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Global Chatbot Market
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Global Chatbot Market

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Global Chatbot Market- Industry Size, Share, Growth, Opportunity and Forecast, 2018-2028, Segmented By Type (Rule-Based, AI-Based), By Chanel Integration (Websites, Contact Centers, Social Media, Mobile Applications), By Organization Size (Large Enterprises, Small And Medium-Sized Enterprises), By Application (Customer Service, Personal Assistant, Branding And Advertisement, Customer Engagement And Retention, Data Privacy And Compliance, Employee Engagement And Onboarding, Payment Processing, Others), By End-User (Banking, Financial Services, And Insurance, Information Technology And Telecom, Retail And E-commerce, Healthcare And Life Sciences, Travel And Hospitality, Media And Entertainment, Transportation And Logistics, Government, Others), By Region (North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle-East & Africa (MEA)

  • Published Date: March 2022
  • Report ID: BWC19303
  • Available Format: PDF
  • Page: 189

Report Overview

The global chatbot market is gaining significant traction owing to the expanding business operations at global level and surging need for 24x7 customer support needs and rising focus towards improving customer engagement to boost their leads.

Chatbot Market- Industry Trends & Forecast Report 2028

The chatbot market was worth USD 3.4 billion in 2021 and is further projected to reach USD 15 billion by 2028, exhibiting a CAGR of 23.40% during the forecast period. The market is growing at a high rate owing to the expanding business operations at the global level and surging need for 24x7 customer support needs and rising focus towards improving customer engagement to boost their leads. Furthermore, rapid technological development and digitization in countries, especially in emerging economies, are also significantly proliferating the growth of the market.

Chatbot Market

Chatbot - Overview

A chatbot is a software application that performs online conversation via text as well as text-to-speech. These bots depict human behavioral patterns during the conversation. Chatbots are prominently used in the customer service sector along with other applications including request routing, information gathering, etc. They work on the special keywords and natural language processors integrated with AI to generate responses. Most organizations use chatbots on their websites and applications as a website pop-up or through virtual assistance.

Chatbot Market Forecast and Trends

Growth Drivers

Advantages of Chatbot Integration to Businesses

Businesses are increasingly investing in the adoption of chatbot technology owing to the various benefits it offers. Chatbots are very effective in improving customer engagement as well as lead generation. It also reduces customer service costs and provides 24x7 real-time and secure service. Along with catering to customers’ queries, chatbots also monitor consumer data to gain insights that can be used to target marketing and boost sales. Furthermore, chatbots are also easy to set up, which acts as a favorable factor in driving the market growth.

Rising Adoption of Chatbot by Government Institutions

Chatbots are gaining significant traction among government institutions, which is significantly driving the growth of the chatbot market. There are around 311 centers and other government call centers implementing artificial intelligence technology to improve services for citizens, as reported by State Tech Magazine. The government institutions are using this technology to improve their flexibility and boost grievance redressal in real-time. For instance, the Moroccan government recently launched a new Chatbox conversational AI to cater to tax-related questions.

Restraints

Limited Human Intervention and High Initial Installation Cost

The chatbots are highly dependent on pre-installed data and algorithms and therefore, often fail at understanding the language context of the customers. The lack of human intervention for training and configuring the system, unlike human customer executives, may act as a huge restraining factor for its market growth. Furthermore, different types of chatbots need different installation processes, which most often increases the initial installation cost, thus limiting its adoption among small and medium-sized enterprises.

Impact of COVID-19 on Chatbot Market

The chatbot market was negatively impacted during the initial outbreak of the COVID-19 pandemic outbreak. Since the manufacturing and production operations were halted due to lockdown, the need for chatbots also slowed down during the initial COVID-19 period. However, the market witnessed tremendous growth in certain sectors including BFSI, healthcare, media, entertainment, etc. In terms of healthcare, it assisted COVID-19 patients as well as patients in home-care settings in taking healthcare decisions. It also helped in tackling COVID-19 misinformation, which acted in favor of the overall chatbot market.

Chatbot Market - By Type

Based on type, the chatbot market is segmented into rule-based and AI-based. The AI-based chatbot accounts for the largest share in the chatbot market. This type of chatbot is powered by Natural Language Processing (NLP), which offers in-depth answers to the query of the customer, unlike the rule-based chatbot that depends on certain keywords. AI-based chatbots are more engaging and feel personal to the customer, which boosts the engagement of the website and platform.

Chatbot Market - By Channel Integration

Based on channel integration, the chatbot market is segmented into websites, contact centers, social media, and mobile applications. The website application holds the largest market share owing to the rapid adoption of chatbots among SMEs. SMEs are using conversational chatbots to make their websites more engaging and deliver customer support in real-time, which can play a crucial role in turning a lead into a customer. The social media segment is anticipated to register the highest growth rate during the forecast period.

Chatbot Market - Regional Insights

Geographically, the chatbot market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. North America dominates the chatbot market owing to its rising adoption in large enterprises to improve their customer engagement performance. The rising focus on improving customer satisfaction as a major element in customer retention is acting as a favorable factor for the growth of the market. Furthermore, the presence of leading chatbot service providers and its easy accessibility is further propelling the growth of the chatbot market in North America.

Competitive Landscape

The leading market players of the chatbot market are Aivo, Botscrew, Cleverbot, MobileMonkey, IBM Corporation, LiveChatInc., eGain Corporation, Dialogflow, Nuance Communications, Artificial Solutions Holding ASH AB, Creative Virtual Ltd., Avaamo Inc., Kore.ai Inc., EdgeVerve Systems Limited, SMOOCH.ai, Inbenta Technologies Inc., Botsify Inc., Next IT Corp., Creative Virtual Ltd., and other prominent players.

The chatbot market is extremely competitive with the presence of numerous global as well as regional market players. Several startups are also emerging, giving tough competition to the established players. The companies significantly focus on improving and expanding their offerings and chatbot capabilities to gain a competitive edge. They also prominently adopt competitive strategies such as partnerships, mergers, acquisitions, joint ventures, etc., to stay ahead in the market.

Recent Development

  • In January 2022, mPulse Mobile, a US-based conversational AI startup, announced the acquisition of HealthCrowd, a healthcare communications platform.
  • In January 2022, Atlassian, a leading Australian software company, announced the completion of the acquisition of Percept.AI, a US-based artificial intelligence company, to boost its frontline support capabilities in Jira Service Management, the vendor’s ITSM software offering.

Scope of the Report

Attributes Details
Years Considered Historical data – 2018-2021
Base Year – 2021
Forecast – 2022 – 2028
Facts Covered Revenue in USD Billion
Market Coverage U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, UAE, South Africa, Saudi Arabia
Product Service/Segmentation By Type, By Chanel Integration, By Organization Size, By Application, By End-User, By Region
Key Players Aivo, Botscrew, Cleverbot, MobileMonkey, IBM Corporation, LiveChatInc., eGain Corporation, Dialog Flow, Nuance Communications, Artificial Solutions Holding ASH AB, Creative Virtual Ltd., Avaamo Inc., Kore.ai Inc., EdgeVerve Systems Limited, SMOOCH.ai, Inbenta Technologies Inc., Botsify Inc., Next IT Corp., Creative Virtual Ltd., and other prominent players.

 

By Type

  • Rule Based
  • AI Based

By Chanel Integration

  • Websites
  • Contact Centers
  • Social Media
  • Mobile Applications

By Organization Size

  • Large Enterprises
  • Small And Medium-Sized Enterprises

By Application

  • Customer Service
  • Personal Assistant
  • Branding And Advertisement
  • Customer Engagement And Retention
  • Data Privacy And Compliance
  • Employee Engagement And On Boarding
  • Payment Processing
  • Others

By End-User

  • Banking, Financial Services, And Insurance
  • Information Technology And Telecom
  • Retail And E-commerce
  • Healthcare And Life Sciences
  • Travel And Hospitality
  • Media And Entertainment
  • Transportation And Logistics
  • Government
  • Others

By Region

  • North America
  • Europe
  • Asia-Pacific (APAC)
  • Latin America (LATAM)
  • Middle-East & Africa (MEA)
  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Market Segmentation
  2. Research Methodology
    1. Qualitative Research
    2. Methodology
    3. Regional Split of Primary & Secondary Research
    4. Secondary Research
    5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
    6. Market Size Estimation
    7. Assumptions for the Study
    8. Market Breakdown & Data Triangulation
  3. Executive Summary
  4. Industry Insight and Growth Strategy
    1. Value Chain Analysis
    2. DROC Analysis
      1. Growth Drivers
        1. Advantages of Chatbot Integration to Businesses
        2. Rising Adoption of Chatbot by Government Institutions
      2. Restraints
        1. Limited Human Intervention and High Initial Installation Cost
      3. Opportunities
        1. Negative Impact of the COVID-19 Pandemic
      4. Challenges
        1. Increasing Adoption of Chatbots in Large Enterprises
        2. Rising Demand for Real-Time Customer Service
    3. Recent Developments
    4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
  5. Chatbot Market Overview
    1. Market Estimates & Forecast by Value, 2018-2028
    2. Market Share & Forecast, by Segment
      1. By Type
        1. Rule Based
        2. AI Based
      2. By Chanel Integration
        1. Websites
        2. Contact Centers
        3. Social Media
        4. Mobile Applications
      3. By Organization Size
        1. Large Enterprises
        2. Small and Medium-Sized Enterprises
      4. By Application
        1. Customer Service
        2. Personal Assistant
        3. Branding and Advertisement
        4. Customer Engagement and Retention
        5. Data Privacy and Compliance
        6. Employee Engagement and On Boarding
        7. Payment Processing
        8. Others
      5. By End-User
        1. Banking, Financial Services, And Insurance
        2. Information Technology and Telecom
        3. Retail and E-commerce
        4. Healthcare and Life Sciences
        5. Travel and Hospitality
        6. Media and Entertainment
        7. Transportation and Logistics
        8. Government
        9. Others
      6. By Region
        1. North America
        2. Europe
        3. Asia-Pacific (APAC)
        4. Latin America (LATAM)
        5. Middle-East & Africa (MEA)
  6. North America Chatbot Market Overview
    1. Market Size and Forecast
      1. By Value (USD Billion), 2018-2028
    2. Market Share and Forecast
      1. By Type
      2. By Chanel Integration
      3. By Organization Size
      4. By Application
      5. By End-User
      6. By Country
        1. U.S.
        2. Canada
  7. Europe Chatbot Market Overview
    1. Market Size and Forecast
      1. By Value (USD Billion), 2018-2028
    2. Market Share and Forecast
      1. By Type
      2. By Chanel Integration
      3. By Organization Size
      4. By Application
      5. By End-User
      6. By Country
        1. Germany
        2. U.K.
        3. France
        4. Italy
        5. Spain
        6. Netherlands
        7. Rest of Europe
  8. APAC Chatbot Market Overview
    1. Market Size and Forecast
      1. By Value (USD Billion), 2018-2028
    2. Market Share and Forecast
      1. By Type
      2. By Chanel Integration
      3. By Organization Size
      4. By Application
      5. By End-User
      6. By Country
        1. China
        2. India
        3. Japan
        4. South Korea
        5. Rest of APAC
  9. LATAM Chatbot Market Overview
    1. Market Size and Forecast
      1. By Value (USD Billion), 2018-2028
    2. Market Share and Forecast
      1. By Type
      2. By Chanel Integration
      3. By Organization Size
      4. By Application
      5. By End-User
      6. By Country
        1. Mexico
        2. Brazil
        3. Rest of LATAM
  10. MEA Chatbot Market Overview
    1. Market Size and Forecast
      1. By Value (USD Billion), 2018-2028
    2. Market Share and Forecast
      1. By Type
      2. By Chanel Integration
      3. By Organization Size
      4. By Application
      5. By End-User
      6. By Country
        1. Saudi Arabia
        2. UAE
        3. South Africa
        4. Rest of MEA
  11. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share / Ranking Analysis (2021)
    3. Competitive Benchmarking, By Operating Parameters
  12. Impact of COVID-19 on Chatbot Market
  13. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. Aivo
    2. Botscrew
    3. Cleverbot
    4. MobileMonkey
    5. IBM Corporation
    6. LiveChat Inc.
    7. eGain Corporation
    8. Dialogflow
    9. Nuance Communications
    10. Artificial Solutions Holding ASH AB
    11. Creative Virtual Ltd
    12. Avaamo Inc.
    13. Kore.ai Inc.
    14. EdgeVerve Systems Limited
    15. SMOOCH.ai
    16. Inbenta Technologies Inc.
    17. Botsify Inc.
    18. Next IT Corp.
    19. Creative Virtual Ltd.
    20. Other Prominent Players
  14. Key Strategic Recommendations

 

 

 

List of Figures

 

 

Figure 1: Chatbot Market Segmentation

 

Figure 2: Chatbot Market Value Chain Analysis

 

Figure 3: Company Market Share Analysis, 2021

 

Figure 4: Chatbot Market Size, By Value (USD Billion), 2018-2028

 

Figure 5: Chatbot Market Share (%), By Type, By Value, 2018-2028

 

Figure 6: Chatbot Market Share (%), By Chanel Integration, By Value, 2018-2028

 

Figure 7: Chatbot Market Share (%), By Organization Size, By Value, 2018-2028

 

Figure 8: Chatbot Market Share (%), By Application, By Value, 2018-2028

 

Figure 9: Chatbot Market Share (%), By End-User, By Value, 2018-2028

 

Figure 10: Chatbot Market Share (%), By Region, By Value, 2018-2028

 

Figure 11: North America Chatbot Market Size, By Value (USD Billion), 2018-2028

 

Figure 12: North America Chatbot Market Share (%), By Type, By Value, 2018-2028

 

Figure 13: North America Chatbot Market Share (%), By Chanel Integration, By Value, 2018-2028

 

Figure 14: North America Chatbot Market Share (%), By Organization Size, By Value, 2018-2028

 

Figure 15: North America Chatbot Market Share (%), By Application, By Value, 2018-2028

 

Figure 16: North America Chatbot Market Share (%), By End-User, By Value, 2018-2028

 

Figure 17: North America Chatbot Market Share (%), By Country, By Value, 2018-2028

 

Figure 18: Europe Chatbot Market Size, By Value (USD Billion), 2018-2028

 

Figure 19: Europe Chatbot Market Share (%), By Type, By Value, 2018-2028

 

Figure 20: Europe Chatbot Market Share (%), By Chanel Integration, By Value, 2018-2028

 

Figure 21: Europe Chatbot Market Share (%), By Organization Size, By Value, 2018-2028

 

Figure 22: Europe Chatbot Market Share (%), By Application, By Value, 2018-2028

 

Figure 23: Europe Chatbot Market Share (%), by End-User, By Value, 2018-2028

 

Figure 24: Europe Chatbot Market Share (%), By Country, By Value, 2018-2028

 

Figure 25: Asia-Pacific Chatbot Market Size, By Value (USD Billion), 2018-2028

 

Figure 26: Asia-Pacific Chatbot Market Share (%), By Type, By Value, 2018-2028

 

Figure 27: Asia-Pacific Chatbot Market Share (%), By Chanel Integration, By Value, 2018-2028

 

Figure 28: Asia-Pacific Chatbot Market Share (%), By Organization Size, By Value, 2018-2028

 

Figure 29: Asia-Pacific Chatbot Market Share (%), By Application, By Value, 2018-2028

 

Figure 30: Asia-Pacific Chatbot Market Share (%), By End-User, By Value, 2018-2028

 

Figure 31: Asia-Pacific Chatbot Market Share (%), By Country, By Value, 2018-2028

 

Figure 32: Latin America Chatbot Market Size, By Value (USD Billion), 2018-2028

 

Figure 33: Latin America Chatbot Market Share (%), By Type, By Value, 2018-2028

 

Figure 34: Latin America Chatbot Market Share (%), By Chanel Integration, By Value, 2018-2028

 

Figure 35: Latin America Chatbot Market Share (%), By Organization Size, By Value, 2018-2028

 

Figure 36: Latin America Chatbot Market Share (%), By Application, By Value, 2018-2028

 

Figure 37: Latin America Chatbot Market Share (%), By End-User, By Value, 2018-2028

 

Figure 38: Latin America Chatbot Market Share (%), By Country, By Value, 2018-2028

 

Figure 39: Middle East & Africa Chatbot Market Size, By Value (USD Billion), 2018-2028

 

Figure 40: Middle East & Africa Chatbot Market Share (%), By Type, By Value, 2018-2028

 

Figure 41: Middle East & Africa Chatbot Market Share (%), By Chanel Integration, By Value, 2018-2028

 

Figure 42: Middle East & Africa Chatbot Market Share (%), By Organization Size, By Value, 2018-2028

 

Figure 43: Middle East & Africa Chatbot Market Share (%), By Application, By Value, 2018-2028

 

Figure 44: Middle East & Africa Chatbot Market Share (%), By End-User, By Value, 2018-2028

 

Figure 45: Middle East & Africa Chatbot Market Share (%), By Region, By Value, 2018-2028

 

 

 

List of Tables

 

 

Table 1: Chatbot Market Size, By Type, By Value, 2018-2028

 

Table 2: Chatbot Market Size, By Chanel Integration, By Value (USD Billion), 2018-2028

 

Table 3: Chatbot Market Size, By Organization Size, By Value (USD Billion), 2018-2028

 

Table 4: Chatbot Market Size, By Application, By Value (USD Billion), 2018-2028

 

Table 5: Chatbot Market Size, By End-User, By Value (USD Billion), 2018-2028

 

Table 6: Chatbot Market Size, By Region, By Value (USD Billion), 2018-2028

 

Table 7: North America Chatbot Market Size, By Type, By Value (USD Billion), 2018-2028

 

Table 8: North America Chatbot Market Size, By Chanel Integration, By Value (USD Billion), 2018-2028

 

Table 9: North America Chatbot Market Size, By Organization Size, By Value (USD Billion), 2018-2028

 

Table 10: North America Chatbot Market Size, By Application, By Value (USD Billion), 2018-2028

 

Table 11: North America Chatbot Market Size, By End-User, By Value (USD Billion), 2018-2028,

 

Table 12: Europe Chatbot Market Size, By Type, By Value (USD Billion), 2018-2028

 

Table 13: Europe Chatbot Market Size, By Chanel Integration, By Value (USD Billion), 2018-2028

 

Table 14: Europe Chatbot Market Size, By Organization Size, By Value (USD Billion), 2018-2028

 

Table 15: Europe Chatbot Market Size, By Application, By Value (USD Billion), 2018-2028

 

Table 16: Europe Chatbot Market Size, By End-User, By Value (USD Billion), 2018-2028

 

Table 17: the Asia-Pacific Chatbot Market Size, By Type, By Value (USD Billion), 2018-2028

 

Table 18: the Asia-Pacific Chatbot Market Size, By Chanel Integration, By Value (USD Billion), 2018-2028

 

Table 19: the Asia-Pacific Chatbot Market Size, By Organization Size, By Value (USD Billion), 2018-2028

 

Table 20: the Asia-Pacific Chatbot Market Size, By Application, By Value (USD Billion), 2018-2028

 

Table 21: the Asia-Pacific Chatbot Market Size, By End-User, By Value (USD Billion), 2018-2028

 

Table 22: Latin America Chatbot Market Size, By Type, By Value (USD Billion), 2018-2028

 

Table 23: Latin America Chatbot Market Size, By Chanel Integration, By Value (USD Billion), 2018-2028

 

Table 24: Latin America Chatbot Market Size, By Organization Size, By Value (USD Billion), 2018-2028

 

Table 25: Latin America Chatbot Market Size, By Application, By Value (USD Billion), 2018-2028

 

Table 26: Latin America Chatbot Market Size, By End-User, By Value (USD Billion), 2018-2028

 

Table 27: The Middle-East & Africa Chatbot Market Size, By Type, By Value (USD Billion), 2018-2028

 

Table 28: The Middle-East & Africa Chatbot Market Size, By Chanel Integration, By Value (USD Billion), 2018-2028

 

Table 29: The Middle-East & Africa Chatbot Market Size, By Organization Size, By Value (USD Billion), 2018-2028

 

Table 30: The Middle-East & Africa Chatbot Market Size, By Application, By Value (USD Billion), 2018-2028

 

Table 31: The Middle-East & Africa Chatbot Market Size, By End-User, By Value (USD Billion), 2018-2028

 

 

 

Table 32: Aivo Financial Analysis

Table 33: Aivo Business Overview

Table 34: Botscrew Financial Analysis

Table 35: Botscrew Business Overview

Table 36: Cleverbot Corporation Financial Analysis

Table 37: Cleverbot Corporation Business Overview

Table 38: MobileMonkey Financial Analysis

Table 39: MobileMonkey Business Overview

Table 40: IBM Corporation Financial Analysis

Table 41: IBM Corporation Business Overview

Table 42: LiveChat Inc. Financial Analysis

Table 43: LiveChat Inc. Business Overview

Table 44: eGain Corporation Financial Analysis

Table 45: eGain Corporation  Business Overview

Table 46: Dialogflow Financial Analysis

Table 47: Dialogflow Business Overview

Table 48: Nuance Communications Financial Analysis

Table 49: Nuance Communications Business Overview

Table 50: Artificial Solutions Holding ASH AB Financial Analysis

Table 51: Artificial Solutions Holding ASH AB Business Overview

Table 52: Creative Virtual Ltd  Financial Analysis

Table 53: Creative Virtual Ltd  Financial Analysis

Table 54: Avaamo Inc. Financial Analysis

Table 55: Avaamo Inc. Financial Analysis

Table 56: Kore.ai Inc. Financial Analysis

Table 57: Kore.ai Inc. Financial Analysis

Table 58: EdgeVerve Systems Limited Financial Analysis

Table 59: EdgeVerve Systems Limited Financial Analysis

Table 60: SMOOCH.ai Financial Analysis

Table 61: SMOOCH.ai Financial Analysis

Table 62: Inbenta Technologies Inc. Financial Analysis

Table 63: Inbenta Technologies Inc. Financial Analysis

Table 64: Botsify Inc. Financial Analysis

Table 65: Botsify Inc. Financial Analysis

Table 66: Next IT Corp. Financial Analysis

Table 67: Next IT Corp. Financial Analysis

Table 68: Creative Virtual Ltd. Financial Analysis

Table 69: Creative Virtual Ltd. Financial Analysis

Market Segmentation

By Type

  • Rule Based
  • AI Based

By Chanel Integration

  • Websites
  • Contact Centers
  • Social Media
  • Mobile Applications

By Organization Size

  • Large Enterprises
  • Small And Medium-Sized Enterprises

By Application

  • Customer Service
  • Personal Assistant
  • Branding And Advertisement
  • Customer Engagement And Retention
  • Data Privacy And Compliance
  • Employee Engagement And On Boarding
  • Payment Processing
  • Others

By End-User

  • Banking, Financial Services, And Insurance
  • Information Technology And Telecom
  • Retail And E-commerce
  • Healthcare And Life Sciences
  • Travel And Hospitality
  • Media And Entertainment
  • Transportation And Logistics
  • Government
  • Others

By Region

  • North America
  • Europe
  • Asia-Pacific (APAC)
  • Latin America (LATAM)
  • Middle-East & Africa (MEA)
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Frequently Asked Questions (FAQs):

Ans: The chatbot market reached USD 3.4 billion in 2021.
Ans: The major factors driving the growth of the chatbot market are; advantages of chatbot integration to businesses and rising adoption of chatbot by government institutions.
Ans: The key players in the chatbot market are: Aivo, Botscrew, Cleverbot, MobileMonkey, IBM Corporation, LiveChatInc., eGain Corporation, Dialogflow, Nuance Communications, Artificial Solutions Holding ASH AB, Creative Virtual Ltd., Avaamo Inc., Kore.ai Inc., EdgeVerve Systems Limited, SMOOCH.ai, Inbenta Technologies Inc., Botsify Inc., Next IT Corp., Creative Virtual Ltd., and other prominent players.
Ans: The e-commerce segment accounted for the largest share in the chatbot market.
Ans: North America has the largest share in the chatbot market. 
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