The global chatbot market size is expected to grow from USD 3.24 billion in 2021 to USD 10.51 billion by 2027 at a CAGR of 21.7%.
Impact of COVID-19 on Global Chatbot Market
The COVID-19 epidemic has helped increase the global use of chatbot technology. Following the epidemic, the use of chatbots for health care applications will continue to grow. Chatbots, a new technology that allows access to information via text or voice-based communication, proves its value during a coronavirus disaster and shows how this new communication channel can be helped in the coming years by many groups and institutions. Many companies and organizations are leading the way in sending chatbots to provide COVID-19 information. The two most authoritative sources of the epidemic, the WHO and the CDC have included discussions on their websites to provide the latest information on billions of cases of the disease and its symptoms. Many governments also introduce chatbots to provide guaranteed information to their citizens.
Driver: Increasing demand for self-service operations
In today's digital reality, customers expect an immediate solution. They prefer to go the easy way to communicate whenever they need help. No matter how common or complicated their question maybe, they just need to get the job done, without having to wait a long time. Customer self-help is about giving clients the power to resolve their questions, without wasting time looking for a support agent. The customer support solution allows businesses to be available 24/7 and reduces the number of incoming inquiries (emails or calls) by about 30-40%. However, with the rise of artificial intelligence (AI) and powerful NLP technology, businesses have begun using AI chatbots to drive higher ROI as part of their self-service strategy.
Opportunity: Self-learning Chatbots
Self-learning chatbots are the ones that rely on Machine Learning and other AI tools for chatting. Understanding and contextual dialogue solutions, nuances of language, and effectively dealing with obscure Visual Aids, instead of simple chatbots. IBM Watson is an AI discussion engine for building applications that can understand and respond using native language. It uses Artificial Intelligence and computer thinking technology to create a self-study chatbot. Chatbots, powered by the IBM Watson engine, can learn from formal and informal data, understand the context of this data, and provide accurate answers through machine learning and in-depth learning.
Challenge: Lack of awareness
For chatbots to be widely accepted by users, it is important that they feel useful and enjoyable. While there is a growing body of research on user capture and chatbot usage, there is a lack of conceptual-based studies that explain what constitutes a good or bad chatbot user experience. Businesses around the world help their customers connect with them through call centers, email, or IVRS and very few have invested in bots. A chatbot is a digital tool that, when used successfully, brings many benefits to customers and businesses. While there are many benefits to business chatbots and end customers, it is still unclear why businesses are reluctant to invest in this digital tool. Unfortunately, the use of chatbots between businesses has reached the expected level.
Retail and Ecommerce vertical segment to hold largest market share during the forecast period
Retail and Ecommerce bots work on messengers and websites to give your customers seamless omnichannel information and make it more common. These smart personal assistants work 24/7/365 and use natural language to create a personal shopping journey for every customer and targeted audience. Online shopping bots make chat an Ecommerce tool. The bots raise the level of online payment by providing personalized offers that are consistent with customer purchasing practices. Customer support chatbots work well 24/7/365, process multiple queries at the same time, and remove groups of people from the system to do more intelligent work. Sales bots improve targeting. They help brands create unsafe streams for messengers compared to permanently lost unread emails in the customer's inbox. Customer service chatbots guide buyers with sales furniture through intuitive messenger chat. They act as buy or buy bots to sell, sell and sell. The Ecommerce chatbot ensures a smooth transaction across all channels and satisfies today's customers who are inclined to combine shopping on the web, on mobile, and in-store. Chatbots easily integrates with industry-certified forums and becomes a one-stop Ecommerce solution for a complete shopping journey from shopping to reviews.
Asia Pacific to grow with the highest CAGR during the forecast period
The Asia Pacific chatbot market is booming due to the growth of the industry. Many large corporations are increasingly embracing chatbots in their regular customer service activities. This has led to a huge demand for chatbots in the region. In addition, the growth of the retail and e-commerce business in emerging economies such as China, Japan, and India in the region has accelerated the great demand and widespread acceptance of chatbots by retailers and owners of e-commerce businesses. China is considered a major technology hub. Continued growth in chatbot technology is expected to further market growth during forecasting. In addition, the presence of multiple startups and increased investment in AI and machine learning technology to improve the features of chatbots is also a factor driving the market growth.
The major players operating in the global chatbot market are Microsoft (US), IBM (US), AWS (US), Google (US), Nuance (US), Oracle (US), Creative Virtual (UK), Artificial Solutions (Spain), Kore.ai (US), Inbenta (US), 7.AI (US), Yellow Messenger (India), Aivo (Argentina) ServiceNow (US), Conversica (US), Personetics (US), SmartBots (US), LiveChat (Poland), MindMeld (US), CogniCor (US), Gupshup (US), Contus (India), Chatfuel (US), Kevit (India), KeyReply (Singapore), Yekaliva (India), and Pypestream (US).