Introduction of Chatbot Market Report

A chatbot is an artificial intelligence (AI) software which stimulates a conversation (mostly a chat) with a user in a natural language through messaging applications, websites, mobile apps or via phone call. Chatbots are mainly used in dialog systems for different practical purposes such as customer services or information acquisition.

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The global chatbot market is projected to reach USD 4,860.8 million by the end of 2026, growing at a CAGR of 22.7% during 2019-2026. The major factors contributing to the growth of the global chatbot market include the growing customer demand for 24*7 support service and the increasing usage of chatbots among various industries. The AI-powered chatbots offer several advantages such as the delivery of support in different languages, automation of repetitive tasks resulting in increased process efficiency, and improved self-service experiences. The chatbot’s ability to personalize the experience without any interruption will attract a large number of industries who are looking 24*7 customer support systems.

Various multinational giants such as Starbuck, KLM Dutch Airlines, Spotify, and Bank of America are using chatbot to engage customers effectively while delivering seamless customer experience. The significant shift in demand of the companies towards enhancing customer experience through various platforms will positively influence the growth of the global chatbot market over the coming years. The increasing usage of self-learning chatbots to collect feedback, monitor consumer data, and track purchasing patterns will further energize the market’s demand. Self-learning chatbot analyses data in minimal time, provide exact information to the customers, and learns from their mistakes. On the other hand, the limited adoption of chatbots by the small & medium sized enterprises (SMEs) due to high maintenance cost and lack of skilled resources, will hamper the growth of the global chatbot market over the coming years.

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Based on the Technology, the Natural Language Processing segment is predicted to lead the market during the forecast period owing to the growing demand for better customer experience and the rising usage of smart devices around the world. Furthermore, the increasing deployment of cloud-based and web business application and continuous advancements in the machine-to-machine technology will further surge the demand of the segment.

Based on the Deployment Model, the On-Premises Chatbot segment is expected to grow at a higher CAGR during the forecast period due to the accelerating demand for better-controlled chatbot system at a lower cost. These chatbots offer total control on security measures used for physical access control with a lower on-going cost.

Based on the Usage, the Website segment is expected to grow at a higher CAGR during the forecast period owing to the increasing adoption of chatbot by various companies and businesses to collect feedbacks, record changes in the purchase patterns, tracks customer data,  and to offer instant response to customers queries. For example, Domino’s chatbot allows its customers to place an order through Messenger chatbot with an option to reorder previous orders and track the live location of the order placed.

Based on Organization Size, the Large Enterprises segment is anticipated to witness a faster CAGR during the forecast period owing to the increasing online presence of large companies at the global level. With the rapid urbanization and rising digitalization, the consumer’s preference has significantly shifted towards e-commerce.  The significant shift in the customer’s demand is encouraging large enterprises towards the adoption of chatbot to provide 24*7 service, instant response, and language support to attract customers around the world.

Based on Application, the Customer Engagement and Retention segment is expected to grow at a higher CAGR during the forecast period due to the increasing deployment of Artificial Intelligence (AI)-powered chatbots to improve customer engagement and offer a seamless customer experience. Chatbots acts as a powerful tool to attract, retain, and engage new customers in every business. Thus, customer engagement and retention are expected to become a significant application area to deploy chatbot solutions.

Based on Verticals, the Retail and Ecommerce segment is anticipated to lead the market during the forecast period due to the increasing adoption of chatbot applications by retail companies on their official website to provide excellent customer experience and solve customer queries. Moreover, the swift shift in the customer’s demand towards e-shopping and the growing usage of smart devices such as smartphones, tablets, and laptops, will further enhance the segment’s growth. For example, in 2016, H&M successfully launched H&M’s chatbot on messenger app Kik. The chatbot provided the customers with an option to choose from the recommendations, filters, and style preferences. It also allowed them to share their favorite pages and items with their contact on the Kik app.

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Based on region, the Asia-Pacific is expected to grow at the fastest rate during the forecast period due to the leveraging information-intensive AI technologies, especially in the developing countries, including China, Singapore, India, and Japan. Additionally, the heavy investments in chatbot and machine learning technology by various startups and the rising usage of chatbots by small and medium-sized enterprises to improve customer engagement will further increase the demand of chatbots in this region. The expansion in Information Technology (IT) sector is creating innumerable growth opportunities in the Asia-Pacific Chatbot market over the coming years. The massive growth in the population and the rising adoption of smartphones will attract large number of customers towards the chatbot market in this region.

Various notable players operating in the market include Microsoft Corporation, Google LLC., IBM Corporation, Amazon Web Services, eGain Corporation, Nuance Communication, Inc., Creative virtual Ltd., Artificial Solution International AB, Next IT Corp., Chatfuel, among others.

Key Developments:

• • In 2018, Amazon Web Services (AWS) entered into a collaboration with Haptik, a leading Indian AI-based chatbot platform to offer cutting-edge chatbot solutions to the customers in India. through this tie-up, both the companies leveraged their conversational bots to automate the critical processes across customer support.

The Global Chatbot market has been segmented based on Component, Technology, Deployment Model, Usage, Organization Size, Application, Vertical, and Regions. Based on Component, the market is segmented into Solutions and Services. Based on the Technology, the market is segmented into Machine Learning and Deep Learning, Natural Language Processing and Automated Speech Recognition. Based on the Deployment Model, the market is segmented into On-Premises and Cloud. Based on Usage, the market is segmented into Websites, Contact Centres, Social Media, Mobile Platform. Based on Organization Size, the market is segmented into Large Enterprises and Small and Medium-Sized Enterprises. Based on Application, the market is segmented into Customer Support, Personal Assistant, Branding and Advertisement, Customer Engagement and Retention, Data Privacy and Compliance, On-Boarding and Employee Engagement, and Others. Based on Vertical, the market is segmented into Banking & Financial Services and Insurance, Retail and Ecommerce, Healthcare, Travel and Hospitality, Media and Entertainment, Telecommunications, and Others.

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Key questions answered in this research report:

• • At what pace is global Chatbot market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in Chatbot market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global Chatbot market?
  • Which Component generated maximum revenues in 2018 and identify the most promising Component during the forecast period?
  • What are the various Technologies of global Chatbot market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Report Coverage	Details
Market Base Year	2018
Market Forecast Period	2019-2026
Market Revenues Currency	USD Million
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Component, By Technology, By Deployment Model, By Usage, By Organization Size, By Application, By Vertical and By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	Microsoft Corporation, Google LLC., IBM Corporation, Amazon Web Services, eGain Corporation, Nuance Communication, Inc., Creative virtual Ltd., Artificial Solution International AB, Next IT Corp., Chatfuel, among others; A total of 10 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Global Chatbot Market by Component

• • Solutions
    • Platform
    • Software
  • Services
    • Managed Services
    • Professional Services

Global Chatbot Market by Technology

• • Machine Learning and Deep Learning
  • Natural Language Processing
  • Automated Speech Recognition

Global Chatbot Market by Deployment Model         

• • On-Premises
  • Cloud

Global Chatbot Market by Usage

• • Websites
  • Contact Centres
  • Social Media
  • Mobile Platform

Global Chatbot Market by Organization Size

• • Large Enterprises
  • Small and Medium-Sized Enterprises

Global Chatbot Market by Application

• • Customer Support
  • Personal Assistant
  • Branding and Advertisement
  • Customer Engagement and Retention
  • Data Privacy and Compliance
  • On-Boarding and Employee Engagement
  • Others

Global Chatbot Market by Vertical

• • Banking & Financial Services and Insurance
  • Retail and Ecommerce
  • Healthcare
  • Travel and Hospitality
  • Media and Entertainment
  • Telecommunications
  • Others

Global Chatbot Market by Region

• • North America Chatbot Market (Option 1: As a part of the free 25% customization)
    • North America Market by Component
    • North America Market by Technology
    • North America Market by Deployment Model
    • North America Market by Usage
    • North America Market by Organization Size
    • North America Market by Application
    • North America Market by Vertical
    • US Market All-Up
    • Canada Market All-Up
  • Europe Chatbot Market (Option 2: As a part of the free 25% customization)
    • Europe Market by Component
    • Europe Market by Technology
    • Europe Market by Deployment Model
    • Europe Market by Usage
    • Europe Market by Organization Size
    • Europe Market by Application
    • Europe Market by Vertical
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up
  • Asia-Pacific Chatbot Market (Option 3: As a part of the free 25% customization)
    • Asia-Pacific Market by Component
    • Asia-Pacific Market by Technology
    • Asia-Pacific Market by Deployment Model
    • Asia-Pacific Market by Usage
    • Asia-Pacific Market by Organization Size
    • Asia-Pacific Market by Application
    • Asia-Pacific Market by Vertical
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up
  • RoW Chatbot Market (Option 4: As a part of the free 25% customization)
    • RoW Market by Component
    • RoW Market by Technology
    • RoW Market by Deployment Model
    • RoW Market by Usage
    • RoW Market by Organization Size
    • RoW Market by Application
    • RoW Market by Vertical
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating the Chatbot (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Microsoft Corporation
  • Google LLC
  • IBM Corporation
  • Amazon Web Services
  • eGain Corporation
  • Nuance Communication, Inc.
  • Creative virtual Ltd.
  • Artificial Solution International AB
  • Next IT Corp.
  • Chatfuel