The Worldwide Chatbot Industry is Expected to Reach $10.5 Billion by 2026 at a CAGR of 23.5% from 2020 – ResearchAndMarkets.com | Financial Buzz

The Worldwide Chatbot Industry is Expected to Reach $10.5 Billion by 2026 at a CAGR of 23.5% from 2020 – ResearchAndMarkets.com

The “Chatbot Market by Component, Type (Rule Based & AI Based), Application (Customer Service, Customer Engagement & Retention), Channel Integration, Business Function (ITSM, Finance), Vertical, and Region – Global Forecast to 2026” report has been added to ResearchAndMarkets.com’s offering.

The global Chatbot market size to grow from USD 2.9 billion in 2020 to USD 10.5 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 23.5% during the forecast period.

The adoption of chatbot solutions is considerable and is projected to grow at a good pace in the coming years. One of the factors contributing to the growth of the chatbot market is the advent of technologies, such as analytics, AI, and cloud, which enable various industries to organize their operations. Furthermore, the increasing customer demand for self-services is accelerating the adoption of chatbots, thus offering a competitive advantage to businesses.

The chatbot market is estimated to witness a trivial slowdown in 2020 due to the global lockdown. The COVID-19 pandemic has increased the churn rate and shuddered almost every industry. The lockdown is impacting global manufacturing, and supply chains and logistics as the continuity of operations for various sectors are badly impacted. The sectors facing the greatest drawbacks are manufacturing, transportation and logistics, and retail and consumer goods. The availability of essential items is impacted due to the lack of manpower to work on production lines, supply chains, and transportation, although the essential items are exempted from the lockdown.

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

The global chatbot market is segmented on the basis of components into solutions and services. Based on the solutions segment, the market is divided into platform and software. The services segment is further divided into managed services and professional services. The services segment is expected to grow at a higher CAGR during the forecast period. The growing use of AI and analytics for policymaking, environmental analysis, and real-time decision-making is expected to increase the adoption of services.

The AI-based segment to grow at a higher CAGR during the forecast period

The global chatbot market is segmented on the basis of type into rule based and AI based. The AI-based segment is expected to at a higher CAGR during the forecast period. Due to intelligent customer engagement and the self-learning process, the AI-based segment is anticipated to register the fastest growth during the forecast period.

Among verticals, the healthcare and life sciences segment to grow at the highest CAGR during the forecast period

The chatbot market is segmented into the various verticals, particularly BFSI, IT and telecom, retail and eCommerce, healthcare and life sciences, transportation and logistics, government, travel and hospitality, media and entertainment, and others (education, energy and utilities, and manufacturing). Key factors favoring the growth of chatbots across these verticals include the rising technology advancements and growing availability of industry-specific chatbots. Healthcare and life sciences vertical is expected to grow at the highest CAGR during the forecast period. Chatbots have the potential to revolutionize healthcare. They can substantially boost efficiency and improve the accuracy of symptom collection and ailment identification, preventive care, post-recovery care, and feedback procedures.

APAC to grow at a higher CAGR during the forecast period

The chatbot market has been segmented into five regions: North America, Europe, APAC, MEA, and Latin America. Among these regions, North America is projected to hold the largest market size during the forecast period. APAC is expected to grow at the highest CAGR during the forecast period. Countries in APAC are technology-driven and present major opportunities in terms of investments and revenue. These countries include China, Singapore, Japan, and India. Factors such as flexible economic conditions, industrialization- and globalization-motivated policies of governments, and digitalization are expected to support the growth of the chatbot market in APAC.

Market Dynamics

Drivers

  • Advancements in Technology, Coupled with Rising Customer Demand for Self-Service Operations
  • Growth in Need for 247 Customer Support at a Lower Operational Cost
  • Increase in Focus on Customer Engagement Through Various Channels

Restraints

  • Inability to Recognize Customer Intent and Respond Effectively
  • Dearth of Accuracy in User’s Voice Authentication

Opportunities

  • Initiatives Toward the Development of Self-Learning Chatbots to Deliver a More Human-Like Conversational Experience
  • Rise in Demand for AI-Based Chatbots to Deliver Enhanced Customer Experience

Challenges

  • Lack of Awareness About the Effect of Chatbot Technology on Various Applications
  • Cumulative Growth Analysis

Companies Mentioned

  • [24]7.ai
  • Aivo
  • Amazon Web Services (AWS)
  • Artificial Solutions
  • Chatfuel
  • Cognicor Technologies
  • Contus
  • Conversica
  • Creative Virtual
  • Google
  • Gupshup
  • IBM
  • Inbenta
  • Kevit
  • Keyreply
  • Kore.AI
  • Livechat
  • Microsoft
  • Mindmeld
  • Nuance Communications
  • Oracle
  • Personetics
  • Pypestream
  • Servicenow
  • Smartbots
  • Yekaliva
  • Yellow Messenger

For more information about this report visit https://www.researchandmarkets.com/r/x3eqtw

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