Global Chatbot Market (2020 to 2026) - Rise in Demand for AI-Based Chatbots to Deliver Enhanced Customer Experience Presents Opportunities

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Apr 01, 2021, 09:30 ET

DUBLIN, April 1, 2021 /PRNewswire/ -- The "Chatbot Market by Component, Type (Rule Based & AI Based), Application (Customer Service, Customer Engagement & Retention), Channel Integration, Business Function (ITSM, Finance), Vertical, and Region - Global Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.

The global Chatbot market size to grow from USD 2.9 billion in 2020 to USD 10.5 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 23.5% during the forecast period.

The adoption of chatbot solutions is considerable and is projected to grow at a good pace in the coming years. One of the factors contributing to the growth of the chatbot market is the advent of technologies, such as analytics, AI, and cloud, which enable various industries to organize their operations. Furthermore, the increasing customer demand for self-services is accelerating the adoption of chatbots, thus offering a competitive advantage to businesses.

The chatbot market is estimated to witness a trivial slowdown in 2020 due to the global lockdown. The COVID-19 pandemic has increased the churn rate and shuddered almost every industry. The lockdown is impacting global manufacturing, and supply chains and logistics as the continuity of operations for various sectors are badly impacted. The sectors facing the greatest drawbacks are manufacturing, transportation and logistics, and retail and consumer goods. The availability of essential items is impacted due to the lack of manpower to work on production lines, supply chains, and transportation, although the essential items are exempted from the lockdown.

The condition is expected to come under control by early 2021, while the demand for chatbot solutions and services is expected to increase due to the increasing demand for enhancing customer experience and building a personalized relationship with prospects. Several verticals would deploy a diverse array of chatbot solutions and services to enable digital transformation initiatives, which address mission-critical processes, improve operations, and differentiate customer viewing experiences. The reduction in operational costs, better customer experiences, resolution of customer queries, enhanced visibility into processes and operations, and improved real-time decision-making are key business and operational priorities that are expected to drive the adoption of chatbots.

The services segment is expected to grow at a higher CAGR during the forecast period

The global chatbot market is segmented on the basis of components into solutions and services. Based on the solutions segment, the market is divided into platform and software. The services segment is further divided into managed services and professional services. The services segment is expected to grow at a higher CAGR during the forecast period. The growing use of AI and analytics for policymaking, environmental analysis, and real-time decision-making is expected to increase the adoption of services.

The AI-based segment to grow at a higher CAGR during the forecast period

The global chatbot market is segmented on the basis of type into rule based and AI based. The AI-based segment is expected to at a higher CAGR during the forecast period. Due to intelligent customer engagement and the self-learning process, the AI-based segment is anticipated to register the fastest growth during the forecast period.

Among verticals, the healthcare and life sciences segment to grow at the highest CAGR during the forecast period

The chatbot market is segmented into the various verticals, particularly BFSI, IT and telecom, retail and eCommerce, healthcare and life sciences, transportation and logistics, government, travel and hospitality, media and entertainment, and others (education, energy and utilities, and manufacturing). Key factors favoring the growth of chatbots across these verticals include the rising technology advancements and growing availability of industry-specific chatbots. Healthcare and life sciences vertical is expected to grow at the highest CAGR during the forecast period. Chatbots have the potential to revolutionize healthcare. They can substantially boost efficiency and improve the accuracy of symptom collection and ailment identification, preventive care, post-recovery care, and feedback procedures.

APAC to grow at a higher CAGR during the forecast period

The chatbot market has been segmented into five regions: North America, Europe, APAC, MEA, and Latin America. Among these regions, North America is projected to hold the largest market size during the forecast period. APAC is expected to grow at the highest CAGR during the forecast period. Countries in APAC are technology-driven and present major opportunities in terms of investments and revenue. These countries include China, Singapore, Japan, and India. Factors such as flexible economic conditions, industrialization- and globalization-motivated policies of governments, and digitalization are expected to support the growth of the chatbot market in APAC.

Key Topics Covered:

1 Introduction

2 Research Methodology

3 Executive Summary

4 Premium Insights
4.1 Attractive Opportunities in Chatbot Market
4.2 Market: Top Three Applications
4.3 Market: by Component and Top Three Verticals
4.4 Market: by Region

5 Market Overview
5.1 Introduction
5.2 Chatbot: Evolution
5.3 Chatbot: Architecture
5.4 Market Dynamics
5.4.1 Drivers
5.4.1.1 Advancements in Technology, Coupled with Rising Customer Demand for Self-Service Operations
5.4.1.2 Growth in Need for 247 Customer Support at a Lower Operational Cost
5.4.1.3 Increase in Focus on Customer Engagement Through Various Channels
5.4.2 Restraints
5.4.2.1 Inability to Recognize Customer Intent and Respond Effectively
5.4.2.2 Dearth of Accuracy in User's Voice Authentication
5.4.3 Opportunities
5.4.3.1 Initiatives Toward the Development of Self-Learning Chatbots to Deliver a More Human-Like Conversational Experience
5.4.3.2 Rise in Demand for AI-Based Chatbots to Deliver Enhanced Customer Experience
5.4.4 Challenges
5.4.4.1 Lack of Awareness About the Effect of Chatbot Technology on Various Applications
5.4.5 Cumulative Growth Analysis
5.5 Case Study Analysis
5.5.1 Bankbazaar Implemented Haptik's Chatbot to Increase Customer Engagement and Enhance Customer Reach
5.5.2 Loreal Partnered with Automat to Develop a Messaging Chatbot to Increase Customer Engagement and Enhance Productivity
5.5.3 Zurich Insurance Group Worked with Spixii to Develop Zara Chatbot for Quick Notifications
5.5.4 Ubisend Offers Vanarama a Leasing Chatbot Solution to Enable Customers to Browse and Handle Customer Queries
5.5.5 Six Payment Services Ltd. Partnered with Enterprise Bot to Enhance Customer Service
5.5.6 Oyo Integrated Haptik's Live Chat Agent Tool to Provide Customer Support and Handle Query Over Whatsapp
5.5.7 Elisa Estonia Deployed Mindtitan's Chatbot to Analyze Incoming Chats and Improve Customer Experience
5.5.8 Tia Selected Rasa's Nlu to Incorporate Hipaa Compliant and Improve Efficiency
5.5.9 Snaps Offers Nike a Personalized Engagement Model to Increase Customer Engagement Via Mobile Channel
5.5.10 Dream 11 Implemented Haptik's Support Bot to Enhance Customer Support During Seasonal Spike
5.5.11 Seb Retail Bank Enhances the Efficiency of Internal and External Support Processes Through Ipsoft's Amelia Chatbot
5.6 Value Chain Analysis
5.7 Regulatory Landscape
5.7.1 General Data Protection Regulation
5.7.2 Health Insurance Portability and Accountability Act
5.7.2.1 Payment Card Industry Data Security Standard
5.7.2.2 Financial Industry Regulatory Authority
5.7.2.3 Service Organizational Control 2
5.7.2.4 Markets in Financial Instruments Directive II
5.8 Chatbot Market: COVID-19 Impact
5.9 Patent Analysis
5.9.1 Methodology
5.9.2 Document Type
5.9.3 Innovation and Patent Applications
5.9.3.1 Top Applicants
5.10 Pricing Model Analysis
5.11 Porter's Five Forces Analysis
5.12 Scenario
5.13 Technology Analysis
5.13.1 Machine Learning and Chatbot

6 Chatbot Market, by Component
6.1 Introduction
6.1.1 Components: COVID-19 Impact
6.1.2 Components: Market Drivers
6.2 Solutions
6.2.1 Software
6.2.2 Platform
6.3 Services
6.3.1 Managed Services
6.3.2 Professional Services
6.3.2.1 Consulting
6.3.2.2 System Integration and Implementation
6.3.2.3 Support and Maintenance

7 Chatbot Market, by Type
7.1 Introduction
7.1.1 Types: COVID-19 Impact
7.1.2 Types: Market Drivers
7.2 Rule Based
7.3 AI Based

8 Chatbot Market, by Deployment Mode
8.1 Introduction
8.1.1 Deployment Modes: COVID-19 Impact
8.1.2 Deployment Modes: Market Drivers
8.2 On-Premises
8.3 Cloud

9 Chatbot Market, by Channel Integration
9.1 Introduction
9.1.1 Channel Integrations: COVID-19 Impact
9.1.2 Channel Integrations: Market Drivers
9.2 Websites
9.3 Contact Centers
9.4 Social Media
9.5 Mobile Applications

10 Chatbot Market, by Organization Size
10.1 Introduction
10.1.1 Organization Size: COVID-19 Impact
10.1.2 Organization Size: Market Drivers
10.2 Large Enterprises
10.3 Small and Medium-Sized Enterprises

11 Chatbot Market, by Business Function
11.1 Introduction
11.1.1 Business Functions: COVID-19 Impact
11.1.2 Business Functions: Market Drivers
11.2 Information Technology Service Management
11.3 Human Resources
11.4 Sales and Marketing
11.5 Finance

12 Chatbot Market, by Application
12.1 Introduction
12.1.1 Applications: COVID-19 Impact
12.1.2 Applications: Market Drivers
12.2 Customer Service
12.3 Personal Assistant
12.4 Branding and Advertisement
12.5 Customer Engagement and Retention
12.6 Data Privacy and Compliance
12.7 Employee Engagement and on Boarding
12.8 Payment Processing
12.9 Other Applications

13 Chatbot Market, by Vertical
13.1 Introduction
13.1.1 Verticals: COVID-19 Impact
13.1.2 Verticals: Market Drivers
13.2 Banking, Financial Services, and Insurance
13.3 Information Technology and Telecom
13.4 Retail and Ecommerce
13.5 Healthcare and Life Sciences
13.6 Travel and Hospitality
13.7 Media and Entertainment
13.8 Transportation and Logistics
13.9 Government
13.10 Other Verticals

14 Chatbot Market, by Region
14.1 Introduction
14.2 North America
14.3 Europe
14.4 Asia-Pacific
14.5 Middle East and Africa
14.6 Latin America

15 Competitive Landscape
15.1 Overview
15.2 Market Evaluation Framework
15.3 Market Share, 2020
15.4 Historic Revenue Analysis of Key Market Players
15.5 Key Market Developments
15.5.1 New Product Launches and Product Enhancements
15.5.2 Deals
15.5.3 Others
15.6 Company Evaluation Matrix Definitions and Methodology
15.7 Company Evaluation Matrix, 2020
15.7.1 Star
15.7.2 Emerging Leaders
15.7.3 Pervasive
15.7.4 Participants
15.7.5 Strength of Product Portfolio
15.7.6 Business Strategy Excellence
15.8 Startup/SME Evaluation Matrix, 2020
15.8.1 Progressive Companies
15.8.2 Responsive Companies
15.8.3 Dynamic Companies
15.8.4 Starting Blocks
15.8.5 Strength of Product Portfolio
15.8.6 Business Strategy Excellence

16 Company Profiles
16.1 Introduction
16.2 Major Players
16.2.1 IBM
16.2.2 Microsoft
16.2.3 Google
16.2.4 Amazon Web Services (AWS)
16.2.5 Nuance Communications
16.2.6 Servicenow
16.2.7 Creative Virtual
16.2.8 Kore.ai
16.2.9 Artificial Solutions
16.2.10 Inbenta
16.2.11 [24]7.ai
16.2.12 AIvo
16.2.13 Conversica
16.2.14 Personetics
16.2.15 Oracle
16.2.16 Livechat
16.2.17 Mindmeld
16.2.18 Cognicor Technologies
16.2.19 Gupshup
16.2.20 Contus
16.3 Startup / SME Players
16.3.1 Chatfuel
16.3.2 Keyreply
16.3.3 Smartbots
16.3.4 Yellow Messenger
16.3.5 Kevit
16.3.6 Yekaliva
16.3.7 Pypestream

17 Adjacent and Related Markets

For more information about this report visit https://www.researchandmarkets.com/r/yor4q3

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