May 29, 2024

Chatbot Market Is Expected To Be Flourished By Rising Ecommerce Industry

Chatbots are intelligent pieces of software that use artificial intelligence and natural language processing capabilities to simulate conversations with human users via messages or speech. They are being increasingly used by various industries such as banking, education, travel, healthcare, retail, and so on to enhance customer experience. In the rapidly growing ecommerce industry, chatbots are being utilized by online retailers and marketplaces to assist customers with product information, order tracking, payment issues, shipping details and a variety of other online shopping queries. The global chatbot market is expected to witness significant growth opportunities due to increasing implementation of these bots in the ecommerce vertical.

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 Dynamics:

 

The rising ecommerce industry is one of the major drivers fueling the growth of chatbot market. Ecommerce sites are integrating chatbots on their platforms to provide enhanced customer service to online shoppers. Chatbots help retailers to address customer issues related to online orders, product searching, payments and deliveries effectively at any time without human intervention. This is improving customer satisfaction and boosting sales. In addition, growing need to reduce customer support costs is also propelling many ecommerce companies to adopt chatbot technology. For instance, chatbots can handle basic customer queries independently 24/7 and free up the efforts of human customer executives to handle complex queries more efficiently.

Segment Analysis

The global chatbot market is dominated by the consumer service sub-segment. Chatbots are increasingly being adopted by various organizations to automate and streamline their customer support and service operations. Chatbots can answer basic queries of customers, reduce the waiting time and provide 24/7 support. This has made consumer service sub-segment the largest adopter of chatbot technologies currently.

PEST Analysis

Political: The adoption of chatbot technologies is positively impacted by various government initiatives towards automation and digitization of services. Many governments are promoting chatbot innovations through funding and schemes.

Economic: The growth of the global economy and rising disposable incomes has increased consumer spending on online shopping and services. This has driven the need for enhanced customer support and experience using technologies like chatbots.

Social: Changing social media consumption patterns and preferences of millennials and generation Z for virtual assistants is a key factor driving chatbot adoption. Many organizations are developing social media chatbots to engage better with customers.

Technological: Advancements in artificial intelligence, natural language processing and cloud computing have enabled the development of advanced human-like conversational chatbots. The availability of low-code platforms is also reducing the complexity of chatbot development.

Key Takeaways

The Global Chatbot Market Demand is expected to witness high growth over the forecast period between 2023 to 2030. 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.

Regional analysis:

North America accounts for over 35% share of the global chatbot market currently. The U.S. and Canada are spearheading chatbot innovations and adoption. The presence of leading technology companies and AI startups is a major driver for the growth of chatbots in the region. Asia Pacific is projected to be the fastest growing regional market in the coming years led by countries like China, India and Japan.

Key players:

Key players operating in the chatbot market are Jacobs, Atkins, ETA Engineering, WSP and AECOM. Jacobs is a leader in developing AI-powered virtual assistants for various industries including healthcare, financial services and retail. Atkins has a strong portfolio of social media and helpdesk chatbots.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it