Chatbots Market Overview:
According to the National Association of Software And Services Companies, headquartered in India, around 1.2 million people are employed worldwide in the Business Process Outsourcing industry. Businesses need a customer support division for acquiring newer clients and creating a trusted platform for existing consumers to continue using their services. For the larger part of industrial history, customer support call centers have helped address consumer queries’ and provided solutions to their problems. This is transforming now as innumerable businesses are inclining towards chatbots- a service equipped with Artificial Intelligence that helps customers in resolving their questions, make bookings online, get acquainted with a business’s offerings, and similar issues. Chatbots are estimated to completely take over call centers in the upcoming years as the market size in 2018 stood between $850-900 million. Chatbots will help businesses in financial savings by reduction of BPO employees.
The chatbots market has immense potential to grow in the upcoming years as more and more businesses enroll themselves in online platforms, and solicit software powered by AI for enhanced customer acquisition. It is estimated that the market demand will experience an outstanding growth of 25%-30% during the forecast period of 2019-2025.
Chatbots Market Outlook:
Chatbots are computer programs that are developed by using artificial intelligence and are adept at imitating human conversation. Unlike linear, computerized voice-overs that businesses used previously for customer support on their official numbers, chatbots are capable of answering a customer’s queries in a conversational style, thus eliminating the need for human intervention. More often than not, customers thoroughly enjoy talking with a chatbot and help them gain popularity. One of the most widespread incidences of chatbots is Apple’s Siri which was released in 2010. Siri gained instant popularity as it was present in mobile phones and users could communicate with it through voice. Siri was known for its cheeky humor which became a major driver for iPhone sales in the years that followed. North America, the land of digital innovation, is the geographical leader of chatbots market with a regional share of 35%-40% in 2018. This is unsurprising as North America region has given birth to world’s most popular chatbots including IBM’s Watson, Apple’s Siri, Google’s Google Now/Assistant, Microsoft’s Cortana, and Amazon’s Alexa.
Chatbots Market Growth Drivers:
Chatbots Are Elevating Customer Service
An increasing number of customers are now chatting with chatbots online instead of opting for slower means of businesses communication like sending an email. Chatbots analyze the query by recognizing words, and patterns, eventually providing apt solutions to clients. This has helped businesses grow as consumers do not have to wait over the phone for a response or flip through a frustrating set of online menus. Through chatbots, customers can easily do certain tasks like transfer money to friends, check in for a flight, book medical appointments, etc. Increasing utilization of chatbots by online businesses is helping the chatbots market grow.
Chatbots And User Experience
Nearly all entertainment and information related digital products today have a chatbot equipped into them. Amazon’s Firestick for example, the game-changer in over-the-top television viewing uses a virtual assistant called Alexa, without which it is virtually impossible to access visual and audio content. Chatbots enhance the user experience by making smartphone usage easier. Google maps, one of the most widely used applications in the world is powered by Google Assistant which users can communicate with while driving, thus eliminating the need for accessing the phone and making driving easier. Technological advancement of this stature is an esteemed growth driver for the chatbots market.
Chatbots Market Challenges:
One of the biggest challenges faced by the chatbots market is that Artificial Intelligence has its limitations. While chatbots can answer most of the queries through recognition of pattern, it is impossible for them to address unprecedented or rare queries. Refinement of algorithms and introduction of automated decision-making in chatbots is a possible way of combating this challenge.
Chatbots Market Key Players Perspective:
Artificial Solutions, the world’s most prominent conversation AI creator has built Teneo, a platform for business users to create AI powered computer and mobile applications. Teneo’s conversational AI can be accessed in 35 different languages.
Other key players of the chatbots market are IBM Corp., Naunce Communications Inc., eGain Coporation, Creative Virtual Pvt. Ltd., Next IT Corp., CX Company, Codebaby Inc., Next IT Corporation.
Chatbots Market Trends:
Unprecedented innovation is taking place in the chatbots market with Facebook having provided a common platform on its Facebook Messenger app for companies to create their own chatbots.
National Geographic Genius-
To promote their new show titled Genius, National Geographic created a chatbox that conversed with a user in the form of eminent personalities. Users could choose the personality they wished to chat with and the chatbot talked exactly in the related conversational style.
WholeFoods, an American supermarket conglomerate developed a Facebook chatbot that asked customers to select a particular option from various choices provided. After selection, the chatbot suggested recipes with direct links to fresh produce present on Wholefoods website. This helped them in acquiring a lot of customers and boosted their sales.
Chatbots Market Research Scope
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the chatbots market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of cheese in the chatbots market, and their specific applications in different areas.
Chatbots Market Report: Industry Coverage
The chatbots market can be segmented on the basis of type, usage, and end user. On the basis of type, the market can be bifurcated into software, professional services and managed services. Based on usage, the market can be divided into websites, contact centers, social media, and mobile platform. And by end user, market is segmented into small enterprises, medium enterprises and large enterprises.
The chatbots market report also analyzes the major geographic regions for the market as well as the major countries for the market in these regions. The regions and countries covered in the study include:
- North America: The U.S., Canada, Mexico
- South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
- Europe: The U.K., Germany, Italy, France, the Netherlands, Belgium, Spain, Denmark
- APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
- Middle East and Africa: Israel, South Africa, Saudi Arabia
Key Questions Addressed in the Chatbots Market Report
1. Is the market for the Chatbots growing? How long will it continue to grow and at what rate?
2. Which type of systems presents the major growth opportunities?
3. Is there a possibility for change in the market structure over time?
4. Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?
5. Do the key vendors look for partnerships to expand their businesses with respect to geography or product?
6. What are the short-term, long-term, and medium-term growth drivers for the market?
7. What are the short-term, medium-term, and long-term challenges for the market?
8. What are the short-term, medium-term, and long-term opportunities for the market
9. Who are the top players/companies of the market?
10. What are the recent innovations in the market?
11. How many patents have been filed by the leading players?
12. What are the types of patents filed by the leading players?
13. What is our Vision 2030 for Chatbots market?
A few focus points of this Research are given below:
- Give a deep-dive analysis of the key operational strategies with focus on the corporate structure, R&D strategies, localization strategies, production capabilities, and sales performance of various companies
- Provide an overview of the product portfolio, including product planning, development, and positioning
- Discuss the role of technology companies in partnerships
- Explore the regional sales activities
- Analyze the market size and giving the forecast for current and future Chatbots Market during the forecast 2019–2025
- Analyze the competitive factors, competitors’ market shares, product capabilities, and supply chain structures.