Market Overview
Chatbots are computer applications built with a set of defined rules or artificial intelligence technologies. The request is integrated with numerous messaging services to provide solutions to customer queries through automated textual messages or auditory conversations.
According to MarkNtel Advisors’ research report, “Global Chatbots Market Analysis, 2021,” the market is likely to grow at a CAGR of around 24.1% in the forecast period of 2021-26. The massive market growth owes to the increasing preference for voice-activated devices, rising demand for advancing customer service across several verticals like e-commerce, telecommunications, BFSI, healthcare, media & entertainment, etc. Chatbots are Smart to interpret data in minimum time and help seekers find the information they are looking for conveniently by assisting in multiple languages. Numerous companies look at Chatbots as potent conversational means for retaining customers effectively and giving them a dynamic & rich user experience. Besides, they also assist in making payments, transferring funds, saving money, and keeping balances while improving the service quality to the customers.
| Report Coverage | Details |
| Study Period | Historical Data: 2016-20 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR (2021-26) | 24.1% |
| Regions Covered | North America:USA, Canada |
| 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
The outbreak of the Covid-19 pandemic adversely impacted different sectors, where the Global Chatbots Market witnessed a trivial slowdown in 2020 due to the global lockdown. While several industries are facing difficulties in the market, the condition of the Chatbots Market is likely to come under control in the coming years. It owes to the increasing demand for enhancing customer experience and building personalized relationships with prospects. Furthermore, numerous verticals shall deploy a diverse array of Chatbot solutions & services to enable digital transformation initiatives. It shall further address mission-critical processes, improve operations, and differentiate customer viewing experiences. All these factors together are likely to lead the Global Chatbots Market to regain its usual pace in the forecast period.
Market Segmentation
Bots for Social Media to Witness the Largest Market Share
Based on the Application, the Global Chatbots Market segments into Bots for Customer Service, Bots for Social Media, Bots for Marketing, Bots for Payments / Order Processing, Others. Here, the Bots for Social Media segment is more likely to hold the largest share in the forecast period. Bots of Social Media create a personal engagement with customers, and hence there is a good preference for Chatbots on social media. Moreover, expansion of sales pipeline, shortening the sales cycle, and discovering different needs of customers are more effective on social media platforms. Hence, these factors are likely to lead the Bots for Social Media segment to witness the largest market share.
Large-Sized Enterprises to Witness the Fastest Growth
Based on Organization Size, the Global Chatbots Market segments into Large, Small-Sized, and Medium-Sized Enterprises. Here, the large enterprise segment dominated the market with a revenue share of 47.7% in the previous years and is likely to continue its dominance in the forecast period. Numerous large enterprises develop their Chatbots with a specific set of rules. However, large enterprises are more likely to optimize their Chatbots in a bid to achieve sophisticated operations. Most development tools of Chatbots are machine learning-based, allowing enterprises to build an AI applications interface. Furthermore, progression with artificial intelligence created a user inclination from online social networks to mobile-based messaging applications. Hence, the segment is likely to attain the fastest growth in the forecast period, states MarkNtel Advisors in their research report, “Global Chatbots Market Analysis, 2021.”
Regional Landscape
North America Accounted for the Largest Market Share
With the exponential growth of the Global Chatbots Market, the North American region is likely to attain the largest share in the forecast period. It owes to North America being a significant hub for startups in the Chatbot industry. The region has a substantial market growth prospect with various benefits like enterprises' reduced operational costs, enhanced customer satisfaction, and improved efficiency. Furthermore, North America has the majority of Chatbot implementations. Hence, these factors are likely to lead North America to attain the largest market share in the forecast period.
Market Driver
Chatbot are becoming crucial in delivering 24×7 support to customers, thereby helping various industries streamline and optimize the customer experience they offer at every stage in the process. Numerous end-users like finance, retail and e-commerce, government, telecom, and travel & hospitality sectors are making a robust shift toward resolving customer queries in minimal time. The provision of quick responses to customer queries has become a key factor for the success of organizations. Hence, enterprises look at Chatbots as powerful conversational interfaces for engaging customers effectively and providing them with a dynamic and rich user experience environment. Moreover, the initiatives & participation by leading market players are further creating lucrative growth opportunities to drive the market in the forecast period.
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:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. Global Chatbots Market is likely to grow at a CAGR of around 24.1% in the forecast period of 2021-26.
A. IBM, Nuance Communications, Google (Dialog Flow), AWS, Artificial Solutions, Inbenta Technologies, AIVO, Chatfuel, etc., are a few leading players in the Global Chatbots Market.
A. Bots of Social Media is likely to attain the highest CAGR during the forecast period and maintain its significant market share.
A. North America continues to grow at the highest CAGR in the forecast period of 2021-26, presenting immense opportunities for market players of the Global Chatbots Market.
A. Numerous industries like finance, retail & e-commerce, government, telecom, and travel & hospitality continue to make a robust shift toward resolving customer queries in minimal time. The provision of quick responses to customer queries is the most significant factor for any organization's success. Hence, enterprises consider Chatbots as powerful conversational interfaces for engaging customers effectively and providing them with a dynamic and rich user experience.
A. While the Covid-19 pandemic hit the sector with an adverse slowdown, the Global Chatbots Market shall recover from the loss in the forecast years due to the numerous verticals that shall deploy a diverse array of Chatbot solutions & services to enable digital transformation initiatives. The market shall also address mission-critical processes, improve operations, and differentiate customer viewing experiences. With these driving factors, the global market shall regain an astronomical pace in the forecast period.
