Conversational User Interface (CUI) Market by Type (Chatbots, Voice Assistants, and Virtual Assistants), by Deployment (On-premise, Cloud, and Hybrid), by Application (Retail, Healthcare, BFSI, Telecom & IT, Media & Entertainment, and Others)- Global Opportunity Analysis and Industry Forecast 2024-2030

Conversational User Interface (CUI) Market

Industry:  ICT & Media | Publish Date: Jan 2024 | No of Pages:  N/A | No. Tables:  N/A | No. Figures:  N/A

Conversational User Interface (CUI) Market Overview

The Conversational User Interface (CUI) Market size was valued at USD XX billion in 2023 and is predicted to reach USD XX billion by 2030 with a CAGR of XX% from 2024-2030.

Conversational User Interface (CUI) is a type of user interface that uses natural language processing (NLP) and artificial intelligence (AI to interact with systems such as apps, websites, or devices using spoken or written language. CUI allows users to express their needs, thoughts, and ideas through natural languages allowing a human-like interaction experience. Conversational UI systems, such as chatbots and voice-activated assistants, provide businesses with innovative ways to engage customers, streamline interactions, and offer personalized services. As industries increasingly recognize the importance of user-centric design, Conversational UI emerges as a pivotal tool to foster seamless communication between users and digital platforms, contributing to improved customer satisfaction and operational efficiency.

Market Dynamics and Trends

The global market is propelled by the increasing impact of digitalization globally, coupled with the rising popularity of smartphones and smart devices that come equipped with pre-installed virtual assistants, chatbots, and other conversational interfaces such as Microsoft's Cortana, Google Assistant, and Apple’s Siri. As digital technologies continue to advance, CUI becomes an integral component of user interactions, offering seamless and natural communication between users and devices. This widespread adoption of these technologies is transforming the way people engage with digital platforms, contributing to the sustained growth of the conversational UI market.

Moreover, the integration of conversational user interfaces supporting voice processing and natural language processing (NLP) technologies in smart homes and smart appliances is playing a pivotal role in propelling the growth of the market. With the increasing prevalence of smart devices equipped with advanced voice and NLP technologies, users can interact with their homes and appliances through voice commands, making the user experience more intuitive and convenient, enhancing the accessibility and functionality of smart home systems, further boosting the market growth.

In addition, Furthermore, the growing utilization of CUI in industries such as IT, banking, and telecommunications, to enhance customer interactions and streamline support processes, is driving the expansion of the market. Chatbots, equipped with conversational capabilities, provide efficient and automated responses to customer queries, improving overall customer service experiences and enhancing operational efficiency of numerous industries.

However, privacy concerns related to personal data and the high installation costs of CUI are the major factors restraining the growth of the market. On the contrary, the introduction of 5G along with web 4.0 is anticipated to create ample opportunities in the coming years for more seamless and responsive conversational user interfaces. This improved responsiveness contributes to a more immersive and natural interaction experience, further driving the evolution and adoption of conversational UI technologies.

Market Segmentations and Scope of the Study

The conversational UI market share is segmented on the basis of type, deployment, application, and region. On the basis of type, the market is divided into chatbots, voice assistants, and virtual assistants. On the basis of deployment, the market is classified into on-premise, cloud, and hybrid. On the basis of application, the market is segmented into retail, healthcare, BFSI, telecom & IT, media & entertainment, and others. Regional breakdown and analysis of each of the aforesaid segments include regions comprising of North America, Europe, Asia-Pacific, and RoW.

 

Geographical Analysis

North America holds the lion share of the conversational UI market and is expected to continue its dominance during the forecast period. This is attributed to factors such as the growing adoption of virtual assistants in industries such as BFSI and healthcare in countries such as the US and Canada. For instance, in October 2022, AtlantiCare implemented Orbita's healthcare virtual assistants to enhance access to healthcare services. This initiative aimed to improve access to healthcare services by leveraging natural language processing capabilities, enabling features such as self-scheduling and facilitating ambulatory services.

Moreover, the presence of key market players such as IBM Corporation, Alphabet Inc., and Apple Inc., is further fueling the industry growth of the conversational UI market in this region.  These companies play a major role in driving developments, innovation, and industry expansion within the CUI market in this region. For instance, in September 2021, IBM Corporation introduced the IBM Watson Assistant chatbot. This cutting-edge solution incorporates advanced artificial intelligence (AI) and automation features, designed to enhance customer service across a diverse range of communication channels, including traditional ones like phone and SMS, as well as modern online platforms. As businesses increasingly utilize these innovative tools to streamline communication, automate tasks, and deliver more intelligent and human-like interactions, the adoption of CUI is poised to rise, contributing to the growth of the market.

On the other hand, Asia Pacific is expected to show a steady rise in the growth of the conversational UI market due to the increased access to the internet and the growing penetration of smartphones throughout the region, enabling more people to access the internet and mobile applications. For instance, as per the latest report from GSM Association, smartphone adoption in the Asia Pacific is anticipated to increase from 76% in 2022 to 94% in 2030. In addition, the adoption of 5G technology is expected to substantial growth, projected to rise from 4% in 2022 to a substantial 41% by 2030. This shift in smartphones and 5G connectivity in Asia Pacific is driving the growth of the CUI market in this region.

Moreover, the e-commerce market in Asia Pacific is one of the fastest growing in the world, with countries such as India, China, and Indonesia leading the way. According to the latest report published by the Asian Development Bank, the Asia-Pacific region holds the largest share of global e-commerce sales, and e-commerce sales in the region are estimated to reach USD 2,249 billion by the year 2024. This has resulted in an increased need for conventional UI services, as businesses need to ensure their websites and applications are user-friendly and attractive to customers, driving the growth of the Conversational UI market.

 

Competitive Landscape

Various market players operating in the conversational UI industry include Apple Inc., Microsoft Corporation, Oracle Corporation, SAP SE, IBM Corporation, Adobe Systems Inc., Amazon Inc., Intel Corporation, Alphabet Inc., Siemens AG, and others. These market players are adopting various strategies such as product launches and investment in new products to remain dominant in the market.

For instance, in October 2022, Alphabet Inc. launched the Language Model for Dialogue Applications (Lamda) conversational application. Through this launch, the company aimed to allow users to interact with an artificial intelligence system, providing a platform for interactive and dynamic conversations with the technology.

Furthermore, in July 2021, Google funded the Indian voice assistant start-up Slang Labs to execute online transactions in their apps using a voice assistant in their preferred language. The investment was aimed to emphasize the importance of voice inside apps and highlight the most significant technology trend.

Key Benefits

  • The report provides quantitative analysis and estimations of conversational UI from 2024 to 2030, which assists in identifying the prevailing market opportunities.

  • The study comprises a deep-dive analysis of the conversational UI including the current and future trends to depict prevalent investment pockets in the market.

  • Information related to key drivers, restraints, and opportunities and their impact on the conversational UI is provided in the report. 

  • A competitive analysis of the players, along with their market share is provided in the report.

  • SWOT analysis and Porter's Five Forces model are elaborated in the study.

  • Value chain analysis in the market study provides a clear picture of the roles of stakeholders.

Conversational User Interface (CUI) Market Key Segments

By Type 

  • Chatbots

  • Voice Assistants

  • Virtual Assistants

By Deployment 

  • On-premise

  • Cloud

  • Hybrid

By Application 

  • Retail

  • Healthcare

  • BFSI

  • Telecom & IT

  • Media & Entertainment

  • Others

By Region

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • The UK

    • Germany

    • France        

    • Italy        

    • Spain        

    • Denmark        

    • Netherlands        

    • Finland        

    • Sweden        

    • Norway        

    • Russia        

    • Rest of Europe    

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

    • Indonesia

    • Singapore

    • Taiwan

    • Thailand 

    • Rest of Asia Pacific

  • RoW

    • Latin America

    • Middle East

    • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters

Details

Market Size in 2023

USD xxx Billion

Revenue Forecast in 2030

USD xxx Billion

Growth Rate

CAGR of xx% from 2024 to 2030

Analysis Period

2023–2030

Base Year Considered

2023

Forecast Period

2024–2030

Market Size Estimation

Billion (USD)

Growth Factors

  • Rising penetration of smartphones across the globe drives the market growth

  • Rising utilization of CUI in smart homes boosts the market growth

  • Increasing demand for efficient customer service across numerous industries creates market expansion

Countries Covered

28

Companies Profiled

10

Market Share

Available for 10 companies

Customization Scope

Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.

Pricing and Purchase Options

Avail customized purchase options to meet your exact research needs.

Test

Key Players

  • Apple Inc

  • Microsoft Corporation

  • Oracle Corporation

  • SAP SE

  • IBM Corporation

  • Adobe Systems Inc

  • Amazon Inc.

  • Intel Corporation

  • Alphabet Inc

  • Siemens AG


Frequently Asked Questions
What is the current size of the Conversational User Interface (CUI) market, and what is its predicted growth?

The Conversational User Interface (CUI) Market size was valued at USD XX billion in 2023 and is predicted to reach USD XX billion by 2030 with a CAGR of XX% from 2024-2030.

What is Conversational User Interface (CUI)?

Conversational User Interface (CUI) is a type of user interface that utilizes natural language processing (NLP) and artificial intelligence (AI) to interact with systems using spoken or written language, allowing users a human-like interaction experience.

What is the difference between Conversational User Interface and Conversational Artificial Intelligence?

Conversational UI refers to the interface that allows a user to interact with a computer on human terms, using natural language. Conversational UI is the foundation underlying the capability of chatbots, Quick Search Bots, and other forms of AI-enabled customer service. Conversational AI, on the other hand, refers to the technology that enables computers to understand and respond to human language.

What are the key dynamics and trends driving the growth of the conversational UI market?

The market is driven by global digitalization, the popularity of smartphones, and smart devices equipped with virtual assistants and chatbots. Additionally, the integration of conversational user interfaces in smart homes and appliances, along with their growing utilization in industries such as IT, banking, and telecommunications, contributes to market expansion.

Who are the key players in the conversational UI market?

Various market players include Apple Inc., Microsoft Corporation, Oracle Corporation, SAP SE, IBM Corporation, Adobe Systems Inc., Amazon Inc., Intel Corporation, Alphabet Inc., Siemens AG, and others.