The Global "Chatbot Market" is expected to grow at a CAGR of 14% during the forecasting period (2022-2029).
This is mainly due to the rise in the adoption of technologies such as AI and NLP, which have made chatbots more intelligent to interact with humans and provide enhanced customer services easily.
A bot is simply a computer program that automates certain tasks. In the case of a chatbot, the task being automated is a 1:1 conversation with a person. These bots can use sophisticated technology like artificial intelligence and natural-language processing. Alternatively, they can be as simple as a series of IF-THEN statements. Alexa is a type of chatbot. So is the Domino’s Pizza app. Today’s chatbots reply with text, yes, and with audio, video, images, GIFs, you name it. Even the mediums for chatbots have grown exponentially — you’ve likely experienced bots in chat apps like Messenger and WhatsApp as well as on many, many websites with the little button in the corner asking if you need any help.
The report covers all the major trends and drivers playing a vital role in the global Chatbot market's growth. The global Chatbot market has been segmented based on region, Type, Deployment, and End-User.
Technological advances in AI and NLP primarily drive the global Chatbot market growth. Advanced NLP and AI have made chatbots much more advance than earlier. They are solving business problems by providing better customer services by being available 24*7 and giving quick solutions to the customers. Moreover, the businesses are adopting is quickly to enhance customer experience and engage a large number of customers cost-effectively. Also, 25%-30% of customer service costs can be reduced by organizations by implementing conversational solutions like virtual agents and chatbots.
Moreover, the rise in investment by the various governments in adopting chatbots will also boost the market for the forecast period. For instance, in India, the Government of Maharashtra has partnered with conversation AI platform Haptik to develop a chatbot as part of its Apple Sarkar platform. The bot, available on the AapleSarker RTS (Right to Services) website, will provide conversational access to information regarding 1,400 services managed by the state government. The Right to Services Act of 2015 mandates that citizens should be able to access information regarding public services through digital platforms. The new chatbot will be another medium through which citizens can get their queries resolved.
However, factors such as the high initial cost, lack of awareness, and integration complexities might hamper the chatbot market's growth over the forecast period.
By Deployment, the global Chatbot market is segmented into Cloud and On-premise. In 2018, the On-premise deployment segment dominated the global market and was expected to retain its dominance over the forecasted period. This is mainly due to the bigger organization's adaptation, which concerns engaging a large customer base and serving customers 24*7 all 365 days to provide better services. However, the Cloud-based deployment segment is also gaining market share due to the increasing demand for chatbots implementation by the SME because of cost-effective and time-effective solutions. It is expected that the On-premise market will grow at a CAGR of ~14% during the forecast period.
The global Chatbot market is segmented into Healthcare, Retail, BFSI, Travel & Tourism, E-commerce, and Others by the End-user industry. The retail segment has a dominant share in the end-user segment and is expected to retain its dominance in the forecast period. However, the rise in the e-commerce business due to the rise in internet penetration worldwide is engaging large customers by implementing chatbots. For instance, Argomall is an eCommerce store based in the Philippines selling consumer goods. Their bot enables customers to find out key information about Argomall (including delivery details) and ask questions and talk to an Argomall support agent. Moreover, Chatbots have become an important sales and customer service tool for the company and help organizations generate a 23x increase in ROI (vs. the cost of running the bot on Chatfuel) the first few months after its launch.
By geography, the global Chatbot market segmented into North America, Asia-Pacific (APAC), Europe, South America, and the Middle East and Africa (MEA).
North America holds the largest market share for the chatbot Market. The adoption of new technologies is high among the region's organizations; investments for technological development have increased in the last five years. The rising BFSI sector in North America is adopting chatbots to service their customer quickly and are available for help 24*7 all 365 days. For instance, as a market leader in both mobile banking use and AI implementations in the U.S., Bank of America introduced Erica (from the word American) to send notifications to customers, provide balance information, suggest how to save money, provide credit report updates, pay bills and help customers with simple transactions. Since the introduction, Erica's capabilities have expanded as an advanced virtual assistant to help clients make smarter decisions.
APAC is after North America in terms of market share for the chatbot due to the rise in APAC countries such as China, India, and Korea. With the rising economies, a greater number of mid and small-sized enterprises are investing in chatbots. It will enable the companies to engage a large number of customers. Also, there is a huge investment made for the development of chatbots in APAC. For instance, Rulai launches a ‘low-code’ chatbot development tool and raises $6.5 million. The development team at Rulai, with offices in Beijing and Campbell, Calif., is helmed by the renowned University of California, Santa Cruz, computer science professor Yi Zhang.
Key players are adopting strategies such as investing in R&D, new product launches, expansion in distribution channels to stand out as strong competitors in the market. Global Chatbot Market is a fragmented market with various global and regional players in the market. The major players include Anboto, Creative Virtual, eGain, Inbenta Technologies, and Nuance Communications. Other key players in the market include IBM Corporation, Artificial Solutions Inc., Next IT Corp, 7.ai, Inc., and Chatfuel.
In August 2019, Gatwick Airport launched a chatbot on Facebook Messenger to provide flight updates and information on its retail and food outlets.
In July 2019, HireXP launched conversational chatbot Amara in India. Amara can be integrated with its internal systems and can be launched across multiple channels like WhatsApp, Slack, Trello, SMS, and many more.
**The global Chatbot market report would provide access to an approx., 61 market data table, 53 figures, and 200 pages.
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