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Artificial Intelligence

Chatbot Market Size to be Worth Around USD 4.9 Billion by 2032

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Ottawa, Jan. 27, 2023 (GLOBE NEWSWIRE) — A chatbot is a computer software that employs artificial intelligence to communicate with people online via text or audio. Businesses primarily use it to communicate with clients via text, image, and video. Chatbots are used on apps, websites, and messaging services like Twitter, WhatsApp, and Facebook Messenger.

Factors such as a surge in demand for uninterrupted customer assistance, adoption of advanced chatbots by market players, and increasing penetration of chatbots on e-commerce websites are driving chatbot market growth. However, the need for more awareness of chatbot technology and the lack of user voice authentication accuracy obstructs the market’s growth. Furthermore, initiatives towards developing self-learning chatbots to deliver more human-like conversational experiences are expected to provide growth opportunities to the market.

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Key Takeaways:

  • North America has accounted highest market share of 41% in 2022.
  • By end user, the large enterprises segment has held largest market share of 51% in 2022.
  • By application, the bot-for-service segment has held 36% market share in 2022.
  • By type, the standalone segment has held market share of 55.70% in 2022.
  • By product, the marketing segment Has generated largest market share of 56% in 2022.
  • By vertical, eCommerce segment has held market share of over 21% in 2022.

The regional landscape of the global chatbot market

Asia Pacific is estimated to grow rate faster during the forecast period. The growth in this region is due to rising industrialization and the increasing need for chatbots. The growing retail and e-commerce businesses in emerging economies such as China, India, Indonesia, Vietnam, Malaysia, the Philippines, Taiwan, and Thailand have accelerated the high demand for and widespread adoption of chatbots by retailers and e-commerce business owners. Moreover, Europe is estimated to grow faster during the forecast period, and this growth is attributed to increased demand for AI-based customer support services.

The product landscape of the global chatbot market     

Artificial intelligence (AI) is estimated to be the fastest-growing segment during the forecast period. The growth is due to the extensive investments made by market participants in the AI chatbot. For instance, Orbita in Boston raised $9 million in funding for a conversational AI-powered voice and chatbot platform, which is co-led by Philips Health Technology Ventures and HealthX Ventures, investors Cultivation Capital and Newark Venture Partners. The company provides a robust conversational AI platform that enables healthcare organizations to create and manage HIPAA-compliant virtual healthcare assistants for consumer and clinical applications that improve patient engagement, lower healthcare costs, and improve outcomes.

The vertical landscape of the global chatbot market

The healthcare segment is expected to grow faster rate during the forecast period. A chatbot in the healthcare industry offers privacy features to protect an individual’s identity, especially in vulnerable and mental health disorders. Moreover, it helps detect and manage the user’s anxiety levels and behaviour to help them develop better health habits as it gives prompt outcomes, notifications, reminders, and interaction with people. A high level of personalization is maintained. Mobile sensors can assess physiological parameters, including body temperature, heart rate, and bodily vitals like oxygenation.

Additionally, a facial recognition tool can identify patients’ behaviours. Comprehensive healthcare data, such as disease symptoms, diagnosis, indicators, and prospective therapies, can be used to train chatbot algorithms. Chatbots are adept at handling vast volumes of medical data, like Wisconsin Breast Cancer Diagnosis (WBCD) and COVIDX for COVID-19. 

Conversational chatbots with various intelligence levels may comprehend user inquiries and reply using pre-defined labels derived from training data. For instance, the Healthily app details numerous diseases’ symptoms and evaluations of general health and patient progress. Similarly, users of the Ada app can evaluate their symptoms on the road and without an appointment. Ada is a rapid symptom checker driven by AI that is available to users around the clock, every day of the week. It has given accurate disease suggestions regardless of place or time, sometimes even before a clinical diagnosis.

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Scope of the Report

Report Attributes Details
Revenue Forecast by 2032 USD 4.9 Billion
CAGR 19.29% from 2023 to 2032
North America Revenue Share 41% in 2022
Large Enterprises Segment Share 51% in 2022
eCommerce Segment Share 21% in 2022
Base Year 2022
Forecast Year 2023 to 2032
Key Players IBM Corporation, Microsoft, AWS, Oracle, Acuvate, Google, Artificial Solutions, Botsify Inc, Creative Virtual Ltd., Aivo, eGain Corporation, Inbenta Technologies Inc., Next IT Corp., Nuance Communications, Inc. and Others

Market Dynamics of the global chatbot market

Driver: Growing E-commerce sector

E-commerce chatbots are AI systems that online merchants utilize to communicate with clients at every stage of the buying process. Customers receive individualized purchasing experiences via chatbots based on their previous interactions, purchases, website browsing patterns, age, and gender. It provides prompt notifications and proactive information to inform customers about freshly released goods, deals, and price adjustments to boost e-commerce enterprises’ profits. 

The e-commerce industry requires 24-hour customer service, which is only sometimes feasible with human assistance. This is driving the adoption of chatbots in the e-commerce sector, enabling two-way communication and a real-time connection with users, allowing for a better shopping experience at any time and location. Increased use of smartphones and social media websites with chatbots provides for greater customer engagement. This results in a more seamless payment experience, more efficient communication, and a shorter sales cycle. Chatbots are used in the e-commerce and retail sectors to deliver automated emails and instant customer responses. This increases the customer base and sales, strengthening the customer engagement solutions market. 

Restraint: Dearth of accuracy in users’ voice authentication 

Conversational AI platforms can also be built using chatbots. They can recognize human sentiments and emotions. On the other hand, misinterpreting human feelings and emotions can significantly and adversely affect businesses. Identifying and responding to the emotion in the user’s voice can be challenging. On the other hand, it’s easy to imagine chatbots imitating real people, for instance, to automate cybercrimes like scamming and phishing. Furthermore, chatbots that can simulate a real human conversation will differ from the far artificial general intelligence (AGI) that is as intelligent as a human. Using chatbots in the wild, regardless of how human-like they are, will still necessitate human supervision to ensure they do not “go rogue.”

Opportunity: Rising adoption of advanced chatbots by market players 

The chatbot industry is increasing rapidly. This expansion is attributed to the increased use of these bots to handle queries and provide customer support. As per Salesforce.com, Inc, an American cloud-based software company, more than 69% of consumers use chatbots to speed up communication. Moreover, strategic collaboration, product innovation, and business expansions by tech behemoths are expected to boost the chatbot market globally. For instance, in November 2020, Microsoft collaborated with Novo Nordisk, a global healthcare company focusing on diabetes management, to create an AI Chinese-speaking chatbot for patients diagnosed with diabetes. In addition, Amazon Web Services, Inc. commercialized AWS Chatbot for all customers in April 2020. AWS Chatbot is an interactive agent that can receive critical alerts, execute commands to return diagnostic data, run AWS Lambda functions, and create AWS support cases. Such significant developments may increase demand for chatbot services in the global market.

COVID-19 Impact on the global chatbot market

During COVID-19, several companies operating in the chatbot market, such as Google and IBM, have taken strategic steps to help society. For instance, in June 2020, the Andhra Pradesh National Health Mission announced that they had integrated with IBM Watson, a virtual agent, to help people quickly get answers to their COVID-19 queries. The innovative chatbot is designed to understand and respond to common pandemic questions in different languages, such as Telugu, Hindi, and English. Furthermore, the World Health Organization (WHO) announced in April 2020 that they had successfully launched Facebook Messenger, their version of the WHO health alert platform, to provide accurate and instant information about COVID-19.

Key Developments in the marketplace

  • The “shift-left” movement toward self-service and automation was made more accessible and affordable across a wide range of enterprise and customer service and support scenarios when Serviceaide Inc. announced Automation 2.0 in June 2022 as part of a united upgrade across its full line of service management products.
  • In September 2022, eGain Corporation, the leading knowledge automation platform provider for customer engagement, announced the availability of a pre-built connector for IBM Watson Assistant in September 2022. The connector takes advantage of eGain’s proprietary BYOB architecture, allowing business users to easily integrate the Watson Assistant into the eGain platform without requiring coding.

Market Segmentation

By End User

  • Small Enterprises
  • Medium Enterprises
  • Large Enterprises

By Application 

  • Bots for Service
  • Bots For social media
  • Bots For Payments/Order Processing
  • Bots For Marketing
  • Others

By Type 

  • Standalone
  • Web-based
  • Messenger-based/Third Party

By Product 

  • Artificial Intelligence
  • Marketing
  • Human Intelligence

By Vertical 

  • Healthcare
  • Retail
  • Banking, Financial Services and Insurance (BFSI)
  • Media and Entertainment
  • Travel & Tourism
  • E-commerce
  • Others

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • The Middle East and Africa

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Artificial Intelligence

Elevate Your Virtual Reality Experience with KIWI design RGB Vertical Stand, Now Available on Meta’s Website

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LOS ANGELES, May 11, 2024 /PRNewswire/ — Top-tier VR accessories provider KIWI design has launched its latest product, the RGB Vertical Stand. This Meta-authorized accessory, designed to deepen users’ immersion in the metaverse, is now available on the official Meta website.

“KIWI design’s commitment to pushing the boundaries of virtual reality accessories takes another leap forward with the introduction of our new products,” said Ray,the CEO of KIWI design. “We are always dedicated to bringing innovative upgrades to VR device accessories, with the goal of enriching users’ virtual reality experiences.”
The newly launched RGB Vertical Stand features a user-friendly modular design with push-in assembly, making it easy to set up and use. It is compatible with Meta Quest 3, Quest 2, and Quest Pro, ensuring widespread usability. With a magnetic USB Type-C connector, it provides an effortless way to charge and display your headset. Users can also customize their display with 16 pre-set ambient multicolor RGB light options.
With VR technology constantly evolving, users are seeking more immersive experiences. As a leading manufacturer of VR accessories, KIWI design is committed to enhancing the user experience, through unique product designs. Since its establishment in 2015, KIWI design has acquired over 100 patents and has a diverse product lineup, including head straps, facial interfaces, VR stands, charging accessories, and controller grip covers.
KIWI design has also actively participated in the Made for Meta program, which is provided by Meta to strengthen its partnerships with leading brands to deliver accessories that enhance Meta products with more choice and a richer experience for everyone. KIWI design’s participation in this program validates its high-quality design standards.
The RGB Vertical Stand for Meta Quest 3, Quest 2, and Quest Pro and another specially designed authorized charging dock for the Meta  Oculus Quest 2 are now available for purchase on both KIWI design’s website and Amazon. For more information about our brand and products, please visit our website and follow KIWI design on Facebook, Instagram, X, YouTube and TikTok.
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Artificial Intelligence

WIO Taps Gracenote to Revolutionize Television Broadcast Reporting

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LOS ANGELES, May 11, 2024 /PRNewswire/ — WIO LLC, parent company of the global TV broadcast airings platform, WIOpro™, has announced a new strategic agreement with Gracenote, the global content data business unit of Nielsen, to address the longstanding challenge of accurately tracking and collecting music royalties generated by broadcast television and digital programming, With this agreement, WIO will integrate Gracenote TV program metadata and show airings into its WIOpro™ (“When’s It On – Professional”) platform enabling performance rights organizations, copyright management organizations and other entities to better monitor broadcast schedules and identify when royalties have been earned.

By integrating Gracenote historical program data into WIOpro’s new LookBack™ feature, WIO is enhancing its reporting capabilities and empowering Collection Societies, Rights Management Companies and the royalty-earning community to more easily monitor and export broadcast airings and better understand collections opportunities.
“At WIO, we are committed to empowering collection societies and copyright holders around the world with our platform tools and unprecedented access to the best and most accurate television broadcast and streaming data available,” said Shawn Pierce, Co-Founder and CEO of WIO LLC. “We have enjoyed an incredible relationship with Gracenote for 10 years. With the solidification of this agreement, we are able to deliver an unrivaled dataset to the royalty and residual community in a way that has not been offered before.” said Adam Shafron, Co-Founder and CTO of WIO LLC.
“WIO’s platform developed to solve the difficult matter of royalty tracking only becomes more powerful based on the integration of accurate, timely and comprehensive Gracenote metadata,” said Scott Monahan, Director, Strategic Partnerships, Gracenote. “We look forward to the combination of WIOpro’s technology and Gracenote’s program metadata delivering on the promise of transforming music royalty collection so that rights holders can be fairly compensated for use of their work.”
WIO and Gracenote will be at the MusicBiz 2024 conference in Nashville, TN May 13 – 16. Contact Dave Pelman, COO of WIO LLC at [email protected] for media queries or to book an appointment for a product demonstration.
About WIO:WIO is a technology company dedicated to providing broadcast television and digital programming data tailored specifically for the royalty and residual collection industry. Through its platform WIOpro (wiopro.com), users obtain access to real-time broadcast insights, reporting and curated data delivery.
About Gracenote:Gracenote is the content data business unit of Nielsen providing entertainment metadata, connected IDs and related offerings to the world’s leading creators, distributors and platforms. Gracenote enables advanced content navigation and discovery capabilities helping individuals easily connect to the TV shows, movies, music, podcasts and sports they love while delivering powerful content analytics making complex business decisions simpler.
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Artificial Intelligence

IDTechEx Explores Printed Electronics in Electrified and Autonomous Mobility

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BOSTON, May 10, 2024 /PRNewswire/ — Electrification, autonomy, and vehicle ownership saturation are causing a technological revolution in the automotive sector. These automotive meta-trends are driving drastic changes in electronic component requirements and present a high-volume opportunity for printed electronics to capitalize on.

Historically, printed electronics technologies have nurtured a close relationship with the automotive sector, with printed force sensors pioneering passenger safety through seat occupancy and seatbelt detection. As such, the automotive sector continues to represent the lion’s share of the global printed and flexible sensor market, which IDTechEx’s report on the topic evaluates as worth US$421M in 2024. However, if the automotive sector is to continue to be a reliable revenue stream, printed electronics technology providers must adapt to address the emerging technical challenges facing future mobility.
Augmenting autonomous vehicles with printed electronics
As vehicle autonomy levels advance, the increasing number and distribution of spatial mapping sensors required will need continuous performance improvements to ensure passenger safety. Emerging printed electronics technologies can augment these sensors, extending detection bandwidth and maximizing reliability during operation.
Transparent conductive films (TCFs) are being developed to heat and defog LiDAR sensor panels, ensuring the function is unperturbed by external environmental conditions. Properties such as high transparency and low haze are important for defogging. These properties can be easily tuned using the wide variety of material options available for TCFs, including carbon nanotubes and silver nanowires.
IDTechEx identifies printed heating as a leading application of transparent conductive films. This is attributed to diminishing growth prospects in capacitive touch sensing applications. Innovations in thin film coating techniques have enabled indium tin oxide (ITO) to dominate touch sensing applications, all but displacing TCFs completely.
Looking towards the future, printed electronics technologies could play a more active role in advanced autonomous driving. Emerging semiconductive materials, such as quantum dots, printed directly onto conventional silicon image sensor arrays can extend detection range and sensitivity deeper into the infrared region. Augmenting existing image sensor technology with enhanced spectral range could facilitate the competition of hybrid silicon sensors with established InGaAs detectors.
Printed sensors promise granularized battery health monitoring
Vehicle electrification is driving the sustained development and evolution of electronic management systems, particularly in the battery and electric drivetrain. A strong market pull exists for technologies that increase vehicle efficiency, range, and lifetime while reducing recharge times.
Printed pressure and temperature sensors measure battery cell swelling and thermal profiles, providing granularized physical data that can be used to optimize battery deployment and recharging. Moreover, hybrid printed sensors that combine integrated printed heating elements promise a solution to actively address battery temperature. IDTechEx estimates that printed sensor-enabled battery deployment and charging optimizations could be worth up to US$3000 in savings per vehicle.
There remains uncertainty about whether electrification trends will correspond to increased demand for physical sensors in electric vehicle batteries, owing to the utility of existing electronic readouts for managing deployment. Virtual sensors also pose a threat, where AI-enabled software models interpret data to predict and emulate physical sensor functions without the need for discreet components. However, emerging regulations regarding safety and sensor redundancy will likely favor measurable metrics and see automotive makers continue to adopt physical sensors. IDTechEx predicts that virtual sensors are unlikely to displace their physical counterparts – so long as low-cost sensors remain widely available.
Embedding printed electronics in the car of the future
IDTechEx predicts that global car sales will saturate over the next decade, with automakers increasingly looking for premium features and technical innovations to differentiate themselves from the competition. In-cabin technologies will be highly desirable – as the location where passengers reside and interact with the vehicle the most.
Lighting elements are emerging as a prominent differentiator, described as “the new chrome” by Volkswagen’s chief designer. The use of in-mold structural electronics (IMSE) enables the integration of embedded lighting elements using existing manufacturing processes. 3D electronics technologies are intrinsically attractive for automotive integration, as functional layers are conformable and lightweight while easily embedded within existing aesthetic elements.
Despite strong tailwinds, the adoption of in-mold electronics within automotive interiors has been sluggish. This is attributed to the challenges of meeting automotive qualification requirements, as well as stiff competition with less sophisticated alternatives such as applying functional films to thermoformed parts. Nevertheless, momentum is building, with technology providers like Tactotek partnering with Mercedes-Benz and Stallantis to progress the automotive validation of IMSE to TRL5.
Outlook for printed electronics in automotive applications
Just as printed force sensors heralded early passenger safety systems, printed electronics technology is poised to underpin next-generation innovations for the car of the future. But this time, the competition will be stiff. Critical cost requirements must be met, while desirable new functionality must address existing challenges faced by manufacturers. Printed electronics can play a role in supporting emerging electrified and autonomous mobility, such as augmenting LiDAR sensors or optimizing electric battery deployment. Demand for technologies that enhance passenger experience and vehicle aesthetics will continue to grow, and printed electronics can supply low-power, lightweight lighting solutions for these.
Sustained engagement from tier suppliers and manufacturers continues to make the automotive sector key to printed sensor market growth opportunities – a total market IDTechEx predicts will reach US$960M by 2034. Strong partnerships between material providers and printed electronics technology providers are complementary to those of the highly vertically integrated automotive value chains between tier suppliers and OEMs. Leveraging printing techniques to provide solutions that slot into existing manufacturing processes and designs will be crucial. In the medium term, the printed electronics technologies most likely to realize revenue potential are those that can adapt to service emerging challenges already known to the automotive industry.
For more information on IDTechEx’s research on this topic, please see their report, “Printed and Flexible Sensors 2024-2034: Technologies, Players, Markets”. Downloadable sample pages are available for this report.
For the full portfolio of printed and flexible electronics market research from IDTechEx, please visit www.IDTechEx.com/Research/PE.
About IDTechEx:
IDTechEx provides trusted independent research on emerging technologies and their markets. Since 1999, we have been helping our clients to understand new technologies, their supply chains, market requirements, opportunities and forecasts. For more information, contact [email protected] or visit www.IDTechEx.com. 
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