Global chatbot market is likely to exhibit a promising growth curve as far as the short-term outlook is considered. The report will uncover the insights into how the market growth will unfold in the next few years.
Advent of AI, and Rising Adoption across SMEs and Large Enterprises to Bolster Chatbot Market Growth
Increasing number small and medium scale enterprises coupled with proliferation of artificial intelligence has significantly contributed towards the use of chatbots. Various industries such as media and entertainment, government, retail, e-commerce, travel, and logistics among others are adopting the chatbot platform for customer interaction. By leveraging artificial intelligence, bots can carry out interactive conversations with customers or end users thus facilitating an improved customer engagement and experience. Furthermore, Artificial Intelligence-based chatbot offers significant cost savings associated with sales and marketing applications. For instance, in 2022, Amazon reported huge cost savings by using automated chatbots. According to the retail giant, deflecting 2% of all calls to automated chatbot results in around 97% of operational cost savings. In addition, such automated chatbots can answer FAQs and handle huge call volumes thus providing a multi-lingual customer service. That said, chatbots equipped with new age technology can support businesses and provide seamless customer experience. In this backdrop, growing inclination towards using the technology in SMEs across industry verticals is expected to favour the growth of the chatbot market on the global front.
High Demand of Cloud-based Conversational Bots to Facilitate Rapid Expansion of Chatbot Market
Penetration of cloud technology has resulted in the development and adoption of cloud-based NLP (Natural Language Processing) engines thus influencing the chatbot market. In addition, major players such as Unibot, IBM and Google among others have been focusing on the development of conversational bots. These conversational bots facilitate user interaction with online services using interactive texts, audio, live chat, task modules and graphics. End users are inclined towards using such cloud based solutions to improve their business performance and enhance their productivity. Moreover, various start-ups such as OnGraph Technologies, Root Info Solutions, Chatbots Studio and Octne.ai are heavily investing in development of advanced bots. This factor remains instrumental in driving the growth of market. Moreover, self-learning chatbots are data-driven and powered by NLP technology with supervised machine learning ability. This enables human-like communication which can significantly improve customer experience thus influencing business growth. That said, growing need for handling customized customer experiences coupled with the cognitive ability of self-learning bots is expected to fuel growth of the chatbot market.
Growing Use in the Healthcare Sector to Provide Potential Opportunities for the Chatbot Market
Use of chatbots in the healthcare industry has been increasing at a significant pace since the past few years and is expected to maintain status quo going forward. This can be attributed towards rising adoption of AI powered chatbots in the healthcare sector. In the medical industry, bot services help in providing information related to patient health to the user along with supporting in setting up physician appointments. In addition, technology companies are partnering with healthcare institutions to promote use of chatbots. For instance, in 2022, Walton Centre NHS Foundation Trust and Tata Consultancy Services (TCS) partnered to increase productivity of specialists thus reducing waiting time of patients by using digital solutions. TCS is focused on developing an advanced AI powered chatbot that can assist in multiple processes, thus enhancing productivity. In this backdrop, rising use in the healthcare industry is poised to pave new avenues of growth for the chatbot market.
Asia Pacific to Showcase High Lucrativeness in Global Chatbot Market
Asia Pacific region is expected to witness momentous growth in the chatbot market in the forthcoming years. This can be attributed towards rising e-commerce and retail businesses across emerging economies such as India, China, Vietnam, Taiwan, Indonesia, and Thailand. In addition, companies are introducing new chatbots in different industry verticals. For instance, in 2021, Bharat Petroleum Corporation Limited (BPCL) launched Urja. This chatbot is artificial intelligence enabled bot introduced in the oil and gas sector to offer customers an interface that delivers a seamless customer experience along with a faster resolution of issues and queries. This assistant provides services such as pricing, LPG booking, delivery status and payment status. In addition, proliferation of internet and increasing number of small and medium scale companies has also accelerated the adoption of chatbots. Also, the region is a lucrative revenue pocket for companies owing to several macro aspects such as rising customer pool backed by increasing population and favourable business environment and government support. This is expected to attract more technology providers in the region, thus paving a potential pathway for the chatbot market in Asia Pacific.
Chatbot Market: Competitive Landscape
New product development, collaborations, acquisitions, and partnerships have been witnessed in the chatbot market. For instance, in January 2021, Omnichannel Patient Engagement Virtual Assistant Platform was launched by Nuance. This platform provides a well thought out and implemented solution thus delivering improved digital services. Same year in February, Nuance acquired Saykara Inc., a start-up developing mobile AI assistant which automates clinical documentation. In March 2022, Health Assist was launched by Kore.ai at the HIMSS conference. In 2021, the company launched a new virtual assistant with Japanese language to help Japanese people and encourage use of virtual assistants.
A few of the major players in the chatbot market include IBM, Nuance Communications Inc., Avaamo Inc., eGain Corporation, AWS, Creative Virtual Ltd., SAP SE, Verloop, Microsoft Corporation, LiveChat Inc., Aivo, Kore.ai, and Oracle.
Regional Classification of Global Chatbot Market Can be Given as Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Chatbot Market
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