Chatbot Market: Current Analysis and Forecast (2021-2027)

Chatbot Market: Current Analysis and Forecast (2021-2027)

The global chatbot market is likely to showcase a growth of around 23% during the forecast period. Key factors influencing the growth of the chatbot market are technological advancements and 24*7 customer assistance at lower operational costs. With the increasing internet and mobile penetration rate in most countries, the demand for customer support is also increasing according to some data, more than 3.5 billion people are using smartphones and this number is increasing hence the demand for faster customer support is also increasing. Chatbots have the ability to provide quick customer support. Furthermore, chatbots are also able to handle thousands and even millions of customers at once. They are available 24*7, they can provide instant answers to customer queries. Moreover, chatbots can be programmed, for multiple languages also, so can provide answers in different languages and become multilingual.

Insights Presented in the Report
"Amongst type, Rule-based category held prominent market share in 2020”

On the basis of type, the chatbot market is segmented into rule-based and AI-based. Among these, the rule-based segment held a significant share in the global chatbot market. Moreover, rule-based chatbots are well-written programs that use a series of defined rules. These rules are the basis for the types of problems the chatbot is familiar with and can deliver solutions for. Rule-based chatbots can use very simple or complicated rules. They can't, however, answer any questions outside of the defined rules. Further on, it is simpler to create a rule-based chatbot than an AI-based chatbot. This is because rule-based chatbots give answers to the client’s questions from a set of predefined rules created from known scenarios. However, AI-based chatbots are expected to witness significant growth during the forecast period due to the automation of frequently performed tasks performed frequently at specific times. 
"Amongst deployment, on-premises category held prominent market share in 2020”

On the basis of deployment, the chatbot market is categorized into on-premises and cloud. Among these on-premises deployment held a significant share of the revenue in the chatbot market in 2020 and will continue to grow at a steady rate during the forecast period. to the data control, customizability, and cost-saving features provided by the on-premises deployment. Moreover, in on-premises deployment, resources and codes are deployed locally.
"Amongst industry, e-commerce category held prominent market share in 2020”

On the basis of industry, the chatbot market is categorized into e-commerce, healthcare, information and communication technology, banking and financial services, consumer goods and retail, media and entertainment, government, and others. The e-commerce segment held a prominent share of the revenue in the chatbot market in 2020 due to the quick queries solution and error-free solution abilities of chatbots. E-Commerce chatbots are rule-based or artificially intelligent programs that online retailer can deploy to connect with their customers throughout the customer journey on the platform. E-Commerce stores can use these chatbots to answer basic or advanced questions about their products on the website or even on messaging platforms like WhatsApp, Instagram, Facebook Messenger, and others. Moreover, bots allow retailers to send content and promotional messages on the touchpoints customers spend the most time on, it creates a powerful omnichannel engagement strategy.
"North America held the prominent share in the market in 2020”

North America accounted for the prominent market share in 2020 and will continue to hold a prominent share in the chatbot market owing to the trend of being an early adopter of the latest technologies and the rising mobile penetration rate. Moreover, being a major hub for startups in the chatbot industry, it accounted for a prominent share of the market in 2020. Many large enterprises are increasingly adopting chatbots in their routine customer service activities. The adequate growth possibilities of chatbots in various regions can be attributed to the significant benefits that it offers to enterprises, such as cost reduction, customer satisfaction, and enhanced operating efficiency. Furthermore, a significant rise in messaging services, and development in natural language processing (NLP) and AI technologies are also expected to play an important role in the growth of the chatbot industry. Further on, highly conversational chatbot apps allow businesses to create a smooth journey for their customers on the platform, as they interact over a wide variety of digital channels and devices.

Some of the major players operating in the market include Amazon.com Inc., [24]7.ai, Google LLC, International Business Machines Corporation, Yellow Messenger, Gupshup, Aivo, Conversica Inc., Nuance Communications Inc., Kevit.io among others.

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