The Conversation intelligence software market is capturing a valuation of USD 22.8 billion in 2023 and is predicted to reach USD 46.8 billion by 2033. The market is registering a CAGR of 7.4% during the forecast period. Increasing demand for AI-powered customer support services is expected to be the most significant factor driving the market in the forecast period.
Increasing customer engagement through various social media platforms is likely to give several opportunities for expansion to players in the forecast period. Also, rising demand for better customer support among industries like media and entertainment, BFSI, and others, is projected to augment the market size by 2033.
| Attribute | Details |
|---|---|
| Market CAGR (2023 to 2033) | 7.4% |
| Market Valuation (2023) | USD 22.8 billion |
| Market Valuation (2033) | USD 46.8 billion |
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Growing Demand for AI-Powered Customer Support Services to Augment the Market Size
The conversation AI market is expected to garner significant market value during the forecast period owing to the rise in demand for AI-powered customer support services.
An increase in demand for AI-based Gartner chatbots is projected to be another salient factor propelling the market growth in the forecast period. Also, the rise in demand can be attributed to the growing requirement for AI-based chatbots to stay informed during COVID-19.
The growing focus on customer engagement is anticipated to play an important role in strengthening the industry's growth in the forecast period. Moreover, increased deployment of Omni channel methods is anticipated to positively impact the market in the coming time.
With automation, firms can obtain high productivity with less manual power. Per LivePerson, a ConversationAI solution provider, customers spend 80% of their time messaging through their devices. In addition, about 57 billion conversations occur every year globally in contact centers, and USD 1.2 trillion is spent on voice calls in centers worldwide.
The adoption of conversation AI solutions is rising across various spheres since it offers services such as customer services and other productive engagement models. On the other hand, consumers lack knowledge about chatbots, digital personal assistants, virtual assistants, and other benefits.
The lack of accuracy in chatbots and virtual assistants is another cause hampering the rise in the market during the forecast period. Chatbots and virtual assistants are likely to take some more time to offer accuracy, which could be at par with humans.
India and Brazil are large consumers of smartphones. However, the awareness of such technologies is much less than in developed nations. A recent study conducted by HubSpot reveals that there is only 37% of AI awareness among consumers. 63% of consumers do not realize that they are using AI technologies.
SMEs in developing nations are reluctant to adopt virtual assistance for their business processes, in turn hindering market growth during the forecast period.
Increasing usage of AI and NLP technologies has made organizations capable of building smart agents and performing tasks integrated with other various platforms.
There is an emerging opportunity for integrating new specifications, such as gesture recognition, in conversation AI offerings. Enabling gesture recognition capabilities within conversation AI allows users to monitor conversation devices without speaking or touching. Established players in the market are taking various efforts to add innovation to the software. For instance,
Google announced support for seven new languages for actions on Google Assistant. After this update, the company now offers 16 languages, and developers can implement new actions using Dialogflow and its NLP capabilities.
The market was valued at USD 17.5 billion in 2018 and USD 21.6 billion in 2022, with a CAGR of 5.3%. The market is driven by increasing demand for voice-enabled devices, artificial intelligence, and virtual assistance among end-user industries. These industries are retail, real estate, Information Technology, and others.
The rising adoption of artificial intelligence solutions in businesses to enhance customer services and operational efficiency fueled the global market. Furthermore, conversation artificial intelligence can automate business processes to reduce costs and value-added activities and free up human resources.
The global market grew at a moderate pace in the historical period and is estimated to grow by capturing huge revenue during the forecast period.
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Based on deployment mode, the global market can be segmented into cloud-based and on-premise. The global market can be segmented based on end-users into SMEs and Large Enterprises. Based on vertical, the global market can be segmented into IT & Telecommunications, retail, BFSI, Real Estate, and others.
According to the analysis, the cloud-based segment is expected to garner a notable market share by deployment mode. The segment is anticipated to exhibit a CAGR of 7.8% during the forecast period. Moreover, the segment's growth can be attributed to its efficiency, and it offers strategically driven insights. It can automate complex and repetitive tasks to enhance productivity.
By vertical, the BFSI is estimated to exhibit a 6.6% CAGR during the forecast period. The segment's growth can be attributed to the presence of various opportunities. The sector is widely opting for modern analytics. Also, the growing deployment of AI in the banking sector has propelled the demand for other services, such as payment gateways, digital wallets, and others.
With the rising demand for better customer support service to develop customer retention initiatives, North America is expected to dominate the market in the forecast period. According to analysis, the United States is anticipated to participate significantly in strengthening the regional market.
The country is likely to garner USD 15.5 billion, recording a CAGR of 7% during the forecast period. Players in the country are taking various initiatives that are likely to benefit the market in the country. For instance,
In March 2022, Invoca announced Invoca for Healthcare, a new conversation intelligence solution that aids healthcare organizations in growing patient acquisition, enhancing access to care, and offering fine-quality patient-first experiences.
The United States is securing a share of 17.6% in the global market during the forecast period.
Regarding market size, Europe is anticipated to secure the second position in the global market. The region's expansion can be attributed to the increasing demand for lessening organizations' workloads regarding customer engagement and retention.
As per the analysis, the United Kingdom is likely to significantly contribute to developing the regional market and is anticipated to garner USD 1.8 billion in 2032 while exhibiting a CAGR of 6.6% from 2023 to 2033.
Europe is estimated to capture a share of 22.1% of the global market by 2033. However, the United Kingdom is estimated to register a CAGR of 6.4% during the forecast period.
Asia Pacific is projected to be a notably growing region during the forecast period. The growth of the regional market can be attributed to the presence of significantly evolving countries. Additionally, increasing research and development initiatives among players are expected to augment the market size in the region. For instance,
In March 2022, Kore.ai opened its global research and development center in Hyderabad to ramp up hiring.
The participation of China, India, South Korea, and Japan is significant, propelling the market growth in the forecast period. As per the analysis, China is estimated at USD 3 billion while exhibiting a CAGR of 6.8% during the forecast period.
Japan is anticipated to reach USD 2.4 billion while recording a growth rate of 5.7% by 2032, while South Korea is observed at USD 1.4 billion, flourishing at a CAGR of 5.1% in the assessment period. India is capturing a CAGR of 8.1% in the global market by 2033.
Key players in the global market include AffectLayer Inc, Active.ai, Avaamo, CallRail Inc, and Avoma Inc. These key players are vital in expanding the global market by developing unique and innovative products. Key players invest much in research and development activities to offer improved products as per consumers' requirements.
Key players are adopting several marketing tactics to upsurge the global market such as mergers, collaborations, acquisitions, product launches, and agreements.
Other Prominent Players Working in the Global Market
Recent Developments in the Global Market:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD billion for Value |
| Key Countries Covered | The United States, The United Kingdom, Japan, India, China, Australia, Germany |
| Key Segments Covered | Deployment, End User, Verticle, Region |
| Key Companies Profiled | Active.ai; AffectLayer Inc.; Avaamo; Avoma Inc.; CallRail Inc.; Cogito Corporation; ExecVision Inc.; Gong.io; Invoca; KreatoSoftware Inc.; Netcore Solutions; Refract Software Ltd. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
Trends include the rise of remote work, the importance of data-driven decision-making, and the integration of AI and natural language processing (NLP) technologies.
It's used across industries, including sales, customer support, call centers, and marketing, to enhance communication effectiveness.
AI algorithms can identify patterns in conversations, extract insights, and provide recommendations for improving communication and customer interactions.
Insights include understanding customer pain points, competitor mentions, successful sales techniques, and compliance monitoring.
Challenges include handling large volumes of data, ensuring data privacy and security, and providing accurate sentiment analysis across various languages and dialects.
| Market Size, 2024 | USD 13,389.50 million |
|---|---|
| Market Size, 2034 | USD 54,321.30 million |
| Value CAGR (2024 to 2034) | 15.00% |
| Estimated Market Value (2032) | USD 155 Billion |
|---|---|
| Market Value (2022) | USD 8.3 Billion |
| Estimated CAGR (2022 to 2032) | 34.1% |
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Conversation Intelligence Software Market
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