According to the current analysis from international business analysts Reports and Data, the global Chatbot market is expected to jump dramatically from US$1.17 billion in 2018 to reach US$10.08 Billion by year 2026, at a CAGR of 30.9%.
The authors suggest characteristics like customer engagement ability, easy user interface, usage of familiar platforms like Facebook chat for customer engagement, excellent human speed of handling customer queries, easy to build are key factors contributing to elevation in the CAGR of Chatbots during the forecast period.
In this tech- savvy era of constant connection to social platforms through smart mobile devices, the new generation of customers expects intuitive and seamless customer experience. To satisfy these customer demands and to address the increasing competition in the business space, more brands/ businesses are turning their focus to build chatbots or virtual agents that can manage customer queries round the clock without any delay.
Chatbot are currently seen on websites, social platforms and smartphones and are utilized as easy and fun ways to assist customers in their interactions with a brand. Even if the bot revolution is in its early phase, we can expect a lot more advancements in this field.
With the evolution of AI technology and deep learning, the chatbots are expected to become more empowered to offer better language processing capabilities and extensive personalization in various sectors from BFSI to e-commerce. A strong opportunity for brands can be expected in the future as it was found out that 65% of the users are willing to use such
Further key findings from the report suggest;-
- Chatbot market is growing at a CAGR of 9% in Asia Pacific followed by North America and Europe, with 31.2 % and 30.4% CAGR, respectively. High expansion possibility of this market across the globe is the key factor to accelerate the market growth during forecast period across all regions.
- As of 2018, application in Banking segment is dominating Chatbots market, which holds 24% of the global market. North America regional market is the chief revenue generating source for this product segment, followed by Europe and Asia-Pacific regions.
- Chatbots in the customer service segment is expected to be the fastest growing market segment during forecast period 2019-2026 with a CAGR of 31.6%. However, costs are major challenge for the market growth of this market segment.
- Travel and Tourism type segment is expected to reach USD 1.40 billion by 2026.
- Asia Pacific is expected to account for the 24% of the global Chatbots market. Developing nations such China, and India are likely to witness high growth
- Associated high maintenance costs related to Chatbots and lack of interface knowledge among users is likely to hinder the market growth during the forecast period.