The chatbot industry is expected to witness significant growth between 2018 and 2025 as more chatbot technology enables enterprises to substantially reduce operating costs. Additionally, innovations in artificial intelligence and machine learning technologies are likely to enhance the features of chatbots.
This was disclosed in a report by Grand View Research which indicated that the global chatbot market is expected to reach US$1.25 billion by 2025.
A significant rise has been observed in the number of users of messaging services, which is expected to surpass the number of users of social networking sites. Additionally, there has been a significant development in the NLP field, which has resulted in streamlined interactions between computers and human languages. The entire chatbot ecosystem comprises various cross-linking features, which facilitates enhanced performance of chatbots in all applications. Most companies prefer in-built chatbots on their websites as they facilitate enterprises in providing instant customer interaction.
Further key findings from the report suggest:
- Chatbots find various applications in the eCommerce, healthcare, and Banking Financial Services and Insurance (BFSI) sectors. Large enterprise emerged as the largest end-user segment in 2016 and is estimated to register a CAGR of 24.2% over the forecast period.
- The bots for the marketing segment is expected to witness the largest growth over the forecast period as these chatbots can connect the customers directly to service providers.
- The standalone segment is estimated to grow at a CAGR of 24.8% over the forecast period.
- 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 24.7 % from 2017 to 2025.
- Key participants in the chatbot industry include Baidu, Poncho, Kik, WeChat, Varo Money Inc., Babylon Health, ReplyYes, and SRI International. Chatbots have found wide applications in large enterprises as they enable better understanding of consumer behaviour with the help of machine learning.