Chatbot Market
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Chatbot Market size surpassed USD 250 million in 2017 and is anticipated to grow at a CAGR of over 31% between 2018 and 2024. The market growth is attributed to growing popularity of these platforms among enterprises as they allow users to create bots effortlessly by providing a user-friendly interface.
The rising implementation of AI and machine learning algorithms, which employ computational methods for learning, understanding, and delivering human language content to develop user-interactive online applications will augment the market demand.
| Report Attribute | Details |
|---|---|
| Base Year: | 2017 |
| Chatbot Market Size in 2017: | 250 Million (USD) |
| Forecast Period: | 2018 - 2024 |
| Forecast Period 2023 - 2032 CAGR: | 31 |
| 2023 Value Projection: | 1.34 Billion (USD) |
| Historical Data for: | 2013 - 2017 |
| No of Pages: | 350 |
| Tables, Charts & Figures: | 314 |
| Segments Covered: | Application, Interface, End-Use, Type, Deployment Model and Region |
| Growth Drivers: |
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| Pitfalls Challenges: |
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Another factor accelerating the chatbot market revenue is the growing investments in technology to develop new innovative solutions. Market players, including both startups and established companies, are investing heavily in Natural Language Processing (NLP) technology to develop platforms. These investments enhance marketing & promotions through the chatbot platform, increasing customer service, transactions, and purchases.
The payment/order processing application segment is set to witness around 30% growth through 2024. The chatbots that assist users for making payments and processing orders will provide benefits to both the customers and businesses fueling the market size.
These chatbots assist in solving customer problems and speed up monotonous tasks. Moreover, they allow easy & quick payments through integrations with the platforms such as Siri, Slack, and Facebook Messenger.
The third-party interface segment is expected to hold a market share of over 25% by 2024. Third-party chatbots offer cost-effective solutions; however, there are certain security issues related to these systems. The security structures are finalized by third parties, which means that the organizations have no control over the safety features of a chatbot. As organizations collect and store large amounts of critical personal information from the users, their security must be maintained.
The healthcare end-use sector in the chatbot market will register gains of more than 30% till 2024 as the sector is witnessing a huge usage of online interactive platforms, offering various benefits to patients and healthcare organizations.
These platforms perform the billing processes, insurance claims, provide 24/7 support & assistance to existing patients, and enable inventory management, boosting their usage in the healthcare industry. Healthcare organizations are widely implementing such platforms to deliver enhanced service to patients, save the doctors’ time, and ensure billing accuracy.
The AI-based segment is expected to witness the fastest growth rate of over 50% during the forecast timeline. The rising investments by technological players in the field of AI and machine learning will support the development of chatbot solutions. The usage of these solutions is increasing in various sectors including education, healthcare, BFSI, retail, and travel.
The on-premise deployment model held a dominant market share in 2017 and is projected to maintain its dominant position until 2024 with a share of over 60%. The market growth is attributed to rising implementation of applications using on-premise model, which allow the enterprises to have more control over the user experience and securely manage & examine all chatbot interactions within the enterprise’s environment.
The Latin America chatbot market size is predicted to expand over 5% from 2018 to 2024 impelled by heavy adoption of cloud-based solutions and the proliferation of mobile applications on account of smartphone penetration in the countries, including Mexico and Brazil.
In the LATAM region, Brazil is expected to dominate the market share in 2017 due to large-scale deployment of AI-based user-interactive applications. For example, in July 2018, Bradesco a Brazilian bank, adopted chatbots to offer customer services in digital banking technology. This will assist the bank to expedite its service offerings with agility and fluency.
Companies present in the market are emphasizing strategic acquisitions and investments in various complementary product companies to execute their growth strategies. For example, in July 2017, Facebook Inc. acquired Ozlo, an AI-based chatbot developer to enhance its AI capabilities.
Established companies are making rapid investments in R&D, focusing mainly on the areas of machine learning and cloud to develop new products to gain a competitive edge when compared to their customers. In July 2016, Google, Inc. introduced its New Cloud Natural Language API, assisting developers to access Google-powered sentiment analysis, syntax analysis, and entity recognition.
Some of the key players operating in the market include:
Application
Interface
End-Use
By Type
By Deployment Model
The above information has been provided for the following regions and countries:
Chatbots would likely witness immense use throughout Latin America due to growing smartphone penetration. Brazil would likely lead the charge owing to large-scale deployment of AI-powered systems in its BFSI sector.
Increasing investments in AI and machine learning by technological players is making chatbots more sophisticated and fostering their adoption across the healthcare, education, retail, BFSI, and travel industries.
The market size of chatbot surpassed USD 250 million in 2017.
The industry share of chatbot is anticipated to grow at a CAGR of over 31% between 2018 and 2024.
Healthcare institutions need to be online round-the-clock, to that end, they employ chatbots to provide 24/7 assistance to patients, carry out insurance claims and billing processes, and help in inventory management.