Chatbot Market worth $15.5 billion by 2028 - Exclusive Report by MarketsandMarkets™

CHICAGO, May 8, 2023 /PRNewswire/ -- With chatbots becoming more sophisticated and integrated into a variety of fields and applications, the chatbot market's future is bright. Natural language processing, machine learning, and AI advancements will make chatbots smarter, more individualised, and more compatible with other technologies like voice assistants and augmented reality. We can anticipate that the chatbot market will continue to develop over the next several years as businesses realise the advantages of utilising chatbots to boost customer service and operational effectiveness.

The market for Chatbot Market is estimated to grow from USD 5.4 billion in 2023 to USD 15.5 billion by 2028, at a CAGR of 23.3% during the forecast period, according to a new report by MarketsandMarkets™. 

Browse in-depth TOC on "Chatbot Market"

322 - Tables
85 - Figures
342 - Pages

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Scope of the Report

Contact Centers to hold the largest market share during the forecast period

Chatbots can be valuable to contact centers as they can handle many routine customer inquiries and free up human agents to deal with more complex issues. It can be used by contact centers to handle the initial screening of customer inquiries, such as verifying account information or determining the nature of the customer's issue. It can be used by customer service to handle frequently asked questions such as billing inquiries, account changes, and product information. It can also be used to provide 24/7 customer support for customers. During the forecast period, the contact centers segment is anticipated to grow at a highest CAGR.

Mobile app to hold largest market share during the forecast period

Mobile app chatbots are AI programs designed to communicate with users through mobile applications. Mobile chatbots can be integrated into messaging apps such as WhatsApp, Facebook Messenger, and Telegram, allowing users to interact with businesses and organizations through these channels. The chatbots are integrated into websites and can assist users with tasks such as filling out forms, answering frequently asked questions, and providing personalized recommendations based on user preferences and behavior. The mobile app segment is expected to hold the largest market share during the forecast period.

Menu-based to hold the largest market share during the forecast period

A menu-based chatbot is a type of chatbot that uses a series of pre-defined menus and options to guide users through a conversation. Instead of allowing users to enter free-form text, the chatbot presents a series of choices or prompts that the user can select from. Menu-based chatbots are often used when possible user inputs are limited and well-defined, such as when ordering food from a restaurant, scheduling appointments, or selecting from a list of frequently asked questions (FAQs). The menu-based segment is expected to hold the largest market share during the forecast period.

Asia Pacific to hold the highest CAGR during the forecast period

The Asia Pacific segment is anticipated to grow at the highest CAGR during the forecast period. The demand for the Chatbot Market is estimated to expand due to the rising demand for relevant and more personalized search experiences. Chatbots can help enterprises in Asia Pacific to improve customer service and increase customer engagement by providing 24/7 support and personalized recommendations. Additionally, chatbots can help to reduce the workload of customer support teams, enabling them to focus on more complex inquiries.

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Chatbot Market Dynamics

Driver:

• Advancements in technology coupled with rising customer demand for self-service operations
• Growth in need for 24*7 customer support at lower operational costs
• Increase in focus on customer engagement through various channels
• Rising usage of generative models in chatbots

Restraint:

• Inability to recognize customer intent and respond effectively
• Accuracy concerns associated with voice authentication

Opportunities:

• Initiatives toward development of self-learning chatbots to deliver human-like conversational experience
• Rise in demand for AI-based chatbots to deliver enhanced customer experience
• Integration of sentiment analysis with chatbots for meaningful customer insights

Challenges:

• Lack of awareness about effect of chatbot technology on various applications
•  Complex and time-consuming setup and maintenance

Top Key Companies in Chatbot Market:

Major vendors in the global Chatbot Market are Google (US), Microsoft (US), IBM (US), AWS (US), Baidu (China), Oracle (US), SAP (Germany), OpenAI (US), Salesforce (US), Meta (US), Artificial Solutions (Sweden), ServiceNow (US), [24]7.ai (US), Kore.ai (US), Conversica (US), Inbenta (US), Creative Virtual (US), Avaamo (US), Haptik (India), Solvvy (US), Gupshup (US), Aivo (US), Personetics (US), LivePerson (US), Freshworks (India), Engati (US), Botsify (Pakistan), Yellow.ai (US), Drift (US), Intercom (US), Chatfuel (US), Landbot (Spain), Pandorabots (US), Customers.ai (US), Rasa (Germany), and BotsCrew (UK).

Recent Developments:

• In March 2023, Baidu announced that it would finish internal testing of a ChatGPT-style project called "ERNIE Bot" in March. ERNIE, short for "Enhanced Representation through Knowledge Integration," is a sizable language model powered by AI.
• In March 2023, OpenAI introduced GPT-4 to scale up deep learning. GPT-4 is a sizable multimodal model that accepts image and text inputs and emits text outputs. GPT-4 performs at a human-level on academic and professional benchmarks despite being less capable than humans in many real-world scenarios.
• In February 2022, Google launched a new Chatbot service for testers named Bard. The company is firstly making it available using LaMDA's lightweight variant.
• In February 2023, OpenAI introduced a chatbot called ChatGPT that can communicate with anyone, respond to follow-up inquiries, and correct tenuous assumptions.
• In January 2023, Microsoft launches Azure OpenAI Service. It includes cutting-edge AI models such as GPT-3.5, Codex, and DALL•E 2. Companies build cutting-edge applications owing to the infrastructure and enterprise-grade capabilities of Microsoft Azure.

Chatbot Market Advantages

Without the need for human intervention, chatbots can offer round-the-clock consumer care and help. Since clients can obtain the assistance they require whenever they need it, this can increase customer happiness and loyalty.

By automating regular queries and tasks, chatbots can assist organisations in lowering the cost of providing customer service. This can free up human customer service representatives to concentrate on more intricate and valuable interactions.

Because chatbots can manage numerous conversations at once, they can be more productive and cut down on client wait times.

Chatbots may now offer personalised interactions and recommendations based on client information, preferences, and previous behaviour thanks to developments in NLP and AI.

Without the need for extra employees, chatbots can simply scale to manage high quantities of client interactions and enquiries.

Report Objectives

• To define, describe, and predict the Chatbot Market by offering (solutions and services), type, business function, bot communication, channel integration, vertical, and region.
• To provide detailed information about major factors (drivers, restraints, opportunities, and industry-specific challenges) influencing the market growth
• To analyze opportunities in the market and provide details of the competitive landscape for stakeholders and market leaders.
• To forecast the market size of segments with respect to five main regions: North America, Europe, Asia Pacific, Middle East and Africa, and Latin America
• To profile key players and comprehensively analyze their market rankings and core competencies.
• To analyze competitive developments, such as partnerships, new product launches, and mergers and acquisitions, in the Chatbot Market

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