Latest News- Conversational AI Market: On-premises is expected to lead the Deployment segment during 2025-2029

The Conversational AI Market is being driven by Growth in natural language processing (NLP), machine learning (ML), and AI technologies

The Conversational AI Market is expected to grow at a CAGR of 24.7% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 24842.7 million. The global conversational AI market is experiencing significant growth due to the escalating need for AI-driven customer support services. In today's intensely competitive business landscape, retaining existing customers and acquiring new ones is a priority for companies. To foster customer loyalty, businesses must provide engaging and continuous interaction through AI-powered customer service. An excellent post-purchase experience, facilitated by conversational AI, can serve as a catalyst for repeat purchases and referrals. Given the cost-effectiveness and efficiency of AI in handling customer queries, it is a strategic investment for businesses to enhance their customer service offerings and gain a competitive edge. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Deployment
  • On-premises
  • Cloud
• Type
  • AI chatbots
  • Voice bots
  • Interactive voice assistants
  • Generative AI agents
• Method
  • Internal enterprise systems
  • External communication channels
• End-user
  • BFSI
  • Retail and e-commerce
  • Education
  • Media and entertainment
  • Others
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
    • France
    • Italy
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • Middle East and Africa
  • South America

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Growth in natural language processing (NLP), machine learning (ML), and AI technologies
• Increasing adoption of smartphones
• Increasing demand for AI-powered customer support services

However, the market also witnesses some limitations, which are as follows:

• Resistance to using chatbots
• Lack of awareness about emerging technologies
• Data privacy concerns associated with conversational AI

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Market Scope in Conversational AI Market Research Report

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Research Analysis Overview

The conversational AI market is experiencing significant growth, driven by trends such as engagement through conversational UX, service automation, and conversational commerce. Generative AI businesses are leveraging conversational AI strategies for self-service, relationship management, and AI for support. Conversational design includes natural language interaction, conversational marketing, and conversational UI/UX. Chatbot security, deployment, and integration are crucial considerations, along with analytics and training data. AI technologies like machine learning and voice recognition are integral to chatbot development. Conversational AI trends also include chatbot use cases in mobile applications, GPT models, and conversational UI/UX. Intelliassistant and conversational marketing are key areas of focus for enhancing customer experience and retention. Voice assistant integration and automation are also important conversational AI trends.

Market Research Overview

The Conversational AI Market is a segment of the larger Global Technology Hardware, Storage, and Peripherals Market, which encompasses manufacturers of cellular phones, personal computers, servers, electronic components, data storage, and peripherals. According to Technavio, this market is expected to expand due to the escalating demand for data storage solutions, driven by the increasing volume, velocity, veracity, and variety (4Vs) of data. This trend is primarily fueled by the proliferation of data centers and the resulting need for advanced data management systems. The global Technology Hardware, Storage, and Peripherals Market size is determined by the revenue generated from the sales of hardware devices, equipment, and components. Convenience and messaging applications are also significant growth areas within the Conversational AI Market. Service operations are further expected to benefit from the adoption of conversational AI solutions due to their ability to streamline processes and enhance customer experience.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/