Chatbot Market Analysis Report By End User, By Application/Business Model, By Type, By Product Landscape, By Vertical, By Region And Segment Forecasts From 2017 To 2025

Industry Insights

The chatbot market size across the globe was valued at USD 190.8 million in the year 2016. It is projected to witness growth with a 24.3% CAGR from 2017 to 2025. This can be associated with the rapid adoption of activities related to customer services across several organizations for reducing operational costs.

It is being developed as an interactive application that combines artificial intelligence technology or a set of rules. Using this, customer interaction with text has become possible as it can be integrated with several messaging services. Moreover, the rapid advances being carried out in technologies like machine learning and artificial intelligence are further projected to drive the demand for chatbots in the upcoming years.

The majority of the OTT (over-the-top) applications like Facebook Messenger, WeChat, and WhatsApp are gaining popularity across the globe. This can be associated with the rising individual preference for messaging applications over other sites of social networking. Hence, several players have started developing chatbots that can be integrated with other messaging applications. Further, the need for automating customer sales and services is prevailing among several organizations thereby driving the market growth for chatbots.

Type Insights

The chatbots can be segregated into web-based, messenger-based/third party, and standalone based on their types.  The standalone chatbots segment is projected to dominate the global market in the upcoming years owing to their rising popularity among several industrial sectors.

Several enterprises have started preferring the usage of chatbots as a messaging platform and customer service bots to provide web-based services. They enable direct interaction with the customers and help in providing customer preference data that can be used for marketing purposes.

Product Landscape Insights

The chatbot market can be classified into marketing, artificial intelligence, and human intelligence based on their product landscape. The segment of artificial intelligence is projected to register the highest growth with 25.2% CAGR during the forecasted period, 2017 to 2025.

These chatbots enhance services related to customer interaction. Thus, they are largely being used across the digital marketing sector for updating the knowledge about services and products among the customers. Therefore, the segment of marketing is also anticipated to register substantial growth in the upcoming years.

Application/Business Model Insights

Based on application or business models, the chatbots market can be segmented into bots for social media, bots for service, bots for marketing, bots for order processing/payments, and others. In terms of the number of bots, the segment of bots for social media dominated the global market in 2016.

In 2016, the segment of bots for service held the largest revenue across the global market. While the segments of bots for marketing and bots for order processing/payments are projected to hold a major share across the global market in the upcoming years.

Vertical Insights

The market can be segmented based on verticals into retail, BFSI (Banking, Financial Services, and Insurance), healthcare, media and entertainment, e-commerce, travel and tourism, and others. The BFSI segment document dominated the global market in 2016.

These chatbots are gaining wide popularity across many industrial sectors due to their benefits like virtual presence and remote connectivity that can reduce the cost required for transportation to provide assistance. The vertical segment of travel and tourism is anticipated to register the fastest growth from 2017 to 2025.

End-User Insights

The chatbots market can be segmented into small, medium, and large enterprises based on their end-users. The large enterprise segment held the largest market share across the global market in 2016. This can be associated with the development and customization of chatbots by major organizations. But, these players are anticipated to optimize chatbot operations in the upcoming years owing to the need for sophisticated operations.

Around 45% of end-users prefer the usage of chatbots as one of the primary communication modes for activities like customer services. The segment of medium enterprises is anticipated to witness the highest CAGR during the forecasted years, 2017 to 2025.

Regional Insights

In 2016, North America dominated the global market. This can be associated with the rising number of chatbot startups across this region coupled with the rapid development of the IT industry in countries like the U.S. and Canada.  It is followed by the Asia Pacific due to the well-established service industry in countries like China and Japan.

The majority of the large enterprises have started adopting chatbots as a part of their regular customer service activities. The market growth for chatbots across various regions can also be attributed to features like reduction in operational costs, enhanced customer satisfaction, and higher operating efficiency.

Chatbot Market Share Insights

The key players in the market are Poncho, Baidu, Varo Money Inc., SRI International, WeChat, Kik, Babylon Health, and ReplyYes. These players are engaged in product development and innovation to gain a competitive advantage over other players and widen their global reach.

For example, a bot named Melody was launched by Baidu in October 2016. This bot used the technology of Artificial Intelligence for providing relevant information to the doctors. This can help them in assisting patients with the exact feasible treatment options.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For the purpose of this study, Million Insights has segmented the global chatbot market report based on end-users, applications/business models, types, product landscape, verticals, and regions:

• End-User Outlook (Revenue, USD Million; 2014 - 2025)
    • Small Enterprises
    • Medium Enterprises
    • Large Enterprises

• Application/Business Model Outlook (Revenue, USD Million; 2014 - 2025)
    • Bots for Service
    • Bots for Social Media
    • Bots for Payments/Order Processing
    • Bots for Marketing
    • Others

• Type Outlook (Revenue, USD Million; 2014 - 2025)
    • Standalone
    • Web-based
    • Messenger-based/Third party

• Product Landscape Outlook (Revenue, USD Million; 2014 - 2025)
    • Artificial intelligence
    • Marketing
    • Human intelligence

• Vertical Outlook (Revenue, USD Million; 2014 - 2025)
    • Healthcare
    • Retail
    • Banking, Financial Services, and Insurance (BFSI)
    • Media and entertainment
    • Travel & Tourism
    • E-commerce
    • Others

• Regional Outlook (Revenue, USD Million; 2014 - 2025)
    • North America
        • U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • U.K.
    • the Asia Pacific
        • China
        • Japan
        • South Korea
    • South America
        • Brazil
        • Rest of South America
    • MEA