Global Chatbot Market Research Report: Forecast (2023-2028)
By Application (Customer Support, Social Media, Marketing, Payments/Order Processing, Others), By Type (Artificial Intelligence-based, Rule-based), By Interface (Standalone, Web-Ba...sed, Third party/ Messenger Based), By Verticals (BFSI, Retail & Ecommerce, Healthcare, Travel & Hospitality, Media & Entertainment, Telecommunications, Others), By Technology (Machine Learning & Deep Learning, Natural Language Processing, Automated Speech Recognition), By Deployment Model (On-Premise, Cloud), By Organization Size (Large Enterprises, Small & Medium Enterprises), By Region (North America, South America, Europe, Middle East & Africa, Asia-Pacific), By Company (IBM, Nuance Communications, Google, Conversica, AWS, OpenAI, Artificial Solutions, Microsoft, Inbenta Technologies, AIVO, Meta, Kore.ai, Chatfuel) Read more
- ICT & Electronics
- Jul 2023
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Market Insights & Analysis: Global Chatbot Market (2023-28)
The Global Chatbot Market size was valued at USD 5.2 Million in 2022 and is projected to grow at around 24.32% CAGR during the forecast period, i.e., 2023-28. The growth of the market is driven primarily by the mounting adoption of Chatbots by businesses across different industries to enhance interaction with their customers and solve their queries instantly, without the need for human intervention in noncritical situations. Besides, the growing demand for AI-based Chatbots, owing to their benefits like lower operational costs, quicker response time, robust customer relationships, etc., is also contributing to market growth.
Sectors like E-commerce, retail, banking & finance, & healthcare, among various others, are among the prominent adopters of Chatbots, principally for establishing interactive conversations with customers and delivering enhanced engagement experiences. Continuous improvements in NLP (Natural Language Processing) and AI technologies have made chatbots more conversational & improved at understanding user intent and, consequently, more effective in providing relevant responses. They are being integrated increasingly with popular messaging apps & social media platforms to provide a convenient way for businesses to engage with their customers on channels they prefer.
Report Coverage | Details |
---|---|
Study Period | Historical Data: 2018-21 |
Base Year: 2022 | |
Forecast Period: 2023-28 | |
CAGR (2023-2028) | 24.32% |
Regions Covered | North America: USA, Canada, Mexico |
Europe: Germany, UK, France | |
Asia-Pacific: China, India, Japan, Singapore | |
South America: Brazil | |
Middle East & Africa: UAE, Saudi Arabia | |
Key Companies Profiled | IBM, Nuance Communications, Google, Conversica, AWS, OpenAI, Artificial Solutions, Microsoft, Inbenta Technologies, AIVO, Meta, Kore.ai, Chatfuel |
Market Value (2022) | USD 5.2 Million |
More & more businesses are showing an active inclination toward automating their operations and providing self-service options, i.e., surging the adoption of chatbots for tasks like order tracking, appointment scheduling, & account inquiries. Furthermore, with the swiftly rising number of small & medium-sized enterprises providing these solutions, the global Chatbot Market will likely observe significant growth in the coming years and create lucrative prospects for the leading players operating in the industry.
Global Chatbot Market Key Driver
Rising Demand for Consistent Customer Support at Low Operational Costs: Chatbots are aiding several companies worldwide in streamlining & optimizing their customer services and thus becoming a critical aspect in delivering enhanced customer services. Industries like retail, e-commerce, healthcare, & finance, among various others, are increasingly adopting chatbots in order to resolve customer queries instantly & cost-effectively. As a result, enterprises see them as a robust conversational interface that offers dynamic & engaging customer experiences, i.e., driving the Global Chatbot Market.
Global Chatbot Market Growth Restraint
Lack of Accuracy & Reliability in Delivering Responses for Complex Queries: Chatbots often struggle to understand the context of a conversation accurately and thus provide incorrect or irrelevant responses. Some user queries are complex and require a higher level of language comprehension, and chatbots have limitations in handling those, leading to user frustration & dissatisfaction. Moreover, since the use of chatbots involves the processing & storage of user data, concerns over data privacy & security that may deter some users from engaging with chatbot systems, especially in sensitive sectors like finance & healthcare, also act as barriers to their adoption and thus might restrain the growth of the Chatbot Market in the coming years.
Global Chatbot Market (2023-28): Segmentation Analysis
Global Chatbot Market report by MarkNtel Advisors includes segmentation analysis based on Type & Verticals. This breakdown allows businesses to identify specific market segments and tailor their marketing and product strategies accordingly, maximizing their chances of success in the market.
Based on Type:
- Artificial Intelligence-based
- Rule-based
Of both, AI-powered chatbots are projected to acquire a significant Chatbot Market share during 2023-28. These bots utilize AI & machine learning algorithms to understand natural language and engage in more sophisticated interactions with users. They gather more data & user feedback, which makes them smarter and more accurate in understanding user intent. In addition, they also use NLP to understand & interpret human language, which allows them to process user queries, extract meaning, and provide appropriate responses.
Unlike rule-based bots that can only provide basic information, AI-based chatbots are better equipped to handle complex queries & multi-step interactions. They can maintain context throughout a conversation by remembering previous interactions and using them to provide more personalized & relevant responses, which makes them suitable for various industries & use cases. In addition, they analyze user behavior, preferences, & history and then offer them personalized recommendations & tailored solutions, thereby enhancing their engagement & satisfaction. Hence, these aspects indicate the widening popularity & acceptance of AI-based bots, which, gradually, shall provide a significant boost to the global Chatbot Market in the years to come.
Based on Verticals:
- BFSI
- Retail & Ecommerce
- Healthcare
- Travel & Hospitality
- Media & Entertainment
- Telecommunications
Of them all, the Healthcare sector displays significant market growth, owing to the increasing number of partnerships between healthcare providers & Chatbot manufacturers to provide instant health assistance to patients through communication mediums like calls, chats, & video chats, among others. In addition, with the integration of Artificial Intelligence (AI) & Machine Learning (ML) in Chatbots, patients can obtain instant information based on their symptoms and are assigned to the healthcare providers for deeper analysis.
In fact, Chatbots are now coming with image analysis, which is another aspect aiding in a better patient-doctor relationship and improved wellness assistance. While a nurse would spend around an hour a day to connect the patient with the doctor, chatbots act instantly. With these benefits, several healthcare organizations worldwide are increasingly adopting chatbots to facilitate patients with seamless assistance and also offer them other services like health tracking, appointment scheduling, behavior monitoring, etc., via simple conversations through different communication mediums, consequently contributing to the overall market growth.
Global Chatbot Market Regional Projection
Geographically, the Global Chatbot Market expands across:
- North America
- South America
- Asia-Pacific
- Europe
- Middle East & Africa
Of all regions globally, North America dominates the Chatbot Market with the largest revenue share, which owes to the robust technological infrastructure, particularly in the US, with robust network connectivity and extensive access to smartphones & other devices. The region hosts many of the world's leading AI research institutions & tech firms, enabling innovations & advancements in NLP (Natural Language Processing & ML (Machine Learning), the critical components of chatbots. Various innovative chatbot start-ups with unique features & use cases are entering the regional market.
Several business verticals in North America, including BFSI, healthcare, & e-commerce, among others, are actively investing in deploying advanced messenger bots to streamline operations, deliver 24*7 customer assistance, enhance engagement, & improve the overall user experience while reducing operational costs & boosting efficiency. For instance, the e-commerce industry is actively adopting chatbots to aid customers in finding the right products, tracking orders, and receiving personalized recommendations. On the other hand, Healthcare providers are launching chatbot solutions to schedule appointments, provide health advice, & answer medical questions for individuals.
In addition, popular voice assistants like Amazon Alexa and Google Assistant integrated with chatbots have already gained traction in North America, allowing users to interact with chatbots intuitively. Hence, these aspects indicate the global dominance of North America in the Chatbot Market , where the leading players are enjoying endless opportunities to widen their end-user base and generate significant revenue.
While North America is the largest Chatbots industry worldwide, Asia-Pacific is set to record dramatic growth in the market during 2023-28, backed by the rapidly increasing number of internet users, the growing focus on digitalization, and the expansion of retail & e-commerce sectors in the region. Governments & businesses in Asia-Pacific are increasingly embracing AI & automation technologies to improve operational efficiency & boost productivity, consequently pushing the adoption of Chatbots for automating various customer interactions & service processes. Moreover, the rapidly scaling IT (Information Technology) & communication infrastructures across China & India are further fueling the Asia-Pacific Chatbot Market growth and creating new prospects for the regional industry leaders.
Global Chatbots Industry Recent Developments:
- On 18 July 2023, Meta & Microsoft introduced the next generation of their open-source large language model, Llama2, specifically developed for researchers so that they could perfect it, and is available to any business for download or through Microsoft's Azure cloud service in a special partnership with the Windows maker.
- On 7 June 2023, Conversica, Inc., the leading provider of AI-powered conversation automation solutions for enterprise revenue teams, announced a partnership with Salesforce to combine its Generative AI-driven conversational platform with Salesforce Marketing Cloud, aiming to digital marketing automation to a new level by using Generative AI as part of an active dialogue.
- On 19 May 2023, Kore.ai, the world-leading enterprise conversational AI software platform & solutions company, announced a partnership with Ciklum, a leading Global digital solutions company, to help advance enterprise adoption of AI-powered virtual assistants. Ciklum will leverage the Kore.ai platform to build advanced virtual assistants to meet the unique needs of their clients around use cases, such as customer experience, employee experience, enterprise automation, and personalized solutions based on user experience.
- On 21 March 2023, Google unveiled Bard, an AI chatbot designed to compete with OpenAI's ChatGPT & Microsoft's chatbot in their Bing search engine, aiming to solidify its presence in the AI chatbot space while maintaining its dominance in the search engine market.
- On 14 March 2023, OpenAI introduced GPT-4, the latest milestone in the company's effort to scale up deep learning. GPT-4 is a large multimodal model (accepting image & text inputs, emitting text outputs) that exhibits human-level performance on various professional and academic benchmarks.
Gain a Competitive Edge with Our Global Chatbot Market Report
- Global Chatbot Market report provides a detailed and thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics and make informed decisions.
- This report also highlights current market trends and future projections, allowing businesses to identify emerging opportunities and potential challenges. By understanding market forecasts, companies can align their strategies and stay ahead of the competition.
- Global Chatbot Market report aids in assessing and mitigating risks associated with entering or operating in the market.
- The report would help in understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks and optimize their operations.
Frequently Asked Questions
- Introduction
- Research Process
- Assumptions
- Market Segmentation
- Market Definition
- Executive Summary
- Expert Verbatim- What our Experts Say?
- Global Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- Customer Support
- Social Media
- Marketing
- Payments/Order Processing
- Others
- By Type
- Artificial Intelligence-based
- Rule-based
- By Interface
- Standalone
- Web-Based
- Third party/ Messenger Based
- By Verticals
- BFSI
- Retail & Ecommerce
- Healthcare
- Travel & Hospitality
- Media & Entertainment
- Telecommunications
- Others
- By Technology
- Machine Learning & Deep Learning
- Natural Language Processing
- Automated Speech Recognition
- By Deployment Model
- On-Premise
- Cloud
- By Organization Size
- Large Enterprises
- Small & Medium Enterprises
- By Region
- North America
- South America
- Europe
- Middle East & Africa
- Asia-Pacific
- By Company
- Revenue Shares
- Strategic Factorial Indexing
- Competitor Placement in Markntel Quadrant
- By Application
- Market Size and Analysis
- North America Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- By Interface
- By Type
- By Technology
- By Verticals
- By Deployment Model
- By Organization Size
- By Country
- The US
- Canada
- The US Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- By Interface
- By Type
- By Technology
- By Verticals
- By Deployment Model
- By Organization Size
- Market Size and Analysis
- Canada Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- By Interface
- By Type
- By Technology
- By Verticals
- By Deployment Model
- By Organization Size
- Market Size and Analysis
- Market Size and Analysis
- South America Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- By Interface
- By Type
- By Technology
- By Verticals
- By Usage
- By Deployment Model
- By Organization Size
- By Country
- Brazil
- Brazil Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- By Interface
- By Type
- By Technology
- By Verticals
- By Deployment Model
- By Organization Size
- Market Size and Analysis
- Market Size and Analysis
- Europe Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- By Interface
- By Type
- By Technology
- By Verticals
- By Deployment Model
- By Organization Size
- By Country
- The UK
- Germany
- France
- The UK Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- By Interface
- By Type
- By Technology
- By Verticals
- By Deployment Model
- By Organization Size
- Market Size and Analysis
- Germany Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- By Interface
- By Type
- By Technology
- By Verticals
- By Deployment Model
- By Organization Size
- Market Size and Analysis
- France Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- By Interface
- By Type
- By Technology
- By Verticals
- By Deployment Model
- By Organization Size
- Market Size and Analysis
- Market Size and Analysis
- Middle East & Africa Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- By Interface
- By Type
- By Technology
- By Verticals
- By Deployment Model
- By Organization Size
- By Country
- Saudi Arabia
- The UAE
- Saudi Arabia Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- By Interface
- By Type
- By Technology
- By Verticals
- By Deployment Model
- By Organization Size
- Market Size and Analysis
- The UAE Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- By Interface
- By Type
- By Technology
- By Verticals
- By Deployment Model
- By Organization Size
- Market Size and Analysis
- Market Size and Analysis
- Asia-Pacific Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- By Interface
- By Type
- By Technology
- By Verticals
- By Deployment Model
- By Organization Size
- By Country
- China
- India
- Japan
- Singapore
- China Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- By Interface
- By Type
- By Technology
- By Verticals
- By Deployment Model
- By Organization Size
- Market Size and Analysis
- India Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- By Interface
- By Type
- By Technology
- By Verticals
- By Deployment Model
- By Organization Size
- Market Size and Analysis
- Japan Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- By Interface
- By Type
- By Technology
- By Verticals
- By Deployment Model
- By Organization Size
- Market Size and Analysis
- Singapore Chatbot Market Outlook, 2018-2028F
- Market Size and Analysis
- By Revenues
- Market Share and Analysis
- By Application
- By Interface
- By Type
- By Technology
- By Verticals
- By Deployment Model
- By Organization Size
- Market Size and Analysis
- Market Size and Analysis
- Global Chatbot Market Policies, Regulations, Application Standards
- Global Chatbot Market Trends & Insights
- Global Chatbot Market Dynamics
- Growth Drivers
- Challenges
- Impact Analysis
- Global Chatbot Market Hotspot and Opportunities
- Global Chatbot Market Key Strategic Imperatives for Success and Growth
- Competitive Outlook
- Competition Matrix
- Application Portfolio
- Brand Specialization
- Target Markets
- Target Applications
- Research & Development
- Strategic Alliances
- Strategic Initiatives
- Company Profiles (Business Description, Application Segments, Business Segments, Financials, Strategic Alliances/ Partnerships, Future Plans)
- IBM
- Nuance Communications
- Conversica
- AWS
- OpenAI
- Artificial Solutions
- Microsoft
- Inbenta Technologies
- AIVO
- Meta
- Kore.ai
- Chatfuel
- Passage AI
- Competition Matrix
- Disclaimer