A chatbot is a service, which is programmed by a computer, to stimulate conversation with human users via a chat interface, which typically operates over the internet. Chatbots are being increasingly used in applications such as e-commerce customer service, internet gaming, and call centers. They are available across platforms such as mobile, stand-alone, and internet. Owing to their high costs, they are primarily used across large enterprises. The future of the global chatbot market looks bright with the growing investments in the training and designing of chatbots.
According to a report by Transparency Market Research, the market had a valuation of US$113.0 mn in 2015 and is poised to rise to US$994.5 mn by 2024, progressing at a remarkable CAGR of 27.8% between 2016 and 2024. The report serves as a reliable source of trends, statistics, and other information regarding the chatbot market at both global and regional levels.
Global Chatbot Market: Drivers and Restraints
With the rapid advancements in the artificial intelligence, the global chatbot market is like to rake in a healthy share of the pie. Advancements in the technology have enabled chatbots to have a more convenient interface and thus, create a better-knit network for an organization. The growing trend of digitalization and greater emphasis on the accessibility to messaging-as-OS platform are stoking the growth of the global market. Moreover, the expanding scope of applications found for chatbots is augmenting the growth of the market.
On the flip side, the key hosting issues such as chatbot integration, monitoring, management, and security are impeding the widespread adoption of chatbots. Furthermore, the brisk pace at which capabilities are growing does not match with the growth in the areas where they can be applied, which in turn is hampering the growth of the market. Nevertheless, the rising penetration of chatbot-as-a-service and continuous advancements in the cloud technology are likely to provide a significant push to the global chatbot market in the forthcoming years.
This 150 page report gives readers a comprehensive overview of the Chatbot Market. Browse through 24 data tables and 52 figures to unlock the hidden opportunities in this market:
North America was the leading revenue contributor in 2015, generating US$52.7 mn within the global chatbot market and is anticipated to retain its position until 2024. The U.S. will be at the forefront of growth, owing to the high demand for chatbots. The growing investments in research and development in the field of artificial intelligence are providing a significant boost to the growth of the region.
On the other hand, in order to gain a competitive edge, software developers and manufacturers are estimated to tap into ample opportunities offered by developing regions such as Asia Pacific and Latin America. Asia Pacific is expected to post a significant CAGR during the forecast period, owing to the advancing ICT infrastructure within its emerging economies such as India and China. A large population of smartphone users renders Asia Pacific a prominent contender in the global arena, especially in the aspects of personalized assistance applications and media publication management.
Global Chatbot Market: Competitive Scenario
Facebook, Inc., Google, Inc., and Microsoft Corporation were the torch bearers in the global chatbot market in 2015, accounting for 97.5% of its value, indicating towards the extremely consolidated nature of this market. The dominance of these players can be attributed to their strong brand name and the sizeable funds they allocate for developing chatbot technologies.
The market thrives on the need shown by enterprises to deliver innovative chatbots that support multiple languages using natural language processing and can be easily incorporated into social media and SMS platform.