Report : Middle East & Africa Conversational AI Market Forecast to 2031 – Regional Analysis – by Component (Platform and Service), Type (Chatbots and Intelligent Virtual Assistants), Deployment Type (On-Premise and Cloud), and Industry (Retail & E-commerce, Healthcare & Life Sciences, Travel & Hospitality, BFSI, IT & Telecom, Media & Entertainment, and Others)
At 19.5% CAGR, Middle East & Africa Conversational AI Market is Projected to be Worth US$ 2,358.61 million by 2031, says Business Market Insights
According to Business Market Insights’ research, the Middle East & Africa conversational AI market was valued at US$ 568.85 million in 2023 and is expected to reach US$ 2,358.61 million by 2031, registering a CAGR of 19.5% from 2023 to 2031. Rising demand for conversational AI in healthcare sector and growing e-commerce sector are among the critical factors attributed to drive the Middle East & Africa conversational AI market growth.
Since the COVID-19 pandemic, there has been a surge in online shopping across the world. According to the International Air Transport Association (IATA), in 2021, 2.14 billion people (i.e., ∼27.6% of the world’s population) bought products from online portals. In 2021, The UAE is the leading country in eCommerce among the GCC states. In 2020, the market experienced a remarkable growth of 53%, reaching US$ 3.9 billion in eCommerce sales, which accounted for 10% of total retail sales. Also, the Dubai Chamber of Commerce and Industry projects that eCommerce sales in the UAE will reach US$ 8 billion by 2025, as almost the entire population has access to the internet and mobile phones. Further, a recent study conducted by Northwestern University in Qatar explored media and Internet use across various Middle Eastern countries. The findings indicated that while E-commerce in Saudi Arabia is growing slowly, it holds significant potential for future market expansion. The study revealed that approximately 8% of the Saudi population regularly purchases items online, 6% utilizes online banking services, and 7% makes travel reservations via the Internet. The growing demand for online shopping is raising the demand for conversational commerce. Intelligent AI-powered shopping bots are revolutionizing the e-commerce industry by interacting with their customers, providing personalized guidance, and further driving sales. Also, by leveraging machine learning and natural language processing, conversational AI helps engage meaningful dialogues, understand customer needs, and nurture leads in real time. Thus, the growing e-commerce sector propels the conversational AI market growth.
On the flip side, rising privacy concerns hamper the growth of Middle East & Africa conversational AI market.
Based component, the Middle East & Africa conversational AI market is bifurcated into platform and service. The platform segment held 70.7% share of Middle East & Africa conversational AI market share in 2023, amassing US$ 402.01 million. It is projected to garner US$ 1,734.89 million by 2031 to register 20.1% CAGR during 2023–2031.
By type, the Middle East & Africa conversational AI market is bifurcated into chatbots and intelligent virtual assistants. The chatbots segment held 71.9% share of Middle East & Africa conversational AI market in 2023, amassing US$ 408.84 million. It is anticipated to garner US$ 1,742.95 million by 2031 to expand at 19.9% CAGR during 2023–2031.
In terms of deployment type, the Middle East & Africa conversational AI market is bifurcated into on-premise and cloud. The on-premise segment held 61.6% share of Middle East & Africa conversational AI market in 2023, amassing US$ 350.15 million. It is anticipated to garner US$ 1,372.74 million by 2031 to expand at 18.6% CAGR during 2023–2031.
Based on industry, the Middle East & Africa conversational AI market is segmented into retail & e-commerce, healthcare & life sciences, travel & hospitality, BFSI, IT & telecom, media & entertainment, and others. The retail & e-commerce segment held 20.5% share of Middle East & Africa conversational AI market in 2023, amassing US$ 116.73 million. It is anticipated to garner US$ 566.97 million by 2031 to expand at 21.8% CAGR during 2023–2031.
By country, the Middle East & Africa conversational AI market is segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The UAE segment held 40.5% share of Middle East & Africa conversational AI market in 2023, amassing US$ 230.55 million. It is anticipated to garner US$ 1,018.87 million by 2031 to expand at 20.4% CAGR during 2023–2031
Key players operating in the Middle East & Africa conversational AI market are Alphabet Inc; Amazon.com Inc.; Cognigy GmbH; International Business Machines Corp; Microsoft Corp; Oracle Corp; and SAP SE; among others.
- In 2024; Amazon.com, Inc. announced the general availability of Amazon Q for businesses and developers. Amazon Q is the most capable generative artificial intelligence (AI)-powered assistant for accelerating software development and leveraging companies’ internal data.
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