Conversational Commerce Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 7.26 Billion |
| Market Size (2029) | USD 17.48 Billion |
| CAGR (2024 - 2029) | 19.21 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Conversational Commerce Market Analysis
The Conversational Commerce Market size is estimated at USD 7.26 billion in 2024, and is expected to reach USD 17.48 billion by 2029, at a CAGR of 19.21% during the forecast period (2024-2029).
- Conversational commerce, which facilitates real-time communication between brands and consumers via messaging apps, chatbots, and voice assistants, is witnessing rapid evolution. According to Salesforce, Inc., in 2023, 36% of shoppers made purchases through messaging apps, marking a staggering 227% surge since 2021.
- Today's shoppers anticipate conversational commerce to address intricate inquiries, moving beyond mere questions to offering personalized shopping assistance tailored to individual needs. The infusion of Artificial Intelligence (AI) and Natural Language Processing (NLP) amplifies chatbot functionalities, fostering personalized interactions and adeptly managing customer queries. This technological advancement empowers businesses to scrutinize user data, leading to customized recommendations and a marked enhancement in customer engagement.
- Businesses are increasingly pursuing seamless integration across diverse platforms—be it websites, mobile applications, social media, or messaging services—to ensure a uniform shopping experience. This comprehensive strategy not only enriches customer journeys but also amplifies the demand for conversational commerce solutions.
- According to a 2023 survey by Big Commerce, over 80% of customers express a willingness to pay a premium for superior service, highlighting the pivotal role of real-time interactions in fostering positive customer experiences. Messaging platforms, including WhatsApp, Facebook Messenger, and WeChat, have eclipsed traditional social networks in user engagement, boasting over 5 billion monthly active users who utilize these platforms to connect with brands.
- Compliance with regulations like GDPR and CCPA is paramount, not just to sidestep legal pitfalls but also to uphold customer trust. Safeguarding sensitive customer data from breaches is of utmost importance; any oversight could result in severe reputational harm and a decline in customer confidence. Such challenges are currently stifling market growth.
- The COVID-19 pandemic has acted as a catalyst, propelling the swift adoption of conversational commerce and redefining brand-customer interactions. In the post-COVID landscape, consumers demand prompt responses and tailored assistance throughout their shopping journey. A survey by Vonage reveals that approximately 91% of shoppers seek immediate support, a need adeptly met by conversational commerce through AI-driven chatbots and live chat functionalities.
Conversational Commerce Market Trends
Chatbot to Hold Major Market Driver
- Conversational commerce leverages AI-driven chat and voice technologies to enhance online shopping experiences. This approach enables users to interact with brands in a manner akin to conversing with a knowledgeable in-store salesperson. According to Forbes, over 75% of enterprise companies are gearing up to adopt customer analytical tools.
- Chatbots are often lauded for their real-time personalization capabilities. Personalized marketing and customer service yield tangible results. An Accenture survey highlighted that a remarkable 91% of consumers gravitate towards brands that offer customized deals and suggestions. Furthermore, Epsilon's research found that 80% of shoppers prefer brands that provide personalized experiences.
- For enterprise-level chatbots, integrating with CRM (customer relationship management) systems is essential. The true value of chatbots emerges when they can seamlessly interact with established systems and workflows. While standard chatbots might link to email servers and databases, advanced versions can integrate with any platform the company utilizes daily.
- When an AI chatbot interfaces with a CRM, it gains the ability to update records, dispatch messages or emails, and even facilitate direct sales to customers. These AI chatbots can manage thousands of simultaneous conversations, guaranteeing swift replies even during peak times. They also streamline routine tasks like order processing, reducing manual intervention and boosting overall efficiency.
- While a website chatbot might cater to a limited audience, a multi-channel chatbot significantly broadens a business's outreach. An ideal AI chatbot for e-commerce should be available on platforms like Instagram, WhatsApp, and Facebook Messenger, as well as any other channels favored by the target audience.
North America is Expected to Hold a Major Share of the Market
- In North America, conversational commerce is swiftly gaining momentum, fueled by technological advancements and evolving consumer preferences. Notably, over 80% of customers seek real-time assistance when engaging with brands, underscoring the pivotal role of conversational commerce in elevating customer experiences.
- According to Hootsuite, businesses that have embraced conversational commerce witnessed a 10% revenue uptick within the initial six months. Furthermore, the incorporation of live chat features can amplify conversion rates by up to 82%, underscoring the potency of these tools in bolstering sales.
- The U.S. stands out as a dominant player in the North American landscape. Companies like NIPSCO are adopting chatbot services and live chat technologies to refine customer interactions. The media and entertainment sector is harnessing chatbot development tools to enhance content discovery. A case in point is Narcity Media Group's introduction of Narcity Chat, an AI-driven search and chatbot feature powered by ChatGPT, highlighting the industry's shift towards AI-centric personalized user experiences.
- As reported by Vonage, businesses are turning to AI-driven chatbots to enrich customer engagements, offering tailored recommendations and support. This trend emphasizes chatbots' potential to boost conversion rates by 82%, solidifying their status as indispensable tools for retailers.
- Brands in the region are weaving conversational commerce into diverse platforms, spanning social media, websites, and messaging applications. This holistic integration not only streamlines customer interactions but also amplifies brand engagement. Given these dynamics, the market is poised for heightened adoption in the region during the forecast period.
Conversational Commerce Industry Overview
The Conversational Commerce Market is highly competitive and fragmented, primarily driven by the presence of major players. These key players employ strategies such as mergers, acquisitions, and product innovations to maintain a competitive edge and broaden their global footprint. Key player include Glia, Inc., Connectly.ai, Charles GmbH and others.
Conversational commerce is poised for explosive growth as businesses increasingly recognize its potential to enhance customer engagement and drive sales. With advancements in AI technology and changing consumer preferences toward instant communication, brands that effectively leverage conversational commerce strategies will likely gain a competitive edge in the evolving digital marketplace.
Conversational Commerce Market Leaders
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Glia, Inc.
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Connectly.ai
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Charles GmbH
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Conversation24 Ltd.
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Webio Ltd.
*Disclaimer: Major Players sorted in no particular order
Conversational Commerce Market News
- September 2024: Connectly, one of the prominent player in conversational commerce, announced its USD 20 million Series B investment led by Alibaba, with participation from Unusual Ventures, Volpe Capital, RX Ventures, Falabella Ventures and Philippos Kourkoulos Latsis.
- June 2024: Gupshup, the world's leading Conversation Cloud has announced India's very first Conversational Buyer App on the ONDC network, at their flagship event Conversations 2024 in Delhi. It enables buyers to use a WhatsApp-based conversational UI to discover, browse, and buy products from sellers across the ONDC network, without needing to download any other mobile app.
Conversational Commerce Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of macroeconomic trends
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Popularity of Messaging Applications
5.1.2 Advancements in AI and Natural Language Processing (NLP)
5.2 Market Restraints
5.2.1 Data Privacy and Security Concerns
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Chatbots
6.1.2 Intelligent Virtual Assistants
6.2 By Component
6.2.1 Software
6.2.2 Services
6.3 By Deployment
6.3.1 Cloud
6.3.2 On-Premises
6.4 By Enterprises
6.4.1 SMEs
6.4.2 Large Enterprises
6.5 By End-users
6.5.1 BFSI
6.5.2 IT and Telecom
6.5.3 Healthcare
6.5.4 Travel and Hospitality
6.5.5 Retail and Ecommerce
6.5.6 Other End-users
6.6 By Geography***
6.6.1 North America
6.6.2 Europe
6.6.3 Asia
6.6.4 Australia and New Zealand
6.6.5 Latin America
6.6.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Glia, Inc.
7.1.2 Connectly.ai
7.1.3 Charles GmbH
7.1.4 Conversation24 Ltd.
7.1.5 Webio Ltd.
7.1.6 Respond.io
7.1.7 Quiq, Inc.
7.1.8 Invoca, Inc.
7.1.9 Haptik.ai
7.1.10 Yellow.ai
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Conversational Commerce Industry Segmentation
Conversational commerce is e-commerce done via various means of conversation and using technology such as: speech recognition, speaker recognition, natural language processing and artificial intelligence.
The conversational commerce market is segmented by type (chatbots, intelligent virtual assistants), component (software, services), by deployment (cloud, on-premises), by end-users (BFSI, IT and telecom, healthcare, travel and hospitality, retail and ecommerce, other end-users), by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | |
| Chatbots | |
| Intelligent Virtual Assistants |
| By Component | |
| Software | |
| Services |
| By Deployment | |
| Cloud | |
| On-Premises |
| By Enterprises | |
| SMEs | |
| Large Enterprises |
| By End-users | |
| BFSI | |
| IT and Telecom | |
| Healthcare | |
| Travel and Hospitality | |
| Retail and Ecommerce | |
| Other End-users |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Conversational Commerce Market Research FAQs
How big is the Conversational Commerce Market?
The Conversational Commerce Market size is expected to reach USD 7.26 billion in 2024 and grow at a CAGR of 19.21% to reach USD 17.48 billion by 2029.
What is the current Conversational Commerce Market size?
In 2024, the Conversational Commerce Market size is expected to reach USD 7.26 billion.
Who are the key players in Conversational Commerce Market?
Glia, Inc., Connectly.ai, Charles GmbH, Conversation24 Ltd. and Webio Ltd. are the major companies operating in the Conversational Commerce Market.
Which is the fastest growing region in Conversational Commerce Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Conversational Commerce Market?
In 2024, the North America accounts for the largest market share in Conversational Commerce Market.
What years does this Conversational Commerce Market cover, and what was the market size in 2023?
In 2023, the Conversational Commerce Market size was estimated at USD 5.87 billion. The report covers the Conversational Commerce Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Conversational Commerce Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Conversational Commerce Industry Report
Statistics for the 2024 Conversational Commerce market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Conversational Commerce analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
