Chatbots today carry multiple functions within a messaging conversation without the need to download an external application. Additionally, Artificial Intelligence (AI) has made significant developments in the current chatbot capabilities. Techniques, such as deep learning and Machine Learning (ML), leverage a large amount of data and low processing power, thus enhancing the decision-making process. The global chatbot market has been segmented by component, technology, deployment model, usage, organization size, application, and vertical. The market study has been divided into 5 regions, namely North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America. The North American region is expected to hold the largest market size in the overall chatbot market, followed by Europe, as these regions are at the forefront in the adoption of chatbots and other AI-enabled technologies. MarketsandMarkets expects the global Chatbot Market to grow from USD 2.6 billion in 2019 to USD 9.4 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 29.7% during the forecast period.
The chatbot market comprises 3 broad technologies, such as ML and deep learning, Natural Language Processing (NLP), and Automated Speech Recognition (ASR). Since AI technology enables machines to perform activities of human beings, it has opened up enormous market opportunities across multiple application areas. ML uses the data collected from multiple sources to improve the understanding of the program, hence the technology is capable of making data-driven predictions or decisions rather than strictly following static program instructions. Substantial deployments that cater to multiple use cases are concerned with customer services, appointment management, and employee onboarding, which are major factors driving AI and ML-enabled chatbots.
Chatbot software integrated with social media platforms helps organizations deliver a personalized, self-service, and social experience to customers via Facebook, Twitter, or any other social media platform. It includes chatbots, social network integration, natural language, real-time metrics, virtual agents, and messaging for social media. In line with the software, the company is largely focused on improving customer engagement and retention processes. Chatbot software when integrated with social media platforms offers features, such as, customized branding, 24/7 customer assistance, quick response to the users, and promotions.
APAC is expected to grow at the highest CAGR during the forecast period. Countries in the APAC region are technology-driven and present major opportunities in terms of investments and revenue, including China, Singapore, Japan, and India. Factors, such as flexible economic conditions, industrialization- and globalization-motivated policies of the governments, as well as expanding digitalization, are projected to support the growth of the chatbot market in the region.
The adoption of chatbot solutions is considerable and is projected to grow at a good pace in the coming years. Factors contributing to the growth of the chatbot market are technological advancements with the advent of technologies, such as analytics, AI, and cloud, which enable various industries to organize and streamline their operations. Furthermore, increasing customer demand for self-service is accelerating the adoption of chatbot, thus offering a competitive advantage to businesses. Additionally, offering quick responses to customer queries has become a key factor for the organizations’ success, hence enterprises are looking at chatbots as a powerful conversational interface to engage customers in an effective way by giving them a dynamic and rich user experience environment.
Some major players profiled in the report are IBM Corporation (US), Nuance Communications (US), Google (US), Amazon Web Services (US), Artificial Solutions (Spain), Inbenta Technologies (US), 7.ai (US), Chatfuel (US), Aivo (Argentina), Botsify (Pakistan), Passage AI (US), Kore.ai (US), KeyReply (Singapore), SmartBots (US), Contus (India), Yellow Messenger (India), CogniCor (US), Conversica (US), Gupshup (US), Kevit (India), and Yekaliva (India). These players have adopted various organic and inorganic growth strategies, such as partnerships, agreements, and collaborations; acquisitions; and new product launches and product enhancements, to further expand their presence in the global chatbot market. New product launches and product enhancements have been the most dominating strategy adopted by the major players, which has helped them to innovate their offerings and broaden their customer base.
This article was first published on MarketWatch
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