Market Size of Conversational Systems Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 53.13 Billion |
| Market Size (2029) | USD 20.43 Billion |
| CAGR (2024 - 2029) | 21.06 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Conversational Systems Market Analysis
The Conversational Systems Market size is estimated at USD 53.13 billion in 2024, and is expected to reach USD 20.43 billion by 2029, growing at a CAGR of 21.06% during the forecast period (2024-2029).
Conversational systems are intelligent machine solutions that understand language and conduct verbal or written customer conversations. These systems are aimed at improving the customer experience by boosting interaction.
- The availability of large amounts of data and increasing data-related complexities in enterprises are expected to drive the market demand for conversational system solutions. Further, the requirement of artificial intelligence (AI)-enabled systems to mimic human brains is one of the crucial parameters responsible for the development of the industry.
- The usage of conversational systems is increasing because of deep neural networks, machine learning, and other advancements in AI technologies. Conversational systems like chatbots are used for various applications across several end-user verticals. One primary consumer-facing application is a conversational system as a personal assistant. It helps consumers accomplish various tasks; for instance, Apple's Siri offers an intuitive interface for connected homes or cars.
- An organization can simplify and reimagine business processes through conversational software platforms and reduce and automate business workflows through context-aware intelligence systems. These platforms enable users and systems to have meaningful interactions and work in tandem to meet business objectives.
- Furthermore, integrating artificial intelligence (AI) capabilities with conversational systems provides significant opportunities for growth in the global conversational systems market. Various factors, such as a lack of understanding of developing technologies and these systems' dependency on deployment platforms, are projected to hinder market expansion. Additionally, a lack of accuracy in virtual assistants and chatbots is expected to limit the market growth.
- However, the COVID-19 pandemic boosted the conversational systems market. The growing need for clarification significantly increased consumer calls, imposing further strain on contact centers. As a result, the use of conversational solutions in contact centers is projected to accelerate. These tools enable users to obtain information via voice or text-based engagement platforms, resulting in increased usage of these novel communication channels during the coronavirus epidemic.
