Bot Services Market Size
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 20.50 % |
| Fastest Growing Market | North America |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Bot Services Market Analysis
The Global Bot Services Market is expected to register a CAGR of 20.5% during the forecast period.
- The COVID-19 crisis forced businesses to adhere to strict requirements and ensure the ongoing safety of their employees and customers. There was a noticeable move away from the traditional workplace due to the need for remote work, which became the new norm.
- Bots are finding considerable traction and acceptance, as they have applications in various industries. Several industries are shifting toward omnichannel platforms to optimize operations better, leverage enhanced customer insights, and increase focus on enhanced customer experience, which is expected to increase the scope of bots in the market.
- One of the primary target industries of the market studied is the retail sector. Various companies such as Amazon have invested significantly and developed bots utilized in retail to better understand customer behavior and cross-sell or upsell with increased precision to cater to the retail sector. These bots also help understand customer behavior and purchasing patterns and provide the company with the best customer analytics so that enterprises try to retain their customers and offer better products and services.
- Further, messaging app bots, the most common and significant type of chatbot integrated into different messaging apps, allow enterprises to deploy these from already-built platforms to connect with a large customer base without developing a full-fledged application from scratch. Some messaging app bots are Botsify, Tidio, Aivo, Pandorabots, and many other that helps to create and configure multiple chatbots for the website without coding using natural language processing (NLP). The rising domination of messenger bots drives the market over the study period.
- The chatbot would need more knowledge to integrate into the system and serve relevant content. The lack of awareness and integration complexities could restrain the market. However, these chatbots are empowered to address fundamental questions. According to a survey, 68% of customers like chatbots because they quickly answer their inquiries, reducing the waiting time to contact customer support. Companies are investing in enhancing the bot experience in various languages.
- People's life and means of survival were severely affected by COVID-19 worldwide. It took a lot of work for individuals and customer service teams to manage client queries and maintain satisfaction metrics to meet the customers' urgent needs. Thus, bots have become an excellent way to interact with customers and respond to their questions. Additionally, reducing human error improves accuracy, which increases demand for bot services in the market and is expected to continue over the coming years.
Bot Services Market Trends
This section covers the major market trends shaping the Bot Services Market according to our research experts:
Chat bots Expected to Witness Significant Growth
- Chatbots can assist businesses in turning website visitors into paying clients. They are growing in popularity among companies looking for an easy solution to boost customer service and provide a well-rounded client experience without adding extra employees. By providing a handy way to assist clients without involving a human, chatbots help businesses save money, thereby increasing the demand for bot services.
- Chatbots built using the bot frameworks can offer more advanced features like shipment tracking, inquiries about product specifics, Complaints, payment, etc. According to the survey conducted by clickz.com in the USA for the type of inquiry customers use chatbot services, shipment tracking stood at the top with 52%, followed by order information with 44%, and payment at 35%.
- Large businesses are frequently overburdened with tasks such as placing orders, requesting information about products and services, and making payments for supplies. Enterprise-grade chatbots can readily handle these B2B operations, and the chatbot-integrated B2B systems can further reduce the workload. The chatbots automate all these operations by reorienting everything to the Instant Messaging Platform. Chatbots equipped with artificial intelligence (AI) and NLP can answer all questions about products, invoicing, payments, and more.
- As the public increasingly uses chatbots, WhatsApp, and live chat in their daily lives, the local government plays a significant role in catching up and revising its service offerings to meet customer needs. For instance, The Indian Railways, Bangalore Metro Rail Corp Ltd., etc., are increasingly using chatbots to answer user queries and even accept bookings. Anyone can access it by adding the number as a WhatsApp contact and sending the message hi.
- In addition, the market is witnessing an increased adoption of chatbots in the licensing business. For instance, the driver and vehicle licensing agency (DVLA) incorporated a chatbot into its webchat channel to provide more efficient self-service to millions of customers. The DVLA is a government agency funded by the Department of Transport. With over 1,200 employees, the DVLA contact center is the largest single-site contact center in the UK.
- Similarly, the Government of India and the transportation department launched a WhatsApp chatbot, which would become a one-stop solution to access official documents like driver's licenses, income tax certificates, and pan cards for its citizens.
North America Expected to Witness Significant Growth
- The region is witnessing significant investments and innovations for e-commerce chatbots, healthcare chatbots, and financial chatbots. The market is driving toward AI chatbots, voice recognition chatbots technology, and various vendors aimed towards customer service enhancement in the region with chatbots.
- Enterprises do utilize chatbots for internal functions as well as consumer support. Growing demand for feature phones and the incorporation of cutting-edge NLP and AI technology are two factors driving the market for bot services. The region has revolutionized due to urbanization, digitization, and bot services. Additionally, efforts are being undertaken to standardize the environment globally.
- Partnerships drive the region, and AI chatbot innovations further create significant market investments. For instance, Sprinklr partnered with Aramex, the Dubai-based logistics and transportation provider, to use AI chatbots on Sprinklr Modern Care to improve its digital customer service efficiency and scale. Agents will quickly enter and exit customer conversations through the chatbot interface, quickly resolving requests 24/7 by connecting with Sprinklr Modern Care.
- With the outbreak of COVID-19, several cities in the region launched chatbots to help residents and provide 24/7 service. Further, many interactions are voice-based, coming in from the telephone network. Market telecom vendors are leveraging these opportunities and expanding their business with voice and telephony access to chatbots. For instance, Interactive Media, a prominent developer of telecommunications software, Conversational AI, and customer experience applications, announced the accessibility of PhoneMyBot. The cloud solution gives chatbots voice and telephony access.
Bot Services Industry Overview
The global bot services market is moderately competitive. Product launches, high expenses on research and development, partnerships, and acquisitions are the prime growth strategies adopted by the companies in the market to sustain the intense competition. Some of the key developments in the area are:-
In December 2022, Human Horizons, a mobility and intelligent driving technology company, partnered with BlackBerry Limited for QNX technology to power the autonomous driving controller and smart digital cockpit controller for the new launch vehicle "HiPhi Z." This vehicle is equipped with AI voice assistant, the HiPhi Bot, which can enhance multiple aspects of the driving and passenger experience by listening to driver commands.
In November 2022, Brazilian Operator Embratel launched a smart Bot solution that includes AI and machine learning (ML) to enhance corporate customer services. The software offers some elements that interact with users, efficiently and transparently replicating human assistance.
Bot Services Market Leaders
-
IBM Corporation
-
Amazon Web Services Inc.
-
Microsoft Corporation
-
Creative Virtual
-
Google (Alphabet Inc.)
*Disclaimer: Major Players sorted in no particular order
Bot Services Market News
- December 2022: Arkose Labs, a bot management and account security company, opened its new office in San Jose, Costa Rica, giving it a point to service the broader LATAM market and customers globally. The company expects to add 30 more employees in Costa Rica focused on security operations, customer success, professional services, and business and technical operations and advances bot detection with the new captcha capability "Arkose Matchkey" to create challenges designed to meet cyber threats in the future.
- November 2022: Sony launched a new voice assistant for customer service, "Isha," in India in partnership with yellow.ai. This voice assistant is a multilingual virtual agent that can handle English, Hindi, and Bengali languages to serve the customers by answering questions and connecting them to the human assistant if needed and provide services 24X7 with a dedicated helpline for services and quick support.
Bot Services Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
-
4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
-
5.1 Market Drivers
- 5.1.1 Rising Domination of Messenger Applications
- 5.1.2 Increasing Demand for Consumer Analytics
- 5.1.3 Chat bots Expected to Witness Significant Growth
-
5.2 Market Restrains
- 5.2.1 Lack of Awareness and Integration Complexities
6. MARKET SEGMENTATION
-
6.1 By Deployment Channel
- 6.1.1 Website
- 6.1.2 Mobile Application
- 6.1.3 Social Media
- 6.1.4 Customer Care Service
-
6.2 By Product Type
- 6.2.1 Voice Assistant
- 6.2.2 Chat Bots
- 6.2.3 Smart Speakers
- 6.2.4 Natural Language Processing
-
6.3 By End-User
- 6.3.1 Retail
- 6.3.2 BFSI
- 6.3.3 Healthcare
- 6.3.4 IT and Telecom
- 6.3.5 Travel and Hospitality
- 6.3.6 Other End-User Industries
-
6.4 By Geography
- 6.4.1 North America
- 6.4.2 Europe
- 6.4.3 Asia Pacific
- 6.4.4 Latin America
- 6.4.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
-
7.1 Company Profiles
- 7.1.1 Oracle Corporation
- 7.1.2 Google (Alphabet Inc.)
- 7.1.3 Amazon Web Services Inc.
- 7.1.4 Microsoft Corporation
- 7.1.5 IBM Corporation
- 7.1.6 Nuance Communications Inc.
- 7.1.7 CogniCor Technologies
- 7.1.8 Amplify.ai
- 7.1.9 Creative Virtual
- 7.1.10 Facebook Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Bot Services Industry Segmentation
A bot is a software application programmed to execute specific tasks, and users interact with it in a conventional way using voice commands, text, and graphics without human intervention, thus helping resolve the questions the customers ask and serving them 24x7, thereby making humans focus on other complicated tasks.
The global bot services market is segmented by deployment channel (website, mobile application, social media, customer care service), product type (voice assistant, chabots, smart speakers, natural language processing), end-user (retail, BFSI, healthcare, IT and telecom, travel and hospitality), and geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa).
The report also covers the analysis of the impact of COVID-19 on the market and the stakeholders, and the same has been considered for the current market estimation and future projections.
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Deployment Channel | Website |
| Mobile Application | |
| Social Media | |
| Customer Care Service | |
| By Product Type | Voice Assistant |
| Chat Bots | |
| Smart Speakers | |
| Natural Language Processing | |
| By End-User | Retail |
| BFSI | |
| Healthcare | |
| IT and Telecom | |
| Travel and Hospitality | |
| Other End-User Industries | |
| By Geography | North America |
| Europe | |
| Asia Pacific | |
| Latin America | |
| Middle East and Africa |
Bot Services Market Research FAQs
What is the current Bot Services Market size?
The Bot Services Market is projected to register a CAGR of 20.5% during the forecast period (2024-2029)
Who are the key players in Bot Services Market?
IBM Corporation, Amazon Web Services Inc. , Microsoft Corporation, Creative Virtual and Google (Alphabet Inc.) are the major companies operating in the Bot Services Market.
Which is the fastest growing region in Bot Services Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Bot Services Market?
In 2024, the Asia-Pacific accounts for the largest market share in Bot Services Market.
What years does this Bot Services Market cover?
The report covers the Bot Services Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Bot Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Bot Services Industry Report
Statistics for the 2024 Bot Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Bot Services analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
