NEW
YORK, Aug. 23, 2024 /PRNewswire/ -- The
global chatbot market size is estimated to grow by
USD 5.37 billion from 2024-2028,
according to Technavio. The market is estimated to grow at a CAGR
of 35.27% during the forecast period. Several benefits associated
with using chatbots solutions is driving market
growth, with a trend towards integration of chatbots with
communication channels. However, lack of awareness and
standardization of chatbot services poses a challenge. Key market
players include 247.ai Inc., Acuvate, Aivo, Alphabet Inc.,
Amazon.com Inc., Artificial Solutions International AB, Avaamo
Inc., Botsify, Conversica Inc., Creative Virtual Ltd., eGain Corp.,
Inbenta Holdings Inc., International Business Machines Corp.,
Kore.ai Inc., Meta Platforms Inc., Microsoft Corp., OpenAI L.L.C.,
Oracle Corp., ServiceNow Inc., and Zoom Video Communications
Inc..
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
End-user (Retail, BFSI,
Government, Travel and hospitality, and Others), Product (Solutions
and Services), and Geography (North America, APAC, Europe, South
America, and Middle East and Africa)
|
Region
Covered
|
North America, APAC,
Europe, South America, and Middle East and Africa
|
Key companies
profiled
|
247.ai Inc., Acuvate,
Aivo, Alphabet Inc., Amazon.com Inc., Artificial Solutions
International AB, Avaamo Inc., Botsify, Conversica Inc., Creative
Virtual Ltd., eGain Corp., Inbenta Holdings Inc., International
Business Machines Corp., Kore.ai Inc., Meta Platforms Inc.,
Microsoft Corp., OpenAI L.L.C., Oracle Corp., ServiceNow Inc., and
Zoom Video Communications Inc.
|
Key Market Trends Fueling Growth
Chatbots are integrated with various communication platforms,
such as Microsoft Bot Connector for Skype, email, and more. The
increasing use of the internet, digitalization, and mobile devices
have transformed interactions between people and businesses.
Facebook, owned by Meta, dominates the chatbot sector with
messaging apps like Messenger and WhatsApp sending 60 billion
messages daily. Banking notifications from Bank of America and food
orders from Burger King are examples of bot usage. Monetization of
chatbots will offer opportunities for widespread marketing and
promotional content distribution. Key players in bot development
include PANDORABOTS, Robot.me, KiK, and Chatfuel. The integration
of chatbots with communication channels is a significant trend
driving the global chatbot market's growth.
The chatbot market is thriving, with trends focusing on
enhancing online shopping experiences. Product selections,
comments, and recommendations are now powered by advanced
algorithms. Nearby stores, opening hours, and contact information
are easily accessible through chatbots. Upcoming products and
Instacart orders can be managed with a simple chat. OpenAI's
ChatGPT technology and AI language tools offer conversational
experiences across messaging channels and social networking sites.
Generative models like GPT-4 and Natural Language Processing (NLP)
technology drive self-learning chatbots. Customer intent is
accurately identified using Supervised ML and NLP technology.
Chatbot solutions cater to various industries, including IT and
ITeS, with audio/voice bots also gaining popularity. APIs and AI
advancements continue to fuel innovation in this dynamic
industry.
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Market Challenges
- The chatbot market faces significant challenges, including
low awareness and standardization of chatbot services in various
sectors and countries, particularly in developing nations like
Brazil and India. These regions lack sufficient IT
infrastructure and have limited vendor penetration, hindering the
adoption of advanced technologies such as chatbots. Furthermore,
concerns regarding chatbot security, including privacy and data
protection, pose a threat to market growth. Despite these
challenges, untapped markets in various sectors present significant
opportunities for chatbot vendors. However, penetrating these
markets requires overcoming resource constraints and addressing the
lack of IT infrastructure, which can be difficult. Overall, the
lack of awareness and standardization in the chatbot market may
hinder revenue growth during the forecast period.
- The Chatbot Market is witnessing significant growth in
various industries including Telecom and Healthcare. However,
implementing AI chatbots comes with challenges. In Customer
Service, integrating chatbots with Artificial Intelligence
technology, Natural Language Processing, and Messaging facilities
can be complex. Open AI chatbots for Financial Organizations,
Grocery Outlets, and other businesses require careful
consideration. Standalone and Website chatbots must offer Voice
Recognition and seamless Chatbot Interface. Consumer Analytics and
AI software applications are essential for prompt relevant answers
to user queries. Market requirements demand user-friendly
experiences, actionable insights, and integration with messenger
applications. Enterprises face challenges in providing correct
information around the clock, as customer service employees have
working hour limitations. Chatbots can help with leads, in-store
purchases, mobile alerts, and updates, but they must be able to
understand user intent and provide instant service to enhance the
customer experience. Key players include WhatsApp, WeChat, and
Facebook Messenger.
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Segment Overview
This chatbot market report extensively covers market
segmentation by
- End-user
- 1.1 Retail
- 1.2 BFSI
- 1.3 Government
- 1.4 Travel and hospitality
- 1.5 Others
- Product
- 2.1 Solutions
- 2.2 Services
- Geography
- 3.1 North America
- 3.2 APAC
- 3.3 Europe
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Retail- The chatbot market is experiencing
significant growth as businesses seek to enhance customer
engagement and streamline operations. Chatbots provide automated,
24/7 support, reducing response time and improving customer
satisfaction. They can handle routine inquiries, freeing up human
agents for more complex issues. Integration with CRM systems allows
for personalized interactions and data analysis. Chatbots offer
cost savings and increased efficiency, making them an essential
tool for modern businesses.
For more information on market segmentation with
geographical analysis including forecast (2024-2028) and historic
data (2018 - 2022) - Download a Sample Report
Research Analysis
The chatbot market is experiencing significant growth due to
advancements in generative models and natural language processing
(NLP) technology. GPT-4, a new generation of language models, is
revolutionizing the way chatbots understand and respond to user
queries. Self-learning chatbots are becoming increasingly popular,
enabling them to improve their responses over time. These
AI-powered bots are being adopted by various industries, including
financial organizations and grocery outlets, for customer service
activities. Messaging facilities have become essential touchpoints
for consumer analytics, and chatbots, as open AI software
applications, are at the forefront of this trend. Virtual
assistants powered by artificial intelligence and NLP are providing
prompt relevant answers to user intents, enhancing the overall
customer experience. APIs allow for seamless integration of these
chatbots into existing systems, making them an indispensable tool
for businesses.
Market Research Overview
The chatbot market is experiencing significant growth due to
advancements in generative models and natural language processing
(NLP) technology. GPT-4, a new AI model, is revolutionizing
conversational experiences by understanding context and generating
human-like responses. Self-learning chatbots and supervised machine
learning algorithms are enabling more accurate customer intent
recognition. Chatbot solutions are being adopted across various
industries, including IT and ITeS, telecom, healthcare, financial
organizations, grocery outlets, and more. Messaging facilities on
messaging applications like WhatsApp, WeChat, and Facebook
Messenger are driving the demand for chatbots. Customer service
activities are being automated with AI chatbots, enabling instant
service and reducing the workload on customer service employees.
Audio/voice bots and SMS chatbots are also gaining popularity,
providing convenience to customers. Chatbot developers are
leveraging consumer analytics and recommendation algorithms to
offer personalized experiences and actionable insights. AI and NLP
software applications are being integrated into virtual assistants
to enhance user experience and prompt relevant answers to customer
queries. Market requirements are shifting towards more advanced
chatbot solutions, including standalone chatbots, website chatbots,
and chatbot APIs. Enterprises are using chatbots for leads,
in-store purchases, mobile alerts, updates, and more. Organizations
are leveraging chatbots to improve customer experience touchpoints,
understand user intent, and provide correct information to
customers. Chatbot solutions are being integrated with messaging
channels, messaging services, and social networking sites to expand
reach and engagement.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- End-user
-
- Retail
- BFSI
- Government
- Travel And Hospitality
- Others
- Product
-
- Geography
-
- North America
- APAC
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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