Chatbot Market Will Reach $2,166.28 Million by 2024, at CAGR 28.73%: Zion Market Research
Global Information Technology Sector Has Been Plagued By Numerous Factors Including Concerns Over Data Security, Increasing Operational Cost, The Intense Competition Offered By Global And Local Players, And Many Others
Zion Market Research has published a new report titled “Chatbot Market by Type (Support, Skills, and Assistant), by End-User (Healthcare, Retail, BFSI, Travel & Hospitality, E-commerce, Media & entertainment Entertainment, and Others) by Region (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa): Global Industry Perspective, Comprehensive Analysis, and Forecast 2017-2024’’. According to the report, global chatbot market was valued at around USD 369.79 million in 2017 and is expected to reach approximately USD 2,166.28 million in 2024, growing at a CAGR of slightly above 28.73% between 2018 and 2024.
Global information technology sector has been plagued by numerous factors including concerns over data security, increasing operational cost, the intense competition offered by global and local players, and many others. Due to these factors, various industry players are looking for ways that can curtail cost, improve performance and leads to customer satisfaction. Chatbots are the talking point in the business world nowadays. This is a technology that has the ability to perform a conversation via auditory or textual methods. It is a specialized robot that interactively chats with human beings through audio or textual mode via the internet and artificial intelligence. Chatbots are also known as conversational agents.
There are two types of chatbots namely rule-based, that provides a predefined response from a database, based on the keywords used for the search. Whereas smart machines chatbots derive their capabilities from artificial intelligence and adjust their behavior as per previous customer interactions. The pop-ups on message service inhabited within the chatbot help the users in multiple applications such as booking a room in the hotel, a ride or flight tickets, etc. Chatbots are finding their ways as intelligent customer care tools for improving efficiency and user experience. Chatbots are used in numerous applications such as to schedule meetings, order online food, provide customer support, and offer weather conditions and forecasting, thus leading to the growth of chatbot market.
Rising investments and adoption of artificial intelligence across various industries in government and private organizations will fuel chatbot market during the forecast period. The necessity requirement of high performing chatbots, growing popularity of online messaging applications are the preliminary factors contributing to the growth of chatbot market. Usage of chatbots in digital marketing applications and easy implementation of AI-based tools in various industry industrial products is allowing the chatbot market to gain a significant consumer base. However, the slow adoption rate, high deployment cost, and lack of expertise related to the services can restrain chatbot market. Tech-savvy customers, connected to social platforms, expect a real-time response to their queries; this segment is expected to grow tremendously in the forecast horizon period. Healthcare sector is projected to depict significant gains expansion over the forecast timeframe owing to the rise in need of for patient engagement activities such as patient documentation, doctor visits, medicines, and check-ups reminder systems.
The chatbot market is segmented based on type and type and end- user. Type segment is categorized into support, software skills, and services assistant. The end- user segment is further bifurcated fragmented into BFSI, healthcare, retail, e-commerce, travel and hospitality, media & entertainment, and others.
North America is expected to account for the largest share of the overall market in revenue generation due to increasing adoption of chatbots in public as well as government organizations. For instance, North Carolina’s Innovation Center (iCenter) analyzed that 80 to 90% of queries reported to the IT help desk includes recovering account information namely user IDs and passwords. iCenter is deploying chatbots to eliminate IT help desk personnel from answering these queries, to focus on complex issues that require human assistance. Additionally, Gwinnett in Atlanta used Textizen, an interactive text messaging platform, to engage residents regarding future of local transportation. Furthermore, it is home to some of the largest multinational companies operating in the chatbot technology market globally. Increase in research and development activities in the field of artificial intelligence based chatbots for improved customer services is one of the key factors driving the growth of chatbot market in North America. Various companies and business firms in the U.S. and Canada are practicing and implementing a fast, affordable, advanced, and secure process for customer interaction.
The Asia Pacific is projected to be the fastest growing region over the forecast period, due to growing investments in the technology and development sectors coupled with favorable government regulations. China, Japan, South Korea, Australia, and India, are expected to be the leading adopters of chatbots technology in the region. For instance, in March 2016, a chatbot named Alex was deployed in the Australian Tax Office to help citizens queries related to taxation. Alex had already conducted over one million conversations with people. Various governments are utilizing chatbots or text-based services to aid citizens that can address frequently asked questions regarding available services.
Europe is estimated to experience high market traction during the forecast period in chatbot market. European countries including Germany, France, the UK, and Nordic are among the leading nations where AI-based startups are witnessing exponential growth in the region. This is expected to entice growth of chatbots in the region across various verticals.
Latin America and the Middle East and Africa are likely to register moderate growth for chatbots market during the forecast timeframe. Shifting technological preferences in SMEs along with increasing demand for systems automation is projected to fuel the chatbot technologies within the forecast period.
The major players operating in the global chatbot market are 24/7 Customer Inc., CX Company, Creative Virtual Pvt. Ltd., eGain Corporation, IBM Watson, Codebaby, Speaktoit Inc., Next IT Corporation, Artificial Solutions, and Nuance Communications IncNuance Communications Inc., Next IT Corporation, Pandorabots, Inc., Microsoft Corporation, IBM Watson, eGain Corporation, Creative Virtual Pvt. Ltd., Google, CX Company, Astute Solutions, Imperson Ltd., and 24/7 Customer Inc.