Global Chatbot Market- WishTree Insight

Global Chatbot Market by Type (Web-Based, Third Party, Standalone), Product (Human Intelligence, Artificial Intelligence, Marketing), Application (Bots For Service, Bots For Social Media, Bots For Payments, Bots For Marketing, and Others), Vertical (Healthcare, Travel & Tourism, Retail, E-commerce, BFSI, and Others), End-User (Small Enterprise, Medium Enterprise, and Large Enterprise), and Regions, (APAC, Europe, North America, and LAMEA) - Global Industry Analysis, Share, Growth, Trends, Size, and Forecast 2022 – 2032

The Chatbot market size was valued at USD 0.6 billion in 2022 and is expected to surpass USD XX billion by 2032, expanding at a CAGR of 26.3 % during the forecast period, 2022–2032. The market's growth is attributed to the increasing adoption of customer service activities among enterprises in order to reduce operating costs.

INTRODUCTION

A chatbot is a software application designed to simulate a conversation with human users, typically over the internet. It uses artificial intelligence (AI) and natural language processing (NLP) to understand user input and respond with appropriate information or actions. Chatbots are used in a variety of settings, including customer service, personal assistance, and information retrieval.

The chatbot market has been growing rapidly in recent years and is expected to continue to do so in the future. The increasing demand for automation and AI-based customer support services, as well as the growing adoption of chatbots in various industries such as healthcare, banking, and e-commerce, are some of the factors driving this growth.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing adoption of customer service activities in enterprises is expected to propel the market growth.
• Different innovations carried out in artificial intelligence and machine learning technologies are anticipated to drive the market. Increasing demand for automation: Chatbots are being adopted by companies to automate routine tasks and provide better customer service.
• Advancements in artificial intelligence and natural language processing: These technologies are improving the ability of chatbots to understand and respond to user queries.
• Growth of messaging platforms: Chatbots are integrated with messaging platforms such as Facebook Messenger and WhatsApp, which are increasingly being used for communication.
• Cost savings: Chatbots can provide 24/7 support at a lower cost than human customer service representatives.
• Personalization: Chatbots can use data to personalize interactions with customers, providing a better customer experience.
• Wide range of applications: Chatbots are being used in a variety of industries, including healthcare, finance, retail, and travel, which is driving their growth.
• Limited understanding: Chatbots may not always understand complex or nuanced queries, which can frustrate users.
• Lack of personal touch: Chatbots may not provide the same level of a personal touch as human customer service representatives, which can negatively impact the customer experience.
• Integration challenges: Integrating chatbots with existing systems and platforms can be challenging and time-consuming.
• Security and privacy concerns: Chatbots may need to access sensitive data, which can raise security and privacy concerns.
• Maintenance and upkeep: Chatbots require ongoing maintenance and upkeep, which can be costly.
• Limited language support: Chatbots may not support all languages, which can limit their use in some markets.

Scope of the Report

Market Segment Insights

The standalone segment is projected to register a considerable share of 55.2%

Based on type, the Chatbot market is divided into a web-based, third party, standalone. The standalone segment is projected to register a considerable share of 55.2% and is expected to continue its growth in the forecast period. The use of visual assistant applications is expected to propel the demand for standalone chatbots.

The marketing segment dominates the market with 55.3% of the revenue share

Based on product, the chatbot market is divided into human intelligence, artificial intelligence, and marketing. The marketing segment dominates the market with 55.3% of the revenue share. However, the artificial intelligence segment is projected to register a considerable CAGR of 26.9% in the coming years owing to extensive investments by market players in the artificial chatbots market.

The bots for the service segment hold a share of 35% in the market

On the basis of application, the chatbot market is segregated into bots for service, bots for social media, bots for payments, bots for marketing, and others. The bots for the service segment hold a share of 35% of the market. However, the bots for the social media segment hold a key market share in the chatbot market in terms of revenue.

The e-commerce segment is expected to expand at a rapid pace

Based on vertical, the chatbot market is divided into healthcare, travel & tourism, retail, e-commerce, BFSI, and others. The e-commerce segment is expected to expand rapidly during the forecast period. However, the BFSI segment is anticipated to hold a key share of the market in the coming years. Moreover, the travel & tourism vertical is anticipated to create lucrative growth in the projected period.

The large enterprise segment dominates the market with a 50% share

Based on end-user, the chatbot market is divided into small enterprises, medium enterprises, and large enterprises. The large enterprise segment dominates the market with a 50% share and is expected to expand rapidly during the forecast period. To achieve sophisticated operations, large enterprises are expected to optimize their chatbots in the coming years with a specific set of rules. However, the medium enterprise segment is anticipated to hold a key share of the market in the coming years.

North America accounts for a large revenue share of 40.2%

In terms of regions, the chatbot market is classified as APAC, Europe, North America, and LAMEA. North America accounts for a large revenue share of 40.2% in the chatbot market. The market of Asia Pacific is expected to constitute a key share of the market during the projected period.

Competitive Landscape

Key players competing in the Chatbot market are IBM Corporation; Next IT Corp.; Aivo; Artificial Solutions; Botsify Inc.; Acuvate.

FAQs

Mention the market size of the Chatbot in 2022.

The market size of the Chatbot in 2022 was USD 0.6 billion.

During the forecast period, what is the CAGR of the market?

During the forecast period, the CAGR of the market is expected to be 26.3%.

What are the key drivers of the market?

The market's growth is attributed to the increasing adoption of customer service activities among enterprises in order to reduce operating costs.

Mention the key players in the market.

IBM Corporation; Next IT Corp.; Aivo; Artificial Solutions; Botsify Inc.; Acuvate.