Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Conversational Systems market.
Trusted Business Insights presents an updated and Latest Study on Conversational Systems Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Conversational Systems market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Report Overview: Global Conversational Systems Market
The global conversational systems market size was valued at USD 4.83 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 25.2% from 2021 to 2027. The growth can be attributed to the rising demand for Artificial Intelligence (AI) powered customer support services. Automation of services is expected to witness significant growth over the forecast period as it provides users with a much-required facility to fulfill their regular tasks. AI-powered customer support services help businesses in improving various aspects such as loyalty, online customer experience, preventive assistance, brand reputation, and even generation of revenue streams. Increasing advancements in Natural Language Processing (NLP) and dialog-exchanging tools is expected to fuel market growth. Increasing deployment of the web business and cloud-based applications is expected to propel the adoption of NLP tools, thereby creating growth opportunities for the market.
Furthermore, the increasing usage of machine-to-machine technologies is anticipated to fuel market growth. NLP tools are widely used in conversational systems applications as these tools are easily deployable and cost-effective.
Various contact centers are focusing on adopting conversational systems as it allows contact centers to automate speech-enabled applications and messages for interactions between computers and humans. Furthermore, these systems decipher customer intent in various languages and respond to their queries accordingly. Numerous users across the globe are using messaging platforms and speech-based assistants to communicate with businesses. As a result, speech-based and messaging platforms are rapidly replacing traditional mobile and web apps to become the new interactive medium for conversations.
Growing demand for smartphones coupled with the increase in customer engagement through various social media platforms is anticipated to propel the market growth. Numerous businesses are focusing on integrating conversational systems with their social media marketing strategies. Conversational systems, such as smart chatbots are used to automate customer services on social media platforms. Furthermore, these bots offer customers with a smart assistant and help them quickly access the required information.
Various factors, such as lack of awareness of emerging technologies coupled with the high dependency of these systems on deployment platforms is expected to hamper the market growth. Furthermore, the lack of accuracy in virtual assistants and chatbots is also anticipated to restrict the market growth. However, the outbreak of COVID 19 is anticipated to favorably impact the conversational systems market. The increasing need for clarity has resulted in a huge spike in customer calls, which is increasing the burden on contact centers. This, as a result, is expected to drive the adoption of conversational solutions in contact centers. These systems allow customers to access information through voice or text-based interaction platforms, thereby driving the use of these new communication channels during the coronavirus crisis.
Component Insights: Global Conversational Systems Market
The compute platforms segment led the market and accounted for more than 50% share of the global revenue in 2019. As voice assistants are being widely adopted for interacting with the computing systems, numerous application developers are gearing up to deliver this increasingly critical functionality. Furthermore, vendors are focusing on providing customized text and voice interfaces on compute platforms. Also, businesses are widely adopting this platform owing to its user-friendly interface and it also allows agents to effectively react to the changing state of conversations.
The services segment is anticipated to register the highest growth over the forecast period 2021-2027. With changing times, customers are expecting quality service anywhere, anytime, on the channel of their preference, and in the language of their choice. Businesses are widely adopting conversational services in order to provide immediate support to their customers and offer improved quality of customer service. Increasing demand for customer services across the globe is anticipated to propel the adoption over the forecast period.
Type Insights: Global Conversational Systems Market
The text assistant segment lead the market and accounted for more than 60% share of the global revenue in 2019. In the text assisted conversational systems, graphs, Graphics Interchange Format (GIF) files, and text messages are used to communicate with customers. Numerous website platforms, such as chatbots or personal assistant and live streaming solutions use text as one of the most significant mediums to interact with their clients. The text assistant systems can effectively integrate several accessible tools, such as prompts, user text instructions, and user dictionaries, to enable representatives to enhance and model text output applications by easily forming optimization data.
The voice assisted segment is anticipated to register the highest growth over the forecast period. The voice assisted conversational systems are widely used by businesses to identify words or phrases in user spoken languages and then convert that data into a machine-readable format. These AI-enabled voice assisted systems are widely used in various applications, such as sales support, product marketing, and customer service applications. Powerful turning tools, custom voices, and multi-language capabilities are allowing vendors in improving their voice assisted conversational systems productivity, thereby creating growth opportunities for the segment over the forecast period.
Application Insights: Global Conversational Systems Market
The customer support and personal assistant segment led the market and accounted for more than a 35% share of the global revenue in 2019. Conversational systems solutions are widely used in customer support and personal assistant applications as it quickly resolves customer queries and automatically routes complex queries to support agents. Furthermore, these systems support and empower representatives to enhance customer service quality and improve organizational efficiency. Also, these systems assist support agents to focus on delivering personalized customer experiences.
The branding and advertisement segment is anticipated to register the highest growth over the forecast period. Businesses are leveraging the conversational systems platform to generate awareness and post ads about the latest and forthcoming products through this digital channel. Furthermore, these systems can also be used by businesses for up-selling and cross-selling purposes leading to a drop in the operational cost. Businesses are widely adopting AI-based conversational systems to deliver an initial set of product information to the customers and identify their interest level.
End-use Insights: Global Conversational Systems Market
The telecommunication segment lead the market and accounted for more than a 25% share of the global revenue in 2019. Telecommunication industry players are widely adopting conversational systems to offer better value to their customers. Telecommunication businesses are increasingly serving larger user bases and areas. Nowadays, for the telecommunication industry, offering internet and phone services isnt enough. Increasing focus on adopting new digital technologies coupled with the growing focus on improving customer experience is expected to drive the market growth in the telecommunication segment.
The retail and e-commerce segment is anticipated to register the highest growth over the forecast period. Retail and e-commerce industry is adopting conversational systems as they held enable live chat support at the point of sale and drive customer purchase decisions with related recommendations. It also replicates in-store assistance on various digital channels, with a multilingual voice assistant. Furthermore, it helps retail and e-commerce businesses in saving customer support costs by automating common user queries to an advanced live agent system.
Regional Insights: Global Conversational Systems Market
North American region lead the market and accounted for over 30% share of global revenue in 2019. U.S. is the major adopter of conversational systems in North America. The country has leveraged deep learning, machine learning, and AI technologies as a part of their current business processes to stay ahead in the market. Moreover, the presence of global vendors, such as IBM Corporation, Google LLC, Microsoft Corporation, and Amazon Web Services, Inc. is playing a significant role in the implementation of conversational systems platforms in the market.
Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period. The growth can be attributed to the increasing technology adoption rate in emerging economies, such as China and India. Increasing demand for smartphones in the region is expected to create growth opportunities for the regional market. Numerous small and medium enterprises in the region have started integrating conversational systems in their business operations to effectively engage customers and help businesses generate more leads.
Key Companies & Market Share Insights: Global Conversational Systems Market
Joint ventures, product innovation, merger and acquisition, research and development, and geographical expansion are some of the prominent strategies adopted by key players to ensure long term sustenance in the market. For instance, in April 2020, Amazon Web Services, Inc. opened its office in Milan, Italy. This is the companys 76th availability zone within the 24 geographic regions around the world. This expansion enabled the company to serve data centers located in the country.
Numerous vendors are focusing on integrating various technologies, such as machine learning and natural language processing in their conversational systems solutions to increase their brand awareness. These solutions are widely used by end use industries in branding and advertisement and customer support applications. Prominent players are focusing on expanding their solution offerings range. For instance, in May 2020, IBM Corporation introduced Watson AIOps, a product that leverages natural language understanding, machine learning, and AI technologies to automate IT operations. This product is introduced to improve resilience across the businesses information architecture, and speed issue resolution. Some of the prominent players in the conversational system market include:
Key companies Profiled: Global Conversational Systems Market Report
- Amazon Web Services, Inc.
- Artificial Solutions
- Baidu, Inc.
- Conversica, Inc.
- Google LLC
- IBM Corporation
- Microsoft Corporation
- Nuance Communications, Inc.
- Oracle Corporation; SAP SE
The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global conversational system market report based on component, type, application, end use, and region:
Component Outlook (Revenue, USD Million, 2016 – 2027)
- Compute Platforms
Type Outlook (Revenue, USD Million, 2016 – 2027)
- Text Assistant
- Voice Assisted
Application Outlook (Revenue, USD Million, 2016 – 2027)
- Branding & Advertisement
- Customer Support & Personal Assistant
- Data Privacy & Compliance
End-use Outlook (Revenue, USD Million, 2016 – 2027)
- Healthcare & Life Sciences
- Media & Entertainment
- Retail & E-commerce
- Travel & Hospitality
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