The global chatbot market is expected to grow with the CAGR of approximately 35.8% during the forecast period. The global chatbot market is primarily driven by the major factors such as increasing social media marketing activities, increasing demand of cloud-based technology, advancements in artificial intelligence technology and application across various end-user industries such as BFSI, retail and healthcare. Chatbots can effectively create a new way of communicating with customers via notifying them, automated ordering, and customer support desk functionality and so on. The Chatbots are creating their presence on Google, Facebook and Skype, working as robotic customer service representatives. The rich API enables to efficiently process messages and to respond with images via Chatbots, connections, call-to-action buttons as well as direct payments. Bots make it more proactive, more personal and the methods more rationalized, the method the insurers to communicate with their customers. Chatbots can take over conventional methods of customer service functions and could raise significant savings of approximately $28 billion worth, overall. It works efficiently as an automated insurance agent and allows insurance companies to deploy claims, distribution and customer service directly into the platform. Chatbot enables both the insurer and the customer in order to keep conversations from the final interaction. Thus, it makes sense for insurers to spend energy and time there as it is employed on making the connections more efficient for customers. With the use of chatbot, the customers will be able to receive personalized updates such as premium reminders and policy confirmation etc. which in turn enforces businesses to use chatbot solutions. However, factors restraining the market growth are limitation in hosting capabilities of chatbot and lack of standardization. Increasing trend of online support option and increasing demand in small & medium enterprises is expected to create major opportunity for the market growth. On the basis of geography, North America is leading the chatbot market due to high growth in end-user industries such as healthcare, BFSI etc. along with high technological innovations regarding artificial intelligence technology. The presence of major players such as Amazon Web Services, Inc. (U.S.), Facebook, Inc. (U.S.), Oracle Corporation (U.S.), IBM Corporation (U.S.), Microsoft Corporation (U.S.), Yahoo, Inc. (U.S.) and so on are creating opportunity for large innovations in chatbot market.
The global chatbot market is segmented into end-user, deployment type, type, platform and vertical. According to end-user segment, the market is further categorized into small & medium and large enterprises. Based on deployment type, the market is further classified into on-premises and on-cloud. The type is categorized into software and services. The platform is further segmented into mobile platform, social media, contact centers and websites. The vertical is further categorized into retail, government education, utilities, BFSI, travel & hospitality, healthcare and other verticals.