Visiongain Publishes Chatbot Market Report to 2031

30 March 2021
Cyber

Visiongain has published a new report on Chatbot Market Report to 2031: Forecasts By Component (Solution {Platform, Software}, Services {Professional Service, Managed Service}), By Application (Personal Assistant, Customer Support, Customer Engagement and Retention, Employee Engagement, Others), By Technology (Natural Language Processing, Machine, Learning & Deep Learning, Automated Speech Recognition), By Deployment (On-Cloud, On-Premise), By Organization Size (Small and Medium-Sized Enterprises, Large Enterprises), By Platform (Web-Based, Mobile Based), By Industry Vertical (BFSI, IT and Telecom, Healthcare, Retail & E-Commerce, Travel & Hospitality, Media & Entertainment, Others). PLUS, Profiles of Chatbot Companies and Regional and Leading National Market Analysis. PLUS COVID-19 Recovery Scenarios

Global chatbot market was valued at US$ XX billion in 2019 and is projected to reach a market value of US$ XX billion by 2031.

A chatbot is a conversational interface which uses an app, messaging platform, social network or chat solution for its conversations. A chatbot can be text-based or voice-based, or a combination of both. The rising popularity of messaging applications and high focus among enterprises to provide 24/7 customer support at minimum operational cost are the factors driving the growth of the chatbot market. The market seeks growth opportunities from the rising focus on boosting customer engagement and continuous advancements in chatbot technology. However, lack of ability to understand customer intent to provide an adequate response and low awareness among end-users are the factors hampering the market growth during the forecast period.

COVID-19 Impact on Chatbot Market
The COVID-19 outbreak is having a significant impact on the chatbot market. Even during this pandemic, chatbot technology has witnessed considerable demand than ever. The customer support services suffered disruption owing to the majority of the on-premise business process on hold due to lockdown. The use of chatbots for healthcare sector increased rapidly. The chatbots were majorly used for broadcasting health information during the coronavirus crisis. The intuitive and interactive interface of chatbots helped in broadcasting critical information to vast populations without any discord.

Along with the healthcare sector, chatbots were also a choice of preference for other verticals such as BFSI, retail & e-commerce, and IT & telecom, among others. The chatbots helped in keeping the customers engaged and provide improved customer satisfaction by clarifying the questions of the customers and assist them in need ensuring 24/7 customer support even during the pandemic times. The demand for chatbots is expected to increase the post-pandemic crisis.

Market Drivers

Rising Popularity of Messaging Applications
During the past few years, the way of communication has changed drastically from calls and text messages to messaging applications. The shift to the messaging applications is due to the ease, convenience, and on the go feature, the platform offers. Whatsapp messenger, Facebook messenger, Telegram, and Snapchat are some of the most widely used messaging applications. Chatbots are becoming a new interface in messaging applications, which provided intuitive features and boosted the customer experience than ever. Thus, the growing popularity of messaging applications and the way the intuitive chatbots interface fit the applications are increasing the demand for chatbots.

High Focus Among Enterprises to Provide 24/7 Customer Support at Minimum Operational Cost
Chatbots are revolutionizing the customer support domain. The AI-powered chatbots offer 24/7 customer support to multiple customers at a time and automatically resolves the customer query in seconds without any human intervention. The chatbots are able to manage low-level tasks efficiently such as answering frequently asked questions, handling standard operations, helping customers find the product, assist the customer in retrieving information, and answering general questions about the company, thereby reducing the number of human operators required for such repetitive tasks. Thus the 24/7 customer support offered by the chatbot at minimum operation costs is expected to drive the growth of chatbot market.

Market Opportunities

Rising Focus on Boosting Customer Engagement
Enterprises today are focusing on increasing customer engagement and customer retention rate to obtain a competitive advantage in the market. Chatbots speed up the client-business interaction, which improves the overall customer experience. The 24/7/365 availability of the chatbots boosts customer satisfaction and increases the overall process efficiency. Moreover, the analytical capability offers personalized user experience boosting the engagement levels. The TacoBell, one of the largest food giant, introduced its chatbot named Tacobot. The chatbot was capable of answering clients queries related to the restaurant’s menu, allows to make an order, and also gave witty response at certain instances which helped in increasing the customer engagement levels.

Continuous Advancements in Chatbot Technology
Chatbots are continually evolving. The developments in AI and speech recognition technology offers chatbot self-learning capabilities which help in adapting changing conditions. The analytical capabilities enable the chatbot to analyze the information and provide a response to it within no time. Moreover, machine learning and NLP technology allow the chatbot to learn from past instances and interpret and translate human natural language input, making them more intelligent. Thus, the continuous developments in chatbot technology to deliver a human-like experience is expected to create growth prospects in the forthcoming years.

Competitive Landscape
The Chatbot market is highly competitive. The key market players are focused on developing the research & development capabilities and emphasize partnership & collaboration strategies for developing innovative and advanced chatbot technologies. The companies focus on obtaining a competitive position in the market by offering an exceptional customer experience to its users. Some of the companies profiled in the report include IBM Corporation, Microsoft Corporation, Nuance Communications, Amazon Web Services, Inc., Google, [24]7.ai, Baidu, Artificial Solutions International AB, Inbenta Technologies, and Next IT Corporation.

April 2020, Amazon Web Services, Inc. launched AWS Chatbot which is available for all the customers The interactive chatbot platform helps in easy monitoring and interacting of AWS resources in the Slack channels and Amazon Chime chat rooms. The chatbot offers alerts, helps in running commands to return diagnostic information, invokes AWS Lambda functions, creates AWS support cases.

February 2020, Google launched a new chatbot named Meena. The new platform is capable of conducting conversations that are more sensible and specific in comparison to the existing state-of-the-art chatbots, creating a huge competition to the prevailing chatbot platforms in the market.

Notes for Editors
If you are interested in a more detailed overview of this report, please send an e-mail to sara.peerun@visiongain.com or call her on +44 (0) 20 7549 9987.

About Visiongain
Visiongain is one of the fastest-growing and most innovative independent media companies in Europe. Based in London, UK, Visiongain produces a host of business-to-business reports focusing on the automotive, aviation, chemicals, cyber, defence, energy, food & drink, materials, packaging, pharmaceutical and utilities sectors.

Visiongain publishes reports produced by analysts who are qualified experts in their field. Visiongain has firmly established itself as the first port of call for the business professional who needs independent, high-quality, original material to rely and depend on.

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