Conversational AI Market is expected to reach US$ 39.55 Billion by 2031

Rising Demand for Conversational AI in Healthcare Sector to Drive Conversational AI Market Growth During 2023–2031

According to our latest market study on "Conversational AI Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Component, Type, Deployment Type, and Industry," the market was valued at US$ 8.45 billion in 2023 and is anticipated to reach US$ 39.55 billion by 2031; it is estimated to record a CAGR of 21.3% from 2023 to 2031.

Through the use of machine learning (ML) and natural language processing (NLP), conversational AI is revolutionizing the way healthcare professionals interact with their patients. Conversational AI offers a variety of applications, from scheduling appointments to tracking conditions, that enhance the quality of healthcare for patients and providers. Using conversational AI solutions, patients can easily make, reschedule, and cancel an appointment with their preferred physician without the inconvenience of a complex user interface. Another benefit of conversational AI in appointment scheduling is that it acts as a large database of clinics, doctors, and current calendars, allowing patients to match their specific timetables. The solution can also provide reminders and other crucial notifications if a patient needs to bring a specific document to the appointment or if they require assistance following a procedure.

Conversational AI Market Analysis – by Geography, 2023

Source: The Insight Partners Analysis

Furthermore, an AI assistant can answer a typical question or FAQ about a specific illness, medical condition, or pandemic. It can increase public awareness of a particular health issue or emergency by providing quick access to timely, accurate, and reliable information. All of this helps in an engaging, conversational manner across a variety of digital platforms such as websites, social media, and messaging applications. Moreover, with the use of conversational AI, patients can better manage their physical health by recognizing symptoms early and seeking online advice from medical professionals as needed. Patients can also take control of their health by having the resources and knowledge at their fingertips. Conversational AI systems support the tracking of body weight, recommended prescription regimens, individuals' progress toward their health objectives, and more. It also provides reminders and health updates on a regular basis that keep people inspired to reach their wellness objectives. Hence, all the above benefits are propelling the demand for conversational AI in the healthcare sector, which is expected to become one of the major conversational AI market trends across the world in the coming years.  

North America held the largest conversational AI market share in 2023, whereas Asia Pacific (APAC) is expected to record the highest CAGR during 2023–2031. According to the International Air Transport Association (IATA), APAC leads the growth of the global e-commerce market, with China accounting for a significant share of the growth. As per the International Trade Administration (ITA), the e-commerce market of China is the largest in the world and generates almost 50% of the world’s transactions. The e-commerce market in other APAC countries is also witnessing significant growth. According to the ITA, the e-commerce market in Australia—the eleventh-largest market in the world—is expected to reach US$ 32.3 billion by 2024. According to the India Brand Equity Foundation (IBEF),  the market in India is expected to reach US$ 188 billion by 2025. In addition, governments of various countries in APAC are taking various initiatives to boost the growth of the e-commerce industry. For instance, the Indonesian government organizes a National Online Shopping Day (Harbolnas) every year to promote e-commerce use and increase the trade of domestic products. The implementation of Harbolnas has seen a significant increase in transaction volume in 2021, recording transactions totaling US$ 1.16 billion, an increase of 56% from 2020. Moreover, the increasing competitive landscape, growing middle-class population, and rising penetration of digital technology and smartphones are anticipated to bolster the growth of online retail in the coming years. Thus, the e-commerce market growth will have a significant impact on the conversational AI market forecast, as the technology provides innovative and conversational approach, and personalized customer experience.

Amazon Web Services Inc, IBM Corporation, Google LLC, Oracle, SAP SE, Microsoft Corp, Artificial Solutions International AB, Cognigy, Kore.ai Inc, and Rasa Technologies are among the key players profiled in the conversational AI market report. Several other major players were also studied and analyzed in the conversational AI market report to get a holistic view of the market and its ecosystem. The market analysis provides detailed market insights, which help the key players strategize their growth.

In Europe, Germany held the largest conversational AI market share in 2023, followed by the UK. The UK has witnessed tremendous growth in online shopping. According to ITA, the e-commerce market accounted for 30% of the total retail market in 2021, with annual revenue totaling over US$ 120 billion, which rose from 20% in 2020. In 2021, around 82% of the UK population purchased at least one product online. Hence, the growing demand for online shopping fuels the growth of the conversational AI market in the UK.

The e-commerce sector continues to gain momentum in Canada, giving growth signals for the region's retail sectors. According to the ITA, in 2022, there were ∼27 million e-commerce users in Canada, accounting for 75% of the Canadian population, and the percentage is expected to reach 77.6% by 2025. In March 2022, e-commerce sales in the country were around US$ 2.34 billion, and they are estimated to reach US$ 40.3 billion by 2025. The continuous growth of e-commerce is creating considerable demand for conversational AI solutions as it can help retailers attract more customers in the market, propelling the conversational AI market growth in the country.

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