Global chatbot market Report | Key Players, COVID-19 impact analysisOctober 14, 2021
According to the report global chatbot market is expected to register a revenue of $19,569 million by 2027, at a CAGR of 28.7% during the forecast period from 2020 to 2027. The all-inclusive report provides a brief summary of the current market scenario including key aspects of the market such as restrictions, factors, challenges and several growth opportunities. The report also offers all the market projections making it easier for new participants to get a better idea of the market.
According to analysts adoption of chatbots by major companies in various sectors like healthcare, banking etc, handling queries and customer support are the key factors which are anticipated to accelerate the growth of global chatbot market on forecast period. Besides, strategic collaboration, product innovation and business expansion by techno-giants are other factors that are expected to boost the growth of the market by 2027.
Furthermore, technological advancements in chatbots are likely to create attractive growth opportunities for the global industry in the analysis period. However, lack of awareness and complex management of chatbots may limit the growth of the market in the near future.
Impact of COVID-19 on the Global Chatbot Market
The outbreak of the COVID-19 pandemic has had a positive impact on the growth of the chatbot market. This is mainly due to the deployment of chatbots in various industries such as banking and insurance, retail and healthcare to respond to customer queries and other tasks. In addition, various organizations adopted the remote working facility due to the lockdown situation in most of the countries across the world. These companies are highly dependent on chatbots due to low availability of employees. These factors are driving the growth during the pandemic period of the chatbot market.
Global Chatbot Market is Segregated into following types:
- Component type
- End user
By component type, the solutions sub-segment for the chatbot market is evaluated to generate revenue of $10,762.8 million by 2027 and will account for the majority of the market share over the forecast period. This is mainly due to technological advancements as well as increasing customer demand for self-services.
By deployment, the cloud sub-segment was valued at $1,143.5 million in 2019 and is expected to be the most attractive during the forecast period. This growth is primarily because cloud-based chatbots handle a variety of confidential business information, such as client contact details, invoicing, supply chain management, and social security numbers of employees, accounting, and other business intelligence.
By usage, the social media sub-segment is estimated to be worth $4,682.4 million by 2027 and will see the fastest growth over the forecast period. The significant growth of the sub-segment is mainly because chatbots help in increasing the efficiency of work on social media as they generate more personal engagement with customers. In addition, exploring customer needs, shortening sales cycles, and rapid expansion of the sales pipeline are other factors projected to drive the sub-segment’s growth through 2027.
By end user, the travel and tourism sub-segment is estimated to account for $2,589.1 million by 2027 and will see attractive growth during the forecast period. This growth is mainly due to the growing demand for more meaningful and better travel experiences among travelers across the world.
By region, the North America chatbot market accounted for $775.1 million in 2019 and is predicted to see significant growth during the forecast period. This growth can be attributed to the rapid increase in the deployment of chatbots in many business verticals. In addition, technological innovations such as Internet of Things (IoT), Artificial Intelligence and APIs are developing at a rapid pace. These factors are expected to propel the growth of the regional market till 2027.
Major key industry players are:
Kevit, Conversica, Inc, Yellow, Messenger, CONTUS, Key Reply, Aivo, Ai, International Business Machine Corporation, Amazon Web Services, Inc, Google Inc.
These players are implementing multiple strategies to achieve a major position in the global industry.
For example, in February 2021, Kore.ai, a leading provider of an end-to-end, comprehensive AI-powered ‘no-code’ platform, launched a virtual assistant platform in Japanese to better meet the needs of the Japan region.