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

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

With the least amount of effort from the end user as possible, chatbots are software programmes that employ AI and NLP to comprehend human requirements and direct users to their intended outcomes. The user experience interactions are assisted by these chatbots in a digital capacity. In addition to deducing the person's purpose, bots also analyze their queries and respond to them. The increasing dominance of messaging applications and the rising demand for customer analytics are the two main factors driving the market. Because messenger apps are more popular, integrating chatbots with them yields a greater return on investment because reaching clients on their favoured application enhances user experience. Additionally, chatbots can preserve a person's chat history for later use to tailor the user experience and gather useful information thanks to messaging applications. According to Hootsuite's publication of usage data for messaging apps in January 2022, WhatsApp has 2 billion users worldwide, followed by WeChat with 1.263 billion active users per month and Facebook Messenger with 998 million monthly active users. The ability of chatbots to properly simulate human behaviour makes it possible for marketers to interact with customers more effectively on these booming messaging apps.

Asia-Pacific to Witness the Highest Growth

The demand for chatbots in the market has been driven by the tremendous industrial expansion that the Asia Pacific region has been experiencing. Retailers and online store owners are increasingly using chatbots due to the growing retail and e-commerce presence in emerging markets including China, India, Vietnam, Thailand, and Taiwan, among others. India's premier AI-enabled chatbot for the oil and gas sector, Urja, was launched by BPCL (Bharat Petroleum Corporation Ltd) in August 2021 to offer their clients a platform for a seamless self-service approach and speedier issue and query resolution. Offerings like LPG booking, managing payments, price, refill record, and delivery details of reserved LPG cylinders are provided by this digital assistant. The market in the region is expected to rise further as a result of the developing IT and communications technology facilities in major countries. For instance, regional governments are launching programmes to meet the need for chatbots. The AskVic WhatsApp chatbot, which was launched by the Victorian government in July 2022, marked the first multilingual chatbot in Australia. This WhatsApp chatbot is anticipated to offer assistance and information on COVID-19 to Victoria's multicultural and linguistically diverse groups. As a result, more individuals will rely on the Victorian government and its extensive collection of translated material. The region is also seeing the growth of start-ups to support a better holistic user experience because of the increasing technological requirement. Omnichat, a chat commerce platform with headquarters in Hong Kong, announced in April 2022 that the company had secured USD 1.8 million in pre-series A funding. Omnichat helps online merchants consolidate their consumer chats from platforms including WhatsApp, Instagram, Facebook Messenger, Line, and WeChat into a single one. To help merchants run their businesses more effectively, the platform also provides chatbot capabilities and marketing automation.

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 for coding.
• August 2022 - Serviceaide Inc. declared 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

Since the COVID-19 pandemic broke out, a lot of businesses started using chatbots to answer client questions and provide related data. Companies grew significantly reliant on such chatbots to lessen the strain of consumer enquiries as a result of the shortage of customer care staff as some corporations implemented remote working due to the enforced lockdowns enforced by several governments.

Global Chatbots Market Scope:

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