Recent Development
    • Regional Presence
    • SWOT Analysis
  • International Business Machines Corporation (IBM Corp.)
  • Microsoft Corporation
  • Amazon Web Services, Inc.
  • Artificial Solutions International AB
  • Oracle Corporation
  • SAP SE
  • Nuance Communication, Inc.
  • Baidu, Inc.
  • Conversica, Inc.

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