Chatbot Global Market Report 2023: Advancements in Technology Coupled with Rising Customer Demand for Self

DUBLIN, May 22, 2023 /PRNewswire/ -- The "Chatbot Market by Offering, Bot Communication (Text, Audio, & Video), Type, Business Function (Sales & Marketing, Contact Centers), Channel Integration, Vertical (Retail & eCommerce, Healthcare & Life Sciences) and Region - Global Forecast to 2028" report has been added to ResearchAndMarkets.com's offering.

The market for chatbot market is estimated to grow from USD 5.4 billion in 2023 to USD 15.5 billion by 2028, at a CAGR of 23.3% during the forecast period. Increasing focus on customer engagement through various channels and rising usage of generative models in chatbots to drive growth in the chatbot market. Chatbots can be a valuable tool for enterprises looking to improve customer service, reduce costs, and increase efficiency.

The services segment is expected to grow at a higher CAGR during the forecast period.

The global chatbot market is segmented based on offering solutions and services. Based on services segment is divided into managed services and professional services. The services segment is expected to grow at a higher CAGR during the forecast period. These services ensure faster and smoother implementation that maximizes the value of enterprise investments.

Voicebots segment to grow at a higher CAGR during the forecast period.

The global chatbot market is segmented based on type into menu-based, linguistic-based, keyword recognition-based, contextual, hybrid, and voicebots. The voicebots segment is expected to grow rapidly during the forecast period. Voicebots can respond quickly and accurately to inquiries, providing a seamless customer experience. Voicebots can be a cost-effective way to provide customer support, as they can handle a large volume of inquiries without the need for human intervention. This can help to reduce the workload of customer support teams and lower overall costs.

Among verticals, the retail and eCommerce segments hold the largest market size during the forecast period

Chatbots can benefit enterprises across various industries by improving customer service, reducing costs, and increasing efficiency. Across BFSI verticals, chatbots can provide customers with account information, answer inquiries about products and services, and help customers with transactions. This can help to improve customer service and reduce costs by automating routine tasks across BFSI verticals.

Asia Pacific to grow at a higher CAGR during the forecast period

The chatbot market has been segmented into five regions: North America, Europe, Asia Pacific, Middle East and Africa and Latin America. Asia Pacific is expected to gain traction in the coming years. Countries such as China, Singapore, Japan, South Korea, ANZ, and India offer ample of opportunities for the end users to leverage chatbots for more personalized recommendations in real-time . The Asia Pacific region has one of the largest and fastest-growing populations of internet and smartphone users. This has created a large market for chatbots, which can provide a convenient and efficient way for users to access information, products, and services.

Market Dynamics

Drivers

Advancements in Technology Coupled with Rising Customer Demand for Self-Service Operations

Growth in Need for 247 Customer Support at Lower Operational Costs

Increase in Focus on Customer Engagement Through Various Channels

Rising Usage of Generative Models in Chatbots

Restraints

Inability to Recognize Customer Intent and Respond Effectively

Accuracy Concerns Associated with Voice Authentication

Opportunities

Initiatives Toward Development of Self-Learning Chatbots to Deliver Human-Like Conversational Experience

Rise in Demand for Ai-Based Chatbots to Deliver Enhanced Customer Experience

Integration of Sentiment Analysis with Chatbots for Meaningful Customer Insights

Challenges

Lack of Awareness About the Effect of Chatbot Technology on Various Applications

Complex and Time-Consuming Setup and Maintenance

Key Topics Covered:

1 Introduction

2 Research Methodology

3 Executive Summary

4 Premium Insights

5 Market Overview and Industry Trends

6 Chatbot Market, by Offering6.1 Introduction6.2 Solutions6.2.1 Standalone6.2.2 Web-Based6.2.2.1 Rapid Growth in Chatbots to Drive Business Value and Enhance Customer Experience6.2.3 Messaging-Based6.2.3.1 Rising Popularity of Messaging Apps to Drive Market6.2.4 Other Solutions6.3 Services6.3.1 Managed Services6.3.2 Professional Services6.3.2.1 Training and Consulting6.3.2.1.1 Training and Consulting Services to Play Vital Role in Managing Operations and Technology Updates6.3.2.2 System Integration and Implementation6.3.2.2.1 Rising Need to Ensure Effective System Communications Led System Integration and Implementation Services to Gain Traction6.3.2.3 Support and Maintenance6.3.2.3.1 Demand for Support and Maintenance Services to Increase with Rising Chatbot Deployment

7 Chatbot Market, by Type7.1 Introduction7.1.1 Types: Market Drivers7.2 Menu-Based7.2.1 Streamlines Conversation and Provides Efficient User Experience7.3 Linguistic-Based7.3.1 Advances in Nlp Technology for Chatbots to Help Accurately Interpret Natural Language7.4 Keyword Recognition-Based7.4.1 Personalized Responses Based on User Data to Help Improve Customer Satisfaction and Loyalty7.5 Contextual7.5.1 Provides Personalized Experiences to Customers by Understanding Preferences7.6 Hybrid7.6.1 Provides Advanced and Personalized Chatbot Experiences7.7 Voicebots7.7.1 Increasing Usage of Voice Assistants to Boost Market

8 Chatbot Market, by Channel Integration8.1 Introduction8.2 Email and Website8.2.1 Growing to Need to Provide Product Recommendations to Website Visitors8.3 Mobile Apps8.3.1 Rising Need for Personalized Recommendations and Responses Based on User Behavior and Preferences8.4 Telephone/Ivr8.4.1 Facilitates Conversations Between Customers and Businesses8.5 Messaging Apps8.5.1 Proliferation of Smartphones Offers Opportunities for Chatbot Solution Deployment8.5.2 Social Messenger8.5.3 Enterprise Messenger

9 Chatbot Market, by Bot Communication9.1 Introduction9.2 Text9.2.1 Handles Multiple Customer Interactions with Reduced Waiting Time9.3 Audio/Voice9.3.1 Growing to Need for More Personalized Interface and Better Marketing Strategies to Boost Market9.4 Video9.4.1 Rise of Remote Work and Virtual Events to Propel Adoption of Video Chatbots Among Enterprises

10 Chatbot Market, by Business Function10.1 Introduction10.2 Human Resources10.2.1 Hr Applications10.2.2 Recruitment10.2.2.1 Provides Effective Onboarding Process with Real-Time Feedback Analysis10.2.3 Onboarding10.2.3.1 Collects Information from Applicants and Suggests Long-Term Improvements10.2.4 Survey10.2.4.1 Provides Efficient Customer Support10.2.5 Question Answering10.2.5.1 Nlp Enables Chatbots to Respond to Users with Human-Like Conversations10.2.6 Other Hr Applications10.3 Sales and Marketing10.3.1 Sales and Marketing Applications10.3.2 Customer Engagement and Retention10.3.2.1 Provides Instant, Personalized, and Convenient Service10.3.3 Branding and Advertising10.3.3.1 Provides Personalized Experiences and Targeted Messaging to Potential Customers10.3.4 Campaign Management10.3.4.1 Improves User Experience and Helps Create Personalized Interaction10.3.5 Personalized Recommendation10.3.5.1 Collects and Analyzes User Data in Real Time10.3.6 Other Sales and Marketing Applications10.4 Finance and Accounting10.4.1 Finance and Accounting Applications10.4.2 Customer Support10.4.2.1 Provides Cost-Effective, Flexible, and Scalable Chatbot Systems10.4.3 Procurement Management10.4.3.1 Reduces Costs Associated with Manual Labor and Increases Efficiency10.4.4 Expense Tracking and Reporting10.4.4.1 Provides Comprehensive View of Financial Performance10.4.5 Data Privacy and Compliance10.4.5.1 Ensures Chatbots are Secure, Trustworthy, and Compliant with Legal Requirements10.4.6 Other Finance and Accounting Applications10.5 Information Technology Service Management10.5.1 Itsm Applications10.5.2 Incident Management10.5.2.1 Provides Regular Updates on Status and Estimated Resolution Time10.5.3 Cost Optimization10.5.3.1 Eliminates Redundancy and Reduces Software Licensing Costs10.5.4 Query Handling10.5.4.1 Provides Better Customer Insights10.5.5 Knowledge Management10.5.5.1 Provides Personalized Responses to Users Based on History and Preferences10.5.6 Other Itsm Applications10.6 Operations and Supply Chain10.6.1 Operations and Supply Chain Applications10.6.2 Workflow Optimization10.6.2.1 Offers Effective Business Operations Process10.6.3 Scheduling and Routing10.6.3.1 Rapid Growth in Chatbots Drives Business Value and Enhances Efficiency and Customer Experience10.6.4 Inventory Management10.6.4.1 Improves Efficiency and Accuracy of Orders10.6.5 Vendor Engagement10.6.5.1 Improves Efficiency, Reduces Costs, and Streamlines Supply Chain10.6.6 Other Operations and Supply Chain Applications10.7 Contact Centers10.7.1 Contact Centers Applications10.7.2 Agent Performance Management10.7.2.1 Improves Agent Performance and Customer Satisfaction10.7.3 Agent Workforce Management10.7.3.1 Need to Schedule Training and Assist Firms to Manage Workforce10.7.4 Question Answering10.7.4.1 Improves Efficiency by Providing Fast and Accurate Answers10.7.5 Customer Support and Feedback10.7.5.1 Enhances Customer Support Services and Builds Stronger Customer Relationships10.7.6 Other Contact Center Applications

11 Chatbot Market, by Vertical11.1 Introduction11.2 Banking, Financial Services, and Insurance11.2.1 Chatbot Solutions to Help Reduce Fraud, Leverage Intelligent, Customer-Focused Marketing11.2.2 Banking, Financial Services, and Insurance: Chatbot Use Cases11.3 Energy and Utilities11.3.1 Improves Customer Service, Increases Efficiency, and Reduces Costs11.3.2 Energy and Utilities: Chatbot Use Cases11.4 Retail and E-commerce11.4.1 Chatbots Help in Retaining Customers, Collecting Feedback, and Driving Sales11.4.2 Retail and E-commerce: Chatbot Use Cases11.5 It and Ites11.5.1 Provides More Personalized and Relevant Experience for Customers by Understanding Preferences11.6 Travel and Hospitality11.6.1 Growing Need to Provide Advanced and Personalized Chatbot Experiences11.6.2 Travel and Hospitality: Chatbot Use Cases11.7 Healthcare and Life Sciences11.7.1 Increasing Need to Improve Accuracy of Symptom Collection and Ailment Identification11.7.2 Healthcare and Life Sciences: Chatbot Use Cases11.8 Media and Entertainment11.8.1 Need to Improve Audience Engagement with Personalized User Experience11.8.2 Media and Entertainment: Chatbot Use Cases11.9 Government and Defense11.9.1 Government Agencies and Defense Organizations to Improve Customer Service11.9.2 Government and Defense: Chatbot Use Cases11.10 Telecom11.10.1 Provides Fast and Efficient Customer Services11.10.2 Telecom: Chatbot Use Cases11.11 Other Verticals

12 Chatbot Market, by Region

13 Competitive Landscape

14 Company Profiles

15 Adjacent and Related Markets

16 Appendix

Companies Mentioned

[24]7.Ai

Aivo

Artificial Solutions

Avaamo

AWS

Baidu

Botscrew

Botsify

Chatfuel

Conversica

Creative Virtual

Customers.Ai

Drift

Engati

Freshworks

Google

Gupshup

Haptik

IBM

Inbenta

Intercom

Kore.Ai

Landbot.Io

Liveperson