Welcome to the forefront of conversational AI as we explore the fascinating world of AI chatbots in our dedicated blog series. Discover the latest advancements, applications, and strategies that propel the evolution of chatbot technology. From enhancing customer interactions to streamlining business processes, these articles delve into the innovative ways artificial intelligence is shaping the landscape of automated conversational agents. Whether you’re a business owner, developer, or simply intrigued by the future of interactive technology, join us on this journey to unravel the transformative power and endless possibilities of AI chatbots.
| Source: Research and Markets
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.com’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:
Conversational AI Market: Research Coverage
The report on the Conversational AI market features insights on various sections, including:
Key Questions Answered in this Report
Reasons to Buy this Report
Additional Benefits
Report Scope:
Type of Component
Type of Conversational AI
Type of Deployment
Type of Conversational AI Modality
Type of Technology
Type of End-Users
Type of Enterprise
Geographical Regions
For more information about this report visit https://www.researchandmarkets.com/r/dgsnyf
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