Chatbot Market
PUBLISHED: 2022 ID: SMRC22075
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Chatbot Market

Chatbot Market Forecasts to 2028 - Global Analysis By Component (Solutions and Services), By Deployment (On-Premise and Cloud-based), By Type (AI Based and Rule Based), By Usage (Websites, Social Media, Mobile Applications and Contact Centers), By Organization Size (Small and Medium sized Enterprises (SMEs) and Large Enterprises), By Application (Personal Assistant, Branding Advertisement, Customer Services and Other End Users) and Geography

4.5 (91 reviews)
4.5 (91 reviews)
Published: 2022 ID: SMRC22075

This report covers the impact of COVID-19 on this global market
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Years Covered

2020-2028

Estimated Year Value (2022)

US $4.28 BN

Projected Year Value (2028)

US $13.77 BN

CAGR (2022 - 2028)

21.5%

Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market

North America

Fastest Growing Market

Asia Pacific


According to Stratistics MRC, the Global Chatbot Market is accounted for $4.28 billion in 2022 and is expected to reach $13.77 billion by 2028 growing at a CAGR of 21.5% during the forecast period. A chatbot is a type of interactive application that is created using a set of rules or artificial intelligence technology. It is intended to interact with humans via textual conversation and is integrated with various messaging services, thereby assisting users in a variety of industries. Various advancements in artificial intelligence and machine learning technologies are expected to improve the capabilities of chatbots. The market has expanded significantly in recent years. The increased need for providing 24x7 customer service and lowering operational costs by offloading jobs to chatbots, as well as the rise in consumer demand for self-service operations, has resulted in an increase in product demand.

According to the statistics provided by Hootsuite, WhatsApp has 2,000 million active monthly users, followed by WeChat with 1,263 million monthly active users, and Facebook Messenger with 998 million monthly active users as of January 2022. The market is being driven primarily by the increasing dominance of messenger applications and the growing demand for customer analytics.



Market Dynamics:

Driver:

Increased awareness & advantages of chatbots

The market is growing due to increased awareness of chatbots and their benefits, such as 24/7 availability of services, increased response capacity, increased return on investment (ROI) for customer support, and streamlined processes for repetitive inquiries. Furthermore, the use of chatbots provides significant benefits in the BFSI sector, such as increased net promoter score (NPS), increased customer satisfaction by reducing response times, and increased customer convenience in terms of product offerings, thereby fueling the growth of the market.

Restraint:

Lack of awareness

Lack of awareness is associated with management change may have an impact on market growth to some extent. Though the adoption of chatbot solutions is growing across industries, challenges related to effective usage and a lack of awareness about the benefits provided by AI-powered chatbot solutions may limit chatbot solution adoption in developing regions such as Latin America and Africa. Furthermore, while large organisations are at the forefront of adopting chatbot solutions, Small and Medium-sized Enterprises (SMEs) have limited adoption due to the cost of maintenance and a lack of skilled resources. However, with increased awareness of chatbot solutions, SMEs are expected to increase their use of chatbot solutions in the coming years.

Opportunity:

Surge in Penetration of Chatbots in E-commerce

E-commerce chatbots are artificial intelligence systems that online retailers can use to interact with their customers throughout the customer journey. Chatbots provide customers with personalised shopping experiences based on previous interactions, shopping, website browsing history, age, and gender. They aid in the provision of timely notifications and proactive information to make customers aware of newly launched products, offers, and price changes in order to increase the revenue of e-commerce businesses. The e-commerce industry necessitates 24-hour customer service, which is not always possible with human assistance. This is driving the adoption of chatbots in the e-commerce sector, which is contributing to market growth.

Threat:

Dearth of accuracy in user’s voice authentication

Two distinct approaches have emerged as a result of the evolution of voice-based authentication. The first authentication method involves having individuals repeat the same sentence multiple times in order to create a very general template comprised of a wide range of voiceprints. When users speak in the future, the newly generated voice prints can be compared to their old voice prints to authenticate them. The disadvantage of this approach is that voiceprints are more generic and, as a result, cannot be authenticated with the same level of accuracy as voiceprints generated with a single pass. The second method is to create a voiceprint from a single phrase or word and save it for each individual voiceprint. However, using this method, third parties can record authentication attempts and replay them to gain access.

Covid-19 Impact

During the outbreak of the COVID-19 pandemic, the global chatbot market is expected to have an increase in growth rate, owing to its deployment by various industries such as banking and insurance, healthcare, and retail for responding to customer queries and other tasks. Due to lockdown conditions in the majority of countries, various organisations have adopted remote work facilities. Due to employees' limited availability, businesses rely heavily on chatbots to manage the burden of customer inquiries. During the COVID-19 chaotic situation, however, certain companies operating in the chatbot market, such as Google and IBM, have come forward with their strategic steps to help society. For instance, in June 2020, the Andhra Pradesh National Health Mission announced that they had integrated with IBM Watson, a virtual agent, to help people easily get answers to their COVID-19 queries. The innovative chatbot is designed to understand and respond to common pandemic questions in Telugu, Hindi, and English. These critical factors may generate investment opportunities for the chatbot industry on a global scale.

The Large Enterprise segment is expected to be the largest during the forecast period

Because of the widespread use of chatbots in the businesses, the large enterprises segment is expected to be the largest during the forecast period. However, large enterprises are expected to optimise their chatbots in the future in order to achieve sophisticated operations. The majority of chatbot development tools are based on the machine learning model, allowing businesses to create an AI applications interface to deliver actionable business data. Chatbots allow businesses to directly interact with customers and collect data on customer preferences, which can then be used in digital marketing activities. These initiatives were implemented in order to convert more customers and expand the company's customer base.

The Healthcare segment is expected to have the highest CAGR during the forecast period

Healthcare is expected to grow at a significant CAGR during the forecast period. This is due to the increasing use of bot services in the healthcare and medical sectors. In the healthcare industry, these online services assist in delivering health-related information to users, scheduling appointments with doctors and surgeons, and providing patients with a diagnosis (opinion). The focus of key companies on developing advanced, customised conversation bots for the healthcare industry is driving market growth.

Region with largest share:

Due to the increased penetration of mobile and web-based chatbots across multiple platforms in the region, North America is expected to hold the largest share of the chatbot market during the forecast period. Increased adoption of chatbot technologies for effective customer engagement and improved customer service is also expected to drive future market demand for chatbots in North America. Because of the increased adoption of mobile applications and the lucrative presence of start-up vendors in the country, the United States is expected to see significant growth in the chatbot market, fueling market growth in this region.

Region with highest CAGR:

The Asia Pacific region is expected to grow at the fastest CAGR during the forecast period, owing to rapidly expanding retail and e-commerce businesses in emerging economies like China, India, Indonesia, Vietnam, Malaysia, the Philippines, Taiwan, and Thailand, which has accelerated the high demand for and widespread adoption of chatbots by retailers and e-commerce business owners. With rapidly expanding information and communications technology infrastructures in leading economies such as China and India, the market in the region is expected to expand further.



Key players in the market

Some of the key players profiled in the Chatbot Market include IBM Corporation, Egain Corporation, NEXT IT Corp., Creative Virtual Pvt. Ltd., CX Company, 24/7 Customer Inc., Speaktoit Inc., Codebaby (Idavatars) Inc., Howdy, DigitalGenius, Semantic Machines, Amazon Web Services, Inc., Inbenta Holdings Inc., Google LLC, Microsoft Corporation, WeChat, Artificial Solutions and Naunce Communications Inc.

Key Developments:

In September 2022, eGain Corporation, the leading knowledge automation platform provider for customer engagement, declared the availability of a pre-built connector for IBM Watson Assistant. The connector leverages eGain's unique BYOB architecture, enabling business users to easily plug the Watson Assistant into the eGain platform without coding.

In January 2021, Nuance launched the Omnichannel Patient Engagement Virtual Assistant Platform to power healthcare's 'Digital Front Door.' Nuance's omnichannel patient engagement platform represents a new integrated philosophy for enabling healthcare's digital front door and a well-thought-out, well-implemented, and highly-practical solution for delivering an enhanced level of digital services to patients.

In September 2020, Google launched a new Dialogflow Customer Experience in Beta. The new Dialogflow Customer Experience (CX) platform is aimed at building artificial intelligence agents for enterprise-level projects at a larger and more complex scale than the standard variety.

Components Covered:
• Solutions
• Services

Deployments Covered:
• On-premise
• Cloud-based

Usages Covered:
• Websites
• Social Media
• Mobile Applications
• Contact Centers

Organization Sizes Covered:
• Small and Medium sized Enterprises (SMEs)
• Large Enterprises

Applications Covered
• Personal Assistant
• Branding Advertisement
• Customer Services
• Data Privacy and Compliance
• Employee Engagement and On Boarding
• Payment Processing
• Customer Engagement and Retention
• Other Applications

End Users Covered
• Healthcare
• Retail
• Information Technology (IT) and Telecom
• Banking, Financial Services, and Insurance (BFSI)
• Media and entertainment
• Travel & Tourism
• E-commerce
• Government
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary

2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions

3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19

4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry

5 Global Chatbot Market, By Component
5.1 Introduction
5.2 Solutions
5.2.1 Platform
5.2.2 Software
5.3 Services
5.3.1 Managed Services
5.3.2 Professional Services
5.3.2.1 Consulting
5.3.2.2 Support and Maintenance
5.3.2.2 System Integration and Implementation

6 Global Chatbot Market, By Deployment
6.1 Introduction
6.2 On-premises
6.3 Cloud

7 Global Chatbot Market, By Type
7.1 Introduction
7.2 AI Based
7.3 Rule Based

8 Global Chatbot Market, By Usage
8.1 Introduction
8.2 Websites
8.3 Social Media
8.4 Mobile Applications
8.5 Contact Centers

9 Global Chatbot Market, By Organization Size
9.1 Introduction
9.2 Small and Medium sized Enterprises (SMEs)
9.3 Large Enterprises

10 Global Chatbot Market, By Application
10.1 Introduction
10.2 Personal Assistant
10.3 Branding Advertisement
10.4 Customer Services
10.5 Data Privacy and Compliance
10.6 Employee Engagement and On Boarding
10.7 Payment Processing
10.8 Customer Engagement and Retention
10.9 Other Applications

11 Global Chatbot Market, By End Users
11.1 Introduction
11.2 Healthcare
11.3 Retail
11.4 Information Technology (IT) and Telecom
11.5 Banking, Financial Services, and Insurance (BFSI)
11.6 Media and entertainment
11.7 Travel & Tourism
11.8 E-commerce
11.9 Government
11.10 Other End Users

12 Global Chatbot Market, By Geography
12.1 Introduction
12.2 North America
12.2.1 US
12.2.2 Canada
12.2.3 Mexico
12.3 Europe
12.3.1 Germany
12.3.2 UK
12.3.3 Italy
12.3.4 France
12.3.5 Spain
12.3.6 Rest of Europe
12.4 Asia Pacific
12.4.1 Japan
12.4.2 China
12.4.3 India
12.4.4 Australia
12.4.5 New Zealand
12.4.6 South Korea
12.4.7 Rest of Asia Pacific
12.5 South America
12.5.1 Argentina
12.5.2 Brazil
12.5.3 Chile
12.5.4 Rest of South America
12.6 Middle East & Africa
12.6.1 Saudi Arabia
12.6.2 UAE
12.6.3 Qatar
12.6.4 South Africa
12.6.5 Rest of Middle East & Africa

13 Key Developments
13.1 Agreements, Partnerships, Collaborations and Joint Ventures
13.2 Acquisitions & Mergers
13.3 New Product Launch
13.4 Expansions
13.5 Other Key Strategies

14 Company Profiling
14.1 IBM Corporation
14.2 Egain Corporation
14.3 NEXT IT Corp.
14.4 Creative Virtual Pvt. Ltd.
14.5 CX Company
14.6 24/7 Customer Inc.
14.7 Speaktoit Inc.
14.8 Codebaby (Idavatars) Inc.
14.9 Howdy
14.10 DigitalGenius
14.11 Semantic Machines
14.12 Amazon Web Services, Inc.
14.13 Inbenta Holdings Inc.
14.14 Google LLC
14.15 Microsoft Corporation
14.16 WeChat
14.17 Artificial Solutions
14.18 Naunce Communications Inc.

List of Tables
1 Global Chatbot Market Outlook, By Region (2020-2028) ($MN)
2 Global Chatbot Market Outlook, By Component (2020-2028) ($MN)
3 Global Chatbot Market Outlook, By Solutions (2020-2028) ($MN)
4 Global Chatbot Market Outlook, By Platform (2020-2028) ($MN)
5 Global Chatbot Market Outlook, By Software (2020-2028) ($MN)
6 Global Chatbot Market Outlook, By Services (2020-2028) ($MN)
7 Global Chatbot Market Outlook, By Managed Services (2020-2028) ($MN)
8 Global Chatbot Market Outlook, By Professional Services (2020-2028) ($MN)
9 Global Chatbot Market Outlook, By Deployment (2020-2028) ($MN)
10 Global Chatbot Market Outlook, By On-premises (2020-2028) ($MN)
11 Global Chatbot Market Outlook, By Cloud (2020-2028) ($MN)
12 Global Chatbot Market Outlook, By Type (2020-2028) ($MN)
13 Global Chatbot Market Outlook, By AI Based (2020-2028) ($MN)
14 Global Chatbot Market Outlook, By Rule Based (2020-2028) ($MN)
15 Global Chatbot Market Outlook, By Usage (2020-2028) ($MN)
16 Global Chatbot Market Outlook, By Websites (2020-2028) ($MN)
17 Global Chatbot Market Outlook, By Social Media (2020-2028) ($MN)
18 Global Chatbot Market Outlook, By Mobile Applications (2020-2028) ($MN)
19 Global Chatbot Market Outlook, By Contact Centers (2020-2028) ($MN)
20 Global Chatbot Market Outlook, By Organization Size (2020-2028) ($MN)
21 Global Chatbot Market Outlook, By Small and Medium sized Enterprises (SMEs) (2020-2028) ($MN)
22 Global Chatbot Market Outlook, By Large Enterprises (2020-2028) ($MN)
23 Global Chatbot Market Outlook, By Application (2020-2028) ($MN)
24 Global Chatbot Market Outlook, By Personal Assistant (2020-2028) ($MN)
25 Global Chatbot Market Outlook, By Branding Advertisement (2020-2028) ($MN)
26 Global Chatbot Market Outlook, By Customer Services (2020-2028) ($MN)
27 Global Chatbot Market Outlook, By Data Privacy and Compliance (2020-2028) ($MN)
28 Global Chatbot Market Outlook, By Employee Engagement and On Boarding (2020-2028) ($MN)
29 Global Chatbot Market Outlook, By Payment Processing (2020-2028) ($MN)
30 Global Chatbot Market Outlook, By Customer Engagement and Retention (2020-2028) ($MN)
31 Global Chatbot Market Outlook, By Other Applications (2020-2028) ($MN)
32 Global Chatbot Market Outlook, By End Users (2020-2028) ($MN)
33 Global Chatbot Market Outlook, By Healthcare (2020-2028) ($MN)
34 Global Chatbot Market Outlook, By Retail (2020-2028) ($MN)
35 Global Chatbot Market Outlook, By Information Technology (IT) and Telecom (2020-2028) ($MN)
36 Global Chatbot Market Outlook, By Banking, Financial Services, and Insurance (BFSI) (2020-2028) ($MN)
37 Global Chatbot Market Outlook, By Media and entertainment (2020-2028) ($MN)
38 Global Chatbot Market Outlook, By Travel & Tourism (2020-2028) ($MN)
39 Global Chatbot Market Outlook, By E-commerce (2020-2028) ($MN)
40 Global Chatbot Market Outlook, By Government (2020-2028) ($MN)
41 Global Chatbot Market Outlook, By Other End Users (2020-2028) ($MN)

Note: Tables for North America, Europe, Asia Pacific, South America and Middle East & Africa Regions are also represented in the same manner as above.

List of Figures

RESEARCH METHODOLOGY


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.


Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.


For more details about research methodology, kindly write to us at info@strategymrc.com

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