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BOT Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 120 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 4602240
UP TO OFF until Dec 31st 2023

Quick Summary:

In an exponentially digitalized world, bot services have become a crucial tool for effective business operation and customer interaction. The Global Bot Services Market report provides an in-depth view of this dynamic field, detailing the manner in which chatbots improve efficiency, optimize the customer experience, and provide valuable insights to develop customer retention strategies.

The report intricately explains how innovative technologies are driving the bot services market, with enhanced focus on customer service and operational optimization. Uncover how chatbots, particularly AI-enhanced and NLP-enabled ones, are revolutionizing sectors such as retail, e-commerce and government services - to name but a few. Furthermore, explore how enterprises are leveraging chatbots to streamline B2B operations and manage internal functions. With geographical focus on regions that are witnessing strong growth, this report is a rich source of information for those looking to understand all the nuances of the global bot services market.

The Global Bot Services Market is expected to register a CAGR of 20.5% during the forecast period.

Key Highlights

  • 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

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 Market Competitor Analysis

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.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
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
5.1 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
6.1 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
7.1 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.

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Oracle Corporation
  • Google (Alphabet Inc.)
  • Amazon Web Services Inc.
  • Microsoft Corporation
  • IBM Corporation
  • Nuance Communications Inc.
  • CogniCor Technologies
  • Amplify.ai
  • Creative Virtual
  • Facebook Inc.