Bot Services Market

Bot Services Market Outlook (2023 to 2033)

The global Bot Services market is expected to be worth US$ 1.67 billion in fiscal year 2023, up from US$ 1.4 billion in fiscal year 2022. From 2022 to 2032, the market is expected to grow at a 19.3% CAGR, reaching a value of US$ 9.75 billion by the end of 2033.

As per Fact.MR, a market research and competitive intelligence provider, the bot services have been driven, owing to the factors such as the increase in the number of adoptions in the internet as well as online services across the globe. In addition, the market is fueling, attributed to accessibility of numerous tools and platforms for providers, in order to develop and implement bot services.

Moreover, an increase in the usage of bot services in various sectors including BFSI and eCommerce is one of the major factors that is likely to boost the growth of the bot services market over the analysis period.

Additionally, other factors such as an incorporation of advanced AI and NLP technologies, as well as the continually rising demand for feature phones are also anticipated to accelerate the market growth in the near future.

Also, the Bot services industry benefits from factors including increasing demand for enhanced services, digitization, and urbanization, and increased investment by governments. Further, increased alliances and a broader ecosystem provide profitable prospects for bot service providers.

Report Attributes	Details
Anticipated Base Year Value in 2022	US$ 1.4 Billion
Expected Market Value (2023)	US$ 1.67 Billion
Projected Forecast Value (2033)	US$ 9.75 Billion
Global Growth Rate (2023-2033)	19.3%
Expected Share of the North America Market (2023-2033)	39%
Anticipated Share of Asia Pacific Market (2023-2033)	26%
Prominent Players in The Global Market	Microsoft IBM Google Oracle Artificial Solutions PeopleFluent Greenhouse Software ClearCompany Ultimate Software Silkroad Technology Trakstar Hire TalentNest SmartRecruiters

2018-2022 Bot Services Market Demand Analysis vs. Forecast 2023-2033

According to market research and competitive intelligence provider Fact.MR- the market for Bot Services reflected a value CAGR of 16.5% during the historical period, 2018-2022.

The bots have been becoming popular on the back of their applications across many industries. The bot services market is growing rapidly, owing to the factors including the inclination of many industries towards omnichannel platforms, in order to escalate operational effectiveness, their capitalization on enhanced consumer data, as well as more emphasis on improving customer experience.

The retail sector is one of the primary target markets that is making the best use of bot services. Many bigwigs, including Amazon, have made significant investments and developed bots, in order to more precisely cross-sell and upsell products, and to better analyze customer behavior.

As per the IBM's most recent reports, Watson Assistant traffic increased by 40% between February 2020 and April 2020. Furthermore, in April 2020, Google, introduced the Rapid Response Virtual Agent, a particular variation of its Contact Center AI, in response to the rising customer demand.

Additionally, the rise in demand for chatbots is increasing as these chatbots can assist businesses in turning website visitors into paying clients. The companies have been looking for an easy solution, in order to increase their reach, customer service, and to provide a well-rounded client experience, without adding extra employees.

The chatbots built using the bot frameworks offer more advanced features including inquiries about product specifications, shipment tracking, complaints, payment, among others. According to a survey conducted by clickz.com, for the type of inquiry customers use chatbot services in the United States, the shipment tracking topped with 52%, followed by order information with 44%, as well as payment with 35%. Hence, this market is expected to grow rapidly between 2023 and 2033.

Prominent Growth Drivers Influencing Bot Services Market

Chatbots Replace Human Agents in Customer Service

The customer service has been transformed by the usage of conversational bots. Many companies witnessed 70% fewer calls, emails as well as chats, that require human intervention, after automating customer service in 2021. Most websites have been providing online chat alternatives, owing to their ease as well as convenience.

The chatbots are considered as the most ideal platform and a customer service representative, since its 24/7 availability. In addition, these chatbots can quickly answer consumer queries, and can solve their difficulties while using the website.

The chatbots are increasingly being adopted across several industries, as they provide limitless benefits, and are more efficient in dealing with customers, when compared to human agents.

Advancements in Machine Learning and Artificial Intelligence

The incorporation of Artificial Intelligence (AI) and Machine Learning (ML) are driving growth in the bot services market by allowing for the creation of more intelligent and capable chatbots. AI and ML enable chatbots to handle complex queries, provide more accurate and personalized responses, and continuously improve over time through machine learning algorithms.

These advanced chatbots can handle a wide range of tasks, from customer service to sales and marketing, leading to increased efficiency and cost savings for businesses. Additionally, the growing demand for conversational interfaces, combined with advancements in natural language processing (NLP) and voice recognition technology, is also driving growth in the bot services market.

What Could Possibly Hinder Bot Services Market Demand?

Handling of Limited Queries to hamper the Growth of Bots Services Market

The complex queries cannot be handled by bots as these bots can only respond to conversations to an extent, these are programmed for. These bots cannot help customers, if there are any additional queries that bots are not fed information with. This in turn, can have a negative impact on customer experience.

When the bots do not understand a query, these bots start providing repetitive answers to same questions framed differently. This frustrates the customers. This is a major factor that is anticipated to hamper the growth of the bot services market over the analysis period.

Bot Services Market will be hampered by High Installation Cost

Chatbots often collect and store large amounts of personal data, leading to concerns about privacy and security. Hence, the privacy as well as security concerns is a major factor that is likely to hamper the growth of the bot services market during the forecast period.

Additionally, these services have a high implementation as well as maintaining cost. These chatbots can be expensive, and businesses may be hesitant to invest in the technology until they see a clear return on investment. This is another major factor that is expected to impede the market growth.

Category-wise Insights

Which channel is forecast to gain the dominant market share?

Website Channel to gain a significant traction

According to Fact.MR’s data, preference for Website Channel segment is expected to expand with a market share of 35% over the forecast period.

The bots are pre-programmed chat interfaces, that allow website visitors to interact with them. The chatbots assist website users by providing the information they require, whereas the interactive bots can convert visitors into customers.

The chatbots make use of Artificial Intelligence, in order to process language as well as to communicate with users. Several chatbots have been installed for messaging systems like Facebook, Skype, Slack, and other key social media networking sites. The developers of chatbots can use these messaging platforms for payment services by directly linking the payment gateways with the assistant.

Additionally, the chance to earn modest commission fees is one of the major opportunities in the market. The chatbots are frequently employed in digital marketing to inform current customers about new goods as well as services, since these chatbots allow for direct client connection. Such developments are expected to increase the segmental growth during 2023-2033.

What would be the outlook of the BFSI and Retail segments during the forecast period?

According to Fact.MR’s data, preference for BFSI segment is expected to expand with a market share of 23% over the forecast period.

The chatbots have an ability to answer the basic queries of customers of BFSI companies, including bank account details, balance inquiries, and loan queries, among others, which in turn, allows customer service representatives to resolve complex issues and to create a better banking experience.

Moreover, the retail sector is increasingly adopting the bot services attributed to the increasing use of online retail as well as continually rising customer demand. Nowadays, many customers prefer shopping online, as they can find their products quickly online, along with the availability of online features such as speedy and simple checkouts.

The chatbots can locate nearby stores, offer recommendations, place orders and pre-orders, and track packages, apart from helping customers to search for products, in order to enhance their eCommerce shopping experience. All the aforementioned factors are anticipated to fuel the segmental growth in the near future.

Region-wise Analysis

What is the outlook of the North American Bot Services market?

Increasing bot services with the top technologies to expand regional growth prospects

According to Fact.MR, North America is the fastest-growing Bot Services market region, accounting for over 39% of the market share in 2023, and is expected to maintain its dominance during the analysis period.

This growth is attributed to factors such as rapid technological adoption including the growing dominance of retail, eCommerce, healthcare, and social media platforms in the region. Moreover, the availability of a considerable number of bot service providers in the region is another major factor that is likely to propel the regional market growth during the analysis period.

What can be expected from the Asian market For Bot Services?

Increased number of social media users will accelerate the regional demand

According to Fact.MR, the bot services market in Asia Pacific is expected to account for 26% of the market share in 2023, and is expected to accelerate during the analysis period.

This growth is attributed to factors such as the increasing number of social media users in the region. In addition, rising user involvement on social media is another factor that is likely to boost the regional market growth in the forthcoming years.

Moreover, technological advancements in emerging economies including India and China, is another factor driving the market growth. The rise in the IT industry as well as the development and adoption of advanced technologies in the region are the other factors that are expected to fuel the market growth in the region.

Start-up Scenario

• Founded in 2018, Coginant is a Brazilian startup, that develops chatbots for the eCommerce industry. The startup uses artificial intelligence, in order to develop bots that comprehend sales queries and convert visitors into customers. The startup’s product, Cogibot, is trained to offer personalized services to the customer as per the conversation.
• Established in 2020, IntPurple, an Indian startup provides remote care management platforms for hospitals as well as clinics. The startup uses artificial intelligence to develop intelligent personal assistants for patients. Also, the software uses machine learning in order to digitize documents required by doctors for further diagnosis and treatment.

Competitive Landscape

Prominent players in the Bot Services Industry are taking advantage of the rapidly increasing demand for the chatbots in various applications. To further their outreach, players are relying on collaborations, partnerships and acquisitions with existing small, medium and large-scale vendors.

Some prominent market developments are as follows :

• Emirates NBD, the Middle Eastern finance giant, in January 2022, launched voice banking Alexa skill, for voice banking in the UAE. Customers can set up Alexa skill on Echo smart speakers and displays. It is also available on mobile devices with Android apps and Alexa iOS.
• Matrixport, the Asia's fastest growing digital assets financial services platform, in December 2021, launched its automated Grid Trading Bot service, which at its initial phase, will support trading pairs between BCH, ETH, BTC, and USDT/USDC. It will enable users to set purchase and sell orders within a price range.

Key Segments Covered In the Bot Services Market Report

• By Channel :

  • Website
  • Mobile Application
  • Social Media
  • Customer Care Service

• By Deployment :

  • On-Premise
  • Cloud

• By Mode of Interaction :

  • Audio
  • Video
  • Text and Rich Media

• By End-Use Industry :

  • BFSI
  • Retail & eCommerce
  • Healthcare & Life Sciences
  • Media & Entertainment
  • Travel & Hospitality
  • IT & Telecom
  • Government
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia and Oceania
  • Middle East & Africa