Published: Oct, 2018
As top three technology-driven companies Google, Microsoft, and Facebook held more than 90% share in the chatbot market, the growth of the market is likely dependent on these companies. However, there are other players also contributing in the market growth such as Pandorabots, Inc., Slack Technologies, Inc., Astute Solutions, Kasisto Inc., and Kasisto Inc. to name some. Some of the prominent companies are investing in mergers and acquisitions to get strong hold in the market that will also increase the competition in the market. Recently, Google acquired a small San Francisco based start-up Onward. The Onward’s technology can serve as a chatbot that can answer customer’s questions over a call or can function as an information assistance to human call center representative. This will be done by providing data such as past shopping activities related to items present in their cart. Moreover, the companies are expected to face tough competition with the existing players depended on the services they can offer to their customers.
According to the report published by Transparency Market Research, the global chatbot market is projected to attain a valuation of US$0.94 bn by the end of 2024 progressing from US$0.11 bn earned in 2015. The market is expected to rise at excellent CAGR of 27.8% by volume during the forecast period between 2016 and 2024.
On the basis of enterprise size, large enterprise is projected to dominate the market in terms of revenue, as this is expected to generate US$0.62 bn by the end of forecast period. Large enterprises widely use chatbot to introduce business process automation activities and for digital marketing applications. On the regional front, the global chatbot market is projected to lead by North America, as it has a larger share in the global market. Over the forecast period, North America is projected to continue its dominance. In addition, Asia Pacific is anticipated to exhibit highly promising CAGR during the forecast tenure.
Increasing Use of Chatbot across Various Business to Boost Market Growth
The rising technological advancements and constant developments in the function of the artificial intelligence (AI) have triggered the demand for the chatbot. Furthermore, artificial intelligence has also progressed the way in which chatbot responded i.e. now chatbot is smart communication platform used for customer interaction from a simple answering machine. The use of chatbot has greatly benefited various organizations and has enhanced their marketing strategies with an effective use chatbot. In addition, application of artificial intelligence in consumer electronics has also expanded the client base with the assistance of chatbot. In the last few years, advancements in digital technology have also benefitted numerous business houses in expanding their market reach by developing digital marketing strategies. In this, voice and messaging services were used widely. Therefore, by considering the above-mentioned factors, the chatbot market is expected to rise significantly across the globe in the next few years.
Lack of Expertise to Hamper Growth of Chatbot Market
Despite the growing use of chatbot in various business, there are certain factors that may hamper the growth of chatbot market. One of the major factors is lack of expertise and little awareness about the use of chatbot and its benefits. In addition, to develop a tech-savvy surrounding involves high cost for deployment, security, management, and have integration complexities that might discourage individuals to use chatbot facility. Thus, these factors are responsible for deterring the market growth across various economies. However, by confronting these issues and resolving these issues might minimize these restraints and create high growth opportunities for the market in the near future.
The information presented in this review is based on a TMR report, titled “Chatbot Market (Platform - Web-based, Mobile, and Standalone; Enterprise Size - Small and Medium Enterprises and Large Enterprises) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”
The Global Chatbot Market has been segmented as presented below:
Global Chatbot Market, by Platform
Global Chatbot Market, by Enterprise Size
- Small and Medium Enterprises
- Large Enterprises
Global Chatbot Market: Geography
- North America
- Rest Of Europe
- Asia Pacific Excluding Japan
- Rest Of Asia Pacific
- Latin America
- Rest of South America
- Middle East & Africa (MEA)
- South Africa
- Rest of MEA
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