Conversational AI Market Trends And Forecasts Report 2025-2035: AI Chatbots, Generative AI, And Virtual Assistants Drive Conversational AI Market Growth Through 2035

(MENAFN- GlobeNewsWire - Nasdaq) The conversational AI market is set for robust growth due to rising demand for AI-driven customer support, with significant opportunities in cloud deployment, text-based chatbots, and voice interactions. Key sectors include retail, e-commerce, and healthcare, with North America leading in technology adoption.

Dublin, Sept. 30, 2025 (GLOBE NEWSWIRE) -- The "Conversational AI Market Industry Trends and Global Forecasts to 2035: Distribution by Type of Conversational AI, Type of Deployment, Type of Technology, Type of End User, Type of Enterprise, Type of Business Model, and Key Geographical Regions" report has been added to ResearchAndMarkets's offering.

The global conversational AI market size is estimated to grow from USD 12.82 billion in 2025, to USD 136.41 billion by 2035, at a CAGR of 23.98% during the forecast period to 2035.

Conversational AI is a technology that allows machines to interact with users in a natural, human-like manner through text or voice interfaces. With the advent of artificial general intelligence, conversational AI integrates various methods such as natural language processing, machine learning, and deep learning to comprehend user input, produce suitable replies, and replicate human conversational styles. This technology encompasses sophisticated chatbots and virtual agents that interact with people to offer solutions to diverse issues and accomplish specific tasks by utilizing extensive data sets.

The growth of AI-driven customer support services is significantly propelling the expansion of the conversational AI market. As consumers increasingly demand swift, efficient, and personalized interactions, businesses are finding ways to evolve their support frameworks beyond traditional call centers. This trend is expected to further accelerate the conversational AI market with a growing need for AI chatbots and virtual assistants designed to manage large volumes of repetitive inquiries through natural language interactions round the clock.

Furthermore, many major companies are investing in advanced AI solutions that do more than respond to inquiries; they also address problems by executing necessary actions. Overall, considering these factors, the global conversational AI market is expected to experience significant growth during this forecast period.

Conversational AI Market: Key Segments

Market Share by Type of Component

Based on type of component, the global conversational AI market is segmented into managed services, professional services, and solutions. According to estimates, currently, the solutions segment captures the majority share of the market. This can be attributed to the significant internal installations of conversational AI technology for businesses. Moreover, AI-powered support systems are more effective in granting customers access to services and providing assistance around the clock.

Market Share by Type of Conversational AI

Based on type of conversational AI, the conversational AI market is segmented into AI chatbots, generative AI agents, and intelligent virtual assistants (IVA). According to estimates, currently, the chatbot segment captures the majority of the market. This can be attributed to the significant advancements in machine learning and natural language processing (NLP) technologies.

Chatbots, once primarily used for data collection, now possess the ability to understand and generate human-like language due to rapid developments in NLP. On the other hand, the IVA segment is expected to grow at a relatively higher CAGR during the forecast period.

Market Share by Type of Deployment

Based on type of deployment, the conversational AI market is segmented into cloud, hybrid and on premises. According to estimates, currently, cloud deployment segment captures the majority share of the market. This can be attributed to the growing significance of cloud-based technologies and services in businesses worldwide. Additionally, the continuous updates of cloud conversational AI platforms with new features, improvements, and advancements in machine learning and language processing are also driving the growth of this segment.

Market Share by Type of Conversational AI Modality

Based on type of conversational ai modality, the conversational AI market is segmented into multimodal, text-based and voice-based. According to estimates, currently, the text-based segment captures the majority share of the market, owing to its extensive use in chatbots and virtual assistants.

On the other hand, the voice-based segment is expected to grow at a relatively higher CAGR during the forecast period, driven by advancements in natural language processing (NLP) and a growing consumer inclination towards voice interactions.

Market Share by Type of Technology

Based on type of technology, the conversational AI market is segmented into automatic speech recognition, ML and deep learning, and natural language processing. According to estimates, currently, the natural language processing segment captures the majority share of the market, owing to the enhanced efficiency and precision of NLP in handling substantial amounts of natural language data and optimizing documentation procedures.

On the other hand, the automatic speech recognition segment is expected to grow at a relatively higher CAGR during the forecast period. This growth is linked to the advancements of speech user interfaces for conversational AI that is supported by ASR.

Market Share by Type of End-Users

Based on type of end-users, the conversational AI market is segmented into automotive, BFSI, education, healthcare, IT & telecom, media & entertainment, retail & e-commerce, and others. According to estimates, currently, the retail and e-commerce segment captures the majority share of the market. This can be attributed to the considerable attention that conversational AI has received in the retail and e-commerce fields, owing to its ability to enhance customer interaction, optimize operations, and elevate the overall shopping experience.

Market Share by Type of Enterprise

Based on type of enterprise, the conversational AI market is segmented into large and small and medium enterprise. According to estimates, currently, the large enterprise segment captures the majority share of the market. On the other hand, the small and medium enterprise segments is expected to grow at a relatively higher CAGR during the forecast period. This can be attributed to their greater affordability, specialized opportunities within the conversational AI market, adaptability, and support from the government.

Market Share by Geographical Regions

Based on geographical regions, the conversational AI market is segmented into North America, Europe, Asia, Latin America, Middle East and North Africa, and the rest of the world. According to estimates, currently, North America captures the majority share of the market, owing to its extensive use of advanced technology and the surging demand for AI-driven customer support services. Moreover, many businesses in the US are investing in innovative technology to better cater to their clients' needs.

Players in Conversational AI Market Profiled in the Report Include:

• 7.ai
• Amelia
• Avaamo
• Artificial Solutions
• AWS
• Baidu
• Boost
• Cognigy
• Conversica
• Creative Virtual
• Clinc
• eGain
• Exceed
• FIS
• Google
• Gupshup
• Haptik
• IBM
• Inbenta
• Kore
• Kasisto
• Laiye
• LivePerson
• MindMeld
• Microsoft
• Nuance Communications
• OpenAI
• Pypestream
• Quiq
• Rasa
• Rulai
• SAP SE
• Saarthi
• Senseforth
• SoundHound
• Solvvy
• Sprinklr
• Twilio
• Yellow

Conversational AI Market: Research Coverage

The report on the Conversational AI market features insights on various sections, including:

• Market Sizing and Opportunity Analysis: An in-depth analysis of the Conversational AI market, focusing on key market segments, including type of component, type of conversational ai, type of deployment, type of conversational ai modality, type of technology, type of end user, type of enterprise, type of business model, and key geographical regions.
• Competitive Landscape: A comprehensive analysis of the companies engaged in the Conversational AI market, based on several relevant parameters, such as year of establishment, type of enterprise, location of headquarters and ownership structure.
• Company Profiles: Elaborate profiles of prominent players engaged in the Conversational AI market, providing details on location of headquarters, type of enterprise, company mission, company footprint, management team, contact details, financial information, operating business segments, conversational AI portfolio, moat analysis, recent developments, and an informed future outlook.
• SWOT Analysis: An insightful SWOT framework, highlighting the strengths, weaknesses, opportunities and threats in the domain. Additionally, it provides Harvey ball analysis, highlighting the relative impact of each SWOT parameter.
• Value Chain Analysis: A comprehensive analysis of the value chain, providing information on the different phases and stakeholders involved in the Conversational AI market.

Key Questions Answered in this Report

• How many companies are currently engaged in conversational AI market?
• Which are the leading companies in this market?
• What factors are likely to influence the evolution of this market?
• What is the current and future market size?
• What is the CAGR of this market?
• How is the current and future market opportunity likely to be distributed across key market segments?

Reasons to Buy this Report

• The report provides a comprehensive market analysis, offering detailed revenue projections of the overall market and its specific sub-segments. This information is valuable to both established market leaders and emerging entrants.
• Stakeholders can leverage the report to gain a deeper understanding of the competitive dynamics within the market. By analyzing the competitive landscape, businesses can make informed decisions to optimize their market positioning and develop effective go-to-market strategies.
• The report offers stakeholders a comprehensive overview of the market, including key drivers, barriers, opportunities, and challenges. This information empowers stakeholders to stay abreast of market trends and make data-driven decisions to capitalize on growth prospects.

Additional Benefits

• Complimentary Excel Data Packs for all Analytical Modules in the Report
• 15% Free Content Customization
• Detailed Report Walkthrough Session with Research Team
• Free Updated report if the report is 6-12 months old or older

Report Scope:

Type of Component

• Managed Services
• Professional Services
• Solutions

Type of Conversational AI

• AI Chatbots
• Generative AI Agents
• Intelligent Virtual Assistant (IVA)

Type of Deployment

• Cloud
• Hybrid
• On-Premises

Type of Conversational AI Modality

• Multimodal
• Text-based
• Voice-based

Type of Technology

• Automatic Speech Recognition
• ML and Deep Learning
• Natural Language Processing

Type of End-Users

• Automotive
• BFSI
• Education
• Healthcare
• IT & Telecom
• Media & Entertainment
• Retail & E-Commerce
• Others

Type of Enterprise

• Large Enterprises
• Small and Medium Enterprises

Geographical Regions

• North America
  • US
  • Canada
  • Mexico
  • Other North American countries
• Europe
  • Austria
  • Belgium
  • Denmark
  • France
  • Germany
  • Ireland
  • Italy
  • Netherlands
  • Norway
  • Russia
  • Spain
  • Sweden
  • Switzerland
  • UK
  • Other European countries
• Asia
  • China
  • India
  • Japan
  • Singapore
  • South Korea
  • Other Asian countries
• Latin America
  • Brazil
  • Chile
  • Colombia
  • Venezuela
  • Other Latin American countries
• Middle East and North Africa
  • Egypt
  • Iran
  • Iraq
  • Israel
  • Kuwait
  • Saudi Arabia
  • UAE
  • Other MENA countries
• Rest of the World
  • Australia
  • New Zealand
  • Other countries

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• Conversational AI

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