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Chatbot Market

Chatbot Market Size, Share and Segmentation by Component (Solutions, Services), by Type (Rule Based & AI Based), by Application (Customer Service, Customer Engagement & Retention), by Channel Integration, by Business Function (ITSM, Finance), by Regions and Global Market Forecast 2022-2028

Report Id: SNS/ICT/1240 | May 2022 | Region: Global | 125 Pages

Report Scope & Overview:

The Chatbot Market Size was valued at USD 23.88 billion in 2021 and is expected to reach USD 173.90 billion by 2028, and grow at a CAGR of 33.86% over the forecast period 2022-2028.

Because of advances in AI technologies such as deep neural networks, machine learning, and others, the use of virtual assistants is on the rise. Chatbots and smart speakers are examples of virtual assistants that are employed in a variety of industries, including retail, BFSI, and healthcare. The banking industry, for example, has been a major adoption of emerging technology, owing to its need on speed, trust, and communication. Chatbots in the banking industry use cognitive analytics to improve communication and establish customer relationships by understanding what customers are thinking and responding instantly.

Chatbot Market

MARKET DYNAMICS:  

KEY DRIVERS:

  • Chatbots are becoming increasingly important in providing customers with round-the-clock service, allowing many sectors to streamline and improve the customer experience they provide at every stage of the process.

  • Various businesses, including banking, retail and eCommerce, government, telecommunications, and travel and hospitality, have changed their priority to quickly handling client inquiries.

  • The ability to respond quickly to consumer inquiries has become a critical component of business success.

RESTRAINTS:

  • When users talk in the future, the new voice prints created may be compared to their previous voice prints to verify their identity.

  • The downside of this strategy is that voiceprints are more general, and hence cannot be validated with the same level of precision as voiceprints made in a single run.

OPPORTUNITIES:

  • Self-learning chatbots are capable of adapting to changing conditions in their operating environment and learning from their actions, experiences, and judgments.

  • These chatbots are clever enough to assess data in a short amount of time and assist customers in finding the specific information they need quickly by providing support in many languages.

CHALLENGES:

  • Lack of understanding and problems associated with management change may have an influence on market growth to some extent.

  • As SMEs become more aware of chatbot solutions, the usage of chatbot solutions is projected to increase in the future years.

IMPACT OF COVID-19:

The worldwide lockdown is expected to cause a minor slowdown in the chatbot industry in 2020. Almost every business has been shaken by the COVID-19 epidemic, which has exacerbated turnover. The lockdown is having a negative influence on global production, supply networks, and logistics, as well as the continuation of operations in numerous industries. Manufacturing, transportation and logistics, and retail and consumer products are the industries with the most problems. The shortage of labour to operate on manufacturing lines, supply networks, and transportation has a negative influence on the availability of vital commodities, despite the fact that critical items are excluded from the lockdown. By early 2021, the disease is projected to be under control, while demand for chatbot solutions and services is likely to rise as companies seek to improve customer experience and develop personalized relationships with prospects. Several industries will use a wide range of chatbot solutions and services to support digital transformation projects that address mission-critical procedures, enhance operations, and distinguish consumer viewing experiences. The use of chatbots is projected to be driven by a decrease in operational expenses, improved customer experiences, resolution of customer concerns, more insight into processes and operations, and improved real-time decision-making.

MARKET ESTIMATION:

Our market research report on the worldwide chatbots market includes a complete market segmentation with important segments examined in depth. On the basis of solution, deployment style, channel integration, organization size, application, business function, and vertical, the chatbots market has been segmented.

KEY PLAYERS:

Some of the key players operating in the chatbot market include IBM (US), Microsoft (US), Google (US), AWS (US), Nuance (US), Oracle (US), Creative Virtual (UK), Artificial Solutions (Spain), Kore.ai (US), Inbenta (US), [24]7.AI (US), Aivo (Argentina) ServiceNow (US), Conversica (US), Personetics (US).

MARKET SEGMENTATION:

By component:

  • Solutions

    • Software

    • Platform

  • Services

    • Managed Services

    • Professional Services

      • Consulting

      • System Integration and Implementation

      • Support and Maintenance

By type:

  • Rule Based

  • AI Based

By deployment mode:

  • On-premises

  • Cloud

By channel integration:

  • Websites

  • Contact Centers

  • Social Media

  • Mobile Applications

By organization size:

  • Large Enterprises

  • Small and Medium-sized Enterprises (SMEs)

By business function:

  • Information Technology Service Management

  • Human Resources

  • Sales and Marketing

  • Finance

By application:

  • Customer Service

  • Personal Assistant

  • Branding and Advertisement

  • Customer Engagement and Retention

  • Data Privacy and Compliance

  • Employee Engagement and On Boarding

  • Payment Processing

  • Others (Churn Analysis, Campaign Management, News Delivery, and Data Aggregation).

By vertical:

  • BFSI

  • IT and Telecom

  • Retail and Ecommerce

  • Healthcare and Life Sciences

  • Transportation and Logistics

  • Government

  • Travel and Hospitality

  • Media and Entertainment

  • Others (Education, Energy and Utilities, and Manufacturing)

Chatbot Market

REGIONAL ANALYSIS:

Because North America is a key location for chatbot startups, it held the greatest market share of 48.6% in 2021. Following that comes Asia Pacific, which is a key centre for the services industry. Chatbots are rapidly being used in normal customer support operations by several big companies. Chatbots' high development potential in many countries may be ascribed to the enormous benefits that they provide to businesses, such as lower operating costs, greater customer happiness, and increased operational efficiency.

The high growth possibilities for the market may be attributable to the various benefits it provides, such as lower operating costs for businesses, improved customer satisfaction, and increased operational efficiency. The North American area accounts for the largest share of the market since it is home to the largest number of chatbot companies and the bulk of chatbot installations. The Asia Pacific area is followed by North America, which serves as a significant service industry hub. Many multinational companies are progressively using chatbots into their daily customer care operations.

REGIONAL COVERAGE:

  • North America

    • USA

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • The Netherlands

    • Rest of Europe

  • Asia-Pacific

    • Japan

    • south Korea

    • China

    • India

    • Australia

    • Rest of Asia-Pacific

  • The Middle East & Africa

    • Israel

    • UAE

    • South Africa

    • Rest of Middle East & Africa

  • Latin America

    • Brazil

    • Argentina

    • Rest of Latin America

Chatbot Market Report Scope:
Report Attributes Details
Market Size in 2021  US$ 23.88 Bn
Market Size by 2028  US$ 173.90 Bn
CAGR   CAGR of 33.86% From 2022 to 2028
Base Year  2021
Forecast Period  2022-2028
Historical Data  2017-2020
Report Scope & Coverage Market Size, Segments Analysis, Competitive  Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments • by Component (Solutions, Services)
• by Type (Rule Based & AI Based)
• by Application (Customer Service, Customer Engagement & Retention)
• by Channel Integration (Websites, Contact Centers, Social Media, Mobile Applications)
• by Business Function (ITSM, Finance)
Regional Analysis/Coverage North America (USA, Canada, Mexico), Europe
(Germany, UK, France, Italy, Spain, Netherlands,
Rest of Europe), Asia-Pacific (Japan, South Korea,
China, India, Australia, Rest of Asia-Pacific), The
Middle East & Africa (Israel, UAE, South Africa,
Rest of Middle East & Africa), Latin America (Brazil, Argentina, Rest of Latin America)
Company Profiles IBM, Microsoft, Google, AWS, Nuance, Oracle, Creative Virtual, Artificial Solutions, Kore.ai, Inbenta, [24]7.AI , Aivo, ServiceNow, Conversica, Personetics.
Key Drivers • Various businesses, including banking, retail and eCommerce, government, telecommunications, and travel and hospitality, have changed their priority to quickly handling client inquiries.
Market Opportunities • Self-learning chatbots are capable of adapting to changing conditions in their operating environment and learning from their actions, experiences, and judgments.

 


Frequently Asked Questions (FAQ) :


Table of Contents

 

1. Introduction

1.1 Market Definition

1.2 Scope

1.3 Research Assumptions

 

2. Research Methodology

 

3. Market Dynamics

3.1 Drivers

3.2 Restraints

3.3 Opportunities

3.4 Challenges

 

4. Impact Analysis

4.1 COVID 19 Impact Analysis

4.2 Impact of Ukraine-Russia War

 

5. Value Chain Analysis

 

6. Porter’s 5 forces model

 

7.  PEST Analysis

 

8. Global Chatbot Market Segmentation, by component type

8.1 Solutions

8.1.1 Software

8.1.2 Platform

8.2 Services

8.2.1 Managed Services

8.2.2 Professional Services

8.2.2.1 Consulting

8.2.2.2 System Integration and Implementation

 

9. Global Chatbot Market Segmentation, by Type

9.1 Rule Based

9.2 AI Based

 

10. Global Chatbot Market Segmentation, by Deployment mode

10.1 On-premises

10.2 Cloud

 

11. Global Chatbot Market Segmentation, by Channel integration

11.1 Websites

11.2 Contact Centers

11.3 Social Media

11.4 Mobile Applications

 

12. Global Chatbot Market Segmentation, by Organization size

12.1 Large Enterprises

12.2 Small and Medium-sized Enterprises (SMEs)

13. Global Chatbot Market Segmentation, by Business function

13.1 Information Technology Service Management

13.2 Human Resources

13.3 Sales and Marketing

13.4 Finance

 

14. Global Chatbot Market Segmentation, by Application

14.1 Customer Service

14.2 Personal Assistant

14.3 Branding and Advertisement

14.4 Customer Engagement and Retention

14.5 Data Privacy and Compliance

14.6 Employee Engagement and On-Boarding

14.7 Payment Processing

14.8 Others (Churn Analysis, Campaign Management, News Delivery, and Data Aggregation)

 

15. Global Chatbot Market Segmentation, by Verticals

15.1 BFSI

15.2 IT and Telecom

15.3 Retail and Ecommerce

15.4 Healthcare and Life Sciences

15.5 Transportation and Logistics

15.6 Government

15.7 Travel and Hospitality

15.8 Media and Entertainment

15.9 Others (Education, Energy and Utilities, and Manufacturing)

 

16. Regional Analysis

16.1 Introduction

16.2 North America

16.2.1 USA

16.2.2  Canada

16.2.3  Mexico

16.3 Europe

16.3.1  Germany

16.3.2  UK

16.3.3  France

16.3.4  Italy

16.3.5  Spain

16.3.6  The Netherlands

16.3.7  Rest of Europe

16.4 Asia-Pacific

16.4.1  Japan

16.4.2  South Korea

16.4.3  China

16.4.4  India

16.4.5  Australia

16.4.6  Rest of Asia-Pacific

16.5 The Middle East & Africa

16.5.1  Israel

16.5.2  UAE

16.5.3  South Africa

16.5.4  Rest

16.6 Latin America

16.6.1  Brazil

16.6.2  Argentina

16.6.3  Rest of Latin America

 

17. Company Profiles

17.1 IBM (US)

17.1.1 Financial

17.1.2 Products/ Services Offered

17.1.3 SWOT Analysis

17.1.4 The SNS view

17.2 Microsoft (US)

17.3 Google (US)

17.4 AWS (US)

17.5 Nuance (US)

17.6 Oracle (US)

17.7 Creative Virtual (UK)

17.8 Artificial Solutions (Spain)

17.9 Kore.ai (US)

17.10 Inbenta (US)

17.11 [24]7.AI (US)

17.16 Aivo (Argentina)

17.17 ServiceNow (US

17.14 Conversica (US)

17.14 Personetics (US)

 

18. Competitive Landscape

18.1 Competitive Benchmarking

18.2 Market Share analysis

18.3 Recent Developments

 

19. Conclusion

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Secondary Research

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