Bot services market is expected to reach $14.2 billion by 2025 at a CAGR of 36.0% during the forecast period 2020-2025. Companies are focusing on replacing the human workforce with bots for better efficiency and cost-effectiveness. Bot service providers offer various tools and platforms to develop and deploy bot services as per the need of the end-user, in turn, contributing to the market’s growth. Increasing usage of bots in various sectors such as BFSI, E-commerce and other due to rising penetration of Internet and online services is a major factor expected to drive growth of the global bot services market in the forecast period 2020-2025.
Key Takeaways
- North America dominated the market by a market share of more than 37.5% in 2019. Early adoption of advanced technologies, growing dominance of retail, Healthcare, E-commerce and social media platforms are analysed to drive the market.
- Several companies are updating their traditional customer services by deploying AI enabled bot services to attract the customers.
- Bot Services in BFSI is growing at a CAGR of 41.2% in the forecast period as these services sort out complex issues and create a more positive banking experience.
- Bot Services top 10 companies include Amazon Web Services, Aspect Software, Astute Solutions, Cognicor Technologies, Creative Virtual, eGain Corporation, Google, IBM, Inbenta Technologies, Microsoft, Nuance Communications among others.
By Deployment Channel - Segment Analysis
Bot services in Customer services segment is growing at a highest CAGR of 40.2% in the forecast period. A customer service bot uses artificial intelligence (AI) and machine learning to answer basic customer questions via a business messenger. The use of bot services in customer service industry is growing. According to report given by Forbes, more than 67% of consumers worldwide used a bot services for customer support in the past year and around 85% of all customer interactions will be handled without a human agent by 2020. Similarly, 40% of consumers do not care whether a bot or a real human helps them, as long as they are getting the help they need. Chatbots can save up to 30% in customer support cost and can help businesses save on customer service costs by speeding up response times and answering up to 80% of routine questions. Several companies have been raising funds for advancements in customer service platform. In 2020, Ada raised $44M Series B funding to improve its chatbot customer service platform. Similarly, several other companies have been investing heavily for the advancements in this platform. Hence these advancements are analysed to drive the market in the forecast period 2020-2025.
By Industry Vertical - Segment Analysis
Bot Services in BFSI is growing at a CAGR of 41.2% in the forecast period. These services for BFSI can serve the most basic needs of the customers, such as balance inquiry, loan queries, bank account details, etc. In addition it also allows the customer service representatives to sort out complex issues and create a more positive banking experience. Several banking institutions have been investing heavily for deploying these services. In 2019, YES Bank with integration with Microsoft has introduced YES ROBOT, an artificial intelligence-enabled bot service to support its customers to perform financial and non-financial banking transactions by using conversational AI. Similarly, Bank of America, Citi bank and so on are investing heavily for the adoption of these services. Hence these significant deployment are analyzed to drive the market in the forecast period 2020-2025.
By Geography - Segment Analysis
North America dominated the market by a market share of more than 37.5% in 2019. Early adoption of advanced technologies, growing dominance of retail, Healthcare, E-commerce and social media platforms are analysed to drive the market. In addition Enterprises in the US and Canada are adopting these bot services to engage with their customers. Companies such as Amazon, Microsoft have been investing heavily for advancements in bot services. Moreover users in this region are more interested to use these services. According to the report given by Forbes 62% of US consumers like using bot services to interact with businesses. In addition 64% of organizations in U.S and Canada plan to increase their AI investment by 2020. Hence these advancements are analysed to drive the market in the forecast period 2020-2025.
Drivers – Bot Services Market
- Outbreak of Corona virus helps in assisting the market growth
The rise of coronavirus pandemic has resulted in lockdowns in many countries which has caused a spectacular boom to the bot services market. Bot services has been increasingly deployed by various organizations to respond to customer queries and other related information. As remote working has been adopted by the different organization due to lockdown imposed in states or countries, the companies are heavily dependent on bot services to reduce the burden of customer queries due to minimal availability of customer service employees. Also, the bot services are providing millions of people with the necessary information pertaining to COVID-19 daily. For instance, in April 2020, WHO has launched a Facebook Messenger version of its WHO Health Alert platform that offers instant and accurate information about COVID-19. Similarly, several other companies are shifting their traditional customer services by deploying AI enabled bot services. Hence the impact of covid-19 is analyzed to drive the market growth in the forecast period.
- Increased demand for bots in healthcare sector
Healthcare service providers are continuously partnering with bot service companies to assist the patients better. According to NCBI, patients spends about 30 minutes on average to find out the right service that their local hospital can provide, and the average nurse spends 1 hour a day trying to connect to the right doctor. Bot services are a convenient way for patients to get answers to questions about their healthcare accounts, coverage, claims and even minor health concerns, via their mobile devices and desktops. Moreover, healthcare service providers are actively engaging their patients with recent in-patient procedures and chronic conditions such as diabetes, cardiovascular diseases, arthritis, and so on through these services. In addition healthcare companies such as GYAN, Apollo, Cardinal health inc, CVS Health Corp and so on are investing heavily for these services. Hence these benefits are analysed to drive the market in the forecast period 2020-2025.
Challenges – Bot Services Market
- Limitations of bot services in understanding user context
Bot services are programmed to answer what they are taught. They cannot understand the context of humans, and this is a massive gap that can even lead to an irate customer. In addition the AI-powered smart-bots can understand the general context, but 40 out of 100 cases are not related to the general context. Hence these kinds of limitations are analyzed to hamper the market growth in the forecast period 2020-2025.
Market Landscape
Technology launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the LATAM LMS-Frontline worker training market. In 2019, the market of Bot Services industry outlook has been fragmented by several companies. Bot Services top 10 companies include Amazon Web Services, Aspect Software, Astute Solutions, Cognicor Technologies, Creative Virtual, eGain Corporation, Google, IBM, Inbenta Technologies, Microsoft, Nuance Communications among others.
Acquisitions/Technology Launches
- In 2017, Microsoft launched Azure Bot Service to bring more bots and AI into the cloud.
