Conversational AI Market To Reach $41.39 Billion By 2030

Conversational AI Market Growth & Trends

The global conversational AI market size is anticipated to reach USD 41.39 billion in 2030 and is anticipated to grow at a CAGR of 23.7% from 2025 to 2030. The market growth is driven by user engagement across platforms and the growing deployment of powerful AI technology. It shows that consumers and businesses alike see technology as a way to grow their operations. Since conversational AI is becoming a more important technology, businesses must apply virtual assistants or chatbots with the right goals in mind. The rapid expansion of the E-commerce sector and digitalization is creating ideal circumstances for the demand for customer support services.

Global market adoption of AI is boosted by omnichannel deployment, 24/7 improved customer service, real-time customized service, and lower customer service costs. A new enterprise CX Platform was launched by Jio platform's Haptik in October 2021 to support conversational AI solutions. With the help of this platform, businesses may quickly launch intelligent virtual assistants in a low-code environment. The market growth is predicted to be aided by the service sector's expanding 'Chat first' approach and technological advancements like natural language processing (NLP). In November 2021, with the introduction of new conversational AI technology by ZeroShotBot, chatbots of all sizes are now considered standard.

With ZeroShotBot, anybody can create a fully functional chatbot without any coding knowledge due to innovative technology that eliminates the requirement for training data. Moreover, in January 2022, Visionstate Corp. introduced innovative Vicci 2.0, a state-of-the-art conversational chatbot AI-powered customer service kiosk. Visionstate is implementing this technology into its Vicci 2.0 platform to serve on-site customer service influenced by AI. The Vicci 2.0 platform can back a broad range of consumers through its modification capability to support various languages. However, the need for expertsto handle conversational AI and a lack of awareness of conversational AI prevent conversational AI from becoming widely used.

Offering a top-notch digital experience is more important for businesses. Customer experience firms now can swiftly and efficiently address complicated questions and inquiries because of the development of conversational AI. Major players in the market are engaged in partnerships and strategic collaborations to enhance their products and service offerings and expand the consumer base. For instance, to upgrade omnichannel competencies like Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Supply Chain Management (SCM), and Human Resources Management System (HRMS), Yellow.ai and Tech Mahindra jointly develop next-generation conversational-AI technologies.

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Conversational AI Market Report Highlights

• The solution segment led the conversational AI industry in 2024, accounting for 61.1% share of the global revenue

• The chatbot segment led the market in 2024, accounting for a significant share of the global revenue

• The on-premises segment led the market in 2024, accounting for a prominent share of the global revenue. This is attributable to the flexibility delivered to the customer, due to which the transaction is done only once

• The NLP segment led the conversational AI industry in 2024, accounting for a significant revenue share of global revenue

• Based on the end user, The retail and e-commerce segment led the market in 2024, accounting for a prominent share of global revenue

Conversational AI Market Segmentation

Grand View Research has segmented the global conversational AI market report based on component, type, deployment, technology, end user, and region

Conversational AI Component Outlook (Revenue, USD Million; 2018 - 2030)

• Solutions

• Managed Services

• Professional Services

  • Training and Consulting

  • System Integration and Implementation

  • Support and Maintenance

Conversational AI Type Outlook (Revenue, USD Million; 2018 - 2030)

• Chatbots

• Intelligent virtual assistant (IVA)

Conversational AI Deployment Outlook (Revenue, USD Million; 2018 - 2030)

• On-Premises

• Cloud

Conversational AI Technology Outlook (Revenue, USD Million; 2018 - 2030)

• Natural Language Processing (NLP)

• ML and Deep Learning

• Automatic Speech Recognition (ASR)

Conversational AI End User Outlook (Revenue, USD Million; 2018 - 2030)

• BFSI

• Healthcare

• IT and Telecom

• Retail and eCommerce

• Education

• Media and Entertainment

• Automotive

• Others (Government, Hospitality, Manufacturing, etc.)

Conversational AI Regional Outlook (Revenue, USD Million; 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

• Asia Pacific

  • China

  • Japan

  • India

  • Australia

  • South Korea

• Latin America

  • Brazil

• Middle East and Africa (MEA)

  • KSA

  • UAE

  • South Africa

List of Key Players in Conversational AI Market

• Google

• Microsoft

• Amazon Web Services, Inc.

• IBM

• Oracle

• Nuance Communications, Inc.

• FIS

• SAP SE

• Artificial Solutions

• Kore.ai, Inc.

• Avaamo

• Conversica, Inc.

• Jio Haptik Technologies Limited

• Rasa Technologies Inc.

• Solvvy

• Pypestream Inc.

• Kasisto

• Cognigy