Global Chatbot Market is Expected to Emerge as a Trend for Various Industries for the Forecast Period

The global chatbot market is forecasted to grow at a high rate owing to the increasing need for 24/7 customer support and assistance, coupled with advancements in technology

The Global Chatbot Market was valued at USD 3.2 Bn in 2020 and is expected to reach USD 14.9 Bn by 2027, with a growing CAGR of 24.60% during the forecast period.

A chatbot is developed to interact with humans through text, voice or using both, thus decreasing the operational cost and pressure from the company. Therefore, chatbots are being used significantly for assisting users in varied sectors. The chatbot is witnessing a significant growth owing to the increasing adoption of customer service activities among enterprises to reduce operating costs. Several end-use industries such as healthcare, BFSI, and retail are integrating chatbots in their daily customer services activities. For instance, in July 2021, the Novo Nordisk Education Foundation, an India-based non-profit organization working for a purpose of increasing awareness about diabetes has launched chatbot named ‘Mishti’ for providing valuable diabetes information and managing diabetes.

The chatbot technologies are created using a set of rules or using Artificial Intelligence (AI) technology. The technological advancements betiding in Artificial Intelligence (AI) and Machine Learning (ML) technologies are expected to propel the chatbot growth in the forecast period. For example, in September 2019, YES Bank, a private bank in India, launched and incorporated YES ROBOT to their customers; this supports artificial intelligence, to support customers. YES ROBOT, developed by Microsoft, enabled clients to engage in financial and non-financial banking transactions using interactive AI with a substantial financial knowledge. Moreover, the development of self-learning chatbot is estimated to provide a more human-like experience and thus impart lucrative opportunity to the chatbot market.

Global Chatbot Market by Region Outlook (Revenue, USD Million, 2021-2027)

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

In terms of geography, the North American market was holding the largest chunk accounted for 40.4% of market share in the year 2020. The dominance is estimated to remain constant throughout the forecast period owing to significantly increased usage on chatbots in large enterprises based in the region. The extensive integration of chatbots in technologies such as artificial intelligence, application programming interfaces, and IoT are propelling the regional market growth.

For instance, in July 2021, Bavard has launched a new interactive chat robot platform which is powered by AI technology. This chat robot platform helped to support and engage customers 24/7 through natural interactions.

Moreover, as the Asia Pacific is a major hub for the service industry, the chatbot market is estimated to hold the fastest growth rate. Several large enterprises based are increasingly adopting chatbots as a part of their routine customer service activities.

For instance, in March 2020, the Government of India launched a WhatsApp chatbot named ‘MyGov Corona Helpdesk’. The chatbot helped to address queries regarding the novel Coronavirus (COVID-19) outbreak and has crossed 3 crore users in India.

The Global Chatbot Market Segmentation:

  • by Type Outlook (Revenue, USD Million, 2021-2027)
    • Text
    • Voice
    • Hybrid
  • by Platform Outlook (Revenue, USD Million, 2021-2027)
    • Standalone
    • Web-based
    • Messenger-based/Third party
  • by Organization Size Outlook (Revenue, USD Million, 2021-2027)
    • Small Enterprises
    • Medium Enterprises
    • Large Enterprises
  • by Application Outlook (Revenue, USD Million, 2021-2027)
    • Bots for Service
    • Bots for social media
    • Bots for Payments/ Order processing
    • Bots for Marketing
    • Others
  • by End User Industry Outlook (Revenue, USD Million, 2021-2027)
    • BFSI
    • Healthcare
    • Retail & E-commerce
    • Travel & Tourism
    • Others (Education, Energy and Utilities, Manufacturing, media and Entertainment)

Key Findings:

  • Based on type, the market is segmented into Text, Voice, and Hybrid. Out of which, the text type is accounted to dominate the chatbot market size.
  • Based on the platform, the standalone segment held the largest market share in 2020 for global market
  • Based on organization size, large enterprises accounted the largest market share in 2020 followed by medium sized enterprise in the market
  • The E-commerce vertical segment is attributed to hold the largest market size in the year 2020 for global chatbot market
  • Based on regions, the North America region is anticipated to hold a market share of 43.6% in the year 2027

Company Profiles and Competitive Intelligence

The key players operating in the market are:

  1. Microsoft
  2. Google
  3. Oracle
  4. [24], Inc
  5. Artificial Solutions
  6. Aivo
  7. Conversica
  9. Inbenta
  10. Next IT Corp.
  11. Nuance Communications, Inc. 
  12. AWS
  13. ServiceNow
  14. Acuvate
  15. Personetics
  16. LiveChat
  17. eGain Corporation
  18. IBM Corporation
  19. Gupshup
  20. MindMeld
  21. CogniCor
  22. Contus
  23. Inbenta Technologies Inc.
  24. Chatfuel
  25. KeyReply
  26. SmartBots
  27. Yellow Messenger
  28. Kevit
  29. Yekaliva
  30. Pypestream

Recent News:

  • In February 2021, Nuance Communications, Inc. successfully completed 100% of share acquisition over Saykara, Inc., a United States-based startup dedicated to developing a mobile AI assistance to automate clinical documentation for physicians. This acquisition benefits Nuance with enhancements of the ongoing augmentation of ambient clinical intelligence (ACI) solutions and conversational AI.
  • In September 2020, Google is on the verge to perform a sequential beta-testing on its new version of Dialogflow Natural Language Understanding (NLU) platform. The new edition of Dialogflow Customer Experience (CX) platform is dedicated to build AI agents for organizational-level projects at a macro-scale and on more complex scale compared to the previous version.

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