Chatbot Market: Structure and Overview of Key Industry

Posted by Sakshi Mishra on January 29th, 2020

A 27.8% CAGR (Compound Annual Growth Rate) is set to mark the forecast period between 2016 and 2024, as per a Transparency Market Research (TMR) report. And, as per the analysts at TMR , some of the factors that the growth shall be attributed to are increasing popularity and adoption of Artificial Intelligence (AI) across industry verticals, including end-users, and innovation marking the landscape in a big way. This will also lead to an improvement in market worth from USD 0.11 billion in 2015 to USD 0.94 billion by the end of 2024.

A Consolidated Market Landscape to Witness Increase in Competitiveness over the Forecast Period

The global chatbot market will see a consolidated competitive landscape over the forecast period with three top players hold about 90% of the market share. Some of the most advanced technology based companies dabbling with the technology include Google, Facebook, and Microsoft and Pandorabots, Inc., Slack Technologies, Inc., Astute Solutions, and Kasisto Inc.

The second set of market players are investing heavily in research and development to bring about innovation, leading to intense competition over the coming years. Other strategies deployed by players to strengthen foothold in the market include mergers and acquisitions.

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North America to Dominate Global Chatbot Market between 2016 and 2024

Owing to a mature technology landscape, the North American region will account for a major share in the global chatbot market. Besides, the region has an advanced infrastructure to support this kind of a growth in future. Additionally, more and more businesses are opting for automation and use of digital into their day-to-day operations.

On the other hand, the Asia Pacific (APAC) region, will chart a high CAGR, creating high growth opportunities. This will lead to players having a keen eye on the region.  This growth will be owed to presence of numerous start-ups taking AI seriously. Besides, a number of enterprises are seen integrating AI and chatbots into their business processes. A massive consumer base that is into technology is also contributing positively

Need for Efficiency in Businesses Leading to Growth in the Global Chatbot Market

Chtabots can converse with people. These can improve times used to address issues and remove the need for human intervention in the process significantly. These help businesses, particularly those that are consumer centric like those in retail sector, etc, to introduce efficiency to processes massively by saving both time and human effort. It is pertinent to note here that as per a recent survey 1.4 billion people that used messenger services were okay with communicating with chatbots. This willingness will also drive the market onto a high growth curve over the forecast period.