A report by research firm MarketsandMarkets has claimed that the market for Chatbots is expected to grow from USD 703.3 million in 2016 to USD 3,172.0 million by 2021, at a Compound Annual Growth Rate of 35.2%.
The major drivers for the upsurge in demand for chatbots include increasing penetration of websites and mobile applications, proliferating demand for intelligent customer engagement, strong need to understand consumer behavior, and adoption of cloud-based technology.
Software to hold the largest market share
Enhanced technological features in chatbots software such as Natural Language Processors (NLP), interference engine, metrics, cloud-based deployment, Application Programing Interface (API), mobile platform compatibility, analytics, multichannel, and single point of search is expected to spur the market growth. In addition to that, the software is widely used in smartphones, websites, social media, and call centres, which would fuel the software segment growth in the coming years.
Mobile platform is expected to grow at the highest CAGR during the forecast period
The chatbot market would witness a major growth due to rise in the adoption, which is propelled by the increasing penetration of smartphones as well as tablets. In addition, chatbots provide realtime monitoring of customer behavior, trends, and interactions. They can also track mobile services, such as geo-location, enabling rich, targeted communications.
North America is expected to be the largest market
North America is likely to benefit from its technological advancements and followed by high usage of mobile, tablets, and computers. The adoption of chatbots across North America is estimated to rise at a significant rate due to client-centric approaches, provision of 24/7 customer engagement, operational efficiencies, cost containment, sustainability benefits and the changing business dynamics. This eventually increases the deployment of chatbots in this region.