Global Chatbots

Global Chatbots Market Research Report: Forecast (2021-2026)

By Application (Bots for Customer Service, Bots for Social Media, Bots for Marketing, Bots for Payments / Order Processing, Others), By Interface (Standalone, Web-Based, third party/ Messenger Based), Read more

  • ICT & Electronics
  • Dec 2021
  • 189
  • IT22003

Market Definition

Chatbots are computer programs built to facilitate conversations with humans & address their queries in natural languages through different communication mediums like chats, voice & video calls, emails, SMS, etc. These programs are being deployed increasingly across numerous organizations to improve customer service & reduce the overall operational costs while enhancing business productivity.

Market Insights

The Global Chatbots Market is projected to witness around 24.10% CAGR during the forecast period, i.e., 2021-26. The growth of the market is driven primarily by the mounting adoption of Chatbots and the integration of Artificial Intelligence (AI) in them to enhance interaction with the customers & solve their queries instantly, without the need for human intervention in noncritical situations. 

Sectors like E-commerce, retail, banking & finance, & healthcare, among various others, are among the prominent adopters of Chatbots, principally to establish interactive conversations with customers and deliver enhanced engagement experiences. Besides, the growing demand for AI-based Chatbots is due to their benefits like lower operational costs, quicker response time, robust customer relationships, etc. 

Moreover, with the swiftly rising number of small & medium-sized enterprises providing Chatbots, the global market is anticipated to observe significant growth in the coming years. In fact, these enterprises are developing bots for various messaging applications to resolve customer queries.

Report Coverage Details
Study Period Historical Data: 2016-19
Base Year: 2020
Forecast Period: 2021-26
CAGR (2021-2026) 24.1%
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 (Dialog Flow), AWS, Artificial Solutions, Inbenta Technologies, AIVO, Chatfuel, and others
Unit Denominations USD Million/Billion

 

Impact of Covid-19 on the Global Chatbots Market

The Covid-19 pandemic had a decelerating effect on most industries but positively influenced the Global Chatbots Market. While this dreadful disease caused chaos & panic among people, the demand for Chatbots significantly rose across various nations worldwide.

It was to address & resolve customer queries & provide them with critical information like nearby cases, bed & vaccine availability, registered testing facilities, Covid-19 care hospitals & isolation centers, etc. The governments of different countries & many organizations dramatically adopted Chatbots to assist citizens amidst the crisis.

Presently, the pandemic situation is better than its advent. Yet, the market is anticipated to continue its expansion in the coming years. Several leading players are actively working on bringing innovations in Chatbots to improve customer experience & reduce human intervention.

Global Chatbots Market Research Report: Forecast (2021-2026)

Market Segmentation

Based on Verticals, the Global Chatbots Market segments into:

  • 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. Hence, they are gaining increasing traction across the Healthcare sector. With these benefits, several healthcare organizations are infusing their demand to facilitate patients with seamless assistance and introduce them to other services like tracking health, scheduling appointments, behavior monitoring, etc., via simple conversations through different communication mediums.

On the other hand, the Retail & E-Commerce Sector is anticipated to dominate the Global Chatbots Market with the largest share during the forecast period. It owes principally to the swiftly rising adoption of Chatbots across the retail stores & e-commerce platforms due to several benefits like reduced operational & marketing costs, constant customer support, and better business returns.

Since Chatbots do not require any human intervention for conversational solutions, they play a crucial role in benefiting companies in terms of cost-efficiency. E-Commerce platforms use Chatbots primarily to promote a brand, complete buyer's purchases, recommend products & services, and provide consistent customer support.

Nonetheless, the Banking, Financial Services & Insurance (BFSI) sector acquired the largest market share in recent years since Chatbots enable BFSI organizations to help consumers open accounts, check balances, save money, transfer funds, etc., with 24*7 availability and minimum response time.

Based on the Organization Size:

  • Large Enterprises
  • Small & Medium-Sized Enterprises

Of them all, Large Enterprises dominated the market with the largest share in the previous years and shall prevail the same trend during the forecast period. The dominance is principally due to the wide application of Chatbots across these enterprises as a primary source of communication for activities like customer services & engagement.

In addition, technological advancements like Artificial Intelligence & Machine Learning are further creating a massive shift from online mediums to messaging applications and allowing enterprises to build interfaces for delivering actionable business data. Large enterprises are actively optimizing Chatbots to improve customer support, leverage strong customer relationships for long-term revenue generation, & acquire sophisticated operations in the coming years.

On the other hand, based on the Interface, the market bifurcates into Standalone, Web-Based, and, Third-party/ Messenger Based. Of them all, Standalone Interface acquired the largest market share in recent years and shall continue the same in the coming years. The increasing prevalence of applications for virtual assistance like Google, Alexa, Siri for standalone messaging is upsurging the demand for these Chatbots and driving the global market. 

Regional Landscape

Based on the Geography, the Global Chatbots Market expands across:

  • North America
  • South America
  • Europe
  • Asia-Pacific
  • Middle East & Africa

Of them all, Asia-Pacific is anticipated to demonstrate the fastest market growth during the coming years. It owes principally to the growing focus of the regional countries on digitalization, forming a pool of consumers for the Chatbots market. Besides, the region is driven by technological innovations to generate profitability for the market players in the coming years in terms of investments & revenue.

Moreover, the rapidly scaling communication & information technology infrastructures in Asia-Pacific, especially across economies like China & India, shall further fuel the demand for Chatbots in applications like personal assistance & customer engagement.

On the other hand, North America, a hub for various start-ups in Chatbots, held the largest market share. Several large enterprises are increasingly adopting Chabot systems to deliver 24*7 customer assistance, improve engagement, and build a robust company-customer relationship while reducing operational costs & enhancing efficiency. Several prominent businesses across North America are actively investing in deploying advanced messenger bots to deliver seamless services to their customers. For instance:

  • In July 2018, IBM Corporation introduced Watson Tine Analyzer technology for messaging bots, i.e., based on Artificial Intelligence. This innovation can emotionally connect with customers by observing their behavior & moods. 

Nonetheless, Europe is projected to observe considerable growth for the Global Chatbots Market during the forecast period. It owes primarily to the mounting investments by the governments of many European countries in the deployment of Chatbots. For instance:

  • In April 2019, the UK government proclaimed the integration of bots into their government websites to negotiate deals between the UK and the rest of Europe.

Recent Developments by Leading Companies

  • In April 2020, World Health Organization (WHO) introduced a WHO Health Alert Platform to offer instant & accurate information & updates on Covid-19 with the help of Facebook's global reach.
  • Besides, IBM introduced 'Watson Assistant for Citizens' and enabled several government agencies, academic institutions, healthcare organizations, etc., to provide citizens with critical data & information using AI.
  • In February 2020, Amazon tested its bot-based AI engine that observes & understands user queries & generates real-time responses. 

Market Dynamics:

Key Driver: Growing Demand for Consistent Customer Support at Lower Operational Costs

Chatbots are aiding several companies worldwide to streamline & optimize their customer services & swiftly becoming a critical aspect in delivering enhanced customer services. Industries like retail, e-commerce, healthcare, & finance, among various others, are rapidly shifting toward resolving customer queries instantly with the help of Chatbots. As a result, enterprises see them as a robust conversational interface that offers dynamic & engaging customer experiences. Hence, based on these aspects, Chatbots are observing an increasing adoption worldwide, and the same trend is likely to be followed in the years to come.

Possible Restraint: Possibilities of Security Breaches & Conversational Gaps

Most organizations use Chatbots as an interface for customer assistance & strategic branding. However, misinterpretation of requests, incorrect execution of commands, or challenges in understanding language or accents might refrain bots from making appropriate decisions, which might increase the possibility of data breaches and, as a result, restrain the overall market growth.

Growth Opportunity: Increasing Focus on Developing Self Learning Chatbots 

Rapid R&Ds on Chatbots that could adapt to changing circumstances by observing the customer behavior, mood, & actions and deliver human-like conversations, experiences, & decisions are projected to create lucrative growth opportunities for the Global Chatbots Market during 2021-26.

The leading market players are taking various research initiatives toward developing these self-learning bots to enhance customer experience greatly by providing intelligent answers. Hence, with these initiatives and the burgeoning need for customized customer experience, self-learning Chatbots are likely to witness significant demand in the coming years, which, in turn, would boost the overall market.

Competitive Landscape

According to MarkNtel Advisors, the leading players in the Global Chatbots Market are IBM, Nuance Communications, Google (Dialog Flow), AWS, Artificial Solutions, Inbenta Technologies, AIVO, Chatfuel, etc.

Key Questions Answered in the Market Research Report:

  1. What are the overall market statistics or market estimates (Market Overview, Market Size- By Value, Forecast Numbers, Market Segmentation, Market Shares) of the Global Chatbots Market?
  2. What are the region-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Chatbots Market?      
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global Chatbots Market based on the competitive benchmarking matrix?
  5. What are the key results derived from the market surveys conducted during the Global Chatbots Market study?

Market Outlook, Segmentation, and Statistics

  • Impact of COVID-19 on Global Chatbots Market
  • Market Size & Analysis
    • By Revenue
  • Market Share & Analysis
    • By Application
      • Bots for Customer Service
      • Bots for Social Media
      • Bots for Marketing
      • Bots for Payments / Order Processing
      • Others
    • By Interface
      • Standalone
      • Web-Based
      • third party/ Messenger Based
    • By Technology
      • Machine Learning & Deep Learning
      • Natural Language Processing
      • Automated Speech Recognition
    • By Verticals
      • BFSI
      • Retail & Ecommerce
      • Healthcare
      • Travel & Hospitality
      • Media & Entertainment
      • Telecommunications
      • Others
    • By Type
      • AI
      • Rule-Based
    • By Deployment Model
      • On-Premises
      • Cloud
    • By Organization Size
      • Large Enterprises
      • Small Enterprises
      • Medium-Sized Enterprises
    • By Region
      • North America 
        • The US
        • Canada
      • South America
        • Brazil 
      • Europe 
        • The UK 
        • Germany
        • France 
      • Asia-Pacific 
        • China
        • South Korea 
        • Japan
      • The Middle East & Africa
    • By Competitors
      • Competition Characteristics
      • Market Share & Analysis
      • Competitive Matrix
  • Global Chatbots Market Hotspots & Opportunities
  • Global Chatbots Market Regulations & Policy
  • Key Strategic Imperatives for Success and Growth
  • Global Competition Outlook
    • Competition Matrix
    • Company Profile

Frequently Asked Questions

A. The Global Chatbots Market is projected to grow at a CAGR of around 24.10% during 2021-26.

A. The Healthcare sector is anticipated to emerge as an opportunity area for the leading players in the Global Chatbots Market during 2021-26.

A. Enterprises actively looking for robust customer support services using Chatbots integrated with Artificial Intelligence to enhance customer engagement is the prime aspect projected to soar the demand for Chatbots and drive the global market during 2021-26.

A. Chatbots have assisted extensively across various sectors worldwide, especially by addressing queries associated with the Covid-19 pandemic in 2020. The same trend is likely to be followed in the coming years, along with the introduction of new services, owing to the active participation of leading players entwined with constant technological developments.

  1. Introduction
    1. Research Process
    2. Assumptions
    3. Market Segmentation
    4. Market Definition
  2. Executive Summary
  3. Expert Verbatim- What our Experts Say?
  4. Global Chatbot Market Outlook, 2016- 2026F
    1. Market Size and Analysis
      1. By Revenues
    2. Market Share and Analysis
      1. By Application
        1. Customer Support
        2. Bots for Social Media
        3. Bots for Marketing
        4. Bots for Payments / Order Processing
        5. Others
      2. By Type
        1. Artificial Intelligence
        2. Rule Based
      3. By Interface
        1. Standalone
        2. Web-Based
        3. Third party/ Messenger Based
      4. By Verticals
        1. BFSI
        2. Retail & Ecommerce
        3. Healthcare
        4. Travel & Hospitality
        5. Media & Entertainment
        6. Telecommunications
        7. Others
      5. By Technology
        1. Machine Learning & Deep Learning
        2. Natural Language Processing
        3. Automated Speech Recognition
      6. By Deployment Model
        1. On-Premises
        2. Cloud
      7. By Organization Size
        1. Large Enterprises
        2. Small and Medium-Sized Enterprises
      8. By Region
        1. North America
        2. South America
        3. Europe
        4. Middle East & Africa
        5. Asia-Pacific
      9. By Company
        1. Revenue Shares
        2. Strategic Factorial Indexing
        3. Competitor Placement in Markntel Quadrant
  5. North America Chatbot Market Outlook, 2016- 2026F
    1. Market Size and Analysis
      1. By Revenues
    2. Market Share and Analysis
      1. By Application
      2. By Interface
      3. By Type
      4. By Technology
      5. By Verticals
      6. By Deployment Model
      7. By Organization Size
      8. By Country
        1. US
        2. Canada
        3. Others
    3. The US Chatbot Market Outlook, 2016- 2026F
      1. Market Size and Analysis
        1. By Revenues
      2. Market Share and Analysis
        1. By Application
        2. By Interface
        3. By Type
        4. By Technology
        5. By Verticals
        6. By Deployment Model
        7. By Organization Size
    4. Canada Chatbot Market Outlook, 2016- 2026F
      1. Market Size and Analysis
        1. By Revenues
      2. Market Share and Analysis
        1. By Application
        2. By Interface
        3. By Type
        4. By Technology
        5. By Verticals
        6. By Deployment Model
        7. By Organization Size
  6. South America Chatbot Market Outlook, 2016- 2026F
    1. Market Size and Analysis
      1. By Revenues
    2. Market Share and Analysis
      1. By Application
      2. By Interface
      3. By Type
      4. By Technology
      5. By Verticals
      6. By Usage
      7. By Deployment Model
      8. By Organization Size
      9. By Country
        1. Brazil
    3. Brazil Chatbot Market Outlook, 2016- 2026F
      1. Market Size and Analysis
        1. By Revenues
      2. Market Share and Analysis
        1. By Application
        2. By Interface
        3. By Type
        4. By Technology
        5. By Verticals
        6. By Deployment Model
        7. By Organization Size
  7. Europe Chatbot Market Outlook, 2016- 2026F
    1. Market Size and Analysis
      1. By Revenues
    2. Market Share and Analysis
      1. By Application
      2. By Interface
      3. By Type
      4. By Technology
      5. By Verticals
      6. By Deployment Model
      7. By Organization Size
      8. By Country
        1. UK
        2. Germany
        3. France
    3. UK Chatbot Market Outlook, 2016- 2026F
      1. Market Size and Analysis
        1. By Revenues
      2. Market Share and Analysis
        1. By Application
        2. By Interface
        3. By Type
        4. By Technology
        5. By Verticals
        6. By Deployment Model
        7. By Organization Size
    4. Germany Chatbot Market Outlook, 2016- 2026F
      1. Market Size and Analysis
        1. By Revenues
      2. Market Share and Analysis
        1. By Application
        2. By Interface
        3. By Type
        4. By Technology
        5. By Verticals
        6. By Deployment Model
        7. By Organization Size
    5. France Chatbot Market Outlook, 2016- 2026F
      1. Market Size and Analysis
        1. By Revenues
      2. Market Share and Analysis
        1. By Application
        2. By Interface
        3. By Type
        4. By Technology
        5. By Verticals
        6. By Deployment Model
        7. By Organization Size
  8. Middle East & Africa Chatbot Market Outlook, 2016- 2026F
    1. Market Size and Analysis
      1. By Revenues
    2. Market Share and Analysis
      1. By Application
      2. By Interface
      3. By Type
      4. By Technology
      5. By Verticals
      6. By Deployment Model
      7. By Organization Size
      8. By Country
        1. Saudi Arabia
        2. UAE
    3. Saudi Arabia Chatbot Market Outlook, 2016- 2026F
      1. Market Size and Analysis
        1. By Revenues
      2. Market Share and Analysis
        1. By Application
        2. By Interface
        3. By Type
        4. By Technology
        5. By Verticals
        6. By Deployment Model
        7. By Organization Size
    4. UAE Chatbot Market Outlook, 2016- 2026F
      1. Market Size and Analysis
        1. By Revenues
      2. Market Share and Analysis
        1. By Application
        2. By Interface
        3. By Type
        4. By Technology
        5. By Verticals
        6. By Deployment Model
        7. By Organization Size
  9. Asia-Pacific Chatbot Market Outlook, 2016- 2026F
    1. Market Size and Analysis
      1. By Revenues
    2. Market Share and Analysis
      1. By Application
      2. By Interface
      3. By Type
      4. By Technology
      5. By Verticals
      6. By Deployment Model
      7. By Organization Size
      8. By Country
        1. China
        2. India
        3. Japan
        4. Singapore
    3. China Chatbot Market Outlook, 2016- 2026F
      1. Market Size and Analysis
        1. By Revenues
      2. Market Share and Analysis
      3. By Application
      4. By Interface
      5. By Type
      6. By Technology
      7. By Verticals
      8. By Deployment Model
      9. By Organization Size
    4. India Chatbot Market Outlook, 2016- 2026F
      1. Market Size and Analysis
        1. By Revenues
      2. Market Share and Analysis
        1. By Application
        2. By Interface
        3. By Type
        4. By Technology
        5. By Verticals
        6. By Deployment Model
        7. By Organization Size
    5. Japan Chatbot Market Outlook, 2016- 2026F
      1. Market Size and Analysis
        1. By Revenues
      2. Market Share and Analysis
        1. By Application
        2. By Interface
        3. By Type
        4. By Technology
        5. By Verticals
        6. By Deployment Model
        7. By Organization Size
    6. Singapore Chatbot Market Outlook, 2016- 2026F
      1. Market Size and Analysis
        1. By Revenues
      2. Market Share and Analysis
        1. By Application
        2. By Interface
        3. By Type
        4. By Technology
        5. By Verticals
        6. By Deployment Model
        7. By Organization Size
  10. Global Chatbot Market Policies, Regulations, Application Standards  
  11. Global Chatbot Market Trends & Insights
  12. Global Chatbot Market Dynamics
    1. Growth Drivers
    2. Challenges
    3. Impact Analysis
  13. Global Chatbot Market Hotspot and Opportunities
  14. Global Chatbot Market Key Strategic Imperatives for Success and Growth
  15. Competitive Outlook
    1. Competition Matrix
      1. Application Portfolio
      2. Brand Specialization
      3. Target Markets
      4. Target Applications
      5. Research & Development
      6. Strategic Alliances
      7. Strategic Initiatives
    2. Company Profiles (Business Description, Application Segments, Business Segments, Financials, Strategic Alliances/ Partnerships, Future Plans)
      1. IBM
      2. Nuance Communications
      3. Google (Dialogflow)
      4. AWS
      5. Artificial Solutions
      6. Inbenta Technologies
      7. AIVO
      8. Chatfuel
      9. Passage AI
      10. Amazon Web Services Inc. (Amazon Lex)
  16. Disclaimer
Global Chatbot Market Segmentation