The accelerating demand for self-learning chatbots and the growing demand for 24*7 support services across various industries are the major factors that are boosting the growth of the market in the coming years.
The increasing customer’s demand for 24*7 support service and the growing usage of chatbot across numerous industries are the primary factors that are contributing to the growth of the chatbot market. The AI-powered chatbots provide numerous benefits such as automation of repetitive tasks resulting in increased process efficiency, delivery of support in different languages, and enhanced self-service experiences. The chatbot’s ability to personalize the experience without any interruption will further encourage the end-users to opt for these solutions. Several multinational giants, including Starbuck, KLM Dutch Airlines, Spotify, and Bank of America, are using chatbots to engage customers effectively while delivering seamless customer experience. The fundamental shift in the organization’s demand towards enhancing customer experience through different platforms will bring innumerable opportunities for the growth of the chatbot market size.
The rising usage of self-learning chatbots to collect feedback, monitor consumer data, and track purchasing patterns will further strengthen the chatbot market growth. Self-learning chatbot analyses data in minimal time, provides exact information to the customers, and learns from their mistakes. On the other edge of the spectrum, the limited adoption of chatbots by the small & medium-sized enterprises (SMEs) owing to the high maintenance cost and lack of skilled resources will have a negative impact on the growth of the market.
On the basis of technology, the natural language processing segment exhibits substantial growth potential and is anticipated to gain traction over the forecast period. This is attributed to the strong demand for better customer experience and the increasing usage of smart devices across the globe. In addition to this, the rising deployment of cloud-based and web business application, along with the growing machine-to-machine technology, will further accelerate the demand of the market across the world.
Based on the deployment mode, the On-Premises segment is expected to witness considerable growth in the next six years due to the accelerating demand for better controlled chatbot system at a lower cost. The On-Premises chatbot provides total control on security measures used for physical access control with a lower on-going cost.
On the basis of usage, the website segment is projected to maintain its dominance over the forecast period. The growing adoption of chatbots by different companies and businesses in order to collect feedbacks, tracks customer data, record changes in the purchase patterns, and to provide instant response to customers queries is the major factor that is strengthening the demand of the segment. For instance, Domino’s chatbot allows its customers to place an order through Messenger chatbot with the option to reorder previous orders and track the live location of the order placed.
Based on the organization size, the Large Enterprises segment is poised to expand in the coming years owing to the growing online presence of large companies across all over the world. With the rapid urbanization and rising digitalization, the consumer’s preference has significantly shifted towards e-commerce. The change in the customer’s demand is encouraging large enterprises to opt for chatbot in order to provide 24*7 service, instant response, and language support to attract customers from different parts of the world.
On the basis of application, the Retail and Ecommerce segment is expected to experience a faster CAGR during the forecast period. The increasing adoption of chatbot applications by retail companies on their official website to provide excellent customer experience and solve customer queries is a significant factor that is boosting the demand of the segment. Moreover, the swift shift in the customers demands towards e-shopping and the increasing usage of smart devices, including smartphones, tablets, and laptops, will accelerate the growth of the chatbot in the retail and E-commerce industry over the coming years. For instance, in 2016, H&M successfully launched H&M’s chatbot on messenger app Kik. The chatbot allowed the customers to choose from the recommendations, filters, and style preferences. It also enabled them to share their favourite pages and items with their contact on the Kik app.
On the basis of the region, the Asia-pacific region is predicted to be the fastest growing region in the chatbot market owing to the leveraging of information-intensive AI technologies in developing economies such as China, Singapore, India and Japan. Moreover, the heavy investments in chatbot and machine learning technology by different start-ups and the increasing usage of chatbots by small and medium-sized enterprises to enhance customer engagement will further surge the demand of chatbots in Asia-Pacific region. For instance, Tokio Marine Life Insurance Singapore Ltd. (TMLS) launched the first self-learning AI chatbot in Singapore to simplify life insurance for the public. Moreover, the expansion in Information Technology (IT) sector in the leading economies such as India and China will create new opportunities in the Asia-Pacific Chatbot market over the coming years. The massive growth in the population and the growing adoption of smartphones will attract new customers to the chatbot market in this region.
The key players of the chatbot market include Google, Chatfuel, Aivo, Botsify, Amazon Web Services. Inc., Artificial Solutions, IBM, Nuance Communications, Inc., Inbenta Technologies Inc., and Passage AI, among others.
The research report on the chatbot market provides an in-depth analysis of the market revenue based on component, technology, deployment model, usage, organization size, application, vertical and region for the forecast period from 2020 to 2027. The report highlights the major market drivers propelling the growth as well as challenges faced by the market participants. The research report also provides market size and forecast for the market. The report also analyses the competitive landscape, major players, and their strategies in 2019. The competitive landscape section of the report captures and highlights the recent developments in the market.