Chatbots Forecasted to Command 30% Market Growth
May 7, 2020
Evolution in technology is as old as technology. The advent of paper revolutionized the way we organize, communicate, and document information. Inventing the internet transformed the speed and amount of data we have access to worldwide. In recent years, we have seen the rise of smart mobile technology. Our phones have evolved from a primitive game of Cup and String to a computer that can render video, photo, or face-to-face chats with a loved one on the other side of the world. Around 2008, we began seeing the evolution of mobile apps taking on the ubiquity of websites. And today, a new force of technology is on the rise, challenging traditional communication channels like phones, email, websites, and mobile apps.
The numbers for the evolving rise of chatbots are staggering. Studies point toward a near future in which chatbots command a large share of the market. There are plenty of reasons for this growth, but let’s take a look at the numbers first.
According to a study conducted by Global Market Insights, “AI-based chatbots,” like the ones powered by Botco.ai, “are projected to showcase the fastest growth in coming years with an anticipated CAGR (Compound Annual Growth Rate) of more than 52%.” Although the stand-alone segment in the chatbot market, according to PR Newswire, is expected to experience healthy growth (around 29%), the cloud-based models are projected to grow much closer to the overall number of chatbot market growth, at 51%. And, by 2024, the e-commerce sector is predicted to register over 34% gains.
Explanations for this impressive growth are aplenty. In addition to market demand for the utilization of chatbots being due to online marketing, promotions, and advertising, PR Newswire says, “The main features accelerating the chatbot market growth are technological features, individuality, and customization. They provide customized marketing abilities, such as sending personalized messages.”
Investments in R&D and market development from major players such as Google, WeChat, Microsoft, and many more, offer an understanding for chatbot’s growth, plus added vision for their continued expansion. Also, the use of AI technologies allows chatbots unique access to becoming smarter with time. Implementing video or still images also permits chatbots to diversify how companies communicate with their customers and chatbots allow for 24/7 communication, without the need for human support, and the ability to communicate in real-time. Even more, chatbots are extraordinarily easy to implement while being customizable to a diversity of nuanced needs.
With such a dynamic and adaptable platform, the world is looking at a new technological wave of evolution. If you are curious about an innovative and powerful example of chatbot development and thought leadership, book a demo with our team today to learn how a conversational marketing platform can transform your business.