Global Chatbots Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Component (Software, Services), By Platform (Websites, Mobile Applications), By Deployment Mode (Cloud, On-Premise), By End Use Industry (Healthcare, Communication, Retail, Education, Others), And By Geography - Forecasts From 2022 To 2027

Published:  Nov 2022 Report Code: KSI061611077 Pages: 127

The global chatbots market is projected to witness a compound annual growth rate of 22.43% during the forecast period, reaching a total market size of US$1,312.783 million in 2027 from US$318.359 million in 2020. 

The demand for chatbots is highly driven by technological advancements which are, in turn, enabling the easier implementation of artificial intelligence tools in consumer electronic products. The global market for chatbots is also hugely benefitting from the improved use of online messaging along with the growing use of chatbots in digital marketing strategies for purposes such as customer engagement and the generation of leads. Other factors driving the demand for chatbot software and services include higher penetration of websites and mobile applications and high adoption of cloud-based technology. However, major factors responsible for hindering the growth of the global chatbots market include lack of awareness owing to relatively early stages in the tech-adoption life cycle and high deployment costs.

Growth of messaging applications

Chatbots are software applications that utilize AI and NLP technologies in order to understand human needs and guide them to their desired outcome with as minimal work as possible by the end user as possible. These chatbots act as virtual assistants for the customer experience touchpoints. Bots not only construe the user intent but also process their requests and give answers relevant to their queries. The market is majorly driven by the growing domination of messenger applications and the inclining demand for customer analytics. Owing to the rising use of messenger applications, integration of chatbots with these messengers results in a higher return on investment as approaching the customers on their preferred application aids in improving user experience. Further, messenger applications allow chatbots to save the chat history of the user for future purposes to personalize user experience and get actionable insights. The messaging app usage statistics released by Hootsuite in January 2022 showed that WhatsApp has 2 billion active monthly users, followed by WeChat with 1.263 billion monthly active users, followed by Facebook Messenger which has 998 million monthly active users. Chatbots with the potency to reasonably mimic human bheaviours allow brands to engage consumers more efficiently on these soaring messaging platforms.

Asia-Pacific to Witness the Highest Growth

The Asia Pacific region has been witnessing significant growth in industrialization, driving the need for chatbots in the market. The rising retail and e-commerce penetration in emerging economies, such as China, India, Vietnam, Malaysia, Indonesia, the Philippines, Thailand, and Taiwan have accelerated the demand and adoption of chatbots by retailers and e-commerce business owners. In August 2021, BPCL (Bharat Petroleum Corporation Ltd ) introduced Urja, an AI-enabled chatbot, which is the country's first chatbot in the oil and gas industry to provide their customers with an interface for a convenient self-service experience and faster resolution of issues and queries. This virtual assistant offers services like LPG booking, payment status, price, refill history, and delivery status of booked LPG cylinders. With the expanding IT and communications technology infrastructures in leading economies, like China and India, the market is predicted to grow further in the region. For instance, the governments in the region are taking initiatives to support the demand for chatbots. The Victorian government in July 2022 rolled out Australia's first multi-lingual WhatsApp chatbot, called the AskVic. This WhatsApp chatbot is forecasted to provide culturally and linguistically diverse communities in Victoria with COVID-19 information and support. This will resultantly increase the trust further and use this wide range of translated information the Victorian government provides. Due to the rising technological need, the region is experiencing the emergence of start-ups to help provide a better overall customer experience. In April 2022, Omnichat, which is a Hong Kong-based chat commerce solution, made an announcement that it had raised US$ 1.8 million in pre-series A funding. Omnichat aids online sellers to centralize their conversations with their customers from WhatsApp, Instagram, Facebook Messenger, Line, as well as WeChat into a single platform. The platform also has an offering of marketing automation, as well as chatbot solutions to make the operations of the sellers more efficient.

Key Developments

  • September 2022 - eGain Corporation, which is the leading knowledge automation platform provider for customer engagement, announced the availability of a pre-built connector for IBM Watson Assistant. The connector would leverage eGain's unique BYOB architecture, enabling the business users to easily plug the Watson Assistant into the eGain platform without the need of coding.
  • August 2022 - Serviceaide Inc. decalred continued Latin American momentum, including a firm, established customer base in the South American region and an expanded sales and support presence in the state of Mexico. The firm launched a Spanish version of its ChangeGear ITSM platform in the region, thus expanding on the Luma Virtual Agent Suite and Intelligent Service Management ITSM solution already available in the region.

COVID-19 Insights

With the outbreak of the COVID-19 pandemic, chatbots have been very increasingly deployed by several organizations to respond to customer queries, as well as other related information. As different organizations adopted remote working due to the mandated lockdowns imposed by several governments, companies became heavily dependent on these chatbots to reduce the burden of customer queries due to the minimal availability of customer service employees.

Segmentation

  • By Component
    • Software
    • Services
  • By Platform
    • Websites
    • Mobile applications
  • By Deployment Mode
    • Cloud
    • On-Premise
  • By End Use Industry
    • Healthcare
    • Communication
    • Retail
    • Education
    • Others
  •  By Geography
    • North America
      • United States
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • UK
      • Germany
      • France
      • Italy
      • Spain
      • Others
    • Middle East and Africa (MEA)
      • Saudi Arabia
      • UAE
      • Isreal
      • Others
    • Asia Pacific (APAC)
      • Japan
      • China
      • India
      • Australia
      • South Korea
      • Indonesia
      • Thailand
      • Taiwan
      • Others

Frequently Asked Questions (FAQs)

Q1. What are the growth prospects for the chatbots market?
A1. The chatbots market is projected to witness a CAGR of 22.43% over the forecast period.


Q2. What is the size of the global chatbots market?
A2. Chatbots Market was valued at US$318.359 million in 2020.


Q3. Who are the major players in the chatbots market?
A3. Major industry players profiled as part of the chatbots market report are Hinduja Global Solutions Ltd., CM.com, Omind Technologies Pvt Ltd, Artificial Solutions, IBM, and Nuance Communications, Inc. among others.


Q4. What will be the chatbots market size by 2027?
A4. The chatbots market is projected to reach a total market size of US$1,312.783 million by 2027.


Q5. What factors are anticipated to drive the chatbots market growth?
A5. The demand for chatbots is highly driven by technological advancements which are, in turn, enabling the easier implementation of artificial intelligence tools in consumer electronic products.


1. INTRODUCTION

1.1. Market Overview

1.2. Covid-19 Scenario

1.3. Market Definition

1.4. Market Segmentation

 

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

 

3. EXECUTIVE SUMMARY

3.1. Research Highlights

 

4. MARKET DYNAMICS

4.1. Market Driver

4.2. Market Restraints

4.3. Porters Five Forces Analysis

4.3.1. Bargaining Power of End-Users

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

 

5. GLOBAL CHATBOTS MARKET, BY COMPONENT

5.1. Introduction

5.2. Software

5.3. Services

 

6. GLOBAL CHATBOTS MARKET, BY PLATFORM

6.1. Introduction

6.2. Websites

6.3. Mobile applications

 

7. GLOBAL CHATBOTS MARKET, BY DEPLOYMENT MODE

7.1. Introduction

7.2. Cloud

7.3. On-Premise

 

8. GLOBAL CHATBOTS MARKET, BY END-USE INDUSTRY

8.1. Introduction

8.2. Healthcare

8.3. Communication

8.4. Retail

8.5. Education

8.6. Others

 

9. GLOBAL CHATBOTS MARKET, BY GEOGRAPHY

9.1. Introduction

9.2. North America

9.2.1. United States

9.2.2. Canada

9.2.3. Mexico

9.3. South America

9.3.1. Brazil

9.3.2. Argentina

9.3.3. Others

9.4. Europe

9.4.1. UK

9.4.2. Germany

9.4.3. France

9.4.4. Italy

9.4.5. Spain

9.4.6. Others

9.5. Middle East and Africa (MEA)

9.5.1. Saudi Arabia

9.5.2. UAE

9.5.3. Isreal

9.5.4. Others

9.6. Asia Pacific (APAC)

9.6.1. Japan

9.6.2. China

9.6.3. India

9.6.4. Australia

9.6.5. South Korea

9.6.6. Indonesia

9.6.7. Thailand 

9.6.8. Taiwan

9.6.9. Others

 

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Emerging Players and Market Lucrativeness

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Vendor Competitiveness Matrix

 

11. COMPANY PROFILES

11.1. Hinduja Global Solutions Ltd. 

11.2. CM.com

11.3. Omind Technologies Pvt Ltd

11.4. Artificial Solutions

11.5. IBM

11.6. Nuance Communications, Inc.

11.7. eGain

11.8. Creative Virtual Ltd

11.9. Next IT Corp.

Hinduja Global Solutions Ltd. 

CM.com

Omind Technologies Pvt Ltd

Artificial Solutions

IBM

Nuance Communications, Inc.

eGain

Creative Virtual Ltd

Next IT Corp.

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