The global Chatbot Market is estimated to be valued at US$ 6.04 Bn in 2023 and is expected to exhibit a CAGR of 25.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Chatbots are software applications that use artificial intelligence and natural language processing to simulate human conversation via voice commands, text chats, or messaging apps. They provide 24×7 customer support and can resolve frequently asked queries without human intervention, helping companies reduce costs.
Market key trends:
One of the key trends in the chatbot market is the integration of AI and machine learning capabilities. Traditional chatbots relied on hard-coded responses but modern chatbots use machine learning to analyze large amounts of data and perform human-like conversations. They can understand intent and context using ML algorithms like LSTM (long short-term memory). As chatbots powered by AI can answer more complex questions accurately, it is driving the adoption of AI-enabled chatbots across various industries like BFSI, retail, healthcare, and more. This trend is expected to continue in the forecast period.
SWOT Analysis
Strength: Chatbots are cost-effective solution as they do not require human resources for answering repetitive queries. This reduces the operational costs for businesses.
Weakness: Chatbots have limited capabilities and may not be able to understand complex questions. They also lack emotional intelligence for meaningful conversations.
Opportunity: Growing Internet penetration and increasing adoption of mobile devices provide a huge addressable market for chatbot applications across industries. Chatbots can address a wide range of customer queries and reduce pressure on call centers.
Threats: Privacy and security concerns around customer data handled by chatbots can negatively impact their adoption. Strict regulations around data usage may pose challenges. Advances in AI technologies can make existing chatbot solutions obsolete quickly.
Key Takeaways
The Global Chatbot Market Demand is expected to witness high growth, exhibiting CAGR of 25.7% over the forecast period, due to increasing demand from industries like BFSI, e-commerce, healthcare and others for automating customer support services.
North America is expected to hold the largest share in the global chatbot market throughout the forecast period owing to rapid technological adoption and presence of key players in the region. The Asia-Pacific region is anticipated to grow at the fastest pace during the forecast period due to rising mobile internet penetration and increasing investments by major companies in the region.
Key players operating in the Chatbot market are Facebook, Inc., Kiwi, Inc., Astute Solutions, Google, Inc., Pandorabots, Inc., Haptik, Inc., Yahoo Inc., Helpshift, ToyTalk (PullString Inc.), Imperson Ltd., Slack Technologies, Inc., Kasisto Inc., and Microsoft Corporation. These players are focusing on developing more efficient and intelligent chatbots to automate customer support services for businesses across industries.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it