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

The global Chatbot market is expected to develop at a compound annual growth rate (CAGR) of 23.5 percent from USD 2.9 billion in 2020 to USD 10.5 billion by 2026. The need for 24/7 customer support at a lower operational cost, increased focus on customer engagement through various channels, and technological advancements combined with rising customer demand for self-service operations are all contributing to the growth of the chatbot market, giving businesses a competitive advantage.

The global lockdown is expected to cause a minor slowdown in the chatbot market in 2020. Almost every industry has been shaken by the COVID-19 epidemic, which has exacerbated churn. The lockdown is having a negative influence on global production, supply networks, and logistics, as well as the continuity of operations in numerous industries. Manufacturing, transportation and logistics, and retail and consumer products are the industries with the most problems. The shortage of labour to operate on manufacturing lines, supply networks, and transportation has a negative influence on the availability of vital commodities, despite the fact that critical items are exempt from the lockdown.

By early 2021, the condition is projected to be under control, while demand for chatbot solutions and services is expected to rise as companies seek to improve customer experience and develop personalised relationships with prospects. Several industries will use a wide range of chatbot solutions and services to support digital transformation initiatives that address mission-critical processes, improve operations, and distinguish customer viewing experiences. The use of chatbots is projected to be driven by a reduction in operational expenses, improved customer experiences, resolution of customer concerns, increased visibility into processes and operations, and improved real-time decision-making.