Global Chatbot Market: Snapshot
Vast developments in the field of artificial intelligence in the past few years have significantly benefitted the level of maturity that chatbots have witnessed from being simple answer machines with scripted responses to the present day chatbots that are smart enough to effectively engage potential consumers. Businesses are also increasingly using chatbots in highly interesting ways demonstrating the larger spectrum of capacities and capabilities of chatbots.
Technological advancements are allowing the easy implementation of artificial intelligence tools in consumer electronic products, thereby allowing the chatbot market to gain a larger consumer base. The market for chatbots is also significantly benefitting from the increased use of online messaging and the use of chatbots in digital marketing strategies for purposes such as customer engagement and generation of lead.
Transparency Market Research estimates that the global chatbot market will exhibit a staggering 27.8% CAGR, in terms of revenue, over the period between 2016 and 2024. The market is expected to rise from a valuation of US$113.0 mn in 2015 to US$994.5 mn in 2024.
Large Enterprises Make Best Use of Current Chatbot Features
The global chatbot market has been segmented in terms of the size of enterprises making use of them into small enterprises, medium-sized enterprises, and large enterprises. Of these, the segment of large enterprises accounted for a dominant share in the global chatbot market revenue in 2015. The segment is also expected to remain the key demand-driver for chatbots over the report’s forecast period, generating US$626.3 mn for the global market by 2024.
The vast scope of use of chatbots in large enterprises for digital marketing applications is the key factor contributing to the leading position of the segment in the global chatbot market. The segment of large enterprises also presents massive demand for chatbots owing to their use in initiating business process automation activities. Large enterprises also benefit from the use of chatbots in improving their marketing strategies and social media involvement.
North America to Contribute Massive Share in Global Revenue
From a geographical standpoint, the report includes the analytical overview of the chatbot market across regions such as North America, Asia Pacific, Latin America, Europe, and Middle East and Africa. Of these, the market in North America is presently known to account for a massive share in the overall market, the regional market was valued at US$52.7 mn in 2015 and is expected to retain its leading spot throughout the report’s forecast period, in terms of growth rate as well as demand. Healthy growth of the U.S. market for chatbots will remain the key force driving the North America market over the forecast period.
On the other hand, the market for chatbots in Asia Pacific is also expected to exhibit a highly promising CAGR over the report’s forecast period. Demand will chiefly stem from the rapidly expanding ICT infrastructure in leading economies such as India and China in the region. The already massive and rising population of mobile phone users is the region forms a highly promising consumer pool for the region’s chatbot market, especially for applications such as personalized assistance applications.
Some of the leading vendors contributing notably to the overall development of the global chatbot market are Helpshift, Imperson Ltd., Astute Solutions, Facebook, Inc., Haptik, Inc., Pandorabots, Inc., Google, Inc., Kiwi, Inc., Microsoft Corporation, Kasisto Inc., ToyTalk (PullString Inc.), Yahoo Inc., and Slack Technologies, Inc.
Global Chatbot Market: Overview
A chatbot is a service, which is programmed by a computer, to stimulate conversation with human users via a chat interface, which typically operates over the internet. Chatbots are being increasingly used in applications such as e-commerce customer service, internet gaming, and call centers. They are available across platforms such as mobile, stand-alone, and internet. Owing to their high costs, they are primarily used across large enterprises. The future of the global chatbot market looks bright with the growing investments in the training and designing of chatbots.
According to a report by Transparency Market Research, the market had a valuation of US$113.0 mn in 2015 and is poised to rise to US$994.5 mn by 2024, progressing at a remarkable CAGR of 27.8% between 2016 and 2024. The report serves as a reliable source of trends, statistics, and other information regarding the chatbot market at both global and regional levels.
Global Chatbot Market: Drivers and Restraints
With the rapid advancements in the artificial intelligence, the global chatbot market is like to rake in a healthy share of the pie. Advancements in the technology have enabled chatbots to have a more convenient interface and thus, create a better-knit network for an organization. The growing trend of digitalization and greater emphasis on the accessibility to messaging-as-OS platform are stoking the growth of the global market. Moreover, the expanding scope of applications found for chatbots is augmenting the growth of the market.
On the flip side, the key hosting issues such as chatbot integration, monitoring, management, and security are impeding the widespread adoption of chatbots. Furthermore, the brisk pace at which capabilities are growing does not match with the growth in the areas where they can be applied, which in turn is hampering the growth of the market. Nevertheless, the rising penetration of chatbot-as-a-service and continuous advancements in the cloud technology are likely to provide a significant push to the global chatbot market in the forthcoming years.
Global Chatbot Market: Geographical Segmentation
North America was the leading revenue contributor in 2015, generating US$52.7 mn within the global chatbot market and is anticipated to retain its position until 2024. The U.S. will be at the forefront of growth, owing to the high demand for chatbots. The growing investments in research and development in the field of artificial intelligence are providing a significant boost to the growth of the region.
On the other hand, in order to gain a competitive edge, software developers and manufacturers are estimated to tap into ample opportunities offered by developing regions such as Asia Pacific and Latin America. Asia Pacific is expected to post a significant CAGR during the forecast period, owing to the advancing ICT infrastructure within its emerging economies such as India and China. A large population of smartphone users renders Asia Pacific a prominent contender in the global arena, especially in the aspects of personalized assistance applications and media publication management.
Global Chatbot Market: Competitive Scenario
Facebook, Inc., Google, Inc., and Microsoft Corporation were the torch bearers in the global chatbot market in 2015, accounting for 97.5% of its value, indicating towards the extremely consolidated nature of this market. The dominance of these players can be attributed to their strong brand name and the sizeable funds they allocate for developing chatbot technologies.
The market thrives on the need shown by enterprises to deliver innovative chatbots that support multiple languages using natural language processing and can be easily incorporated into social media and SMS platform. Some other prominent companies operating in the global chatbot market are Haptik Inc., Astute Solutions, Imperson Ltd., Kiwi Inc., Helpshift, Pandorabots Inc., Kasisto Inc., Slack Technologies Inc., and Yahoo Inc.