Chatbot Market to Hit $24.58 Billion by 2030: Cognitive Market Research

CHICAGO, March 27, 2023 /PRNewswire/ -- The Global Chatbot Market size is valued at USD 3.02 Billion in 2022 and is projected to be USD 24.58 Billion by 2030, growing at a CAGR of 21.58% from 2023 to 2030, as per a recent report published by Cognitive Market Research. As per Cognitive Market Research analysis, Chatbot Market is growing exponentially as companies are profitably investing in the market. For instance, Google has launched Bard AI Chatbot to compete with ChatGPT.

Major findings during the study of the Chatbot Market:

• Chatbots are commonly used for the improvement of IT service management experience. In the business sector, a chatbot is used in the customer contact process to manage all the conversations with the customers
• Software component dominates the chatbot market as the software allows incorporation of natural language processors along with cloud-based deployment and AI facility. Chatbot software is highly adopted by all the industrial verticals owing to the limitless benefits offered by this conversational software in both business and customer sectors
• Cloud segment held a significant revenue share in the chatbot market, and is projected to grow at the highest CAGR during the forecast period. This can be attributed to the growing demand for cloud-based services across the globe. It has a huge capacity for storing information about user preferences. This helps it to provide customized solutions
• In terms of connectivity, the mobile application is accounting highest market share in 2022. This can be attributed to the large number of people using mobile phones. It has been estimated that more than two-thirds of the global population uses a mobile phone. Thus, chatbots through mobile applications can reach to a large number of people serving industries, like banking, retail, e-commerce, and others
• Chatbot through social media will also show a significant rise in the coming years as chatbots are been installed in various social media platforms, like Facebook, Instagram, Skype, and others with the help of AI
• Based on application, the retail and e-commerce segment dominate the market with a significant share. This can be attributed to the high inclination towards online shopping platforms. As more and more people rely on e-commerce websites, retailers are doing their best to satisfy their customers. Hence, distributors are using chatbots that allows providing customers with 24/7 support and the ability to report queries from an interface on a company website, mobile app, or from any social media accounts like Facebook or WhatsApp
• North America held the highest revenue market share in the chatbot market owing to the presence of large enterprises in the U.S. Further, advancement in technologies, such as VR, AI, machine learning, and 5G, stimulates the adoption of chatbots in this region
• APAC is showing the highest growth rate owing to the rising awareness and usage of digital platforms. The population of China, followed by Japan and India, are becoming more and more comfortable with technologies which enhance the market for a chatbot in these countries

Read Full Market Analysis Chatbot: by Component (Software and Services); by Deployment (On-Premise, and Cloud); by Connectivity (Mobile Applications, Social Media, and Others); by Organization (Large Enterprises and SMEs); by Industrial Verticals (BFSI, Retail, and E-commerce, Hospitality, Healthcare, Telecommunication, and Others); by Region (North America, Europe, Asia Pacific, Latin America and Middle East, and Africa) Global Industry Analysis, COVID-19 Impact, and Industry Forecast, 2018-2030

Chatbot Industry Statistics 2022:

What are the Growth, Drivers, and Restraint for the Chatbot Market?

• Driver:

High integration of chatbot in various industrial verticals:

Chatbot usage is rising exponentially in both the business sector and the consumer market. It is an instant messaging app that creates natural conversations between businesses and customers. The demand for chatbots has increased in recent years due to the rising inclination of people towards online shopping. In online shopping platforms, the sales team uses chatbots to answer non-complex product questions, which helps improve customer satisfaction and convenience. For instance, Google has introduced BARD, which is an AI-powered chatbot. It aims to enhance productivity, creativity, and curiosity while addressing potential biases and misinformation. Initially, the company has made it available in the US and UK and plans to expand to more countries and languages.

Moreover, the world is moving rapidly towards digitalization. Amid the COVID-19 pandemic, the world has turned into a digital world. Hence, the healthcare industry, like all other industries has started using chatbots aggressively, which helps connect patients with hospitalists for general diagnosis and treatment. It also allows scheduling appointments with physicians without needing to travel to the hospital.

Chatbots have been connected through websites, mobile applications, along with social media platforms which further drives the growth of market. As AI implementation in chatbots is rising, it is revolutionizing the business processes in multiple industries. AI-powered chatbots thus have no limits for their usage in various sectors, including BFSI, telecommunication, e-commerce, and others accrediting the growth market across the world.

• Restraint:

Drawbacks regarding the full understanding of natural language:

To ensure that the chatbot is providing correct and relevant information to the customers, it must be updated with the right information. However, people in today widely used short forms out of their habit for speedy responses. Such kinds of slang or misspellings are frequently misunderstood by these chatbots. Hence, the inability to understand this kind of natural language may hamper the growth of the chatbot market.

However, the rising use of cloud services by various enterprises will help chatbots retrieve huge amounts of data from the cloud, which will enhance the understanding of natural language and further stimulate the growth of the chatbot market. For instance, Meta is working on the availability of AI persona on WhatsApp and Messenger.

Check the Full Report, including Global, Regional, and Country Level Analysis:

https://www.cognitivemarketresearch.com/chatbot-market-report

How COVID-19 Impacted the Chatbot Market?

The advent of COVID-19 pandemic has reshaped the lives of people across the globe by changing the way of work, shop, and learn. Every sector has been impacted due to the sudden outbreak of the pandemic. Lockdowns were announced, and many customer service centers were closed. Disruption in the supply chain occurred, and online services failed to handle additional volumes effectively. Hence, to manage this chaos effectively, companies started investing in new technologies to provide additional support and allow workers to adapt to work-from-home setups.

Lockdown during 2020, embraced the digital world like never before. Thus, the digital literacy rate during the pandemic increased exponentially resulting in stimulation of chatbot use. Retail businesses increased the use of chatbots during COVID-19 to fulfill consumer needs and give retailers a competitive edge in the market. Thus, outbreak of COVID-19 had a positive impact on the chatbot market.

Chatbot Market Report Scope

Chatbot Market – Component Outlook (Revenue, USD Billion, 2018 – 2030)

• Software
• Services

Chatbot Market – Deployment Outlook (Revenue, USD Billion, 2018 – 2030)

• On-Premise
• Cloud

Chatbot Market – Connectivity Outlook (Revenue, USD Billion, 2018 – 2030)

• Websites
• Social Media
• Others

Chatbot Market- Organization Outlook (Revenue, USD Billion, 2018 – 2030)

• Large Enterprises
• SME's

Chatbot Market- Industrial Verticals Outlook (Revenue, USD Billion, 2018 – 2030)

• BFSI
• Retail and E-commerce
• Hospitality
• Healthcare
• Telecommunication
• Others

Chatbot Market – Regional Outlook (Revenue, USD Billion, 2018 – 2030)

• North America (U.S., Canada, Mexico)
• Europe (Germany, France, UK, Italy, Spain, Russia, Rest of Europe)
• Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Columbia, Rest of Latin America)
• Middle East & Africa (GCC, Saudi Arabia, Turkey, Egypt, Rest of MEA)

List of Key Players in the Chatbot Market

• Creative Virtual Ltd.
• IBM Corporation
• Next IT Corp.
• Inbenta Technologies Inc.
• Botsify Inc.
• Acuvate
• Microsoft
• Google
• Relinns Technologies Pvt. Ltd.
• eGain Corporation
• Aivo
• Others

Related Reports on Chatbot Market:

• Global Artificial Intelligence Market is projected to hit USD 1,583.14 Billion by 2030

The artificial intelligence market is expected to reach USD 1,583.14 Billion by 2030 growing at a CAGR of 36.54%. AI to solve problems, syndicates computer science and robust datasets. It also uses machine learning and deep learning sub-fields that create expert systems based on inputs. Revolution in the digital world and high penetration of digital technologies across the globe has increased the demand for AI. wide array of industries, including BFSI, healthcare, retail, and automotive, among others use AI to run their businesses. These factors are attributed to the growth of the Artificial Intelligence Market.

• Global E-commerce Market is expected to reach USD 28.63 Trillion by 2030

The global e-commerce market is expected to reach USD 28.63 Trillion by 2030, growing at a CAGR of 14.45%. E-commerce is a convenient way of buying and selling goods and services through online platforms. It has been studied that approximately 36% of U.S. consumers are now buying goods online, which was only 29% in 2019. Hence, companies are also rushing to meet digital demand and expanding their portfolio to meet customer demand after increased digital sales. Furthermore, COVID-19 has accelerated the shift to eCommerce everywhere.

Other Related Reports:

• Global 5G Services Market to reach $389.56 Billion by 2030, growing at an impressive CAGR of 26.43%
• Global Machine Learning Market to hit $214.56 Billion by 2030, growing at an impressive CAGR of 39.64%
• Global Cloud Services Market to hit USD 1,624.01 Billion by 2030 growing at a CAGR of 15.45%

Explore Other Cognitive Market Research's Internet & Communication Industry Report

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