USD 2.47 billion
Chatbot Market Size, Share, Growth Analysis, By Deployment Type(Cloud-based and on-premise), By Application(Customer service, marketing, sales, personal assistant), By End User(Small Enterprises, Medium Enterprises, Large Enterprises), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45A2039 |
Region:
Global |
Published Date: February, 2024
Pages:
276
|Tables:
90
|Figures:
76
Chatbot Market Insights
Global Chatbot Market size was valued at USD 2.47 billion in 2019 and is poised to grow from USD 4.92 billion in 2023 to USD 24.64 billion by 2031, growing at a CAGR of 23.91% in the forecast period (2024-2031).
A Chatbot is a computer program designed to simulate human conversation through text or voice interactions. It uses natural language processing (NLP) and machine learning (ML) algorithms to understand and respond to user queries. The working of a Chatbot can be divided into three main components. The input processing component involves processing the user's query and identifying the intent behind it. Chatbots use NLP algorithms to understand the natural language used by the user and extract the relevant keywords and phrases. Once the intent behind the user's query has been identified, the Chatbot uses ML algorithms to process the data and provide a relevant response. The Chatbot can access databases, APIs, and other sources of information to generate an appropriate response to the user's query. The final component of a Chatbot involves generating the response and presenting it to the user in a human-like manner. This can involve using natural language generation (NLG) algorithms to create a response that is easy for the user to understand and follow. Chatbots can be deployed on various platforms such as websites, mobile apps, and messaging apps. They can provide a range of services such as customer support, information retrieval, and e-commerce transactions. The ability to provide 24/7 support and handle a large volume of queries without human intervention makes Chatbots a popular solution for businesses looking to improve their customer service capabilities.
The global market is experiencing significant growth, driven by several key trends and drivers. The Chatbot market is being driven by the increasing adoption of AI and NLP technologies, which enable Chatbots to understand and respond to user queries in a natural language format. The growth of messaging platforms such as Facebook Messenger, WhatsApp, and WeChat is driving the adoption of Chatbots as a way to engage with customers on these platforms. These are a cost-effective solution for providing customer support, which is driving their adoption across various industry verticals. Companies are increasingly using Chatbots to provide personalized customer experiences, which is driving the development of Chatbots that can leverage customer data to deliver more relevant and personalized responses. The healthcare industry is adopting Chatbots to provide remote patient monitoring, medication reminders, and other healthcare-related services. Chatbots are being integrated with social media and e-commerce platforms to provide personalized recommendations, answer customer queries, and facilitate transactions. Overall, the global market is expected to continue to grow in the coming years, driven by the increasing adoption of AI and NLP technologies, the growth of messaging platforms, and the rising demand for cost-effective and personalized customer support solutions.
US Chatbot Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Cloud-based
Fastest Growth
Cloud-based
Growth Rate
23.91% CAGR
Global Chatbot Market ($ Bn)
Country Share for North America Region (%)
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Chatbot Market Segmental Analysis
Global Chatbot Market is segmented on the basis of deployment type, application, end user, and region. By application, the Chatbot Market is segmented into customer service, marketing, sales, personal assistant, and others. By deployment type, Chatbot Market is segmented into cloud-based and on-premise. By end user, the Chatbot Market is segmented into Small Enterprises, Medium Enterprises, Large Enterprises. By region, the Chatbot Market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Chatbot Market Analysis by Deployment Type
The cloud-based deployment segment is currently the largest segment in the global chatbot market. The cloud-based deployment segment is expected to continue its dominance in the coming years due to the benefits it offers, such as lower upfront costs, scalability, and ease of integration with other cloud-based services. Cloud-based chatbots are hosted on remote servers and accessed through the internet. They are typically subscription-based, which means users pay a recurring fee to access the service. Cloud-based chatbots offer several benefits, including easy scalability, lower upfront costs, and easier integration with other cloud-based services.
The on-premise deployment segment, while still significant, is expected to experience slower growth due to the higher upfront costs and more significant IT infrastructure requirements. On-premise chatbots are hosted on the company's own servers and are accessed through the company's internal network. This deployment method requires a larger upfront investment, as companies need to purchase and maintain their own hardware and software. However, on-premise chatbots offer greater control and customization options, as well as increased security and privacy.
Chatbot Market Analysis by Application
The largest segment in the global chatbot market by application is the customer service segment. This is because chatbots are being increasingly used by businesses to provide customer service and support, thereby reducing the workload of human support staff and improving customer satisfaction. They can answer common questions, resolve issues, and provide guidance to customers, freeing up human support staff to handle more complex tasks.
The fastest-growing segment is the marketing segment. As businesses look for more effective ways to engage with their customers and improve customer experience, chatbots are increasingly being used as a marketing tool to provide personalized recommendations, promotions, and product research assistance. The marketing segment is expected to grow at a faster rate than other application segments due to the increasing adoption of chatbots in marketing and advertising.
Global Chatbot Market By Application
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Chatbot Market Regional Insights
North America dominated the global Chatbot market, accounting for a significant share of the global market. The key application areas for Chatbots in North America include customer service, healthcare, e-commerce, and banking and finance. The end-users of Chatbots in North America include small and medium-sized enterprises (SMEs), large enterprises, and government organizations. The growth of the market in North America is being driven by the increasing adoption of AI and NLP technologies, the growth of messaging platforms, and the rising demand for cost-effective and personalized customer support solutions. The challenges faced by the market in North America include data security concerns, lack of awareness and understanding of Chatbot technology, and the need for continuous training and updating of Chatbots. Overall, the market in North America is experiencing significant growth, driven by several key trends and drivers. The region is home to several large Chatbot vendors, and the key application areas for Chatbots in the region include customer service, healthcare, e-commerce, and banking and finance.
Asia Pacific is a rapidly growing market for Chatbots, driven by the increasing adoption of mobile devices and messaging platforms in the region. The growth of the market in the Asia Pacific is being driven by the increasing adoption of mobile devices and messaging platforms, the growth of e-commerce and online shopping, and the rising demand for personalized customer support solutions. The challenges faced by the market in Asia Pacific include language barriers and the need to provide localized Chatbot solutions, privacy and data security concerns, and the need for continuous training and updating of Chatbots. Overall, the market in Asia Pacific is experiencing significant growth, driven by several key trends and drivers. The region is home to several large Chatbot vendors, and the key application areas for Chatbots in the region include customer service, healthcare, e-commerce, and education.
Global Chatbot Market By Region
- Largest
- Fastest
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Chatbot Market Dynamics
Chatbot Market Drivers
Rising demand for 24/7 customer support
- With the increasing use of digital communication channels, customers are expecting 24/7 support. Chatbots can provide round-the-clock support, making them a popular solution for companies looking to enhance their customer support capabilities.
Growing need for cost-effective customer support solutions
- Chatbots are a cost-effective solution for providing customer support. They can handle a large volume of queries without the need for human intervention, which can significantly reduce costs for companies.
Increasing adoption of chatbots in various industry verticals
- The adoption of chatbots is rapidly increasing across various industry verticals such as healthcare, retail, banking, and telecommunications. This trend is driving the growth of the Chatbot market.
Growing demand for personalized customer experiences
- Companies are increasingly using chatbots to provide personalized customer experiences. This trend is driving the development of chatbot solutions that can leverage customer data to deliver more relevant and personalized responses.
Need for better lead generation and conversion
- Chatbots are being used to generate leads and convert them into customers. They can engage with website visitors, answer their queries, and provide them with relevant information, which can help convert them into customers.
Increasing use of mobile devices
- With the increasing use of mobile devices, there is a growing demand for chatbot solutions that can be accessed from mobile devices. This trend is driving the development of chatbot solutions that are optimized for mobile devices.
Chatbot Market Restraints
Limited understanding of chatbot technology
- Despite the growing adoption of chatbots, there is still a limited understanding of chatbot technology among businesses and customers. This could hinder the adoption of chatbots and slow down the growth of the market.
Lack of personal touch
- While chatbots can provide cost-effective and efficient customer support, they lack the personal touch that human agents can provide. This could lead to customer dissatisfaction and hinder the adoption of chatbots.
Integration challenges
- Integrating chatbots with existing systems and technologies can be a complex process. This could hinder the adoption of chatbots, particularly among businesses that lack the necessary technical expertise.
Language and cultural barriers
- Chatbots may struggle to understand and respond to queries in languages and dialects that they are not programmed to recognize. This could limit the adoption of chatbots in certain regions and hinder the growth of the market.
Security and privacy concerns
- As chatbots handle sensitive customer information, there are concerns about data privacy and security. This could hinder the adoption of chatbots among businesses that prioritize data privacy and security.
Lack of industry standards
- The lack of industry standards around chatbot development and deployment could hinder the adoption of chatbots and slow down the growth of the market.
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Chatbot Market Competitive Landscape
The global Chatbot market is highly competitive, with many players vying for market share. The market is characterized by the presence of large established players, as well as smaller startups and niche players. The key players are focusing on various growth strategies such as partnerships, collaborations, acquisitions, and new product launches to increase their market share. In addition, players are also investing heavily in research and development to enhance their chatbot solutions. The market is also witnessing the emergence of several regional players, who are providing chatbot solutions specifically tailored to the needs of their local markets. These players are expected to pose significant competition to established players in the coming years. Overall, the competitive landscape of the global Chatbot market is dynamic, with new players entering the market and established players continuously innovating to stay ahead of the competition.
Chatbot Market Top Player’s Company Profiles
- IBM
- Microsoft
- Amazon Web Services
- Nuance Communications
- Artificial Solutions
- Kasisto
- Haptik
- Conversica
- Rasa Technologies
- Inbenta
- Verloop
- Creative Virtual
- Chatfuel
- Kore.ai
- Pypestream
- Tars
- Ada Support
- Helpshift
Chatbot Market Recent Developments
- In June 2022, Serviceaide Inc. released Automation 2.0 as part of a unified upgrade across its whole line of service management tools, it made the "shift-left" drive towards self-service and automation more accessible and inexpensive across a wide range of enterprise and customer service and support scenarios.
- In September 2022, eGain Corporation, the leading provider of customer engagement knowledge automation platforms, announced the availability of a pre-built connector for IBM Watson Assistant. The connection makes use of the eGain platform's exclusive BYOB architecture to enable business users to quickly and easily integrate the Watson Assistant without the need for coding.
- In March 2022, Kore.ai, a prominent corporate conversational AI software platform and solutions provider, announced the premiere of Health Assist, the first in a series of revolutionary, digital-first healthcare experiences, at the HIMSS global health conference and exhibition.
- In July 2022, Tata Consultancy Services (TCS) and Walton Centre NHS Foundation Trust formed a partnership to start creating digital solutions that improve specialist productivity and reduce patient wait times. The Liverpool center's headache patients' diagnosis and care will change thanks to a revolutionary AI-based chatbot that TCS is slated to develop.
- In May 2022, Glenmark Pharmaceuticals released a chatbot that runs on WhatsApp. Patients will receive reminders from this chatbot regarding their suggested course of therapy. This was introduced especially for patients with fungus infections. Glenmark developed the online patient education tool "Hello Skin" in collaboration with the Indian Association of Dermatologists, Venereologists, and Leprologists (IADVL).
- In February 2021, Nuance announced the acquisition of Saykara, Inc., a start-up focusing on developing a mobile AI to automate clinical documentation for clinicians. The acquisition highlights Nuance's continued market expansion and technical leadership in conversational artificial intelligence (AI) and ambient clinical intelligence (ACI) solutions that lower clinical burnout, improve patient experiences, and increase the financial integrity of the healthcare system.
Chatbot Key Market Trends
- Increasing adoption of AI and NLP technologies: The adoption of artificial intelligence (AI) and natural language processing (NLP) technologies is rapidly increasing in the Chatbot market. This is leading to the development of more sophisticated chatbot solutions that can understand and respond to complex queries in natural language.
- Growing demand for Omni channel communication: With the rise of digital communication channels such as social media, messaging apps, and chatbots, there is a growing demand for chatbot solutions that can support Omni channel communication. This trend is driving the development of chatbot solutions that can seamlessly integrate multiple communication channels.
- Focus on personalized customer experiences: Companies are increasingly using chatbots to provide personalized customer experiences. This is leading to the development of chatbot solutions that can leverage customer data to deliver more relevant and personalized responses.
- Integration with other technologies: Chatbots are being integrated with other technologies such as voice assistants, virtual reality, and augmented reality to provide more immersive customer experiences. This trend is driving the development of more sophisticated chatbot solutions that can work seamlessly with other technologies.
- Rise of chatbot-as-a-service: With the increasing demand for chatbot solutions, many companies are offering chatbot-as-a-service (CaaS) solutions. This trend is making it easier for companies to adopt chatbot solutions without having to invest in expensive infrastructure.
Chatbot Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our Global Chatbot Market analysis, the global market is a rapidly growing market that has seen significant growth in recent years. These are being increasingly adopted by businesses and organizations worldwide to improve customer service, enhance customer engagement, and streamline business processes. The demand for chatbots is being driven by factors such as the need for efficient and cost-effective customer service, the growing popularity of messaging apps, and advancements in natural language processing and artificial intelligence technologies. The global market is expected to continue its strong growth in the coming years, with increasing adoption by businesses and organizations worldwide. However, the market is also highly competitive, with new players entering the market regularly, and companies need to continue innovating and improving their chatbot technologies to stay ahead of the competition.
| Report Metric | Details |
|---|---|
| Market size value in 2019 | USD 2.47 billion |
| Market size value in 2031 | USD 24.64 billion |
| Growth Rate | 23.91% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Chatbot Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Chatbot Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Chatbot Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Chatbot Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Chatbot Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Chatbot Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Chatbot Market Report Snapshots
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