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)
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:
Company Profiles and Competitive Intelligence
The key players operating in the market are: