Chatbot Market to reach $1.34bn by 2024 Chatbot Market | Page 2

Customer service application accounts for the largest market share of 43% in 2017
in the chatbot market followed by social media, order processing, and marketing
applications. Customer service is the major criteria for businesses to survive in the
competitive market. The advent of chatbots allows businesses to offer enhanced
customer service by offering 24/7 customer support, real-time query handing, and
educating the customers about new products and services. For instance, in April
2018, TIM, an Italian ICT group partnered with Microsoft to develop AI-based
chatbots, which will benefit both the company and its customers in the long term by
optimizing customer service inquiries handling and technical assistance, thereby
resulting in an improved customer experience.
The standalone interface segment dominates the market due to the benefits they
offer such as ease-of-usage and installation at reduced costs. The web-based
chatbot is growing at a fast pace at a CAGR of 36.9% during the forecast period and
is mainly beneficial for the companies selling products directly through their
websites. The chatbots make an effective point-of-contact tool delivering better
customer experience and improved business margins.
The e-commerce segment is expected to benefit the most from the chatbot market.
Due to the rapid development and growth of AI, chatbots are anticipated to get more
sophisticated with time. This has increased the acceptance of chatbots in the e-
commerce sector. The usage of chatbots in the BFSI sector is growing rapidly due to
the factors such as automated fraud prevention, assistance to customers in making
improved financial decisions, and improved customer experience. For instance, in
2016, Bank of America launched a chatbot named Erica available for the customers
in the bank’s mobile application. This chatbot enabled customers to perform various
tasks such as making transactions and checking balances to improve customer
satisfaction.
Asia Pacific Chatbot Market Size, By Application, 2017 & 2024 (USD Million)
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