The North American Chatbot Market is anticipated to grow at a compound annual growth rate of over 34% during the period 2019-2024.
The North American chatbots market is estimated to grow by over 34% compound annual growth rate between 2019 and 2024 while the global chatbots market is expected to grow to US$7.59 billion in 2024 from US$1.27 in 2018. Whereas these figures are hard to estimate with great accuracy – and government spending, with R&D from S&P500’s can always have an impact, these figures are currently based on the latest research report by www.researchandmarkets.com. The demand for chatbots is increasing due to technological advancements in artificial intelligence and natural language processing, growing demand for voice-activated smart devices and the chatbots’ high convenience and fully automated processes. Asia Pacific region will experience the fastest growth but North America will be the largest user of chatbots.
What is a chatbot?
A chatbot is artificial intelligence software that converses or chats with human users using natural language on the telephone, mobile apps, websites, messaging applications and social media. By automatically answering queries and resolving problems, it reduces operational time and increases the efficiency of dealing with customers. The result is improved customer service, increased customer satisfaction and increased sales.
Why is the North American growth expected to be so high?
One reason for the expected fast growth of the North American chatbot market is the increasing technological development in artificial intelligence and natural language processing. The other reasons are the early adoption of these technologies and the large number of companies found in the region. Not to be left out are the improved customer retention and high returns on investments experienced by companies and brands that have deployed chatbots.
The United States will lead the North American market and is expected to continue its dominance in the North American region.
The major players in North America include Amazon.com Inc., Microsoft Corporation, Google LLC, Nuance Communications Inc., and International Business Machines Corporation.
Are people willing to chat with chatbots?
People spend a lot of time on social media via their mobile devices and companies are taking advantage of that by deploying chatbots there. According to Facebook, by early 2018, 1.4 billion people used Messenger and most of them were willing to converse with a chatbot. The new generation of customers expect spontaneous and seamless customer experience. To satisfy them and to remain competitive, more businesses are investing in the building of chatbots to manage customer queries 24 hours per day via social media. This is expected to contribute greatly to the market growth during the forecast period.
Exponential growth of customer messaging platforms, such as Facebook Messenger and WeChat that have inbuilt technology for e-commerce, have also contributed to the rapid growth of the chatbot market in North America.
Chatbot are currently found on social platforms and websites and are accessible via mobile devices and computers. They are used as easy and fun ways to assist customers as they interact with a brand.
Have many companies deployed chatbots?
In general, the adoption of chatbots was rather slow in the beginning due to relative lack of awareness of the convenience. Some major vendors have been addressing these issues by introducing interactive features in their products. Therefore, the adoption of chatbots is at a budding stage but the rate of adoption is increasing and advancements in the field are expected.
Many companies are becoming aware of the great value that chatbots will add to their bottom line. All companies are competing for customers. The ones that deploy chatbots and improve customer engagement have better customer satisfaction and faster conversion of visitors into customers. They are finding that the chatbots are easy to build, have easy user interface, can be used on familiar social media, and speedily handle customer queries. That is why more and more businesses are investing in chatbots and this is contributing to the current fast growth of the market.
Other contributors to the rapid growth of the North American chatbots market are the single search point, advances in artificial intelligence, cloud-based deployment, machine learning, natural language processing and multilingual ability.
Also, banks and the financial industry are always looking for ways to reduce the need for live call centers and reduce customer service costs. Those who have deployed chatbots for this purpose have achieved these goals and more companies and brands are now entering the chatbots market.
The global chatbot market is off course much larger than North America. For instance, currently we’re working on releasing ready-made chatbots on the SnatchBot marketplace that will cover both Mandarin and Spanish – which in fact may dwarf both the US and single EU countries. Players like Microsoft and others are rushing to join the market with “no-coding” chatbots. Get ready to launch a chatbot as your new “colleague” soon.