How the Conversational Systems Market Will Impact Retail

According to a recent study by Research Nester, the global conversational systems market size is expected to surpass $333 billion by the end of 2035, a compound annual growth rate (CAGR) of over 27 percent during the forecast period.

The global conversational systems market is segmented by type into voice assisted, text assisted and others. Out of these, the voice assisted segment is anticipated to hold the largest share in the market on account of the rising trend in the adoption of voice-assisted technology in daily life. The end users find comfort in the usage of voice-enabled platforms and devices for activities like household chores, listening to music, booking appointments, and paying bills.

The global conversational systems market is expected to grow on the back of advancements in artificial intelligence (AI) technologies, increased adoption of machine learning and Internet of Things (IoT), and need for virtual customer service to improve the growth of investors. As per the World Economic Forum, over 70 billion IoT devices were available worldwide in 2020, with that number forecast to triple in the upcoming five years. According to UNESCO, AI was expected to produce an added value of $4 trillion by 2022. Furthermore, the use of AI helps to reduce the cost of business and marketing to investors and rises the profit for stakeholders. The use of chatbots was expected to reduce business costs to $8 billion by 2022.

Regionally, the global conversational systems market is segmented into five major regions, including North America, Europe, Asia Pacific, Latin America, and Middle East and Africa region. Among these regions, North America is anticipated to hold the largest market share owing to the rising acceptance of deep neural networks, machine learning, IoT, cloud services, AI, and other technological advancements. Asia Pacific is anticipated to gain further significant market share over the forecast period.

Around 50 percent of the world’s population is from APAC, so occurrence of any significant change in AI will impact the future of this region. The World Bank Organization approved $100 million in financing on Nov. 30, 2021, to support the governments of Africa to increase access to broadband and digital services. The digital acceleration program will strengthen the digital innovation ecosystem of the continent.

Increased Utilization of Conversational Systems in Different Verticals to Boost the Market Growth

Conversational systems are used across the world in a variety of verticals owing to the numerous profitable outcomes permitted by this technology. With the advancement of digitalization and use of machine learning in every corner, the demand and adoption of conversational systems in the verticals of healthcare, BFSI, IT and telecommunications, energy, and power has increased. The deals of AI-related venture capital (VC) rose from 140 in 2012 to 670 in 2017, and from less than $1 billion in 2012 to about $13 billion in 2017, with a 90 percent annual growth rate. In addition, the 5G technology launch has a high impact on the increased growth of conversational systems. All these factors contribute to the growth of the global conversational systems market.

However, concerns regarding lack of awareness of technology, high dependency of this system on deployment platforms, and lack of accuracy in virtual assistants are expected to operate as key restraints to the growth of the global conversational systems market over the forecast period.

This report also provides the existing competitive scenario of some of the key players of the global conversational systems market which includes company profiling of Google, IBM, Microsoft, Amazon Web Services, Artificial Solutions, Oracle Corp., SAP SE, Nuance Communication, Baidu, Inc., and Conversica Inc. The profiling enfolds key information of the companies which encompasses business overview, products and services, key financials, and recent news and developments.

Aashi Mishra is senior content writer at Research Nester, a market research and global consulting firm.