Chatbot Market

Chatbot Market by Type (Standalone, Web-based, and Messenger-based/Third party), Product Landscape (Artificial intelligence, Marketing, and Human intelligence), End-users (Small Enterprises, Medium Enterprises, and Large Enterprises), Applications (Bots for Service, Bots for Social Media, Bots for Payments/ Order processing, Bots for Marketing, and Others), Vertical (Healthcare, Retail, Banking, Financial Services, and Insurance, Media and entertainment, Travel & Tourism, E-commerce, and Others), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021 – 2028

  • Report ID: ICT-SE-1063
  • Author: Growth Market Reports
  • Rating: 4.9
  • Total Reviews: 2
  • No. Of Pages: 134
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The global chatbot market size was valued at USD 430.9 million in 2020 and is projected to expand at a CAGR of 24.9 % during the forecast period, 2021–2028. The growth of the market is attributed to the increased use of customer service activities by businesses to decrease operational expenses.

A chatbot is a computer software that replicates and processes human communication (written or spoken), allowing people to connect with digital gadgets as if they were conversing with actual people. Chatbots may be as simple as one-line programs that respond to a simple question, or as sophisticated as digital assistants that learn and grow as they gather and analyze data to offer increasing degrees of customization. Chatbots process data to respond to a variety of queries, using AI, automated rules, natural-language processing (NLP), and machine learning (ML). Task-oriented (declarative) chatbots and data-driven and predictive (conversational) chatbots are the two major types of chatbots. Task-oriented (declarative) chatbots are one-purpose systems that execute a specific task. They create automated yet conversational replies to user questions using rules, NLP, and very little machine learning. Common enquiries, such as inquiries about company hours or simple transactions with few variables, can be handled by task-oriented chatbots. Though they employ natural language processing (NLP) to let end users to interact with them in a conversational manner, their capabilities are quite limited. These are the most popular chatbots right now. Virtual assistants or digital assistants are data-driven and predictive (conversational) chatbots that are far more intelligent, interactive, and customized than task-oriented chatbots. They utilize analytics and predictive intelligence to provide personalisation based on user profiles and previous activity. Over time, digital assistants can learn a user's preferences, provide recommendations, and even predict requirements. They can start discussions in addition to monitoring data and intent. Consumer-oriented, data-driven, predictive chatbots include Apple's Siri and Amazon's Alexa.

Global Chatbot Market Summary

Businesses benefit from chatbots because they increase operational efficiency and save costs while providing convenience and additional services to internal workers and external consumers. They enable businesses to quickly address a variety of consumer concerns and questions while eliminating the requirement for human engagement. A firm can grow, customize, and be proactive all at the same time using chatbots, which is a key difference. Chatbots enable companies to interact with an endless number of consumers in a personalized manner, and they can be scaled up or down based on demand and business needs. A company may deliver humanlike, customized, proactive service to millions of individuals at the same time by employing chatbots. Businesses, employees, and consumers are likely to benefit from enhanced chatbot features such as faster recommendations and predictions, as well as easy access to high-definition video conferencing from within a conversation, in the near future, when AI is combined with the development of 5G technology. These and other possibilities are still being investigated, but as internet connectivity, AI, NLP, and machine learning develop, they will become more prevalent. Every person will eventually have a fully capable personal assistant in their pocket, making our world more efficient and connected to live and work in.

Market Trends, Drivers, Restraints, and Opportunities

  • Increasing consumer demand for quick consumer service is key factor boosting the market growth during the forecast period.
  • Technological advancements in artificial intelligence (AI) and increasing number of retail and e-commerce around the world are projected to drive the market growth during the forecast period.
  • Increase in the use of messaging services, which is likely to surpass the number of users on social networking sites is expected to push the market growth.
  • During the Covid-19 pandemic, various companies employed chatbots to answer and manage the burden of customer queries this is anticipated to fuel the market growth in the coming years.
  • Significant communication gaps and security breaches presents as key challenges that can hamper the market growth during the forecast period.
  • Increased focus on R&D for development of self-learning chatbots and technological advancements are estimated to offer lucrative opportunities for the market players.

Scope of the Report

The report on the global chatbot market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Attributes

Details

Report Title

Chatbot Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast

Base Year

2020

Historic Data

2018–2019

Forecast Period

2021–2028

Segmentation

Type (Standalone, Web-based, and Messenger-based/Third party), Product Landscape (Artificial intelligence, Marketing, and Human intelligence), End-users (Small Enterprises, Medium Enterprises, and Large Enterprises), Applications (Bots for Service, Bots for Social Media, Bots for Payments/ Order processing, Bots for Marketing, and Others), Vertical (Healthcare, Retail, Banking, Financial Services, and Insurance, Media and entertainment, Travel & Tourism, E-commerce, and Others)

Regional Scope

Asia Pacific, North America, Latin America, Europe, and Middle East & Africa

Report Coverage

Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast

Key Players Covered in the Report

[24]7.ai, Inc.; Acuvate; Aivo; Artificial Solutions; Botsify Inc.; Creative Virtual Ltd.; eGain Corporation; IBM Corporation; Inbenta Technologies Inc.; Next IT Corp.; Nuance Communications, Inc.

 

Market Segment Insights

Standalone segment is expected to account for a key share
Based on type, the chatbot market is segmented into standalone, web-based, and messenger-based/third party. The standalone segment is expected to account for a key share of the market during the forecast period due to increased use of Visual assistant apps like Google Assistant, Amazon's Alexa, and Apple's Siri by consumers. The demand for standalone chatbots is anticipated to increase as a result of this.

In order to improve client engagements, many businesses prefer chatbots for messaging platforms and customer support bots for web-based services. Chatbots allow businesses to communicate directly with consumers and collect data on their preferences, which can then be utilized in digital marketing campaigns. Chatbots are also being used by businesses in the retail, digital marketing, healthcare, and other industries to improve customer service.

Global Chatbot Market By Type

Marketing segment is expected to hold a key share
Based on product landscape, the chatbot market is segmented into artificial intelligence, marketing, and human intelligence. The marketing segment is expected to hold a key share of the market during the forecast period as chatbots allow for direct consumer engagement, they are widely employed in digital marketing to keep current customers informed about products and services.

On the other hand, the artificial intelligence segment is anticipated to expand at a rapid pace during the forecast period owing to extensive investment by market players in the artificial chatbots market. Artificial intelligence is used by chatbots to process language and communicate with humans. Many of the bots are for message apps such as Facebook Messenger, Skype, Slack, and other social media networking sites. Payment gateways may be directly integrated with the assistant, allowing developers to leverage these chat platforms for payment services. One of the key potentials in the market is to collect nominal fees as commission.

Large enterprises segment is expected to constitute a key share
Based on end-users, the chatbot market is segmented into small enterprises, medium enterprises, and large enterprises. The large enterprises segment is expected to constitute a key share of the market during the forecast period owing to its increased adoption in large enterprises. Various large enterprises build chatbots according to a set of rules; but, in the future, large enterprises are anticipated to optimize their chatbots in order to accomplish more complex operations. The majority of chatbot creation tools use a machine learning approach, which allows businesses to create an AI application interface that delivers meaningful business data. Furthermore, advances in artificial intelligence in the industry have resulted in a significant shift in usage from online social networks to mobile-based messaging apps.

Bot for service segment is expected to represent a key share
Based on application, the chatbot market is segmented into bots for service, bots for social media, bots for payments/ order processing, bots for marketing, and others. The bot for service segment is expected to represent a key share of the market during the forecast period owing to its increased adoption as a result of cost reduction.

On the other hand, the bots for marketing and bots for payments/ order processing segment is anticipated to expand at a rapid pace during the forecast period. This has been an age of automation, with many firms preferring to automate regular and monotonous operations in order to save money. Businesses are focusing their automation efforts on sales and customer support, which will result in significant cost savings if chatbots are used. Artificial intelligence-enabled chatbots are becoming increasingly popular. Chatbots in the workplace will dramatically reduce labor expenses by automating a portion of customer support and sales, resulting in significant cost savings for enterprises. Instead of waiting days for a response, they expect rapid replies from customer care. By using a chatbot to respond, the chances of losing a customer are greatly decreased. E-commerce companies can employ these bots for returns and Exchange.

Global Chatbot Market By Application

E-commerce segment is expected to constitute a key share
Based on vertical, the chatbot market is segmented into healthcare, retail, banking, financial services, and insurance, media and entertainment, travel & tourism, e-commerce, and others. The e-commerce segment is expected to constitute a key share of the market during the forecast period due to advantages such as distant connectivity and virtual presence, which decrease transportation costs significantly. Customers like to obtain information about real-time pricing changes regarding brands while purchasing in the e-commerce industry. These businesses are increasingly using chatbots to engage their customers and cut down on total shopping time. It helps e-commerce businesses to increase their ROI by lowering their operating costs.

On the other hand, the banking and financial services segment is anticipated to expand at a rapid pace during the forecast period owing to increased cross-selling activity and lower customer support expenses. For the financial business, the chatbot developed must be safe and provide a pleasant user experience. Artificial intelligence advancements, as well as a dramatic growth in the number of messaging apps, are propelling the chatbot industry in the BFSI sector.

North America is anticipated to dominate the market
On the basis of regions, the chatbot market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to dominate the market during the forecast period. The regional market growth can be attributed to it being the central hub of startups in the Chatbot industry, and the most of chatbot implementations originated in this region.

On the other hand, Asia Pacific is expected to exhibit a rapid growth rate in the coming years due to it being the major hub for service industry. Chatbots are rapidly being used in everyday customer support operations by several big companies. Chatbots' considerable development potential in many areas can be attributed to the major benefits that they provide to businesses, such as lower operating costs, greater customer experience, and increased operational efficiency.

Global Chatbot Market By Region

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Chatbot Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. Chatbot Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. Chatbot Market - Supply Chain
  4.5. Global Chatbot Market Forecast
     4.5.1. Chatbot Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. Chatbot Market Size (000’ Units) and Y-o-Y Growth
     4.5.3. Chatbot Market Absolute $ Opportunity
5. Global Chatbot Market Analysis and Forecast by Types
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by Types
     5.2.2. Y-o-Y Growth Projections by Types
  5.3. Chatbot Market Size and Volume Forecast by Types
     5.3.1. Standalone
     5.3.2. Web-based
     5.3.3. Messenger-based/Third party
  5.4. Absolute $ Opportunity Assessment by Types
  5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Chatbot Market Analysis and Forecast by Applications
  6.1. Market Trends
  6.2. Introduction
     6.2.1. Basis Point Share (BPS) Analysis by Applications
     6.2.2. Y-o-Y Growth Projections by Applications
  6.3. Chatbot Market Size and Volume Forecast by Applications
     6.3.1. Bots for Service
     6.3.2. Bots for Social Media
     6.3.3. Bots for Payments/ Order processing
     6.3.4. Bots for Marketing
     6.3.5. Others
  6.4. Absolute $ Opportunity Assessment by Applications
  6.5. Market Attractiveness/Growth Potential Analysis by Applications
7. Global Chatbot Market Analysis and Forecast by End Users
  7.1. Market Trends
  7.2. Introduction
     7.2.1. Basis Point Share (BPS) Analysis by End Users
     7.2.2. Y-o-Y Growth Projections by End Users
  7.3. Chatbot Market Size and Volume Forecast by End Users
     7.3.1. Small Enterprises
     7.3.2. Medium Enterprises
     7.3.3. Large Enterprises
  7.4. Absolute $ Opportunity Assessment by End Users
  7.5. Market Attractiveness/Growth Potential Analysis by End Users
8. Global Chatbot Market Analysis and Forecast by Region
  8.1. Market Trends
  8.2. Introduction
     8.2.1. Basis Point Share (BPS) Analysis by Region
     8.2.2. Y-o-Y Growth Projections by Region
  8.3. Chatbot Market Size and Volume Forecast by Region
     8.3.1. North America
     8.3.2. Latin America
     8.3.3. Europe
     8.3.4. Asia Pacific
     8.3.5. Middle East and Africa (MEA)
  8.4. Absolute $ Opportunity Assessment by Region
  8.5. Market Attractiveness/Growth Potential Analysis by Region
  8.6. Global Chatbot Demand Share Forecast, 2019-2026
9. North America Chatbot Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
  9.2. North America Chatbot Market Size and Volume Forecast by Country
     9.2.1. U.S.
     9.2.2. Canada
  9.3. Absolute $ Opportunity Assessment by Country
  9.4. North America Chatbot Market Size and Volume Forecast by Types
     9.4.1. Standalone
     9.4.2. Web-based
     9.4.3. Messenger-based/Third party
  9.5. Basis Point Share (BPS) Analysis by Types
  9.6. Y-o-Y Growth Projections by Types
  9.7. North America Chatbot Market Size and Volume Forecast by Applications
     9.7.1. Bots for Service
     9.7.2. Bots for Social Media
     9.7.3. Bots for Payments/ Order processing
     9.7.4. Bots for Marketing
     9.7.5. Others
  9.8. Basis Point Share (BPS) Analysis by Applications
  9.9. Y-o-Y Growth Projections by Applications
  9.10. North America Chatbot Market Size and Volume Forecast by End Users
     9.10.1. Small Enterprises
     9.10.2. Medium Enterprises
     9.10.3. Large Enterprises
  9.11. Basis Point Share (BPS) Analysis by End Users
  9.12. Y-o-Y Growth Projections by End Users
  9.13. Market Attractiveness/Growth Potential Analysis
     9.13.1. By Country
     9.13.2. By Product Type
     9.13.3. By Application
  9.14. North America Chatbot Demand Share Forecast, 2019-2026
10. Latin America Chatbot Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Latin America Average Pricing Analysis
  10.2. Latin America Chatbot Market Size and Volume Forecast by Country
      10.2.1. Brazil
      10.2.2. Mexico
      10.2.3. Rest of Latin America
   10.3. Absolute $ Opportunity Assessment by Country
  10.4. Latin America Chatbot Market Size and Volume Forecast by Types
     10.4.1. Standalone
     10.4.2. Web-based
     10.4.3. Messenger-based/Third party
  10.5. Basis Point Share (BPS) Analysis by Types
  10.6. Y-o-Y Growth Projections by Types
  10.7. Latin America Chatbot Market Size and Volume Forecast by Applications
     10.7.1. Bots for Service
     10.7.2. Bots for Social Media
     10.7.3. Bots for Payments/ Order processing
     10.7.4. Bots for Marketing
     10.7.5. Others
  10.8. Basis Point Share (BPS) Analysis by Applications
  10.9. Y-o-Y Growth Projections by Applications
  10.10. Latin America Chatbot Market Size and Volume Forecast by End Users
     10.10.1. Small Enterprises
     10.10.2. Medium Enterprises
     10.10.3. Large Enterprises
  10.11. Basis Point Share (BPS) Analysis by End Users
  10.12. Y-o-Y Growth Projections by End Users
  10.13. Market Attractiveness/Growth Potential Analysis
     10.13.1. By Country
     10.13.2. By Product Type
     10.13.3. By Application
  10.14. Latin America Chatbot Demand Share Forecast, 2019-2026
11. Europe Chatbot Market Analysis and Forecast
  11.1. Introduction
     11.1.1. Basis Point Share (BPS) Analysis by Country
     11.1.2. Y-o-Y Growth Projections by Country
     11.1.3. Europe Average Pricing Analysis
  11.2. Europe Chatbot Market Size and Volume Forecast by Country
     11.2.1. Germany
     11.2.2. France
     11.2.3. Italy
     11.2.4. U.K.
     11.2.5. Spain
     11.2.6. Russia
     11.2.7. Rest of Europe
  11.3. Absolute $ Opportunity Assessment by Country
  11.4. Europe Chatbot Market Size and Volume Forecast by Types
     11.4.1. Standalone
     11.4.2. Web-based
     11.4.3. Messenger-based/Third party
  11.5. Basis Point Share (BPS) Analysis by Types
  11.6. Y-o-Y Growth Projections by Types
  11.7. Europe Chatbot Market Size and Volume Forecast by Applications
     11.7.1. Bots for Service
     11.7.2. Bots for Social Media
     11.7.3. Bots for Payments/ Order processing
     11.7.4. Bots for Marketing
     11.7.5. Others
  11.8. Basis Point Share (BPS) Analysis by Applications
  11.9. Y-o-Y Growth Projections by Applications
  11.10. Europe Chatbot Market Size and Volume Forecast by End Users
     11.10.1. Small Enterprises
     11.10.2. Medium Enterprises
     11.10.3. Large Enterprises
  11.11. Basis Point Share (BPS) Analysis by End Users
  11.12. Y-o-Y Growth Projections by End Users
  11.13. Market Attractiveness/Growth Potential Analysis
     11.13.1. By Country
     11.13.2. By Product Type
     11.13.3. By Application
  11.14. Europe Chatbot Demand Share Forecast, 2019-2026
12. Asia Pacific Chatbot Market Analysis and Forecast
  12.1. Introduction
     12.1.1. Basis Point Share (BPS) Analysis by Country
     12.1.2. Y-o-Y Growth Projections by Country
     12.1.3. Asia Pacific Average Pricing Analysis
  12.2. Asia Pacific Chatbot Market Size and Volume Forecast by Country
     12.2.1. China
     12.2.2. Japan
     12.2.3. South Korea
     12.2.4. India
     12.2.5. Australia
     12.2.6. Rest of Asia Pacific (APAC)
  12.3. Absolute $ Opportunity Assessment by Country
  12.4. Asia Pacific Chatbot Market Size and Volume Forecast by Types
     12.4.1. Standalone
     12.4.2. Web-based
     12.4.3. Messenger-based/Third party
  12.5. Basis Point Share (BPS) Analysis by Types
  12.6. Y-o-Y Growth Projections by Types
  12.7. Asia Pacific Chatbot Market Size and Volume Forecast by Applications
     12.7.1. Bots for Service
     12.7.2. Bots for Social Media
     12.7.3. Bots for Payments/ Order processing
     12.7.4. Bots for Marketing
     12.7.5. Others
  12.8. Basis Point Share (BPS) Analysis by Applications
  12.9. Y-o-Y Growth Projections by Applications
  12.10. Asia Pacific Chatbot Market Size and Volume Forecast by End Users
     12.10.1. Small Enterprises
     12.10.2. Medium Enterprises
     12.10.3. Large Enterprises
  12.11. Basis Point Share (BPS) Analysis by End Users
  12.12. Y-o-Y Growth Projections by End Users
  12.13. Market Attractiveness/Growth Potential Analysis
     12.13.1. By Country
     12.13.2. By Product Type
     12.13.3. By Application
  12.14. Asia Pacific Chatbot Demand Share Forecast, 2019-2026
13. Middle East & Africa Chatbot Market Analysis and Forecast
  13.1. Introduction
     13.1.1. Basis Point Share (BPS) Analysis by Country
     13.1.2. Y-o-Y Growth Projections by Country
     13.1.3. Middle East & Africa Average Pricing Analysis
  13.2. Middle East & Africa Chatbot Market Size and Volume Forecast by Country
     13.2.1. Saudi Arabia
     13.2.2. South Africa
     13.2.3. UAE
     13.2.4. Rest of Middle East & Africa (MEA)
  13.3. Absolute $ Opportunity Assessment by Country
  13.4. Middle East & Africa Chatbot Market Size and Volume Forecast by Types
     13.4.1. Standalone
     13.4.2. Web-based
     13.4.3. Messenger-based/Third party
  13.5. Basis Point Share (BPS) Analysis by Types
  13.6. Y-o-Y Growth Projections by Types
  13.7. Middle East & Africa Chatbot Market Size and Volume Forecast by Applications
     13.7.1. Bots for Service
     13.7.2. Bots for Social Media
     13.7.3. Bots for Payments/ Order processing
     13.7.4. Bots for Marketing
     13.7.5. Others
  13.8. Basis Point Share (BPS) Analysis by Applications
  13.9. Y-o-Y Growth Projections by Applications
  13.10. Middle East & Africa Chatbot Market Size and Volume Forecast by End Users
     13.10.1. Small Enterprises
     13.10.2. Medium Enterprises
     13.10.3. Large Enterprises
  13.11. Basis Point Share (BPS) Analysis by End Users
  13.12. Y-o-Y Growth Projections by End Users
  13.13. Market Attractiveness/Growth Potential Analysis
     13.13.1. By Country
     13.13.2. By Product Type
     13.13.3. By Application
  13.14. Middle East & Africa Chatbot Demand Share Forecast, 2019-2026
14. Competition Landscape
  14.1. Global Chatbot Market: Market Share Analysis
  14.2. Chatbot Distributors and Customers
  14.3. Chatbot Market: Competitive Dashboard
  14.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     14.4.1. [24]7.ai, Inc.
     14.4.2. Acuvate
     14.4.3. Aivo
     14.4.4. Artificial Solutions
     14.4.5. Botsify Inc.
     14.4.6. Creative Virtual Ltd.
     14.4.7. eGain Corporation
     14.4.8. IBM Corporation
     14.4.9.
Segments Covered in the Report
The global chatbot market has been segmented on the basis of

Type
  • Standalone
  • Web-based
  • Messenger-based/Third party
Product Landscape
  • Artificial intelligence
  • Marketing
  • Human intelligence
End-users
  • Small Enterprises
  • Medium Enterprises
  • Large Enterprises
Applications
  • Bots for Service
  • Bots for Social Media
  • Bots for Payments/ Order processing
  • Bots for Marketing
  • Others
Vertical
  • Healthcare
  • Retail
  • Banking, Financial Services, and Insurance (BFSI)
  • Media and entertainment
  • Travel & Tourism
  • E-commerce
  • Others
Regions
  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa
Key Players
  • [24]7.ai, Inc.
  • Acuvate
  • Aivo
  • Artificial Solutions
  • Botsify Inc.
  • Creative Virtual Ltd.
  • eGain Corporation
  • IBM Corporation
  • Inbenta Technologies Inc.
  • Next IT Corp.
  • Nuance Communications, Inc.

Key players competing in the chatbot market includes [24]7.ai, Inc.; Acuvate; Aivo; Artificial Solutions; Botsify Inc.; Creative Virtual Ltd.; eGain Corporation; IBM Corporation; Inbenta Technologies Inc.; Next IT Corp.; Nuance Communications, Inc.

The market's several competitors are encouraged to develop ground-breaking products that address evolving technology, corporate processes, consumer assistance, and security requirements. The contemporary market climate is characterized by fierce rivalry among the major competitors for market dominance. Some of the key business strategies employed by companies in the market includes mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to increase their market shares. For example, in September 2019, YES Bank, an Indian private sector bank, launched YES ROBOT, an artificial intelligence-enabled chatbot, to assist its clients. YES ROBOT, created by Microsoft, allows clients to do financial and non-financial banking transactions utilizing conversational AI with significant financial expertise.

Global Chatbot Market By Key Players

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