The Global Chatbot Market size accounted for USD 521 Million in 2021 and is expected to reach USD 3,411 Million by 2030 growing at a CAGR of 23.7% during the forecast period from 2022 to 2030.
The growth of the chatbot market is being driven by the advancement of artificial intelligence (AI) technology and the increase in online and retail purchasing worldwide. Furthermore, technological breakthroughs, raising customer demand for self-service and a growing need for 24*7 support desks at a lower operational cost are expected to drive chatbot market growth.
Chatbots are interactive software that connects with the audience via platforms such as WhatsApp, Skype, Facebook Messenger, and WeChat by using text as a means of communication. The basic goal of chatbots is to engage with humans in a human-like manner. Chatbots have been supporting individuals in a variety of sectors and industries, including retail, tourism, and e-commerce, among others. They are also known as virtual assistants who understand human capabilities. Bots interpret process requests and user intent and respond in real-time. A chatbot is a more practical and cost-effective one-time investment than developing specific cross-platform software or hiring more employees. Furthermore, chatbots can also assist in lowering the cost of difficulties caused by human mistakes.
Chatbot Market Drivers
Chatbot Market Restraints
Chatbot Market Opportunity
|Market Size 2021||USD 521 Million|
|Market Forecast 2030||USD 3,411 Million|
|CAGR During 2022 - 2030||23.7%|
|Analysis Period||2018 - 2030|
|Forecast Data||2022 - 2030|
|Segments Covered||By Type, By Application, By Product Landscape, By End-User, And By Geography
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||Facebook, Inc., Pandorabots, Inc., ToyTalk (PullString Inc.), Google, Inc., Yahoo Inc., Haptik, Inc., Helpshift, Kasisto Inc., Slack Technologies, Inc., Astute Solutions, Kiwi, Inc., and Microsoft Corporation.|
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
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Chatbot Market Dynamics
Rapid digitalization throughout industries, as well as increased demand for high-quality customer care teams across organizations, is one of the major factors driving chatbot market expansion. Chatbots are used to resolve client difficulties in a variety of businesses, including information technology (IT), banking, financial services and insurance (BFSI), e-commerce, telecommunications, and healthcare. BFSI organizations, for example, deploy chatbots to assist users with fund transfers, balance monitoring, account setup, and money-saving. Furthermore, rising consumer usage of over-the-top (OTT) networking and communication website applications, particularly among millennials, is driving market expansion. In addition, various recent technological advancements, such as the incorporation of advanced analytics, blockchain, machine learning (ML), and cloud computing technologies necessary in the development of self-learning chatbots, are also propelling chatbot market value. These intelligent bots can respond to varied digital environments and provide a human-like conversational experience by learning from the user's actions, experiences, and judgments.
Increasing acceptance for intelligent customer engagement, the rising concentration of website and mobile applications, growing incorporation of a chatbot with social networking sites, natural language processing (NLP), improvement of artificial intelligence (AI), single search hyperlink, and the increasing requirement for many languages customer support are some of the key drivers driving the global chatbot market size.
Chatbot Market Segmentation
The global chatbot market segmentation based on the type, application, product landscape, end-user and geography.
Chatbot Market By Type
In terms of type, the standalone sector held the greatest market share in 2021. This trend can be attributed to users' demand for visual assistant solutions in standalone messaging services, such as Amazon's Alexa, Google Home, and Apple's Siri. Standalone bots are ideal for creating brief campaigns for clients, such as a fun marketing inquiry. A standalone bot is a great way to enhance lead generation at specific events like sales conferences, networking exhibitions, or webinars. Effectively giving out personally identifiable information is more enjoyable than filling out a dull web form by personalizing the chatbot material for the occasion. However, as a result of this factor, this segment is projected to dominate the chatbot industry.
Chatbot Market By Application
Based on the application, bots for the service industry will grow at the fastest rate in the market over the next few years. This growth can be attributed to its beneficial qualities for businesses, which include faster chat response times, personalization, less customer care agent work, more customer satisfaction, 24/7 accessibility, and many more. Chatbots in corporations will significantly cut labor costs by automating a portion of customer care and marketing, resulting in significant savings for businesses. Chatbots can be a highly useful tool for creating strong ties with clients. As a result, the bot for services segment in the IT and BFSI industries would expand significantly and increase the chatbot market shares over the forecasting years.
Chatbot Market By Product Landscape
Based on the product landscape, the artificial intelligence market will grow at the fastest rate over the next few years. As a result of increased expenditure by financial institutions in the artificial chatbots market, artificial intelligence chatbots are projected to gain traction in the industry. These actions were carried out in order to convert more customers and expand the customer database. Chatbots use artificial intelligence to analyze dialogue and engage with users (AI). Several chatbots for messaging platforms such as Facebook, Whatsapp, Telegram, and other social media and networking sites have been developed. Chatbot developers can directly link electronic purchases with assistance and use these electronic mediums for cashless ordering.
Chatbot Market By End-user
According to the chatbot market forecast, the healthcare category would grow significantly in the global market. This is because chatbot services are increasingly being used in the medical and health care sectors. These online services can aid the healthcare industry by providing customers with health-related information, organizing appointments with doctors and specialists, and providing patients with diagnostic procedures. The focus of major manufacturers is on developing powerful customized chatbots for the healthcare infrastructure. Furthermore, these systems handle billing and insurance claims, provide 24/7 assistance and encouragement to Medicare beneficiaries, and provide inventory control, all of which contribute to their increased use in the healthcare industry.
Chatbot Market Regional Outlook
The Middle East & Africa (MEA)
North America is expected to emerge as the market's prominent region throughout the forecast period. The region's rise is mostly due to the increased use of chatbots in a range of industry verticals such as IT, healthcare, BSFI, and government. Furthermore, the rising usage of artificial intelligence, IoT, and APIs, among other rapidly evolving technologies, is aiding the regional market's expansion. Chatbots are increasingly being utilized in conjunction with these technologies to improve operations, fueling market demand. The size of the North American chatbot industry is mostly due to the presence of key players such as Microsoft, IBM, Livechat Inc., Facebook, and others. These companies are focused on executing various business plans, such as product launches, in order to increase their global presence.
Chatbot Market Player
Some of the prominent global chatbot market companies are Facebook, Inc., Pandorabots, Inc., ToyTalk (PullString Inc.), Google, Inc., Yahoo Inc., Haptik, Inc., Helpshift, Kasisto Inc., Slack Technologies, Inc., Astute Solutions, Kiwi, Inc., and Microsoft Corporation.
The estimated value of global chatbot market in 2021 was accounted to be USD 521 Million.
The projected CAGR of chatbot during the analysis period of 2022 to 2030 is 23.7%.
The prominent players of the global chatbot market involve Facebook, Inc., Pandorabots, Inc., ToyTalk (PullString Inc.), Google, Inc., Yahoo Inc., Haptik, Inc., Helpshift, Kasisto Inc., Slack Technologies, Inc., Astute Solutions, Kiwi, Inc., and Microsoft Corporation.
North America held the dominating share for chatbot during the analysis period of 2022 to 2030
Asia-Pacific region exhibited fastest growing CAGR for chatbot during the analysis period of 2022 to 2030
The rise of instant messaging platforms, improved customer service, and increasing usage of chatbots for advertising and promotion are the prominent factors that fuel the growth of global chatbot market
Based on application, bots for service segment held the maximum share for chatbot market in 2021