The global Chat-bots market is projected to increase in value from US$2.28 billion in 2018 to a staggering US$9.17 billion by 2025, following a compound annual growth rate (CAGR) of 21.95%, according to the ‘Chat-Bots Market’ report available from Valuates.
With customer loyalty and retention being one of the key areas of focus in all industries, the report’s authors argue that a well planned and executed chatbot can be an efficient way to increase consumer engagement and loyalty.
In fact, several industries have started to deploy chatbots powered by Artificial Intelligence into their operations to help engage customers and give them more seamless experiences. These ‘talk bots’ are therefore serving as an important tool for attracting, maintaining, and engaging new customers due to their ability to engage customers, gather new data, and shorten sales life cycles.
The Chatbot Market report offers in-depth insights into demand forecasts, industry dynamics, and micro and macro indicators. It also provides new insights into the factors that drive and limit the demand of the talkbots market, as well as highlighting and offering an outlook on current industry trends and potential developments in the Chatbots industry which will affect demand over the forecast period.
The global impact of the 2019 Coronavirus disease are already starting to be felt, and are likely to affect the Chatbots market significantly in 2020. The report also covers the impact of COVID-19.
Trends influencing the Chatbots market
According to the report, primary market growth drivers include technological innovation coupled with increasing consumer demand for self-service and 24/7 customer care at lower operating costs. Chatbots are proving to be a powerful agent capable of delivering 24/7 services while reducing overall operational costs. In addition, AI-powered talkbots have advantages, such as automating routine tasks leading to improved process performance, providing multi-language support, and offering better self-service experiences. Chatbots are expected to play a key role in the coming years when it comes to customer support systems, due to their ability to personalize the experience without any interruption.
Machine learning systems are now being used to assess trades performed on Wall Street and to predict how consumers are going to click on different advertisements. Besides being revenue generators, chatbots may also act as study bots, or to save companies money for lead generation and brand recognition. This feature of the chatbot is expected to increase the market size during the forecast period.
Insurance firms represent some of the early adopters of chatbot services focused on AI. Insurance firms use location-based technology to automatically start the claims process, using chatbots, along with visual resources such as live chat, to inform consumers about changes to requests, inspections, and documentation claims, as well as update them on claim status. These implementations of chatbots among various insurance organizations are expected to increase the talkbots market size.
While the adoption of chatbots solutions among different industries is growing, challenges related to efficient use and limited knowledge of the benefits offered by AI-powered chatbots solutions limit the growth of chatbot solutions among developing regions.
Market share analysis
During the forecast period, North America is projected to hold the largest chatbot market share. Growth in this region is primarily due to the increasing deployment of chatbots in different market verticals.
Many Asian countries, such as China, Singapore, India, and Japan, are leveraging information-intensive AI technologies, and the chatbot is one of the leading technology trends, and thus APAC is expected to show promising growth during the forecast period.
Technologies such as artificial intelligence, IoT, and APIs are emerging at a rapid pace. Using these technologies, chatbots can be designed to deliver improved operations and thus fuel consumer demand. Artificial intelligence and voice-based audio chatbots are projected to constitute the biggest talkbots market share in the future.
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