Chatbot Market

Global Chatbot Market Size (2024 to 2029)

The global chatbot market is foreseen to expand from USD 4.92 billion in 2023 to USD 23.21 billion by 2029, at an annual expansion rate (CAGR) of 29.5%.

Current Scenario of the Global Chatbot Market

A chatbot is an artificial intelligence (AI) based software that can make a human language conversation through messaging apps, websites, mobile, or other platforms. The report covers various end-user segments, such as BFSI, healthcare, travel and hospitality, government and others, where chatbots are implemented in various geographies.A chatbot is essentially an application based on artificial intelligence that talks to a human to solve a problem or respond to a certain request. This reduces uptime and improves efficiency, which helps market growth. According to Salesforce, 69% of consumers prefer to use chatbots because of the speed at which they can communicate with a brand. Additionally, the demand for voice-activated smart devices is gaining popularity due to high convenience and fully automated processes. In January 2020, Google introduced its AI-based chatbot, Meena. It is a multi-turn open domain chatbot formed end-to-end on the extracted data. Meena's neutral network contains around 2.6 billion parameters. Chatbots are poised to grow at a significant rate, so companies are poised to embrace the technology in their existing business portfolio. According to MIT Technology Review, 90% of the companies reported faster resolution of robot complaints.

MARKET TRENDS

Artificial Intelligence (AI) mass adoption rate has been used to focus on customer satisfaction with the introduction of ChatBots. Healthcare providers continually work with ChatBot companies to better help patients. The average number of patients spends around 30 minutes trying to find the right service that their local hospital can provide, and the average nurse spends 1 hour a day trying to connect with the right doctor.

Major healthcare systems use chatbots to facilitate fully conversational discovery of their services and enable seamless planning for their patients. With similar ease, vendors can now track specialists and set benchmarks through a single conversation with the help of conversational AI agents. For example, Gyant's chatbot asks patients to understand their symptoms, then sends the data to doctors, who provide diagnoses and prescribe drugs in real time. In March 2019, the company said it had pushed more than 785,000 people in Latin America to pass a diabetes test.

Healthcare providers are nowadays implementing these chatbots to interact with their patients about recent procedures and information on chronic illnesses like diabetes, cardiovascular disease, arthritis, etc., which is supposed to increase patient satisfaction and decrease readmissions. In a healthcare space, chatbots provide simplicity and convenience to consumers, helping to improve workforce, productivity and consumer connection for providers. For instance, Northwell Health chatbots help patients in cancer care, and Premera Blue Cross introduced its Premera Scout chatbot to assist patients in their treatment. Additionally, the Mayo Clinic is digging into the technology by investigating voice-activated robots.

In the current market scenario, there are various mobile applications that use AI for chat bots or image analysis facilities, which are increasingly popular among mobile users. For example, take the case of Babylon, a leading AI-based mobile app that allows users to use a smart chatbot to help and link symptoms and communicate with an affected doctor via video chat.

MARKET DRIVERS AND RESTRAINTS

Some of the key factors driving the growth of the global chatbot market are the increasing demand for chatbots across various industry verticals and the focus on improving customer engagement through artificial intelligence-based chatbots. However, among the various factors responsible for slowing the growth of the chatbot market, the technological competence to host and support the functioning of the chatbot in order to provide a smooth user experience is of great importance.

Impact of Covid-19 on the Global Chatbot Market

With the recent COVID-19 outbreak, the chatbot has been increasingly implemented by various organizations to respond to customer inquiries and other related information. Because remote work has been adopted by different organizations due to national blockade, the company relies heavily on chatbots to reduce the burden of customer inquiries due to minimal availability of customer service employees.In addition, the chatbot provides millions of people with the necessary information about COVID-19 daily. For instance, a Facebook Messenger version launched by WHO in April 2020 through its WHO Health Alert platform offered instant and precise information about COVID-19 using Facebook's global presence.

REPORT COVERAGE

REGIONAL ANALYSIS

North America is a major contributor to the global chatbot market revenue. Additionally, the region is expected to be the fastest-growing segment during the forecast period. Growth in the region is mainly driven by demand from countries like the United States and Canada. The Asia Pacific region is foreseen to expand with a considerable CAGR in the coming years.

KEY PLAYERS IN THE GLOBAL CHATBOT MARKET

1. IBM Corporation (USA),

2. Nuance Communications (USA),

3. Google (USA),

4. Amazon Web Services (USA),

5. Artificial Solutions (Spain),

6. Inbenta Technologies (USA),

7. Chatfuel (USA),

8. AIVO (Argentina),

9. Botsify.com (Pakistan),

10. Passage AI (USA),

11. Kore.ai (USA),

12. KeyReply (Singapore),

13. SmartBots (USA), Contus (India),

14. Yellow Messenger (India),

15. CogniCor Technologies (USA),

16. Conversica (USA),

17. Gupshup (United States)

18. Kevit (India).

RECENT HAPPENINGS IN THE GLOBAL CHATBOT MARKET

• In April 2020, IBM, with its Watson Assistant chatbots, is helping government agencies, healthcare organizations, and academics around the world to use artificial intelligence to put critical data and information in the hands of their citizens.

• In February 2020, Creative Virtual has a partnership with Spitch AG, the leading developer of enterprise voice solutions in Switzerland. The collaboration will use the best technologies from both companies to provide their clients with innovative self-service solutions. The integration of Creative Virtual's V-Person natural language chatbots and Spitch voice technology brings to the market a leading-edge voice bot offering.

DETAILED SEGMENTATION OF THE GLOBAL CHATBOT MARKET INCLUDED IN THIS REPORT

This research report on the global chatbot market has been segmented and sub-segmented based on the platform, end-user, company size, and region.

By Platform

• Web Based

• Mobile

• Standalone

By End-User

• BFSI

• Healthcare

• Travel and Hospitality

• Government

• Educational Institutions

• Others

By Company Size

• Small and Medium Enterprises

• Large Enterprises

By Region

• Asia Pacific

• Europe

• Middle East and Africa

• North America

• Latin America