The chatbot market share is expected to increase by USD 1.10 billion from 2019 to 2024, and the market's growth momentum will accelerate at a CAGR of 28.51%.

This chatbot market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers chatbot market segmentations by end-user (retail, BFSI, travel and hospitality, government, and others) and geography (North America, APAC, Europe, and South America). The chatbot market report also offers information on several market vendors, including Alphabet Inc., Amazon.com Inc., Anboto Europe SL Co., Apple Inc., Creative Virtual Ltd., eGain Corp., Inbenta Technologies Inc., International Business Machines Corp., Microsoft Corp., and Nuance Communications Inc. among others.

What will the Chatbot Market Size be During the Forecast Period?

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Chatbot Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a neutral impact on the market growth during and post COVID-19 era. The advantages of chatbots over other customer support options are notably driving the chatbot market growth, although factors such as lack of awareness and standardization may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the chatbot industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Chatbot Market Driver

The advantages of chatbots over other customer support options is notably driving the market growth. A chatbot is a front-end interface, which is used to connect to various types of channels, such as websites, email, SMS, or messaging applications such as Facebook Messenger or Slack, through which users interact with the chatbot. The most popular messaging platforms to build customer support bots are Facebook Messenger, Kik, Skype, Twitter, SMS, Email, and Slack. Chatbots integrated with conversational AI tools collect consumer data from support interactions and databases and are intelligent enough to provide a personalized experience. They can recognize human emotions such as anger, confusion, fear, and joy. The advantages of chatbots include 24/7 customer support, on-time responses, and a reduction in customer support costs.

Key Chatbot Market Trend

One of the key market trends driving the chatbot market growth is the increased demand for web self-service. Web self-service has witnessed higher investments in sectors such as retail and banking, where there are more customers on any regular day than in other sectors. Web self-service features are primarily utilized in payment and billing applications. Solutions such as Oracle Knowledge for Web Self Service and Oracle Knowledge for Contact Center are designed to address the knowledge requirements of customer service agents and customers. The potential results of using chatbots include increased customer retention and more accurate revenue forecasting. Chatbots also add to the mobile experience, as information exchange becomes easier and more productive when accessed within one mobile app.

Key Chatbot Market Challenge

One of the major challenges impeding the chatbot market growth is the lack of awareness and standardization. Tapping developed and underdeveloped markets can be challenging for vendors owing to the limited resources and infrastructure for the implementation of advanced technology such as chatbots and make them standardized globally. Lack of product differentiation and viability issues The chatbot market is still in the nascent stage but growing at a rapid pace. Service providers offer products with similar specifications, thus making it difficult for end-users to choose. Chatbots can be either AI-integrated or rule-based. Rule-based chatbots operate based on a set of rules. They respond only to very specific commands. Integration issues between front-end (end-users) and back-end (developer) knowledge bases pose a challenge for bot service providers, as the integration of intelligent bots in legacy systems can lead to operational issues.

This chatbot market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2020-2024.

Parent Market Analysis

Technavio categorizes the global chatbot market as a part of the global systems software market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the chatbot market during the forecast period.

Who are the Major Chatbot Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• Alphabet Inc.
• Amazon.com Inc.
• Anboto Europe SL Co.
• Apple Inc.
• Creative Virtual Ltd.
• eGain Corp.
• Inbenta Technologies Inc.
• International Business Machines Corp.
• Microsoft Corp.
• Nuance Communications Inc.

This statistical study of the chatbot market encompasses successful business strategies deployed by the key vendors. The chatbot market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

• Alphabet Inc. - Dialogflow enables interaction with users by using engaging voice and text-based conversational interfaces, such as voice apps and chatbots with the help of AI

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The chatbot market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Chatbot Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the chatbot market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The report has further elucidated on other innovative approaches being followed by vendors to ensure a sustainable market presence.

Which are the Key Regions for Chatbot Market?

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39% of the market's growth will originate from North America during the forecast period. US is the key market for chatbot market in North America. Market growth in this region will be faster than the growth of the market in regions.

North America is expected to dominate the chatbot market during the forecast period as a high number of people use the Internet for applications such as traveling, shopping, and more. This will facilitate the chatbot market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The outbreak of COVID-19 in 2020 significantly impacted North America and resulted in the temporary shutdown of industries including retail, travel, and hospitality. As the US was the most affected country in this region in 2020, the high incidence of the disease led to a decline in business processes. However, the demand for chatbots was on the rise during the pandemic and is expected to grow in the forecast period.

What are the Revenue-generating End-user Segments in the Chatbot Market?

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The chatbot market share growth by the retail segment will be significant during the forecast period. The growing adoption of e-commerce worldwide is a major driving factor for the retail segment during the forecast period. These retailers are implementing chatbots to provide an enhanced experience to their customers in online product searches. The use of chatbots enables customers to get their queries related to payment methods for a particular product quickly and effectively.

This report provides an accurate prediction of the contribution of all the segments to the growth of the chatbot market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Chatbot Market In Regional Report?

• CAGR of the market during the forecast period 2020-2024
• Detailed information on factors that will drive chatbot market growth during the next five years
• Precise estimation of the chatbot market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the chatbot industry across North America, APAC, Europe, and South America
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of chatbot market vendors

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