According to the latest report coming from Business Insider, the chatbot market size is projected to grow from $2.6 billion in 2019 to $9.4 billion by 2024 at a Compound Annual Growth Rate (CAGR) of 29.7%. In detail, the chatbot market is growing at a CAGR of 9% in Asia Pacific, followed by North America at 31.2 % CAGR and Europe with a 30.4% CAGR.
Chatbots are artificial intelligence systems that interact with users via messaging, text, or speech. Projections show growth over the forecasted period as chatbots reduce operating costs for enterprises. Chatbots can work in segments such as marketing, payments & processing, and service, but when it comes to revenue, chatbot service has a majority of the market share. Infact, chatbots in the customer service segment is expected to be the fastest growing market segment between 2019-2026 with a CAGR of 31.6%.
Today, consumers are demanding round-the-clock service for assistance in areas ranging from banking and finance, to health and wellness. As a result, companies are rapidly looking to develop chatbots and virtual assistants to answer questions customers may have at any time of day.
Chatbot Trends & Growth
Some of AI and machine learning’s biggest advancements in the recent years have been in perception and cognition. Machine learning systems are now being used to decide trades done on Wall Street and to predict if users will click on particular ads, increasing efficiencies on both the business and consumer ends. In addition to being revenue generators, chatbots can also serve as research bots, or for lead generation and brand awareness to save businesses money. But the more successful chatbots are the ones that are able to drive a good conversational experience that mimics human agents – they should be able to effectively address customer requests.
Business Insider Intelligence estimates that up to 73% of healthcare admin tasks could be automated by AI, and the adoption of chatbots could save the healthcare, banking, and retail sectors ¥$11 Billion annually by 2023.
The ecosystem of the technology and platforms for chatbots include deployment channels, third-party chatbots, companies that provide the technology for building chatbots, and native bots (for example, Apple’s Siri or Google Assistant). A growing awareness of the potential in the use of chatbots by companies and consumers will lead to an increased demand, thus encouraging a better development of them, and its implementation by an increasing number of companies within their business.