Chatbot Market To Reach $13.9 Billion By 2027

Chatbot-Market-To-Reach-$13.9-Billion-By-2027

Chatbot market reached a value of $3.7 billion in 2021 and is likely to reach $13.9 Billion by 2027, expanding at a compound annual growth rate of 24.68 per cent.

Research firm IMARC Group has reported that the global chatbot market reached a value of $3.7 billion in 2021 and is likely to reach $13.9 Billion by 2027, expanding at a compound annual growth rate of 24.68 per cent.

The report defines a chatbot as artificial intelligence (AI)-based computer program used to simulate human conversations as consumers interact with digital devices, developed on developer frameworks with cloud backup, analytics, and database integrations. Chatbots, it said further, are majorly incorporated into messaging applications, websites, mobile applications, and other digital devices for interacting as digital assistants through text or text-to-speech functionalities. They offer various benefits, such as improved efficiency of business operations, customer engagement, branding and advertisement, data privacy and compliance, payment processing, and automatic lead generation and qualification.

The report cites rapid digitisation across industries and the increasing requirement for high-quality customer care as crucial factors driving the market’s growth. Chatbots are integral to running effective customer care programs. Banking, financial services and insurance (BFSI), information technology (IT), telecommunication, e-commerce, and healthcare use chatbots to resolve customer queries in minimal time.

Technological advancements like the integration of predictive analytics, machine learning (ML), blockchain, and cloud computing for the development of self-learning chatbots, are providing additional thurst to widespread adoption of over-the-top (OTT) messaging and social networking applications among consumers, the report said.

It said further that innovative chatbots could adapt to changing digital environments and provide human-like conversational experiences by learning from users’ actions, experiences, and decisions.

Other factors, including significant improvements in IT infrastructure and extensive research and development in natural language processing, should drive market growth.

The competitive landscape includes [24]7.ai, Acuvate Software, Aivo, Artificial Solutions, Creative Virtual, eGain, IBM, Inbenta, Kore.ai, LiveChat, Nuance Communications, and Verint, according to the report.