Chatbot Market by Component, Type, Application, Channel Integration, Business Function, Vertical, and Region – Global Forecast to 2026


Dublin, April 02, 2021 (GLOBE NEWSWIRE) — The “Chatbot Market by Component, Type (Rule Based & AI Based), Application (Customer Service, Customer Engagement & Retention), Channel Integration, Business Function (ITSM, Finance), Vertical, and Region – Global Forecast to 2026” report has been added to’s offering.

The global Chatbot market size to grow from USD 2.9 billion in 2020 to USD 10.5 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 23.5% during the forecast period.

The adoption of chatbot solutions is considerable and is projected to grow at a good pace in the coming years. One of the factors contributing to the growth of the chatbot market is the advent of technologies, such as analytics, AI, and cloud, which enable various industries to organize their operations. Furthermore, the increasing customer demand for self-services is accelerating the adoption of chatbots, thus offering a competitive advantage to businesses.

The chatbot market is estimated to witness a trivial slowdown in 2020 due to the global lockdown. The COVID-19 pandemic has increased the churn rate and shuddered almost every industry. The lockdown is impacting global manufacturing, and supply chains and logistics as the continuity of operations for various sectors are badly impacted. The sectors facing the greatest drawbacks are manufacturing, transportation and logistics, and retail and consumer goods. The availability of essential items is impacted due to the lack of manpower to work on production lines, supply chains, and transportation, although the essential items are exempted from the lockdown.

The condition is expected to come under control by early 2021, while the demand for chatbot solutions and services is expected to increase due to the increasing demand for enhancing customer experience and building a personalized relationship with prospects. Several verticals would deploy a diverse array of chatbot solutions and services to enable digital transformation initiatives, which address mission-critical processes, improve operations, and differentiate customer viewing experiences. The reduction in operational costs, better customer experiences, resolution of customer queries, enhanced visibility into processes and operations, and improved real-time decision-making are key business and operational priorities that are expected to drive the adoption of chatbots.

The services segment is expected to grow at a higher CAGR during the forecast period

The global chatbot market is segmented on the basis of components into solutions and services. Based on the solutions segment, the market is divided into platform and software. The services segment is further divided into managed services and professional services. The services segment is expected to grow at a higher CAGR during the forecast period. The growing use of AI and analytics for policymaking, environmental analysis, and real-time decision-making is expected to increase the adoption of services.

The AI-based segment to grow at a higher CAGR during the forecast period

The global chatbot market is segmented on the basis of type into rule based and AI based. The AI-based segment is expected to at a higher CAGR during the forecast period. Due to intelligent customer engagement and the self-learning process, the AI-based segment is anticipated to register the fastest growth during the forecast period.

Among verticals, the healthcare and life sciences segment to grow at the highest CAGR during the forecast period

The chatbot market is segmented into the various verticals, particularly BFSI, IT and telecom, retail and eCommerce, healthcare and life sciences, transportation and logistics, government, travel and hospitality, media and entertainment, and others (education, energy and utilities, and manufacturing). Key factors favoring the growth of chatbots across these verticals include the rising technology advancements and growing availability of industry-specific chatbots. Healthcare and life sciences vertical is expected to grow at the highest CAGR during the forecast period. Chatbots have the potential to revolutionize healthcare. They can substantially boost efficiency and improve the accuracy of symptom collection and ailment identification, preventive care, post-recovery care, and feedback procedures.

APAC to grow at a higher CAGR during the forecast period

The chatbot market has been segmented into five regions: North America, Europe, APAC, MEA, and Latin America. Among these regions, North America is projected to hold the largest market size during the forecast period. APAC is expected to grow at the highest CAGR during the forecast period. Countries in APAC are technology-driven and present major opportunities in terms of investments and revenue. These countries include China, Singapore, Japan, and India. Factors such as flexible economic conditions, industrialization- and globalization-motivated policies of governments, and digitalization are expected to support the growth of the chatbot market in APAC.

Key Topics Covered:

1 Introduction

2 Research Methodology

3 Executive Summary

4 Premium Insights

4.1 Attractive Opportunities in Chatbot Market

4.2 Market: Top Three Applications

4.3 Market: by Component and Top Three Verticals

4.4 Market: by Region

5 Market Overview

5.1 Introduction

5.2 Chatbot: Evolution

5.3 Chatbot: Architecture

5.4 Market Dynamics

5.4.1 Drivers Advancements in Technology, Coupled with Rising Customer Demand for Self-Service Operations Growth in Need for 247 Customer Support at a Lower Operational Cost Increase in Focus on Customer Engagement Through Various Channels

5.4.2 Restraints Inability to Recognize Customer Intent and Respond Effectively Dearth of Accuracy in User’s Voice Authentication

5.4.3 Opportunities Initiatives Toward the Development of Self-Learning Chatbots to Deliver a More Human-Like Conversational Experience Rise in Demand for AI-Based Chatbots to Deliver Enhanced Customer Experience

5.4.4 Challenges Lack of Awareness About the Effect of Chatbot Technology on Various Applications

5.4.5 Cumulative Growth Analysis

5.5 Case Study Analysis

5.5.1 Bankbazaar Implemented Haptik’s Chatbot to Increase Customer Engagement and Enhance Customer Reach

5.5.2 Loreal Partnered with Automat to Develop a Messaging Chatbot to Increase Customer Engagement and Enhance Productivity

5.5.3 Zurich Insurance Group Worked with Spixii to Develop Zara Chatbot for Quick Notifications

5.5.4 Ubisend Offers Vanarama a Leasing Chatbot Solution to Enable Customers to Browse and Handle Customer Queries

5.5.5 Six Payment Services Ltd. Partnered with Enterprise Bot to Enhance Customer Service

5.5.6 Oyo Integrated Haptik’s Live Chat Agent Tool to Provide Customer Support and Handle Query Over Whatsapp

5.5.7 Elisa Estonia Deployed Mindtitan’s Chatbot to Analyze Incoming Chats and Improve Customer Experience

5.5.8 Tia Selected Rasa’s Nlu to Incorporate Hipaa Compliant and Improve Efficiency

5.5.9 Snaps Offers Nike a Personalized Engagement Model to Increase Customer Engagement Via Mobile Channel

5.5.10 Dream 11 Implemented Haptik’s Support Bot to Enhance Customer Support During Seasonal Spike

5.5.11 Seb Retail Bank Enhances the Efficiency of Internal and External Support Processes Through Ipsoft’s Amelia Chatbot

5.6 Value Chain Analysis

5.7 Regulatory Landscape

5.7.1 General Data Protection Regulation

5.7.2 Health Insurance Portability and Accountability Act Payment Card Industry Data Security Standard Financial Industry Regulatory Authority Service Organizational Control 2 Markets in Financial Instruments Directive II

5.8 Chatbot Market: COVID-19 Impact

5.9 Patent Analysis

5.9.1 Methodology

5.9.2 Document Type

5.9.3 Innovation and Patent Applications Top Applicants

5.10 Pricing Model Analysis

5.11 Porter’s Five Forces Analysis

5.12 Scenario

5.13 Technology Analysis

5.13.1 Machine Learning and Chatbot

6 Chatbot Market, by Component

6.1 Introduction

6.1.1 Components: COVID-19 Impact

6.1.2 Components: Market Drivers

6.2 Solutions

6.2.1 Software

6.2.2 Platform

6.3 Services

6.3.1 Managed Services

6.3.2 Professional Services Consulting System Integration and Implementation Support and Maintenance

7 Chatbot Market, by Type

7.1 Introduction

7.1.1 Types: COVID-19 Impact

7.1.2 Types: Market Drivers

7.2 Rule Based

7.3 AI Based

8 Chatbot Market, by Deployment Mode

8.1 Introduction

8.1.1 Deployment Modes: COVID-19 Impact

8.1.2 Deployment Modes: Market Drivers

8.2 On-Premises

8.3 Cloud

9 Chatbot Market, by Channel Integration

9.1 Introduction

9.1.1 Channel Integrations: COVID-19 Impact

9.1.2 Channel Integrations: Market Drivers

9.2 Websites

9.3 Contact Centers

9.4 Social Media

9.5 Mobile Applications

10 Chatbot Market, by Organization Size

10.1 Introduction

10.1.1 Organization Size: COVID-19 Impact

10.1.2 Organization Size: Market Drivers

10.2 Large Enterprises

10.3 Small and Medium-Sized Enterprises

11 Chatbot Market, by Business Function

11.1 Introduction

11.1.1 Business Functions: COVID-19 Impact

11.1.2 Business Functions: Market Drivers

11.2 Information Technology Service Management

11.3 Human Resources

11.4 Sales and Marketing

11.5 Finance

12 Chatbot Market, by Application

12.1 Introduction

12.1.1 Applications: COVID-19 Impact

12.1.2 Applications: Market Drivers

12.2 Customer Service

12.3 Personal Assistant

12.4 Branding and Advertisement

12.5 Customer Engagement and Retention

12.6 Data Privacy and Compliance

12.7 Employee Engagement and on Boarding

12.8 Payment Processing

12.9 Other Applications

13 Chatbot Market, by Vertical

13.1 Introduction

13.1.1 Verticals: COVID-19 Impact

13.1.2 Verticals: Market Drivers

13.2 Banking, Financial Services, and Insurance

13.3 Information Technology and Telecom

13.4 Retail and Ecommerce

13.5 Healthcare and Life Sciences

13.6 Travel and Hospitality

13.7 Media and Entertainment

13.8 Transportation and Logistics

13.9 Government

13.10 Other Verticals

14 Chatbot Market, by Region

14.1 Introduction

14.2 North America

14.3 Europe

14.4 Asia-Pacific

14.5 Middle East and Africa

14.6 Latin America

15 Competitive Landscape

15.1 Overview

15.2 Market Evaluation Framework

15.3 Market Share, 2020

15.4 Historic Revenue Analysis of Key Market Players

15.5 Key Market Developments

15.5.1 New Product Launches and Product Enhancements

15.5.2 Deals

15.5.3 Others

15.6 Company Evaluation Matrix Definitions and Methodology

15.7 Company Evaluation Matrix, 2020

15.7.1 Star

15.7.2 Emerging Leaders

15.7.3 Pervasive

15.7.4 Participants

15.7.5 Strength of Product Portfolio

15.7.6 Business Strategy Excellence

15.8 Startup/SME Evaluation Matrix, 2020

15.8.1 Progressive Companies

15.8.2 Responsive Companies

15.8.3 Dynamic Companies

15.8.4 Starting Blocks

15.8.5 Strength of Product Portfolio

15.8.6 Business Strategy Excellence

16 Company Profiles

16.1 Introduction

16.2 Major Players

16.2.1 IBM

16.2.2 Microsoft

16.2.3 Google

16.2.4 Amazon Web Services (AWS)

16.2.5 Nuance Communications

16.2.6 Servicenow

16.2.7 Creative Virtual


16.2.9 Artificial Solutions

16.2.10 Inbenta

16.2.11 [24]

16.2.12 AIvo

16.2.13 Conversica

16.2.14 Personetics

16.2.15 Oracle

16.2.16 Livechat

16.2.17 Mindmeld

16.2.18 Cognicor Technologies

16.2.19 Gupshup

16.2.20 Contus

16.3 Startup / SME Players

16.3.1 Chatfuel

16.3.2 Keyreply

16.3.3 Smartbots

16.3.4 Yellow Messenger

16.3.5 Kevit

16.3.6 Yekaliva

16.3.7 Pypestream

17 Adjacent and Related Markets

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