Table of Content

1 INTRODUCTION 16
1.1 OBJECTIVES OF THE STUDY 16
1.2 MARKET DEFINITION 16
1.3 MARKET SCOPE 17
1.3.1 MARKET SEGMENTATION 17
1.3.2 REGIONS COVERED 17
1.4 YEARS CONSIDERED FOR THE STUDY 18
1.5 CURRENCY CONSIDERED 18
1.6 STAKEHOLDERS 18

2 RESEARCH METHODOLOGY 19
2.1 RESEARCH DATA 19
2.1.1 SECONDARY DATA 20
2.1.2 PRIMARY DATA 20
2.1.2.1 Breakup of primary profiles 20
2.1.2.2 Key industry insights 21
2.2 MARKET BREAKUP AND DATA TRIANGULATION 22
2.3 MARKET SIZE ESTIMATION 22
2.3.1 TOP-DOWN APPROACH 23
2.3.2 BOTTOM-UP APPROACH 23
2.4 MARKET FORECAST 24
2.5 ASSUMPTIONS FOR THE STUDY 25
2.6 LIMITATIONS OF THE STUDY 25

3 EXECUTIVE SUMMARY 26

4 PREMIUM INSIGHTS 30
4.1 ATTRACTIVE MARKET OPPORTUNITIES IN THE CONVERSATIONAL SYSTEMS MARKET 30
4.2 CONVERSATIONAL SYSTEMS MARKET, BY APPLICATION 30
4.3 CONVERSATIONAL SYSTEMS MARKET, BY REGION 31
4.4 CONVERSATIONAL SYSTEMS MARKET IN NORTH AMERICA, BY COMPONENT, TYPE,
AND APPLICATION 31
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5 MARKET OVERVIEW AND INDUSTRY TRENDS 32
5.1 INTRODUCTION 32
5.2 MARKET DYNAMICS 32
5.2.1 DRIVERS 33
5.2.1.1 Highly advanced AI and NLP tools bolstering the market growth 33
5.2.1.2 Increasing demand for AI-powered customer support services 33
5.2.2 RESTRAINTS 33
5.2.2.1 Dependency on deployment platforms 33
5.2.2.2 Lack of awareness of emerging technologies 33
5.2.3 OPPORTUNITIES 34
5.2.3.1 Increasing demand for smartphones 34
5.2.3.2 Integration of advanced AI capabilities adding value to the conversational systems offerings 34
5.2.3.3 Rise in customer engagement through social media platforms 34
5.2.4 CHALLENGES 34
5.2.4.1 Lack of awareness and reluctance to use chatbots 34
5.2.4.2 Lack of accuracy in chatbots and virtual assistants 35
5.3 USE CASES 35
5.3.1 USE CASE: SCENARIO 1 35
5.3.2 USE CASE: SCENARIO 2 35
5.3.3 USE CASE: SCENARIO 3 36
5.3.4 USE CASE: SCENARIO 4 36
5.3.5 USE CASE: SCENARIO 5 37
5.4 REGULATORY IMPLICATIONS 37
5.4.1 GDPR 37
5.4.2 HIPAA 37
5.4.3 FTC 38
5.4.4 ISO/IEC JTC 1/SC 42 38

6 CONVERSATIONAL SYSTEMS MARKET, BY COMPONENT 39
6.1 INTRODUCTION 40
6.2 COMPUTE PLATFORMS 41
6.2.1 INCREASING DEMAND TO DEVELOP NLP AND ML ENABLED CONVERSATIONAL SOLUTIONS TO DRIVE THE GROWTH OF CONVERSATIONAL SYSTEMS MARKET 41
6.3 SOLUTIONS 42
6.3.1 AI-ENABLED SOLUTIONS TO AUTOMATE CONVERSATION ACROSS CHANNELS TO GROW AT A RAPID PACE IN THE COMING YEARS 42
6.4 SERVICES 43
6.4.1 INCREASING NEED TO PROVIDE POST PURCHASE ENGAGEMENT WITH CLIENTS TO DRIVE THE GROWTH OF SERVICES IN CONVERSATIONAL SYSTEMS MARKET 43
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7 CONVERSATIONAL SYSTEMS MARKET, BY TYPE 44
7.1 INTRODUCTION 45
7.2 VOICE ASSISTED 46
7.2.1 INCREASING DEMAND FOR VOICE ASSISTED SOLUTIONS TO PAVE THE WAY FOR CONVERSATIONAL SYSTEMS MARKET IN DIFFERENT VERTICALS 46
7.3 TEXT ASSISTANT 46
7.3.1 AI-ENABLED TEXT ASSISTANT SOLUTIONS TO AUTOMATE CONVERSATION ACROSS CHANNELS TO GROW AT A RAPID PACE IN THE COMING YEARS 46
7.4 OTHERS 46

8 CONVERSATIONAL SYSTEMS MARKET, BY APPLICATION 47
8.1 INTRODUCTION 48
8.2 CUSTOMER SUPPORT AND PERSONAL ASSISTANCE 49
8.2.1 GROWING DEMAND FOR HANDLING CUSTOMER QUERIES TO INCREASE THE DEMAND FOR CONVERSATIONAL SYSTEMS MARKET IN VARIOUS VERTICALS 49
8.3 BRANDING AND ADVERTISEMENT 49
8.3.1 GROWING NEED TO CREATE AWARENESS AND PERFORM EFFECTIVE BRANDING ACTIVITIES TO INCREASE THE DEMAND FOR CONVERSATIONAL SYSTEMS MARKET 49
8.4 DATA PRIVACY AND COMPLIANCE 50
8.4.1 INCREASING NEED TO SECURE CUSTOMERS’ DATA AND COMPLY WITH STRINGENT REGULATIONS TO FUEL THE ADOPTION OF CONVERSATIONAL SYSTEMS AMONG ENTERPRISES 50
8.5 OTHERS 50

9 CONVERSATIONAL SYSTEMS MARKET, BY VERTICAL 51
9.1 INTRODUCTION 52
9.2 BANKING, FINANCIAL SERVICES, AND INSURANCE 53
9.2.1 PRESENCE OF A LARGE NUMBER OF DATA ACROSS BFSI VERTICAL TO HELP FINANCIAL INSTITUTIONS PROVIDE ENHANCED CUSTOMER EXPERIENCE 53
9.3 MEDIA AND ENTERTAINMENT 54
9.3.1 PERSONALIZED AND ENHANCED CUSTOMER EXPERIENCE USING CONVERSATIONAL SYSTEMS SOLUTIONS 54
9.4 RETAIL AND ECOMMERCE 55
9.4.1 INCREASING DEPLOYMENT OF CONVERSATIONAL SYSTEMS SOLUTIONS BY RETAIL AND ECOMMERCE VERTICAL ON VARIOUS CHANNELS FOR GREATER CUSTOMER ENGAGEMENT 55
9.5 TRAVEL AND HOSPITALITY 56
9.5.1 AUTOMATION OF BOOKING PROCESS THROUGH VARIOUS PLATFORMS TO INCREASE THE ADOPTION OF CHATBOTS AND PERSONAL ASSISTANTS 56
9.6 TELECOM 57
9.6.1 INCREASING USE OF CHATBOTS TO PROVIDE CUSTOMIZED SERVICES TO CUSTOMERS WILL LEAD CONVERSATIONAL SYSTEMS MARKET 57
9.7 HEALTHCARE AND LIFE SCIENCES 58
9.7.1 CONVERSATIONAL SYSTEMS SOLUTIONS TO IMPROVE PATIENT MANAGEMENT, MONITORING, AND EXPERIENCE AND ENGAGEMENT 58
9.8 OTHERS 59

10 CONVERSATIONAL SYSTEMS MARKET, BY REGION 60
10.1 INTRODUCTION 61
10.2 NORTH AMERICA 63
10.2.1 UNITED STATES 67
10.2.1.1 Growing implementation of AI- and ML-based solutions to fuel the demand for conversational systems in the US 67
10.2.2 CANADA 67
10.2.2.1 Increase in AI-based investments and research activities to drive the growth of conversational systems market in Canada 67
10.3 EUROPE 67
10.3.1 UNITED KINGDOM 70
10.3.1.1 Growing investments to fuel the adoption of conversational systems solutions in the UK 70
10.3.2 GERMANY 70
10.3.2.1 Increasing adoption of conversational systems solutions across major verticals to drive the market in Germany 70
10.3.3 FRANCE 71
10.3.3.1 Heavy inflow of capital from various investors to drive the conversational systems market in France 71
10.3.4 REST OF EUROPE 71
10.4 ASIA PACIFIC 71
10.4.1 CHINA 75
10.4.1.1 Increasing investments in AI landscape to drive the adoption of conversational systems solutions in China 75
10.4.2 JAPAN 75
10.4.2.1 Rising use of chatbots and intelligent virtual agents in the telecom vertical to fuel the adoption of conversational systems solutions in Japan 75
10.4.3 INDIA 75
10.4.3.1 Increase in investments among startups and growth of AI technology among verticals to trigger conversational systems adoption in India 75
10.4.4 REST OF ASIA PACIFIC 76
10.5 MIDDLE EAST AND AFRICA 76
10.5.1 ISRAEL 79
10.5.1.1 Upcoming AI startups in the country to drive the growth of conversational systems market in Israel 79
10.5.2 UNITED ARAB EMIRATES 79
10.5.2.1 Government initiatives to drive the adoption of AI-based solutions in the UAE 79
10.5.3 REST OF MIDDLE EAST AND AFRICA 79
10.6 LATIN AMERICA 80
10.6.1 BRAZIL 82
10.6.1.1 Emerging startups in Brazil to drive the growth of conversational systems market in the coming years 82
10.6.2 MEXICO 82
10.6.2.1 Growing demand for AI-based technologies to fuel the adoption of conversational systems solutions in Mexico 82
10.6.3 REST OF LATIN AMERICA 83

11 COMPETITIVE LANDSCAPE 84
11.1 COMPETITIVE LEADERSHIP MAPPING 84
11.1.1 VISIONARY LEADERS 84
11.1.2 INNOVATORS 84
11.1.3 DYNAMIC 84
11.1.4 EMERGING 84
11.2 COMPETITIVE LANDSCAPE OVERVIEW 86
11.3 COMPETITIVE SCENARIO 87
11.3.1 NEW PRODUCT LAUNCHES/PRODUCT ENHANCEMENTS 87
11.3.2 PARTNERSHIPS, AGREEMENTS, AND COLLABORATIONS 89
11.3.3 MERGERS AND ACQUISITIONS 90
12 COMPANY PROFILES 92
12.1 INTRODUCTION 92
(Business Overview, Platforms Offered, Recent Developments, SWOT Analysis, and MNM View)*
12.2 GOOGLE 93
12.3 MICROSOFT 96
12.4 AWS 99
12.5 IBM 102
12.6 ORACLE 105
12.7 NUANCE 108
12.8 BAIDU 110
12.9 SAP 112
12.10 ARTIFICIAL SOLUTIONS 114
12.11 KORE.AI 116
12.12 AVAAMO 118
12.13 CONVERSICA 118
12.14 HAPTIK 119
12.15 RASA 120
12.16 SOLVVY 120
12.17 PYPESTREAM 121
12.18 INBENTA 121
12.19 RULAI 121
12.20 SAARTHI.AI 122
*Details on Business Overview, Platforms Offered, Recent Developments, SWOT Analysis, and MNM View might not be captured in case of unlisted companies.
13 APPENDIX 123
13.1 DISCUSSION GUIDE 123
13.2 KNOWLEDGE STORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL 127
13.3 AVAILABLE CUSTOMIZATIONS 129
13.4 RELATED REPORTS 129
13.5 AUTHOR DETAILS 130



List of Figures



FIGURE 1 GLOBAL CONVERSATIONAL SYSTEMS MARKET: RESEARCH DESIGN 19
FIGURE 2 CONVERSATIONAL SYSTEMS MARKET: TOP-DOWN AND BOTTOM-UP APPROACHES 23
FIGURE 3 CONVERSATIONAL SYSTEMS MARKET SNAPSHOT, BY COMPONENT 27
FIGURE 4 CONVERSATIONAL SYSTEMS MARKET SNAPSHOT, BY TYPE 27
FIGURE 5 CONVERSATIONAL SYSTEMS MARKET SNAPSHOT, BY APPLICATION 28
FIGURE 6 CONVERSATIONAL SYSTEMS MARKET SNAPSHOT, BY VERTICAL 28
FIGURE 7 CONVERSATIONAL SYSTEMS MARKET SNAPSHOT, BY REGION 29
FIGURE 8 INCREASING DEMAND FOR AI-POWERED CUSTOMER SUPPORT SERVICES TO DRIVE THE OVERALL GROWTH OF THE CONVERSATIONAL SYSTEMS MARKET DURING THE FORECAST PERIOD 30
FIGURE 9 BRANDING AND ADVERTISEMENT SEGMENT TO GROW AT A SIGNIFICANT PACE DURING THE FORECAST PERIOD 30
FIGURE 10 NORTH AMERICA TO HOLD THE HIGHEST MARKET SHARE IN 2019 31
FIGURE 11 COMPUTE PLATFORMS, TEXT ASSISTANT, AND CUSTOMER SUPPORT AND PERSONAL ASSISTANT SEGMENTS IN NORTH AMERICA ACCOUNTED FOR THE HIGHEST MARKET SHARES IN THE CONVERSATIONAL SYSTEMS MARKET IN 2019 31
FIGURE 12 DRIVERS, RESTRAINTS, OPPORTUNITIES, AND CHALLENGES: CONVERSATIONAL SYSTEMS MARKET 32
FIGURE 13 SERVICES SEGMENT TO GROW AT THE HIGHEST CAGR DURING THE FORECAST PERIOD 40
FIGURE 14 VOICE ASSISTED SEGMENT TO GROW AT THE HIGHEST CAGR DURING THE FORECAST PERIOD 45
FIGURE 15 CUSTOMER SUPPORT AND PERSONAL ASSISTANT SEGMENT TO HOLD THE HIGHEST MARKET SIZE DURING THE FORECAST PERIOD 48
FIGURE 16 RETAIL AND ECOMMERCE SEGMENT TO REGISTER THE HIGHEST CAGR DURING THE FORECAST PERIOD 52
FIGURE 17 NORTH AMERICA TO HOLD THE LARGEST MARKET SIZE DURING THE FORECAST PERIOD 61
FIGURE 18 INDIA TO REGISTER THE HIGHEST CAGR DURING THE FORECAST PERIOD 62
FIGURE 19 ASIA PACIFIC TO ACCOUNT FOR THE HIGHEST CAGR DURING THE FORECAST PERIOD 62
FIGURE 20 NORTH AMERICA: MARKET SNAPSHOT 64
FIGURE 21 ASIA PACIFIC: MARKET SNAPSHOT 72
FIGURE 22 CONVERSATIONAL SYSTEMS MARKET (GLOBAL) COMPETITIVE LEADERSHIP MAPPING, 2019 85
FIGURE 23 KEY DEVELOPMENTS IN THE CONVERSATIONAL SYSTEMS MARKET DURING
2017–2019 86
FIGURE 24 GEOGRAPHICAL SEGMENTATION OF THE TOP PLAYERS IN THE CONVERSATIONAL SYSTEMS MARKET 92
FIGURE 25 GOOGLE: COMPANY SNAPSHOT 93
FIGURE 26 GOOGLE: SWOT ANALYSIS 95
FIGURE 27 MICROSOFT: COMPANY SNAPSHOT 96
FIGURE 28 MICROSOFT: SWOT ANALYSIS 98
FIGURE 29 AWS: COMPANY SNAPSHOT 99
FIGURE 30 AWS: SWOT ANALYSIS 100
FIGURE 31 IBM: COMPANY SNAPSHOT 102
FIGURE 32 IBM: SWOT ANALYSIS 104
FIGURE 33 ORACLE: COMPANY SNAPSHOT 105
FIGURE 34 ORACLE: SWOT ANALYSIS 107
FIGURE 35 NUANCE: COMPANY SNAPSHOT 108
FIGURE 36 BAIDU: COMPANY SNAPSHOT 110
FIGURE 37 SAP: COMPANY SNAPSHOT 112

 

List of Tables



TABLE 1 CURRENCY EXCHANGE TABLE 18
TABLE 2 FACTOR ANALYSIS 24
TABLE 3 GLOBAL CONVERSATIONAL SYSTEMS MARKET SIZE AND GROWTH RATE 2017–2024 (USD MILLION, Y-O-Y %) 27
TABLE 4 CONVERSATIONAL SYSTEMS MARKET SIZE, BY COMPONENT 2017–2024 (USD MILLION) 40
TABLE 5 COMPUTE PLATFORMS: CONVERSATIONAL SYSTEMS MARKET SIZE, BY REGION, 2017–2024 (USD MILLION) 41
TABLE 6 SOLUTIONS: CONVERSATIONAL SYSTEMS MARKET SIZE, BY REGION 2017–2024 (USD MILLION) 42
TABLE 7 SERVICES: CONVERSATIONAL SYSTEMS MARKET SIZE, BY REGION 2017–2024 (USD MILLION) 43
TABLE 8 CONVERSATIONAL SYSTEMS MARKET SIZE, BY TYPE, 2017–2024 (USD MILLION) 45
TABLE 9 CONVERSATIONAL SYSTEMS MARKET SIZE, BY APPLICATION 2017–2024 (USD MILLION) 48
TABLE 10 CONVERSATIONAL SYSTEMS MARKET SIZE, BY VERTICAL 2017–2024 (USD MILLION) 52
TABLE 11 BANKING, FINANCIAL SERVICES, AND INSURANCE: CONVERSATIONAL SYSTEMS MARKET SIZE, BY REGION, 2017–2024 (USD MILLION) 53
TABLE 12 MEDIA AND ENTERTAINMENT: CONVERSATIONAL SYSTEMS MARKET SIZE BY REGION, 2017–2024 (USD MILLION) 54
TABLE 13 RETAIL AND ECOMMERCE: CONVERSATIONAL SYSTEMS MARKET SIZE, BY REGION, 2017–2024 (USD MILLION) 55
TABLE 14 TRAVEL AND HOSPITALITY: CONVERSATIONAL SYSTEMS MARKET SIZE, BY REGION, 2017–2024 (USD MILLION) 56
TABLE 15 TELECOM: CONVERSATIONAL SYSTEMS MARKET SIZE, BY REGION 2017–2024 (USD MILLION) 57
TABLE 16 HEALTHCARE AND LIFE SCIENCES: CONVERSATIONAL SYSTEMS MARKET SIZE BY REGION, 2017–2024 (USD MILLION) 58
TABLE 17 OTHERS: CONVERSATIONAL SYSTEMS MARKET SIZE, BY REGION 2017–2024 (USD MILLION) 59
TABLE 18 CONVERSATIONAL SYSTEMS MARKET SIZE, BY REGION 2017–2024 (USD MILLION) 63
TABLE 19 NORTH AMERICA: CONVERSATIONAL SYSTEMS MARKET SIZE, BY COMPONENT, 2017–2024 (USD MILLION) 64
TABLE 20 NORTH AMERICA: CONVERSATIONAL SYSTEMS MARKET SIZE, BY TYPE 2017–2024 (USD MILLION) 65
TABLE 21 NORTH AMERICA: CONVERSATIONAL SYSTEMS MARKET SIZE, BY APPLICATION, 2017–2024 (USD MILLION) 65
TABLE 22 NORTH AMERICA: CONVERSATIONAL SYSTEMS MARKET SIZE, BY VERTICAL 2017–2024 (USD MILLION) 66
TABLE 23 NORTH AMERICA: CONVERSATIONAL SYSTEMS MARKET SIZE, BY COUNTRY, 2017–2024 (USD MILLION) 66
TABLE 24 EUROPE: CONVERSATIONAL SYSTEMS MARKET SIZE, BY COMPONENT 2017–2024 (USD MILLION) 68
TABLE 25 EUROPE: CONVERSATIONAL SYSTEMS MARKET SIZE, BY TYPE 2017–2024 (USD MILLION) 68
TABLE 26 EUROPE: CONVERSATIONAL SYSTEMS MARKET SIZE, BY APPLICATION 2017–2024 (USD MILLION) 69
TABLE 27 EUROPE: CONVERSATIONAL SYSTEMS MARKET SIZE, BY VERTICAL 2017–2024 (USD MILLION) 69
TABLE 28 EUROPE: CONVERSATIONAL SYSTEMS MARKET SIZE, BY COUNTRY 2017–2024 (USD MILLION) 70
TABLE 29 ASIA PACIFIC: CONVERSATIONAL SYSTEMS MARKET SIZE, BY COMPONENT 2017–2024 (USD MILLION) 72
TABLE 30 ASIA PACIFIC: CONVERSATIONAL SYSTEMS MARKET SIZE, BY TYPE 2017–2024 (USD MILLION) 73
TABLE 31 ASIA PACIFIC: CONVERSATIONAL SYSTEMS MARKET SIZE, BY APPLICATION 2017–2024 (USD MILLION) 73
TABLE 32 ASIA PACIFIC: CONVERSATIONAL SYSTEMS MARKET SIZE, BY VERTICAL 2017–2024 (USD MILLION) 74
TABLE 33 ASIA PACIFIC: CONVERSATIONAL SYSTEMS MARKET SIZE, BY COUNTRY 2017–2024 (USD MILLION) 74
TABLE 34 MIDDLE EAST AND AFRICA: CONVERSATIONAL SYSTEMS MARKET SIZE BY COMPONENT, 2017–2024 (USD MILLION) 76
TABLE 35 MIDDLE EAST AND AFRICA: CONVERSATIONAL SYSTEMS MARKET SIZE, BY TYPE, 2017–2024 (USD MILLION) 77
TABLE 36 MIDDLE EAST AND AFRICA: CONVERSATIONAL SYSTEMS MARKET SIZE BY APPLICATION, 2017–2024 (USD MILLION) 77
TABLE 37 MIDDLE EAST AND AFRICA: CONVERSATIONAL SYSTEMS MARKET SIZE BY VERTICAL, 2017–2024 (USD MILLION) 78
TABLE 38 MIDDLE EAST AND AFRICA: CONVERSATIONAL SYSTEMS MARKET SIZE BY COUNTRY, 2017–2024 (USD MILLION) 78
TABLE 39 LATIN AMERICA: CONVERSATIONAL SYSTEMS MARKET SIZE, BY COMPONENT, 2017–2024 (USD MILLION) 80
TABLE 40 LATIN AMERICA: CONVERSATIONAL SYSTEMS MARKET SIZE, BY TYPE 2017–2024 (USD MILLION) 80
TABLE 41 LATIN AMERICA: CONVERSATIONAL SYSTEMS MARKET SIZE, BY APPLICATION, 2017–2024 (USD MILLION) 81
TABLE 42 LATIN AMERICA: CONVERSATIONAL SYSTEMS MARKET SIZE, BY VERTICAL 2017–2024 (USD MILLION) 81
TABLE 43 LATIN AMERICA: CONVERSATIONAL SYSTEMS MARKET SIZE, BY COUNTRY 2017–2024 (USD MILLION) 82
TABLE 44 NEW PRODUCT LAUNCHES/PRODUCT ENHANCEMENTS 87
TABLE 45 PARTNERSHIPS, AGREEMENTS, AND COLLABORATIONS 89
TABLE 46 MERGERS AND ACQUISITIONS 90