Global Chatbot market to reach US$ 9.4 Billion in 2024

The Global chatbot Market is valued at US$ 2.6 Billion in 2019 and is forecasted to grow at a CAGR of 29.7% to reach US$ 9.4 Billion in 2024.

The market is driven by factors such as Rising need to offer 24*7 customer support at a lower operational cost, increasing need to provide effective and immediate customer support, increase in integration of chatbots with social media and rising use of artificial intelligence in advertisements

Definition / Scope
Market Overview
Market Risks
Top Market Opportunities
Market Trends
Industry Challenges
Technology Trends
Pricing Trends
Regulatory Trends
Other Key Market Trends
Market Size and Forecast
Market Outlook
Technology Roadmap
Competitive Landscape
Competitive Factors
Key Market Players
Strategic Conclusion
References
Appendix

Definition / Scope

A chatbot also known as a chatterbot, talkbot or bot is a service that uses a chat interface to communicate with people. One can have a chatbot conversation close to human interaction, such as asking questions by using voice or even typing.

In a conversational style the chatbot will respond to questions. Chatbot is a built-in, high-level programming language module designed to build a conversational app that can communicate. A Chatbot initially starts with no knowledge of how to communicate.

Each time a user enters a statement; the library saves the text they entered, as well as the text to which the statement replied. When chatbot receives more input the number of responses it may respond to, and each response ‘s accuracy in relation to the feedback argument increases.

The program selects the closest matching response by searching for the closest matching known statement matching the input, and then selects an answer from the list of known responses to that statement.

There are basically two types of chatbots; one operates on the basis of a set of rules. It can only respond to commands, which are very precise. When the user doesn’t use the correct command or words, the chatbot won’t understand what the user means

The other type uses machine learning and artificial intelligence (AI) to provide the best response. It will chat with a person in a similar way as a member of staff might.

It is called AI-powered chatbots. It understands the language and command, it can understand human interaction, and can predict their needs, categorizes and stores the information that each interaction has provided. AI-powered chatbots can interpret and execute more complex requests; they know where to store the information in order to be able to access it in the future again.

Market Overview

The Global Chatbot Market is estimated to be valued at US$ 2.6 Billion in 2019 and is poised to grow at a CAGR of 29.7% to reach US$ 9.4 Billion in 2024.

Major growth drivers for the market include Rising use of artificial intelligence in advertisements, Increasing need to provide effective and immediate customer support, 24*7 customer support at a lower operational cost, Increase in integration of chatbots with social media and Omnichannel medium and the ability to integrate with any platform.

Based on the type, the web-based sub-segment is the fastest growing because, in an attempt to increase customer experiences, many businesses prefer chatbots for messaging platforms and customer service bots for mobile based services.

Chatbots allow businesses to communicate directly with customers and provide data pertaining to customer preferences, which can later be used in digital marketing activities.

On the basis of Technology, the Natural Language Processing segment is expected to lead the market during the forecast period due to the increasing demand for better customer service and the increasing use of smart devices around the world.

In addition, the growing deployment of cloud-based and web business applications, as well as continuous advancements in machine-to – machine technology, would further boost the segment ‘s demand.

Based on the Business Model, the bots for social media segment had a large share In terms of number of bots.

However, the bots for the service segment gained a majority of market share in terms of revenue. The bots for marketing and payment / order processing bots segments are projected to account for large market shares over the forecast period.

Based on Application, due to the growing deployment of Artificial Intelligence (AI)-powered chatbots to enhance customer engagement and deliver a seamless customer experience, the Customer Engagement and Retention segment is expected to expand at a higher CAGR during the forecast period.

Chatbots act as a powerful tool for attracting, maintaining and engaging new customers to any company. Therefore, customer engagement and retention are expected to become a significant area of application for deploying chatbot solutions.

On the basis of Verticals, the Retail and Ecommerce segment is anticipated to dominate the market during the forecast period due to the increasing adoption of chatbot applications by retail companies on their official website to provide excellent customer experience and solve customer queries.

In addition, the rapid change in consumer demand to e-shopping, and the rising use of smart devices such as smartphones, tablets, and laptops, would further accelerate the growth of the segment.

Market Risks

Fragmented Market

As there is low barrier for entry, the new entrants are flocking into the Chatbot Market backed by Venture Capital Funding the market appears to be fragmented with the presence of a considerable number of companies.

The smaller companies lack capability and scale to respond to disruption in the market and as the market is significantly fragmented there is an absence of a true market leader which leaves the players to hold minuscule market share.

Since this market is booming there are more entrants in the market creating more competition with their various unique services, on the other hand, the major players are trying to increase their users. Therefore, the market concentration is low which directly affects the revenue generated from the segment.

Intense Competition

One of the salient and understudied features of Chatbot market is that users can move between platforms with relatively low friction or have a presence on several applications at the same time.

For instance, there are multiple platforms that use the same Chatbot such as Whatsapp and Facebook Messenger for providing their services, which doesn’t differentiate the platforms and hence affecting the business.

This feature of the market has created an intense competition among platforms, thereby affecting the profit margins of the enterprises.

Top Market Opportunities

Incorporation of natural language processing and natural language understanding

Natural language processing (NLP) and natural language understanding (NLU) are the basis of new bot technologies.

Various technology giants like Google, Inc., Amazon, Microsoft Company, and Facebook are aggressively competing in the market, and there are plenty of growth opportunities emerging in the global market to simplify the authoring and processing conversation experience and integrate it with bot frameworks.

Chatbot analytics

Performance monitoring and analytics are a key area of opportunities for market players. New chatbots user interface models are based on simple user interface constructs and conversations which require new form of analytics and monitoring.

For instance, A chatbot analytics framework should be able to monitor the sentences formed in current user interactions, evaluate concepts and sentiments and assess the rate of error processing.

Self-Learning Chatbots

Self-learning chatbots can adapt to changing conditions in the environment in which they operate, such as learning from their actions, experiences and decisions.

These chatbots can be considered clever enough to analyze data in a minimal amount of time and help the customer find the exact information they are looking for conveniently by providing multi-language support.

Self-learning bots whose behavior is guided by data are powered NLP technology and self-learning capabilities (supervised ML), which can allow more humane and natural communication to be provided, and can learn from their own mistakes.

Market Trends

Rising use of artificial intelligence in advertisements

Technological advances in artificial intelligence accompanied by the proliferation of messaging apps in the recent past have fuelled demand for chatbots.

New and emerging innovations are being leveraged by a number of businesses to expand their reach with customers. Marketing practices such as mobile analytics, cloud platforms, and social analytics have helped turn numerous enterprises into a global digital business.

In addition, a variety of publishers and brands have begun to deploy bots on messaging and collaboration platforms including CNN, HP and 1-800 Flowers. Thus, during the forecast period, these factors are expected to drive market growth.

Increasing need to provide effective and immediate customer support

Chatbots have become the prime solutions to the emerging challenge of providing customers with immediate and effective customer service irrespective of where they are located.

It allows companies to take business hours off the equation and lets customers reach out to the best possible customer service to answer all their questions.

Moreover, chatbots are relatively effective in imitating human interaction, so many organizations use them to improve their customer service channel for live chat. Those factors are therefore expected to propel the growth of the global chatbot market over the forecasted period.

Rising need to offer 24*7 customer support at a lower operational cost

Chatbots are proving to be a powerful agent capable of delivering 24 * 7 while reducing overall operational costs. In addition, AI-powered chatbots provide benefits, such as automating repetitive tasks leading to improved process efficiency, providing multi-language support, and offering better self-service experiences.

Chatbots are expected to play a key role in the coming years when it comes to customer support systems, due to their ability to personalize the experience without any interruption. Providing prompt responses to customer requests has become a key factor in organizational performance.

Therefore businesses look at the chatbot as a powerful conversational tool to effectively engage customers and provide them with a dynamic and rich user experience environment.

Starbucks, KLM Dutch Airlines, Spotify and Bank of America are a few companies that have introduced chatbots to offer seamless customer service.

Increase in integration of chatbots with social media

Social networking platforms allow brands to increase brand engagement and brand-to-customer contact. Integrating chatbot with these social media platforms helps the user find a solution to new features, security, and other issues related to the site, which drives the growth of the chatbot market.

For instance, Number of business institutions offer products and services directly on social media platforms such as Facebook, Whatsapp using essential messenger services.

Surge in demand for Omnichannel medium of communication

The integration of chatbots with communication channels, one of the key chatbot market trends, will also drive market growth during the forecast period. Chatbots are omnichannel and just about any platform can be integrated with them.

Communication services chatbots, for example, are linked to communication channels such as email and VoIP platforms. Messaging apps use bots, which allow users to receive bank notifications and order food. As chatbots become monetized, chatbots will offer opportunities for mass distribution of marketing and promotional content.

Inability to recognize customer intent and effectively respond

Software tools, such as Application Program Interfaces ( APIs), are explicitly designed to perform the standardized use of chatbot solutions without adding any specific functionality that fails to fulfil the specific user requirement and achieves the exact objective of creating a chatbot.

Chatbot market, fed with unique data, can only assist customers when they are asked questions that they are programmed to answer. Consequently, if a customer asks a question regarding which the chatbot has no knowledge, it may fail to understand the intent of the customer and show an inability to answer the query raised.

Operating Within the Rules of Social Media Platforms

The Social Media Platforms such as Facebook Messenger and Whatsapp have a set of pre-defined rules for the Chatbot to be integrated with them and these rules define what can be done and what cannot be done by the Chatbots, hence this limits the operations that can be performed using the chatbot.

For instance, if a Facebook Messenger Bot is built and Facebook Advertising is used to drive traffic to the bot (“Click-to-Messenger Ads), the chatblock must be 150 characters or less to be approved by Facebook, thereby limiting the potential of Chatbots functionality as a Marketing tool.

The Flaws of AI bots

The current state of natural language Processing is not that advanced to tackle everything, e.g. mixing of local language.

When trying to build an ambitious chatbot, which is able to handle complex conversations and take actions (i.e payments), one cannot rely 100% on the platforms and custom natural language processing development is needed.

Recent advancements in Deep Learning techniques may come to be of great help in the near future.

Industry Challenges

Lack of awareness among businesses

Lack of awareness and change management challenges will, to some degree, affect market growth. While the adoption of chatbots solutions among different industries is that, challenges related to efficient usage and limited awareness of the benefits provided by AI-powered chatbots solutions that restrict the growth of chatbot solutions among developing regions, such as Latin America and Africa.

In addition, large companies are at the forefront of implementing chatbot solutions, but small and medium-sized businesses (SMEs) have restricted adoption of chatbot solutions due, among other factors, to the expense of maintaining and lack of skilled personnel.

Security and Privacy Issues

Managing cyber security poses as a challenge in the global Chatbot market. Privacy and security concerns are the major factors that restrict the chatbot market globally.

In addition, consumers are skeptical regarding app-based human interface platform due to the prevalence of cynicism linked to data privacy. These factors hamper global chatbot market growth.

Technology Trends

Some of the Key technology trends witnessed in the Global Chatbot Market include

Voice recognition chatbot technology

Chatbots for voice recognition will become wider in 2020. Because Google and Amazon, recognized giants in the tech industry, continue to drive the market for “smart speakers,” this year. Amazon alone, for instance, shipped 100 million devices with built-in voice assistant Alexa.

Additionally, at least once a month 110 million Americans are using voice assistants. This market trend tells us that voice-based chatbots will become much more popular in 2020, driven by tech industry leaders and voice-powered chatbot platforms like PullString.

Smarter Bots

Rule-based chatbots no longer meet the needs of modern business , in particular with regard to personal recommendations and customer engagement.

Thus, most businesses looking to automate processes are likely to choose AI-based chatbots over scripted ones. Besides this, the high adoption of AI-based chatbots in mass media and live news is also anticipated. In this way, readers will no longer search for relevant news but provide personalized news suggestions instead.

Pricing Trends

The price of Chatbots depends on several factors such as the type of Chatbot built and the platform for which they are built.

As-a-Service Chatbots

Chatbots can be distributed as a service. Such solutions are quite different mostly varying on the degree of customizability. Some even allow to modify the code. However, they come with limitations in the form of the number of messages a bot can send a month.

The pricing can vary across all the different available solutions but on average it is somewhere around these numbers:

US$ 15 a month – 5 bots/5,000 messages.
US$ 50 a month – 25 bots/20,000 messages.
US$100 a month – 50 bots/50,000 messages.

Customized Chatbots

Chatbots can be created and programmed from scratch. Many companies look at this as a last resort when the previous models have failed them. However, this doesn’t have to be the case. There are plenty of companies who will gladly develop the Chatbots.

The approximate cost of a custom chatbot is generally somewhere between $6,000 and $12,000 depending on the complexity. This price consists of:

Integration with a single chat app – 40-56 hours
Command interpreter – 40-56 hours
Natural language user interface (NLUI) – 120-160 hours
Adaptation of business logic – 120-160 hours
Creation of business logic – 160-190 hours

Regulatory Trends

Many countries are beginning to regulate chatbot functions and how businesses portray their chatbots to website visitors, users, and customers.

Regulation in USA

The Bot bill which came into effect on July 1st, 2019, bans automated accounts from pretending to be real people in order to “incentivize a purchase or sale of goods or services in a commercial transaction or to influence a vote in an election.

According to the bill, Automated accounts will still be able to interact with users, but they will have to disclose that they are not, in fact, humans,

Regulation in Europe

Article 22 of the GDPR legislation that went into force in May 2018 dictates that it is illegal for bot builders to design and develop bots to serve as the primary source for a consumer approval decision process. The best example is a chatbot cannot approve a consumer for a loan.

The overarching objective of these new regulations is to increase the level of transparency between clients and users. This involves ensuring that end-users know they ‘re talking to a bot and not a real human being.

While developers, marketers, and bot builders may feel these new regulations are hampering business, these regulations are quite an opportunity to mature chatbots, which can enhance the overall experience of customers and users.

Despite recent legislation, chatbots are and will continue to be a great way to generate leads and establish connections with customers.

Other Key Market Trends

Impact of COVID-19

Business organizations, especially in highly affected countries, allow their employees to work from home to ensure business continuity in the midst of the COVID-19 crisis. The increase in people working from home has led to a rise in demand for online video viewing, downloading, and communication via video conferencing, all leading to increased network traffic and data usage.

COVID-19 will accelerate demand for agile and flexible work styles and further drive the adoption of communications services such as Chatbots which tend to improve work-life balance.

Market Size and Forecast

The Global Chatbot Market is valued at US$ 2.6Billion in 2019 and is projected to grow at a CAGR of 29.7% to reach US$ 9.4 Billion in 2024.

Market Size based on Type

The Global Chatbot Market is classified into Messenger based, Web-based and Standalone segments.

The Messenger based sub-segment dominates the segment based on the type of the Chatbot and it constituted 45% of the market share and US$ 1.17 Billion in market size and is poised to grow at the fastest growth rate of 32.1% to reach US$ 4.71 Billion in 2024

Web-based sub-segment constitutes 37% of the market share and US$ 962 Million in market size in 2019 and is expected to grow at a CAGR of 29.7% to reach US$ 3.53 Billion in 2024.

Standalone sub-segment constitutes 18% of the market share and estimated to be worth US$ 468 Million in 2019 and is poised to grow at a CAGR of 26.1% to reach US$ 1.5 Billion in 2024

Market Size based on Technology

Based on technology, the Global Chatbot Market is classified into Machine Learning and Deep Learning. Natural Language Processing and Automated Speech Recognition

The Natural Language Processing sub-segment dominates the Technology Segment accounting for 52% of the market share and US$ 1.35 Billion in market size in 2019 and is projected to grow at a CAGR of 27.1% to reach US$ 4.8 Billion in 2024.

Automated Speech Recognition sub-segment constitutes 29% of the market share and US$ 754 Million in market size in 2019 and is expected to grow at a CAGR of 29.3% to reach US$ 2.72 Billion in 2024.

Machine Learning and Deep Learning sub-segment is the fastest growing sub-segment and accounts for 19% of the market share of the Application segment and is poised to reach market size of US$ 1.94 Billion in 2024 from US$ 494 Million in 2019 growing at a CAGR of 31.5% in the forecast period (2019 – 2024).

Market Size based on Business Model

The business model segment has been sub-segmented into various types such as bots for service, bots for social media, bots for payments/order processing, bots for marketing, and others.

The Bots for social media sub-segment dominates on the basis of number of bots in the Segment accounting for 27% of the market share and US$ 572 Million in market size in 2019 and is projected to grow at a CAGR of 28.1% to reach US$ 1.97 Billion in 2024.

The Bots for service segment dominates on the basis of revenue in the Segment accounting for 21% of the market share and US$ 676 Million in market size in 2019 and is projected to grow at a CAGR of 29.4% to reach US$ 2.54 Billion in 2024.

The bots for marketing and bots for payments/order processing segments are expected to account for large market shares over the forecast period constituting 46% of the market share combined together and US$1.27 Billion of the market size in 2019 and is poised to grow at 31.3% to reach US$ 4.96 Billion in 2024.

The other segment accounts for 6% of the market share and US$ 156 Million in 2019 and is projected to grow at a CAGR of 29.5% to reach US$ 568.1 Million in 2024.

Market Size based on Vertical

On the basis of Vertical, the Global Chatbot Market is classified into Banking & Financial Services and Insurance, Retail and Ecommerce, Healthcare, Travel and Hospitality, Media and Entertainment, Telecommunications and Others

The Retail and e-commerce sub-segment dominates the Vertical Segment accounting for 34% of the market share and US$ 676 Million in market size in 2019 and is projected to grow at a CAGR of 29.7% to reach US$ 2.48 Billion in 2024.

BFSI sub-segment constitutes 21% of the market share and US$ 494 Million in market size in 2019 and is expected to grow at a CAGR of 28.9% to reach US$ 1.76 Billion in 2024.

Healthcare sub-segment is the fastest growing sub-segment and accounts for 17% of the market share of the Application segment and is poised to reach market size of US$ 442 Million in ,2024 from US$ 442 Million in 2019 growing at a CAGR of 31.4% in the forecast period (2019 – 2024).

Telecommunications sub-segment constitutes 16% of the market share and estimated to be worth US$ 338 Million in 2019 and is poised to grow at a CAGR of 29.9% to reach US$ 1.25 Billion in 2024

Media & Entertainment sub-segment accounts for 10% of the market share and market size of US$ 260 Million in 2019 and is expected to reach US$ 869 Million in 2024 growing at 27.3% in the forecast period.

The others sub-segment is witnessing significant growth rate of 30.4% and it accounted for 2% of the market share and market size of US$ 52 Million in 2019 and is expected to reach US$ 196 Million in 2024.

Regional Analysis

North America dominates the Global Chatbot Market accounting for 37% of the market share and US$ 962 Million in market size in 2019 and is projected to grow at a CAGR of 27.7% to reach US$ 3.27 Billion in 2024.

South America constitutes 10% of the market share and estimated to be worth US$ 260 Million in 2019 and is poised to grow at a CAGR of 29.3% to reach US$ 939 Million in ,2024

Europe constitutes 21% of the market share and US$ 546 Million in market size in 2019 and is expected to witness growth of CAGR of 28.9% to reach US$ 1.92 Billion in 2024.

Asia Pacific is the fastest growing region and accounts for 25% of the market share and is poised to reach market size of US$ 2.45 Billion in ,2024 from US$ 650 Million in 2019 growing at a CAGR of 31.4% in the forecast period (2019 – ,2024).

Middle-East & Africa accounts for 7% of the market share and market size of US$ 182 Million in 2019 and is expected to reach US$ 670 Million in 2024 growing at 29.8% in the forecast period.

Market Outlook

The Global Chatbot Market is estimated to be valued at US$ 2.6 Billion in 2019 and is poised to grow at a CAGR of 29.7% to reach US$ 9.4 Billion in 2024.

As of 2019, the retail and e-commerce is the leading product segment of the global Chatbot Market, and is expected to register highest CAGR among Chatbots.

Chatbots in the customer service segment was valued at US$ 542 Million in 2019 and is expected to grow at the fastest rate of 31.6% mainly driven by such as rising shift towards digitalization of business processes, thereby contributing to the growth of the segment.

The Market of Chatbots in the application type segment of Telecommunications is expected to reach US$ 1.25 Billion in 2024 growing at a CAGR of 29.9% in the forecast period 2019 – 2024.

The Healthcare end use segment is expected to register a CAGR of 31.4% during 2019 – 2024.

The Asia Pacific market is projected to witness substantial growth over the next decade owing to various technological developments across major economies. The regional market is expected to grow at a CAGR of 31.4% from 2019 to 2024.

North America is expected to emerge as the major region for the chatbot market over the forecast period. The growth in this region is mainly attributed to the increasing deployment of chatbots in various business verticals. Technologies such as artificial intelligence, IoT, and APIs, among others, are evolving at a rapid speed.

Technology Roadmap

Artificial intelligence (AI) is becoming more human with cognitive conversational abilities. What commenced as online chatbots, turned into essential AI-powered assistants for businesses, households, and users worldwide.

Conversational AI and chatbot development services are all set to become more agile with expected market size of USD 15.7 billion by 2025. From domain-specific solutions to intelligent retail chatbots, some of the most exciting Conversational AI trends for the year 2020 include

Self-learning Conversational AI

Conversational AI is trained using rich data from consumers to increase the self-learning capabilities of a program.

Self-learning chatbots will allow businesses to train models with customer data, product information, interactions on social media, and other useful data troves.

Domain-specific solutions

Conversational AI is expected to update its algorithms for a deeper understanding of the purpose and meaning of the customers in 2020. It leads users to fulfill very specific requests, such as a restaurant table reservation, a haircut appointment, a car service, and what not.

Competitive Landscape

The chatbot market is highly competitive due to the presence of many small and large – scale players on the market. The market is concentrated with the Key players implementing strategies to remain ahead of the competition, such as product innovation.

Some of the Major participants are IBM Corporation, Dialogflow (Google), Baidu, Poncho, Kik, WeChat, Varo Money Inc., Babylon Health, ReplyYes, and SRI International and Amazon Web Services Inc. (Amazon Lex) amongst others

Recent Market Developments

In February 2020 Creative Virtual has collaboration with Spitch AG, Switzerland’s leading provider of enterprise speech solutions. The partnership will leverage both companies to utilize best technology to offer innovative self-service solutions to their customers.

Integrating the V-Person natural language chatbots from Creative Virtual and the speech technology from Spitch brings an industry-leading speech bot service to the market.

In April 2019 Google formed collaboration with Salesforce for the creation of smart customer experience. Through this collaboration, both companies plan to integrate Google’s Dialogflow Enterprise Edition with the customer service product offerings on the Salesforce Einstien platform. In combining these technologies, both organizations are trying to build a solution to create an improved customer service experience, whether it is a chatbot or an agent.

In January 2019 IBM formed collaboration with the Ingenico Group to create a payment-enabled chatbot with a view to providing personalized experiences to its customers. Ingenico Group is a Multinational corporation committed to providing the technologies needed to conduct secure electronic transactions.

Through this collaboration, Ingenico Group will leverage the Watson platform’s Natural Language Processing (NLP) capabilities to better understand user requests and interpret nuances in different languages and phrasing. Because of this the bot will respond quickly to customer requests.

Competitive Factors

Strategic partnership with technology providers to help them in intelligence engagement of the customers was observed as the most adopted strategy in the Global Chatbot Market

For instance, in 2019, Artificial Solutions signed a partnership agreement with Deloitte. According to the agreement the Deloitte professionals would be able to use Artificial Solutions conversational AI platform, Teneo to cater to the increasing demand for natural language applications. This partnership would help the company to gain a stronger position in the chatbot market.

Key Market Players

Some of the Key players in the Global Chatbot Market include:

International Business Machines Corporation (IBM) is a technology company. The Company operates through five segments: Cognitive Solutions, Global Business Services (GBS), Technology Services & Cloud Platforms, Systems and Global Financing.

The Cognitive Solutions segment delivers a spectrum of capabilities, from descriptive, predictive and prescriptive analytics to cognitive systems. Cognitive Solutions includes Watson, a cognitive computing platform that has the ability to interact in natural language, process big data, and learn from interactions with people and computers.

Alphabet Inc. is a holding company. The Company’s businesses include Google Inc. (Google) and its Internet products, such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo and X. The Company’s segments include Google and Other Bets.

The Google segment includes its Internet products, such as Search, Ads, Commerce, Maps, YouTube, Google Cloud, Android, Chrome and Google Play, as well as its hardware initiatives.

Baidu, Inc. is a Chinese language Internet search provider. The Company offers a Chinese language search platform on its Baidu.com Website that enables users to find information online, including Webpages, news, images, documents and multimedia files, through links provided on its Website. Its business consists of three segments: search services, transaction services and iQiyi

Kik Interactive was founded in 2009 by a group of students from the University of Waterloo in Canada who wished to create new technologies for use on mobile smartphones. Kik Messenger, commonly called Kik, is a freeware instant messaging mobile app from the Canadian company Kik Interactive, available free of charge on iOS and Android operating systems.

Tencent is a holding company which owns WeChat. WeChat is a Chinese multi-purpose messaging, social media and mobile payment app developed by Tencent.

First released in 2011, it became the world’s largest standalone mobile app in 2018, with over 1 billion monthly active users. WeChat has been described as China’s “app for everything” and a “super app” because of its wide range of functions”.

Varo Money, Inc. develops mobile banking software. The Company offers a platform that provides mobile banking solutions such as cash flow projections, spend tracking, and smart alerts. Varo Money serves clients in the State of California.

Babylon Health is a health service provider that provides remote consultations with doctors and health care professionals via text and video messaging through its mobile application.

The subscription for private healthcare services opened in the UK in 2013 and has since been expanded internationally to Rwanda and Canada. In the UK, Babylon’s NHS service covers more than 40,000 registered user-patients, which has caused controversial disputes over NHS funding models.

Amazon.com, Inc. offers a range of products and services through its Websites. The Company’s products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It also manufactures and sells electronic devices.

It operates through three segments: North America, International and Amazon Web Services (AWS). Its AWS products include analytics, Amazon Athena, Amazon CloudSearch, Amazon EMR, Amazon Elasticsearch Service, Amazon Kinesis, Amazon Managed Streaming for Apache Kafka, Amazon Redshift, Amazon QuickSight, AWS Data Pipeline, AWS Glue and AWS Lake Formation.

AWS solutions include machine learning, analytics and data lakes, Internet of Things, serverless computing, containers, enterprise applications, and storage.

Strategic Conclusion

The Global Chatbot Market is a high potential segment for offers lucrative growth opportunities for industry players and is poised to grow at a significant growth rate in the coming years.

The Market is driven by growth factors such as Rising use of artificial intelligence in advertisements, Increasing need to provide effective and immediate customer support, 24*7 customer support at a lower operational cost, Increase in integration of chatbots with social media and Omnichannel medium and the ability to integrate with any platform.

The Global Chatbot Market is valued at US$ 2.6 Billion in 2019 and is poised to grow at a CAGR of 29.7% to reach US$ 9.4 Billion in 2024.

Though growth bottlenecks exist in the segment in the form of challenges such as Lack of awareness among businesses and Security and Privacy Issues, growth opportunities are viable due to the opportunities in Chatbot analytics and Self-Learning Chatbots.

References

Appendix

SMEs – Small & Medium Enterprises
AI – Artificial Intelligence
NLP – Natural Language Processing
NLU – Natural Language Understanding
ML – Machine Learning
GDPR – General Data Protection Regulation
API – Application Programming Interface