March 2, 2024
Chatbot Market

The Advancement Of Conversational AI Is Driving The Global Chatbot Market

Chatbots are AI-powered software applications that simulate human conversations through voice commands or text-based chats. They are increasingly being used by organizations across various industries to simplify tasks and improve customer experiences through natural language conversations. Chatbots can answer queries, make recommendations, perform transactions, book appointments and take care of various other repetitive and mundane tasks without any human intervention. They provide 24×7 support and scalability benefits to businesses.

The global chatbot market is rapidly growing due to the advancement of artificial intelligence and natural language processing technologies. Chatbots are being integrated across messaging platforms, websites and mobile apps to automate simple inquiries and transactions. They are also finding applications in industries like banking, healthcare, retail and travel to improve customer support. For example, healthcare chatbots help patients find doctors, book and reschedule appointments. Travel bots allow users to search and book flights and hotels. Retail chatbots make product recommendations, process payments and handle other shopping tasks. The automation of simple processes through conversational interfaces is enhancing productivity and reducing costs.

The global Chatbot Market is estimated to be valued at US$ 6.04 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key Trends:

The key trends driving growth in the global chatbot market include growing demand for customer support automation and preference for conversational interfaces among users. Chatbots are becoming increasingly sophisticated with advances in AI and machine learning. Chatbots powered by deep learning can understand complex language patterns and nuances in human conversations. Their natural language processing capabilities are continuously improving. Many organizations are also integrating chatbots with other technologies like IoT, big data and blockchain to develop innovative applications across industries. For example, healthcare chatbots are being combined with wearables and medical records to deliver personalized care recommendations and services. Such integrations are expected to open new revenue streams and drive higher adoption of chatbots over the forecast period.

Porter’s Analysis

Threat of new entrants: Low capital requirements in terms of R&D and production present low barriers for new start-ups. However, high network effects and switching costs make it difficult for new players to gain market share.

Bargaining power of buyers: Buyers have moderate bargaining power as chatbots provide various cost savings for buyers through automation. However, buyers have a variety of options to choose from.

Bargaining power of suppliers: Suppliers have low bargaining power given the presence of several solution providers and technologies that buyers can choose from for developing and integrating chatbots.

Threat of new substitutes: Virtual assistants and conversational AI are potential substitutes. However, chatbots currently have an advantage due to easy deployment on websites and apps.

Competitive rivalry: The Chatbot Market Growth is moderately competitive with the presence of global as well as several regional and niche players. Competition is based on platform functionalities, pricing, and customer support.

Key Takeaways

The global chatbot market is expected to witness high growth over the forecast period, driven by increased adoption across industries. By enabling automation of repetitive tasks through conversational interfaces, chatbots help optimize business processes and improve customer experience.

Regional analysis:

North America dominates the global chatbot market currently, owing to early adoption by organizations in the region. However, Asia Pacific is anticipated to grow at the fastest pace during the forecast period with increasing internet and smartphone penetration in countries like China and India.

Key players:

Jacobs, Atkins, ETA Engineering, WSP and AECOM are the major companies operating in the Global Mechanical Electrical and Plumbing (MEP) Services Market. Jacobs, Atkins and AECOM have a global presence while ETA Engineering and WSP dominate specific regions. AECOM recently acquired Tishman Construction for strengthening its MEP service offerings globally.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it