Chatbots Market Size, Share, Analysis, Growth Prospects, Key Opportunities, Trends and Forecasts

Market Outlook

The global chatbots market is projected to touch USD 6 billion by 2023 at a CAGR of 37% from 2016 to 2023. The increased usage of online messaging on social media networking sites and adoption of cloud technologies can drive market growth. Chatbots enabled in the ecommerce sector to ease shopping needs of customers can spur the market. The use of these applications in suggesting personal recommendations can work favorably in its adoption rate.

Voice recognition integrated in chatbots which can complete tasks without coming in touch with the device for small and medium enterprises (SMEs) will fuel market growth. The future potential of blockchain technology for boosting the security and performance of digital personal assistants is going to positively impact market growth.

Paucity of expert personnel and low awareness levels of organizations can impede market growth.

Segmentation

The global chatbots industry is segmented by type, deployment, usage, and industry vertical.

By type, it is segmented into software and services.

By deployment, it is segmented into cloud and on-premise. The cloud segment is predicted to hold a major market share due to the migration to the technology by various businesses. Benefits of cloud to store chats virtually at low risk of running out of server space can drive segment growth in the chatbots market.

By usage, it is segmented into social media, mobile platform, and websites. Websites can be considered to gain a considerable market share as evident by the popularity of Facebook Messenger. The mobile platform segment can exhibit a strong CAGR over the forecast period due to the high percentage of smartphone usage among current customers. This is exemplified by the use of chatbots enabled to function on WhatsApp by Goibibo, an Indian travel company.

By industry vertical, it is segmented into travel and hospitality, retail and e-commerce, government, and BFSI. The BFSI segment is predicted to lead in the market due to the use of artificial intelligence enabled bots capable of resolving customer queries and reducing long waiting lines.

Regional

Geographically, the COVID-19 analysis of chatbots market is segmented into Asia Pacific (APAC), North America, Europe, and Rest-of-the-World (RoW).

The APAC region can exhibit the highest growth rate for the chatbots market thanks to rapid investments in machine learning and artificial intelligence. Seamless performance of these bots combined with their capacity a large volume of customers can fuel regional market growth. Automation in the healthcare sector which is made possible with bots can augur favorably for the chatbots market in the region. Higher comprehension of patient information, recommendations of medicines, scheduling doctor appointments, and provision of health information to patients are benefits of bots.

North America can account for a respectable market share till 2023 due to technological breakthroughs and adoption of tablets, smartphones, and computers. Customer-centric approaches of organizations, provision of 24/7 services, and operational efficiency and superior performance amid changing market conditions are likely to boost regional market growth.

Competitive Outlook

Prominent names include Facebook, Inc., Nuance Communications Inc., Artificial Solutions, Codebaby (Idavatars), Inc., WeChat, Talla, Semantic Machines, Howdy, Speaktoit Inc., NEXT IT Corp., CX Company, DigitalGenius, 24/7 Customer Inc., IBM, Egain Corporation, Creative Virtual Pvt. Ltd., and others.

Industry News

Google launched Dialogflow, a platform capable of assisting developers in writing chatbot programs wihich can be compatible with the Hangouts Chat application. The application had over 5 million users and the integration of bots can boost user engagement.