A chatbot is a software application that is used to for an online chat conversation either through text or text-to-speech. The basic requirement to create a chatbot is a messaging platform for delivery. Developing a chatbot is similar to developing a mobile application. Rising chatbot demand across various industries and a focus on improved consumer engagement using artificial intelligence integrated chatbots have emerged as the key growth drivers for the global chatbot market.
The adoption of voice and messaging technologies is also anticipated to drive the chatbot market, in future. Customer research indicates that messaging applications are becoming a preferred mode of connecting with businesses. The chatbot is used to provide effective and immediate customer support to improve the customer experience and is programmed to help users to communicate through mediums such as text, voice, image, and file sharing.
Chatbots have been found to provide improved customer engagement in several applications, across industries. Chatbots helps to resolve different type of customer needs and queries and utilize very little human interaction while meeting these requirements.
Apart from improving customer engagement, chatbots have also been beneficial to various other departments in a company such as marketing, sales, and product. The wide array of usage of chatbots could bolster the global chatbot market, in future. With advances in technology, chatbots have shown an ability to integrate with social media applications such as Facebook and WhatsApp, as well.
With the rising exposure to social media applications across various age groups, chatbot’s successful integration with these applications could propel the overall chatbot market. Chatbots improve overall operational efficiency and also reduce costs to businesses. Chatbots permit businesses to interact with an unlimited number of consumers and can be adjusted, based on the business needs and demands. One of the distinct features of any chatbot is to resurface and examine past interactions between consumer and the business.
Chatbots Witness Increased Demand in Small and Medium Enterprises
Chatbots have witnessed increased demand among many small and medium enterprises for customer engagement and branding. Growth in small and medium enterprises could also help propel the chatbot market.
The rising adoption of artificial intelligence in the service sector is expected to have a positive impact on the chatbot system demand, as well. Artificial Intelligence has proven to be effective at automating repetitive processes. When it is integrated into a chatbot for such tasks, the chatbot performance usually improves.
In terms of region, Asia Pacific is expected to witness substantial growth in the chatbot market. Countries such as India have witnessed a significant rise in demand for mobiles in the last few years. The increased demand for mobiles has offered an opportunity to integrate chatbot applications, in these devices, which, in turn, could fuel the growth in the chatbot market in this region.
North America Anticipated to be Fastest Growing Market for Chatbots in Future
North America is expected to be the fastest growing market for chatbots in future and countries such as the U.S and Canada are expected to play a significant role, in the growth of the chatbot market in this region. Some of the key players in the chatbot market include Google Inc., Kiwi Inc., Astute Solutions, Facebook Inc., and Kasisto Inc.
Market players are conducting research and development activities to develop improved chatbots, which would meet the customer requirements.
Advent of 5G Technology Could Help in Growth of AI-Integrated Chatbots in Future
In future, artificial intelligence-integrated chatbots could provide more effective services to employees, businesses, and consumers, particularly with the growth and development of 5G technology. With 5G technology, chatbots could provide features such as easier access to HD video conferencing from within a conversation.
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