The Conversation intelligence software market is capturing a valuation of US$ 22.8 billion in 2023 and is predicted to reach US$ 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) | US$ 22.8 billion |
| Market Valuation (2033) | US$ 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 US$ 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.
Principal Consultant
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,
The market was valued at US$ 17.5 billion in 2018 and US$ 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 US$ 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,
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 US$ 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,
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 US$ 3 billion while exhibiting a CAGR of 6.8% during the forecast period.
Japan is anticipated to reach US$ 2.4 billion while recording a growth rate of 5.7% by 2032, while South Korea is observed at US$ 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 | US$ 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.
1. Executive Summary 1.1. Global Market Outlook 1.2. Demand-side Trends 1.3. Supply-side Trends 1.4. Technology Roadmap Analysis 1.5. Analysis and Recommendations 2. Market Overview 2.1. Market Coverage / Taxonomy 2.2. Market Definition / Scope / Limitations 3. Market Background 3.1. Market Dynamics 3.1.1. Drivers 3.1.2. Restraints 3.1.3. Opportunity 3.1.4. Trends 3.2. Scenario Forecast 3.2.1. Demand in Optimistic Scenario 3.2.2. Demand in Likely Scenario 3.2.3. Demand in Conservative Scenario 3.3. Opportunity Map Analysis 3.4. Investment Feasibility Matrix 3.5. PESTLE and Porter’s Analysis 3.6. Regulatory Landscape 3.6.1. By Key Regions 3.6.2. By Key Countries 3.7. Regional Parent Market Outlook 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 4.1. Historical Market Size Value (US$ Million) Analysis, 2018 to 2022 4.2. Current and Future Market Size Value (US$ Million) Projections, 2023 to 2033 4.2.1. Y-o-Y Growth Trend Analysis 4.2.2. Absolute $ Opportunity Analysis 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Deployment 5.1. Introduction / Key Findings 5.2. Historical Market Size Value (US$ Million) Analysis By Deployment, 2018 to 2022 5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Deployment, 2023 to 2033 5.3.1. On-premise 5.3.2. Cloud-based 5.4. Y-o-Y Growth Trend Analysis By Deployment, 2018 to 2022 5.5. Absolute $ Opportunity Analysis By Deployment, 2023 to 2033 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Users 6.1. Introduction / Key Findings 6.2. Historical Market Size Value (US$ Million) Analysis By End Users, 2018 to 2022 6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By End Users, 2023 to 2033 6.3.1. SMEs 6.3.2. Large Enterprises 6.4. Y-o-Y Growth Trend Analysis By End Users, 2018 to 2022 6.5. Absolute $ Opportunity Analysis By End Users, 2023 to 2033 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vertical 7.1. Introduction / Key Findings 7.2. Historical Market Size Value (US$ Million) Analysis by Vertical, 2018 to 2022 7.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast by Vertical, 2023 to 2033 7.3.1. IT & Telecommunications 7.3.2. Retail 7.3.3. BFSI 7.3.4. Real Estate 7.3.5. Others 7.4. Y-o-Y Growth Trend Analysis by Vertical, 2018 to 2022 7.5. Absolute $ Opportunity Analysis by Vertical, 2023 to 2033 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. Introduction 8.2. Historical Market Size Value (US$ Million) Analysis By Region, 2018 to 2022 8.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2023 to 2033 8.3.1. North America 8.3.2. Latin America 8.3.3. Europe 8.3.4. South Asia 8.3.5. East Asia 8.3.6. Oceania 8.3.7. MEA 8.4. Market Attractiveness Analysis By Region 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 9.2.1. By Country 9.2.1.1. The USA 9.2.1.2. Canada 9.2.2. By Deployment 9.2.3. By End Users 9.2.4. By Vertical 9.3. Market Attractiveness Analysis 9.3.1. By Country 9.3.2. By Deployment 9.3.3. By End Users 9.3.4. By Vertical 9.4. Key Takeaways 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 10.2.1. By Country 10.2.1.1. Brazil 10.2.1.2. Mexico 10.2.1.3. Rest of Latin America 10.2.2. By Deployment 10.2.3. By End Users 10.2.4. By Vertical 10.3. Market Attractiveness Analysis 10.3.1. By Country 10.3.2. By Deployment 10.3.3. By End Users 10.3.4. By Vertical 10.4. Key Takeaways 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 11.2.1. By Country 11.2.1.1. Germany 11.2.1.2. United Kingdom 11.2.1.3. France 11.2.1.4. Spain 11.2.1.5. Italy 11.2.1.6. Rest of Europe 11.2.2. By Deployment 11.2.3. By End Users 11.2.4. By Vertical 11.3. Market Attractiveness Analysis 11.3.1. By Country 11.3.2. By Deployment 11.3.3. By End Users 11.3.4. By Vertical 11.4. Key Takeaways 12. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 12.2.1. By Country 12.2.1.1. India 12.2.1.2. Malaysia 12.2.1.3. Singapore 12.2.1.4. Thailand 12.2.1.5. Rest of South Asia 12.2.2. By Deployment 12.2.3. By End Users 12.2.4. By Vertical 12.3. Market Attractiveness Analysis 12.3.1. By Country 12.3.2. By Deployment 12.3.3. By End Users 12.3.4. By Vertical 12.4. Key Takeaways 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 13.2.1. By Country 13.2.1.1. China 13.2.1.2. Japan 13.2.1.3. South Korea 13.2.2. By Deployment 13.2.3. By End Users 13.2.4. By Vertical 13.3. Market Attractiveness Analysis 13.3.1. By Country 13.3.2. By Deployment 13.3.3. By End Users 13.3.4. By Vertical 13.4. Key Takeaways 14. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 14.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 14.2.1. By Country 14.2.1.1. Australia 14.2.1.2. New Zealand 14.2.2. By Deployment 14.2.3. By End Users 14.2.4. By Vertical 14.3. Market Attractiveness Analysis 14.3.1. By Country 14.3.2. By Deployment 14.3.3. By End Users 14.3.4. By Vertical 14.4. Key Takeaways 15. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 15.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 15.2.1. By Country 15.2.1.1. GCC Countries 15.2.1.2. South Africa 15.2.1.3. Israel 15.2.1.4. Rest of MEA 15.2.2. By Deployment 15.2.3. By End Users 15.2.4. By Vertical 15.3. Market Attractiveness Analysis 15.3.1. By Country 15.3.2. By Deployment 15.3.3. By End Users 15.3.4. By Vertical 15.4. Key Takeaways 16. Key Countries Market Analysis 16.1. USA 16.1.1. Pricing Analysis 16.1.2. Market Share Analysis, 2022 16.1.2.1. By Deployment 16.1.2.2. By End Users 16.1.2.3. By Vertical 16.2. Canada 16.2.1. Pricing Analysis 16.2.2. Market Share Analysis, 2022 16.2.2.1. By Deployment 16.2.2.2. By End Users 16.2.2.3. By Vertical 16.3. Brazil 16.3.1. Pricing Analysis 16.3.2. Market Share Analysis, 2022 16.3.2.1. By Deployment 16.3.2.2. By End Users 16.3.2.3. By Vertical 16.4. Mexico 16.4.1. Pricing Analysis 16.4.2. Market Share Analysis, 2022 16.4.2.1. By Deployment 16.4.2.2. By End Users 16.4.2.3. By Vertical 16.5. Germany 16.5.1. Pricing Analysis 16.5.2. Market Share Analysis, 2022 16.5.2.1. By Deployment 16.5.2.2. By End Users 16.5.2.3. By Vertical 16.6. United Kingdom 16.6.1. Pricing Analysis 16.6.2. Market Share Analysis, 2022 16.6.2.1. By Deployment 16.6.2.2. By End Users 16.6.2.3. By Vertical 16.7. France 16.7.1. Pricing Analysis 16.7.2. Market Share Analysis, 2022 16.7.2.1. By Deployment 16.7.2.2. By End Users 16.7.2.3. By Vertical 16.8. Spain 16.8.1. Pricing Analysis 16.8.2. Market Share Analysis, 2022 16.8.2.1. By Deployment 16.8.2.2. By End Users 16.8.2.3. By Vertical 16.9. Italy 16.9.1. Pricing Analysis 16.9.2. Market Share Analysis, 2022 16.9.2.1. By Deployment 16.9.2.2. By End Users 16.9.2.3. By Vertical 16.10. India 16.10.1. Pricing Analysis 16.10.2. Market Share Analysis, 2022 16.10.2.1. By Deployment 16.10.2.2. By End Users 16.10.2.3. By Vertical 16.11. Malaysia 16.11.1. Pricing Analysis 16.11.2. Market Share Analysis, 2022 16.11.2.1. By Deployment 16.11.2.2. By End Users 16.11.2.3. By Vertical 16.12. Singapore 16.12.1. Pricing Analysis 16.12.2. Market Share Analysis, 2022 16.12.2.1. By Deployment 16.12.2.2. By End Users 16.12.2.3. By Vertical 16.13. Thailand 16.13.1. Pricing Analysis 16.13.2. Market Share Analysis, 2022 16.13.2.1. By Deployment 16.13.2.2. By End Users 16.13.2.3. By Vertical 16.14. China 16.14.1. Pricing Analysis 16.14.2. Market Share Analysis, 2022 16.14.2.1. By Deployment 16.14.2.2. By End Users 16.14.2.3. By Vertical 16.15. Japan 16.15.1. Pricing Analysis 16.15.2. Market Share Analysis, 2022 16.15.2.1. By Deployment 16.15.2.2. By End Users 16.15.2.3. By Vertical 16.16. South Korea 16.16.1. Pricing Analysis 16.16.2. Market Share Analysis, 2022 16.16.2.1. By Deployment 16.16.2.2. By End Users 16.16.2.3. By Vertical 16.17. Australia 16.17.1. Pricing Analysis 16.17.2. Market Share Analysis, 2022 16.17.2.1. By Deployment 16.17.2.2. By End Users 16.17.2.3. By Vertical 16.18. New Zealand 16.18.1. Pricing Analysis 16.18.2. Market Share Analysis, 2022 16.18.2.1. By Deployment 16.18.2.2. By End Users 16.18.2.3. By Vertical 16.19. GCC Countries 16.19.1. Pricing Analysis 16.19.2. Market Share Analysis, 2022 16.19.2.1. By Deployment 16.19.2.2. By End Users 16.19.2.3. By Vertical 16.20. South Africa 16.20.1. Pricing Analysis 16.20.2. Market Share Analysis, 2022 16.20.2.1. By Deployment 16.20.2.2. By End Users 16.20.2.3. By Vertical 16.21. Israel 16.21.1. Pricing Analysis 16.21.2. Market Share Analysis, 2022 16.21.2.1. By Deployment 16.21.2.2. By End Users 16.21.2.3. By Vertical 17. Market Structure Analysis 17.1. Competition Dashboard 17.2. Competition Benchmarking 17.3. Market Share Analysis of Top Players 17.3.1. By Regional 17.3.2. By Deployment 17.3.3. By End Users 17.3.4. By Vertical 18. Competition Analysis 18.1. Competition Deep Dive 18.1.1. Active.ai 18.1.1.1. Overview 18.1.1.2. Product Portfolio 18.1.1.3. Profitability by Market Segments 18.1.1.4. Sales Footprint 18.1.1.5. Strategy Overview 18.1.1.5.1. Marketing Strategy 18.1.2. AffectLayer Inc. 18.1.2.1. Overview 18.1.2.2. Product Portfolio 18.1.2.3. Profitability by Market Segments 18.1.2.4. Sales Footprint 18.1.2.5. Strategy Overview 18.1.2.5.1. Marketing Strategy 18.1.3. Avaamo 18.1.3.1. Overview 18.1.3.2. Product Portfolio 18.1.3.3. Profitability by Market Segments 18.1.3.4. Sales Footprint 18.1.3.5. Strategy Overview 18.1.3.5.1. Marketing Strategy 18.1.4. Avoma Inc. 18.1.4.1. Overview 18.1.4.2. Product Portfolio 18.1.4.3. Profitability by Market Segments 18.1.4.4. Sales Footprint 18.1.4.5. Strategy Overview 18.1.4.5.1. Marketing Strategy 18.1.5. CallRail Inc. 18.1.5.1. Overview 18.1.5.2. Product Portfolio 18.1.5.3. Profitability by Market Segments 18.1.5.4. Sales Footprint 18.1.5.5. Strategy Overview 18.1.5.5.1. Marketing Strategy 18.1.6. Cogito Corporation 18.1.6.1. Overview 18.1.6.2. Product Portfolio 18.1.6.3. Profitability by Market Segments 18.1.6.4. Sales Footprint 18.1.6.5. Strategy Overview 18.1.6.5.1. Marketing Strategy 18.1.7. ExecVision Inc. 18.1.7.1. Overview 18.1.7.2. Product Portfolio 18.1.7.3. Profitability by Market Segments 18.1.7.4. Sales Footprint 18.1.7.5. Strategy Overview 18.1.7.5.1. Marketing Strategy 18.1.8. Gong.io 18.1.8.1. Overview 18.1.8.2. Product Portfolio 18.1.8.3. Profitability by Market Segments 18.1.8.4. Sales Footprint 18.1.8.5. Strategy Overview 18.1.8.5.1. Marketing Strategy 18.1.9. Invoca 18.1.9.1. Overview 18.1.9.2. Product Portfolio 18.1.9.3. Profitability by Market Segments 18.1.9.4. Sales Footprint 18.1.9.5. Strategy Overview 18.1.9.5.1. Marketing Strategy 18.1.10. KreatoSoftware Inc. 18.1.10.1. Overview 18.1.10.2. Product Portfolio 18.1.10.3. Profitability by Market Segments 18.1.10.4. Sales Footprint 18.1.10.5. Strategy Overview 18.1.10.5.1. Marketing Strategy 18.1.11. Netcore Solutions 18.1.11.1. Overview 18.1.11.2. Product Portfolio 18.1.11.3. Profitability by Market Segments 18.1.11.4. Sales Footprint 18.1.11.5. Strategy Overview 18.1.11.5.1. Marketing Strategy 18.1.12. Refract Software Ltd. 18.1.12.1. Overview 18.1.12.2. Product Portfolio 18.1.12.3. Profitability by Market Segments 18.1.12.4. Sales Footprint 18.1.12.5. Strategy Overview 18.1.12.5.1. Marketing Strategy 19. Assumptions & Acronyms Used 20. Research Methodology
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Conversation Intelligence Software Market
