Chatbot Market - Growth, Trends, and Forecast (2019 - 2024)

The Chatbot Market is segmented by Type (Solution and Service), Deployment (Cloud and On-premise), End-user Vertical (BFSI, Healthcare, IT and Telecommunication, Retail, Utilities, Government, and Other End-user Verticals), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa).

Market Snapshot

chatbots market
Study Period:

2019-2024

Base Year:

2018

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

Key Players:

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Chatbot Market

The chatbot market was valued at USD 1,274.428 million in 2018, and is projected to reach USD 7,591.82 million by 2024, registering a CAGR of 34.75% over the forecast period, 2019 - 2024. The demand for voice-activated smart devices is gaining high traction, due to their high convenience and fully automated processes. Notably, smart speakers are becoming ubiquitous.

  • A chatbot is basically an artificial intelligence-powered application that converses with a human being to solve a problem or to answer a certain query. This reduces the operational time and enhances efficiency, which may boost the market growth.
  • Furthermore, according to a survey conducted by Facebook in early 2018, about 1.4 billion people used messenger applications, and they are rapidly willing to converse with a chatbot that is expected to have a positive impact on the market growth over the forecast period.
  • Though the development of chatbot is at a nascent stage, still its adoption rate is increasing. The relative lack of awareness and convenience has been one of the major issues identified over the last few years, which is restraining the growth of the market. However, some of the major vendors are looking to address the issues by introducing interactive features in the product.
  • Additionally, in the banking and financial industry, the attempt to mitigate the need for live call centers and slit excess costs is very evident and can be achieved with the introduction of the chatbot.

Scope of the Report

A chatbot is an artificial intelligence (AI) software that can simulate a conversation (or a chat) with a user in natural language through messaging applications, websites, mobile apps, or through the telephone.

By Type
Solution
Service
By Deployment
Cloud
On-premise
By End-user Vertical
BFSI
Healthcare
IT and Telecommunication
Retail
Utilities
Government
Other End-user Verticals
By Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa

Report scope can be customized per your requirements. Click here.

Key Market Trends

Retail Sector to Witness High Growth

  • In recent times, the retail offering is huge, which creates difficulty for a user to navigate through all of them. Though options, such as search and filter, are provided by the companies. However, they are clumsy at times for a user to navigate. In the retail industry, a chatbot replicates the real-life experience of the store, wherein, the users should post their desired products and suggestions which is be provided by the bot.
  • Many retail companies are incorporating their chatbot application to various widely used messaging apps, to offer rich customer experience and solve customer queries.
  • Global retail outlets, such as Domino's, are leveraging the advantages of artificial intelligence and machine learning through chatbots, wherein a user can place an order directly through messenger. In February 2017, the company launched its first chatbot integrated with Facebook messenger, which is expected to have an immense impact on the market growth over the forecast period.
chatbots market

To understand key trends, Download Sample Report

Asia-Pacific to Witness the Highest Growth

  • In the Asia-Pacific region, there are numerous startups investing in the chatbot and machine learning technology. Additionally, small- and mid-sized enterprises are rapidly integrating the usage of chatbots in their customer service process, which offers seamless performance, handling many consumers and enhancing the customer-engagement techniques.
  • For instance, Singapore Life, a Singapore-based insurer, in June 2018, built a self-learning chatbot, which made the company’s services more accessible to the public through Facebook and other social networking platforms and easier to understand. This is likely to boost the market growth in the region over the forecast period.
  • With the rapidly expanding information and communications technology infrastructure in the leading economies, such as China and India, in the region, the market is expected to grow further.
  • The massive population and rising adoption of smartphone users in the region are forming a highly promising consumer pool for the chatbot market, especially for applications, such as personal assistance.
chatbots market

To understand geography trends, Download Sample Report

Competitive Landscape

The chatbot market is highly competitive, owing to the presence of many small and large players in the market. The market is moderately concentrated with the key players adopting strategies, like product innovation, to stay ahead of the competition. Some of the players in the market are IBM Corporation, Dialogflow (Google), and Amazon Web Services Inc. (Amazon Lex), among others.

  • May 2018: eGain launched Solve, a solution for Amazon Connect (based on Amazon Web Services (AWS) cloud infrastructure), which is expected to enhance the consumer experience and mitigate the latency.
  • Jul 2018 - IBM introduced Watson Tone Analyzer, which is expected to make chatbots more astute to emotions. This is expected to boost the utilization and help the company to garner higher market share across the world.

Major Players

  1. IBM Corporation
  2. Dialogflow (Google)
  3. Amazon Web Services Inc. (Amazon Lex)
  4. Creative Virtual Ltd
  5. LiveChat Inc.

* Complete list of players covered available in the table of contents below

chatbots market

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Rising Domination of Messenger Applications

      2. 4.3.2 Increasing Demand for Consumer Analytics

    4. 4.4 Market Restraints

      1. 4.4.1 Lack of Awareness and Integration Complexities

    5. 4.5 Value Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Solution

      2. 5.1.2 Service

    2. 5.2 By Deployment

      1. 5.2.1 Cloud

      2. 5.2.2 On-premise

    3. 5.3 By End-user Vertical

      1. 5.3.1 BFSI

      2. 5.3.2 Healthcare

      3. 5.3.3 IT and Telecommunication

      4. 5.3.4 Retail

      5. 5.3.5 Utilities

      6. 5.3.6 Government

      7. 5.3.7 Other End-user Verticals

    4. 5.4 By Geography

      1. 5.4.1 North America

      2. 5.4.2 Europe

      3. 5.4.3 Asia-Pacific

      4. 5.4.4 Latin America

      5. 5.4.5 Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 IBM Corporation

      2. 6.1.2 eGain Corporation

      3. 6.1.3 Nuance Communications

      4. 6.1.4 Creative Virtual Ltd

      5. 6.1.5 Artificial Solutions Inc.

      6. 6.1.6 Next IT Corp

      7. 6.1.7 [24]7.ai Inc.

      8. 6.1.8 MEOKAY

      9. 6.1.9 Botsify

      10. 6.1.10 Chatfuel

      11. 6.1.11 Bold360 ai

      12. 6.1.12 Dialogflow (Google)

      13. 6.1.13 Amazon Web Services Inc. (Amazon Lex)

      14. 6.1.14 LiveChat Inc.

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please Enter a Valid Message!


Complete your payment details below

Shipping & Billing Information

Payment Information