Facebook, Inc., Google, Inc., and Microsoft Corporation were the clear winners in the global chatbot market in 2015. Their collective share of close to 97.5% in the market’s revenue is an indicator of the extremely consolidated nature of the market. Consumers show an extremely high preference for the products of these three players due to their recognition and the much larger investments they make into developing chatbot technologies. Additionally, Yahoo, Inc. has also made unique floors of development for itself to gather a significant share in the market.
According to a research report released by Transparency Market Research, the scope of entry for new players into the global chatbot market is notably minor, given the sheer volume of the communications markets taken up by messaging applications such as Kik, Twitter, Facebook Messenger, WeChat, WhatsApp, Skype, and Line. The market thrives on the need shown by enterprises to deliver a better customer experience while maintaining a virtual and automated presence. The power to effectively resolve customer queries and complaints, while efficiently promote company products to the correct demographics are extremely valuable tools for any business today, thereby showing a promising future for the global chatbot market. The global chatbot market in 2015 was valued at US$113.0 mn. It is predicted to expand at a resounding CAGR of 27.8% by revenue, from 2016 to 2024. By the end of 2024, the global chatbot market is expected to reach US$994.5 mn.
Large Enterprises Making Smart Headway Using Chatbot Advancements
“The two generalized types of end users for the global chatbot market currently, are a combined tier of small and medium enterprises, and a tier of large enterprises. Of these, the smaller ones do not – or cannot – make the best of chatbots like the bigger fish can. The prospects of using chatbots bring to the table the two very wanted concepts of business process automation and optimized product marketing. Large enterprises can avail these prospects to a very high degree and on a much greater scale. As a result, in 2015, large enterprises produced a whopping US$76.6 mn of the revenue generated in the global chatbot market,” states a TMR analyst.
Large enterprises are enticed towards the global chatbot market due to the many advancements made in artificial intelligence over the recent years. These improvements have allowed chatbots to filter down to basic consumer levels and therefore create a tighter network for an enterprise. The global chatbot market is also augmented by the growing demand for online messaging and the overall increasing scope of applications found for chatbots across multiple industry verticals.
Shortfall in Chatbot Hosting Capabilities Hampers Market Growth
The leading factor restricting the overall scope of growth achievable by the global chatbot market is the rate at which its capabilities are growing in comparison to the areas where they can be used. Messaging and voice technologies are now a mainstay in several industry verticals and are driving the demand for chatbots across the world. However, there are still several key hosting issues that need to be resolved, such as chatbot management, monitoring, security, and integration. The inability of hosts to provide for these facilities is deterring several enterprises from taking advantage of the global chatbot market.
“The proliferation of chatbot-as-a-service is expected to becoming a key area of opportunities for the players currently existing in the global chatbot market. The growing and seemingly irreplaceable involvement of cloud computing across all industries is creating the need for implementing it within the global chatbot market, thereby opening new doors for growth,” adds the analyst.
The information presented in this review is based on a Transparency Market Research report, titled, “Chatbot Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”
Key segments of the Global Chatbot Market
Chatbot Market, by Platform
Chatbot Market, by Enterprise Size
- Small and Medium Enterprises
- Large Enterprises
Chatbot Market, by Geography
- North America
- The U.S.
- Rest of North America
- The U.K.
- Rest of Europe
- Asia Pacific (APAC)
- Rest of APAC
- Middle East & Africa (MEA)
- United Arab Emirates (the UAE)
- Saudi Arabia
- Rest of MEA
- South America
- Rest of South America