The chatbot market is estimated to be valued at US$ 6.04 Bn in 2023 and is expected to exhibit a CAGR of 25.7 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The chatbot market refers to the development and use of artificial intelligence-powered chat programs or virtual customer assistants that can converse with humans via messaging applications, websites, or mobile applications. Chatbots are increasingly being used by companies across various verticals such as BFSI, healthcare, retail, e-commerce, and hospitality to handle basic customer queries and tasks without requiring any human assistance. With advanced natural language processing capabilities, chatbots can understand customer needs, simplify tasks, provide 24x7 assistance and enhance customer experience.
Market Dynamics:
The growing demand for virtual customer assistants and self-service options among consumers is a key driver boosting adoption of chatbots. Chatbots streamline interactions and reduce support costs for businesses. Furthermore, integration of advanced technologies such as machine learning and natural language processing into chatbots is enabling understanding of complex human queries, which is another factor fueling growth of the chatbot market. However, requirement of significant investment for development and deployment of high-level chatbots with sophisticated capabilities still remains a challenge, restricting wider adoption.
SWOT Analysis
Strength: Chatbots provide 24/7 customer support which improves customer satisfaction and experience. They are cost effective in nature and require less resources compared to human agents. Chatbots use AI and machine learning to constantly improve their responses and become more intelligent over time.
Weakness: Chatbots have limited capabilities and are not as effective as human agents in handling complex customer queries. They also lack common sense and emotional intelligence. Privacy and security of customer data is also a concern while using chatbots.
Opportunity: Growing digitalization and increasing internet penetration provides a massive opportunity for chatbot market to expand. Chatbots can be employed across various industries like healthcare, retail, BFSI, travel and hospitality to improve customer services. The integration of chatbots with IoT devices will further bolster the market growth.
Threats: Rapid advancement in chatbot technology by competitors threatens existing chatbot vendors. Stringent regulations around data privacy and security poses challenges for chatbot companies to comply with.
Key Takeaways:
The Global Chatbot Market Demand is expected to witness high growth, exhibiting CAGR of 25.7% over the forecast period, due to increasing demand for virtual assistants and customer service chatbots across industries. The market size is projected to reach US$ 35.46 Bn by 2030 from US$ 6.04 Bn in 2023.
Regional analysis: North America dominated the global chatbot market in 2023 with market size of US$ 2.24 Bn owing to early technology adoption. Asia Pacific is expected to witness fastest growth during the forecast period supported by growing digital population in countries like India and China.
Key players: Key players operating in the chatbot market are Facebook, Inc., Kiwi, Inc., Astute Solutions, Google, Inc., Pandorabots, Inc., Haptik, Inc., Yahoo Inc., Helpshift, ToyTalk (PullString Inc.), Imperson Ltd., Slack Technologies, Inc., Kasisto Inc., and Microsoft Corporation. The players are focusing on developing more advanced and customized chatbot solutions to strengthen their position in the market.
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https://www.trendingwebwire.com/chatbot-market-size-share-growth-outlook-2023/
An Introduction to Chatbot: With Chatbots being everywhere, the challenge is to develop a well functioning one.
Here is the chatbot tutorial with the basics of creating an AI chatbot.
