Chatbots are artificial intelligence-powered software that can converse through voice commands or text. Chatbots are useful digital tools that help organisations address customer queries, conduct transactions, book appointments, and perform other tasks without direct human assistance. The proliferation of messaging platforms and advancement in natural language processing technologies allow chatbots to understand human languages and respond to customers in a conversational manner. The global chatbot market offers solutions to various industry verticals for functions like websites assistants, messaging apps assistants, customer service chatbots, sales & marketing chatbots and more.
The global Chatbot Market is estimated to be valued at Us$ 6.04 Bn in 2023 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:
Integration of advanced technologies like AI and ML: Chatbot technologies are advancing with integration of advanced technologies like artificial intelligence and machine learning. ML capabilities allow chatbots to continuously learn from interactions with customers and evolve their responses accordingly. This helps chatbots have more human-like conversations. Major chatbot solution providers are focusing on developing conversational AI technologies that can understand the context and intent behind user queries. Integration of AI and ML is a major trend that is enhancing the functionalities of chatbots.
Threat of new entrants: The global chatbot market is witnessing moderate to low threat from new entrants due to the need for large investments in product development and technological advancement.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products. However, demand for personalized customer service provides buyers limited option to switch.
Bargaining power of suppliers: Prominent players hold substantial bargaining power over customers due to their technological expertise and economies of scale in development and maintenance of chatbots.
Threat of new substitutes: Chatbots are substitutes for live chat agents. Advancement in artificial intelligence may lead to new technologies substituting traditional chatbots.
Competitive rivalry: The global chatbot market is highly competitive due to presence of large tech giants.
The Global Chatbot Market Demand is expected to witness high growth owing to increasing demand for customer support services and cost reduction. The global chatbot market is estimated to be valued at US$ 6.04 Bn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030.
North America dominates the global chatbot market and is expected to continue its dominance during the forecast period. Increasing investment in AI and presence of major players in the US and Canada drives the market growth. Europe and Asia Pacific are fast growing markets for chatbots.
Key players operating in the chatbot market are Jacobs, Atkins, ETA Engineering, WSP and AECOM. Jacobs, Atkins, and AECOM are some of the top players dominating the global market owing to their diversified presence and technical expertise in diverse industries.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it