Retail Chatbot Market
Retail Chatbot Market Size, Share & Trends Analysis Report by product type (Rule-Based Chatbotsand Interactive Chatbot), By Application (Websites, Contact Center, Social Media, Mobile App), by Use Case (Industry, Product Recommendation, Tracking And Notification, Loyalty Programs and Offers and Feedback), and by Deployment (On-Premise And Cloud), by Components (Platform/SDK Kit And Services)Forecast Period (2024-2031)
Retail chatbot market is anticipated to grow at a significant CAGR of 19.5% during the forecast period (2024-2031). A retail chatbot is a specially designed software program that simulates human conversation while interacting with potential and existing customers. It uses Artificial intelligence (AI), Machine Learning (ML) and Natural Language Processing (NLP) to provide customers with personalized care and help recreate an in-person buying experience. As reported by the Center for insurance policy and research, by 2023, chatbot market is expected to reach $1.2 billion globally.
Market Dynamics
Emphasis on Digital Economy
The global economy is shifting towards a digital approach for business, administration, and consultation. Most businesses and governments are integrating either automation or AI into their systems for better ROI (Return on Investment), efficiency, control, and workload management. For instance, the Union Ministry of Agriculture and Farmers Welfare of India launched an AI chatbot for the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Scheme. Also, the Social Insurance Institution (Kela) in Finland set up two chatbots, Kela-Kelpo and FPA-Folke, to help clients find information about benefits on Kela’s self-service web portal (Social Insurance Institution).
Growth in Omni-channel and Conversational Commerce
Simultaneously, major players are trying to optimize chatbot technology to create an omni-channel presence along with conversational commerce for improved customer connections and to drive business. For instance, H&M, the Swedish multinational clothing retailer, is using virtual assistants, chatbots, and live chat by integrating these technologies with Google services to reduce the workload on customer service representatives, improve the customer experience, and collect customer data and insights. Also, Sephora (a French retail firm) has managed to maintain its global presence using its chatbot, Ora. Enhancing the customer experience by providing personalized or customized product recommendations and ordering through the chatbot.
Segmental Outlook
Our in-depth analysis of the global Flash memory market includes the following segments by product type, application, use case, deployment and component.
- Based on product type, the market is bifurcated into rule-based chatbots and interactive chatbots.
- Based on application, the market is sub-segmented into websites, contact centers, social media, and mobile apps.
- Based onuse case, the market is sub-segmented into customer support, product recommendation, tracking and notification, loyalty programs and offers, and feedback collection.
- Based on deployment, the market is bifurcated into on premise and cloud.
- Based on component, the market is bifurcated intoplatform/SDK kit and service based deployment.
Interactive Chatbot is projected to Emerge as the Largest Segment
Based on product type, the market is bifurcated into rule-based chatbots and interactive chatbots. Among the two, Interactive chatbots is gaining more traction in the market offering interactive communication to customer or client through text or voice responsemaking ideal for retail industry. For instance, as per Computing Technology Industry Association (CompTIA) 2024 industry report 22% of firms are aggressively pursuing the integration of AI across a wide variety of technology products and business workflows, 33% of firms are engaging in limited implementation of AI. And 45% of firms are still in the exploration phase.
Websites and Mobile App Sub-segment to Hold a Considerable Market Share
Websites and mobile apps are two most popular platforms in retail industry for customer service and interaction. As e-commerce is rising globally companies are deploying chatbots on their websites and apps for better customer experience and data collection. For instance, as per IBEF India Indian e-commerce is expected to grow at a compound annual growth rate (CAGR) of 27% to reach $163 billion by 2026. Moreover, in 2023, U.S. ecommerce represented 22.0% of total retail sales, according to Digital Commerce 360 analysis of U.S. Department of Commerce data.
Customer Support is becoming crucial Sub-Segment
Customer support is at core of all retail companies comprising of resolving customer complaints and queries, providing support in ordering and after sales, and making interaction less complex. It has application in almost all industries including government to understand user response and provide suitable solution while saving time for user and cost for company. As more customer are now present online, they expect to be served 24/7 which is possible using interactive chatbots. For instance, as per International Trade Administration (ITA) since 2020 over 90% of B2B companies have shifted to a virtual sales model, due to improved process efficiencies and improved managing software.
Service Based Deployment has Bigger Market
Most companies in retail chatbot market are service based, as they specialize in AI (Artificial intelligence) ML (Machine learning), and NLP (Natural language processing) technologies required to build such a service. Service based deployment hold more market share as most companies outsource chatbot. Only big companies (H&M, Sephora) comprising a tech team and resources have been able to deploy their own chatbot, that too in collaboration with other chatbot service provider. Most online retail companies lack such resources and expertise to deploy SDK kit and thus prefer a service based deployment.
Cloud Based Components are more Feasible for Future
Cloud computing space is growing drastically providing scope for outsourcing services instead of in-house set-up. Similarly, most AI based technology require huge consumption of data and storage servers which are more feasible through cloud based services. Most chatbot service provider use cloud for providing services to their clients as it is more cost-effective, feasibleand space effective.
Regional Outlook
The global retail chatbot market is further segmented based on geography, including North America (the US and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East, Africa, and Latin America).
North America holds the highest share of the global retail chatbot market.
North America holds the highest share of the global retail chatbot market. The key factor contributing to the growth of the market is that top 5 companies in the market belong to the region which are already ahead in terms of R&D, resources and technology. Additionally, North America is leading in innovation and adoption of technology such as AI/ML (artificial intelligence and machine learning), NLP (natural language processing), AR/VR (augmented reality and virtual reality), and others. For instance, as per national defense magazine the US speeding on AI had reached $6 billion in 2021.
Global Retail Chatbot Market Growth by Region 2024-2031
Asia-Pacific is the fastest-growing retail chatbot market.
Asia (specifically India), being the hub for IT and software outsourcing for western countries, is also investing in and developing chatbot technology for export as well as domestic usage. Ample support by the government in countries such as Japan, India, China, and South Korea focusing on creating smart society and infrastructure.
Market Player Outlook
*Note: Major Players Sorted in No Particular Order.
The major companies serving the global retail chatbot market are OpenAI, Amazon, IBM among others. With growing demand, market players are focusing on capitalizing on growth by adopting strategies such as collaboration, partnerships, and market expansion among others. For instance, in January 2023, Microsoft extended its partnership with OpenAI across AI supercomputing and research, wherein Microsoft will be providing infrastructure to Open.AI and vice–versa AI models will be developed and deployed for building Azure into an AI supercomputer.
The Report Covers
- Market value data analysis of 2023 and forecast to 2031.
- Annualized market revenues ($ million) for each market segment.
- Country-wise analysis of major geographical regions.
- Key companies operating in the global retail chatbot market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
- Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
- Analysis of market-entry and market expansion strategies.
- Competitive strategies by identifying ‘who-stands-where’ in the market.
1. Report Summary
• Current Customer support Analysis and Growth Potential Outlook
1.1. Research Methods and Tool
1.2. Market Breakdown
1.2.1. By Segments
1.2.2. By Region
2. Market Overview and Insights
2.1. Scope of the Report
2.2. Analyst Insight & Current Market Trends
2.2.1. Key Findings
2.2.2. Recommendations
2.2.3. Conclusion
3. Competitive Landscape
3.1. Key Company Analysis
3.2. Amazon Web Services, Inc.
3.2.1. Overview
3.2.2. Financial Analysis
3.2.3. SWOT Analysis
3.2.4. Recent Developments
3.3. International Business Machines Corp. (IBM Corp.)
3.3.1. Overview
3.3.2. Financial Analysis
3.3.3. SWOT Analysis
3.3.4. Recent Developments
3.4. Microsoft
3.4.1. Overview
3.4.2. Financial Analysis
3.4.3. SWOT Analysis
3.4.4. Recent Developments
3.5. Salesforce Inc.
3.5.1. Overview
3.5.2. Financial Analysis
3.5.3. SWOT Analysis
3.5.4. Recent Developments
3.7. Key Strategy Analysis
4. Market Segmentation
4.1. Global Retail Chatbot Market by Type
4.1.1 Rule Based Chatbot
4.1.2. Interactive Chatbot
4.2. Global Retail Chatbot Market by Application
4.2.1. Websites
4.2.2. Contact Centers
4.2.3. Social media
4.2.4. Mobile app
4.3. Global Retail Chatbot Market by Use Case
4.3.1. Customer support
4.3.2. Product recommendation
4.3.3. Tracking and notifications
4.3.4. Loyalty programs and offers
4.3.5. Feedback
4.4. Global Retail Chatbot Market by Deployment
4.4.1 On-premises
4.4.2. Cloud
4.4. Global Retail Chatbot Market by Component
4.5.1 Platform/ SDK kit
4.5.2. Services
5. Regional Analysis
5.1. North America
5.1.1. United States
5.2.2. Canada
5.2. Europe
5.2.1. UK
5.2.2. Germany
5.2.3. Italy
5.2.4. Spain
5.2.5. France
5.2.6. Rest of Europe
5.3. Asia-Pacific
5.3.1. China
5.3.2. India
5.3.3. Japan
5.3.4. South Korea
5.5.5, Rest of Asia-Pacific
5.5.6. Rest of the World
Latin America
The Middle East & Africa
6. Company Profiles
6.1. Ada Support, Inc.
6.2.Amelia US LLC.
6.3.Automattic, Inc.
6.4. Cognigy GmbH
6.5.Creative virtual Ltd.
6.6.Drift.com, Inc.
6.7.Enterprise Bot
6.8.Flow XO LLC.
6.9.HelpCrunchCorp.
6.10.HubSpot, Inc.
6.11.Intercom,Inc.
6.12. JioHaptik Technologies Ltd.
6.13.LivePerson, Inc.
6.14.OpenAIOpCo, LLC.
6.15. Pypestream Inc.
6.16.Tagove Limited (Acquire)
6.17.WebarooInc
6.18.Wotnot Solutions Pvt. Ltd
6.19.Zendesk, Inc.
6.20.Zoho Corp. Pvt Ltd.
1. GLOBAL RETAIL CHATBOT MARKET RESEARCH AND ANALYSISBY TYPE, 2023-2031 ($ MILLION)
2. GLOBAL RULE BASED CHATBOT MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
3. GLOBAL INTERACTIVE CHATBOT MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
4. GLOBAL RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY APPLICATION2023-2031 ($ MILLION)
5. GLOBAL RETAIL CHATBOTFOR WEBSITES MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
6. GLOBAL RETAIL CHATBOTFOR CONTACT CENTER MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
7. GLOBAL RETAIL CHATBOTFOR SOCIAL MEDIA MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
8. GLOBAL RETAIL CHATBOTFOR MOBILE APP MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
9. GLOBAL RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY USE CASE 2023-2031 ($ MILLION)
10. GLOBAL RETAIL CHATBOTFOR CUSTOMER SUPPORT MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
11. GLOBAL RETAIL CHATBOTFOR PRODUCT RECOMMENDATION MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
12. GLOBAL RETAIL CHATBOTFOR TRACKING AND NOTIFICATIONMARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
13. GLOBAL RETAIL CHATBOTFOR LOYALTY PROGRAMS AND OFFER MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
14. GLOBAL RETAIL CHATBOTFOR FEEDBACK MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
15. GLOBAL RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY DEPLOYMENT, 2023-2031 ($ MILLION)
16. GLOBAL ON-PREMISE RETAIL CHATBOTMARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
17. GLOBAL CLOUD RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
18. GLOBAL RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY COMPONENT, 2023-2031 ($ MILLION)
19. GLOBAL RETAIL CHATBOTPLATFORM/ SDK KIT MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
20. GLOBAL RETAIL CHATBOTSERVICESMARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
21. GLOBAL RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
22. NORTH AMERICAN RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY COUNTRY, 2023-2031 ($ MILLION)
23. NORTH AMERICAN RETAIL CHATBOT MARKET RESEARCH AND ANALYSISBY TYPE, 2023-2031 ($ MILLION)
24. NORTH AMERICAN RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY APPLICATION2023-2031 ($ MILLION)
25. NORTH AMERICAN RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY USE CASE 2023-2031 ($ MILLION)
26. NORTH AMERICAN RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY DEPLOYMENT 2023-2031 ($ MILLION)
27. NORTH AMERICAN RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BYCOMPONENT 2023-2031 ($ MILLION)
28. EUROPEAN RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY COUNTRY, 2023-2031 ($ MILLION)
29. EUROPEAN RETAIL CHATBOT MARKET RESEARCH AND ANALYSISBY TYPE, 2023-2031 ($ MILLION)
30. EUROPEAN RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY APPLICATION2023-2031 ($ MILLION)
31. EUROPEAN RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY USE CASE 2023-2031 ($ MILLION)
32. EUROPEAN RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY DEPLOYMENT 2023-2031 ($ MILLION)
33. EUROPEAN RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY COMPONENT 2023-2031 ($ MILLION)
34. ASIA-PACIFIC RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY COUNTRY, 2023-2031 ($ MILLION)
35. ASIA-PACIFIC RETAIL CHATBOT MARKET RESEARCH AND ANALYSISBY TYPE, 2023-2031 ($ MILLION)
36. ASIA-PACIFIC RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY APPLICATION2023-2031 ($ MILLION)
37. ASIA-PACIFIC RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY USE CASE 2023-2031 ($ MILLION)
38. ASIA-PACIFIC RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY DEPLOYMENT 2023-2031 ($ MILLION)
39. ASIA-PACIFIC RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY COMPONENTS 2023-2031 ($ MILLION)
40. REST OF THE WORLD RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY REGION, 2023-2031 ($ MILLION)
41. REST OF THE WORLD RETAIL CHATBOT MARKET RESEARCH AND ANALYSISBY TYPE 2023-2031 ($ MILLION)
42. REST OF THE WORLD RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY APPLICATION 2023-2031 ($ MILLION)
43. REST OF THE WORLD RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY USE CASE 2023-2031 ($ MILLION)
44. REST OF THE WORLD RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY DEPLOYMENT 2023-2031 ($ MILLION)
45. REST OF THE WORLD RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY COMPONENTS 2023-2031 ($ MILLION)
1. GLOBAL RETAIL CHATBOT MARKET SHAREBY TYPE, 2023 VS 2031 (%)
2. GLOBALRULE BASED CHATBOT MARKET SHARE BY REGION, 2023 VS 2031 (%)
3. GLOBAL INTERACTIVE CHATBOT MARKET SHARE BY REGION, 2023 VS 2031 (%)
4. GLOBAL RETAIL CHATBOT MARKET SHARE BY APPLICATION2023 VS 2031 (%)
5. GLOBAL RETAIL CHATBOTFOR WEBSITESMARKET SHARE BY REGION, 2023 VS 2031 (%)
6. GLOBAL RETAIL CHATBOTFOR CONTACT CENTER MARKET SHARE BY REGION, 2023 VS 2031 (%)
7. GLOBAL RETAIL CHATBOTFOR SOCIAL MEDIA MARKET SHARE BY REGION, 2023 VS 2031 (%)
8. GLOBAL RETAIL CHATBOTFOR MOBILE APPS MARKET SHARE BY REGION, 2023 VS 2031 (%)
9. GLOBAL RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY USE CASE 2023-2031 ($ MILLION)
10. GLOBAL RETAIL CHATBOTFOR CUSTOMER SUPPORT MARKET SHARE BY REGION, 2023 VS 2031 (%)
11. GLOBAL RETAIL CHATBOTFOR PRODUCT RECOMMENDATION MARKET SHARE BY REGION, 2023 VS 2031 (%)
12. GLOBAL RETAIL CHATBOTFOR TRACKING AND NOTIFICATION MARKET SHARE BY REGION, 2023 VS 2031 (%)
13. GLOBAL RETAIL CHATBOTFOR LOYALITY PROGRAMS AND OFFERS MARKET SHARE BY REGION, 2023 VS 2031 (%)
14. GLOBAL RETAIL CHATBOTFOR FEEDBACK-MARKET SHARE BY REGION, 2023 VS 2031 (%)
15. GLOBAL RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY DEPLOYMENT 2023-2031 ($ MILLION)
16. GLOBAL ON-PREMISE RETAIL CHATBOTMARKET SHARE BY REGION, 2023 VS 2031 (%)
17. GLOBAL CLOUD RETAIL CHATBOTMARKET SHARE BY REGION, 2023 VS 2031 (%)
18. GLOBAL RETAIL CHATBOT MARKET RESEARCH AND ANALYSIS BY COMPONENTS 2023-2031 ($ MILLION)
19. GLOBAL RETAIL CHATBOTPLATFORM/ SDK KIT MARKET SHARE BY REGION, 2023 VS 2031 (%)
20. GLOBAL RETAIL CHATBOT SERVICES MARKET SHARE BY REGION, 2023 VS 2031 (%)
21. GLOBAL RETAIL CHATBOT MARKET SHARE BY REGION, 2023 VS 2031 (%)
22. US RETAIL CHATBOT MARKET SIZE, 2023-2031 ($ MILLION)
23. CANADA RETAIL CHATBOT MARKET SIZE, 2023-2031 ($ MILLION)
24. UK RETAIL CHATBOT MARKET SIZE, 2023-2031 ($ MILLION)
25. FRANCE RETAIL CHATBOT MARKET SIZE, 2023-2031 ($ MILLION)
26. GERMANY RETAIL CHATBOT MARKET SIZE, 2023-2031 ($ MILLION)
27. ITALY RETAIL CHATBOT MARKET SIZE, 2023-2031 ($ MILLION)
28. SPAIN RETAIL CHATBOT MARKET SIZE, 2023-2031 ($ MILLION)
29. REST OF EUROPE RETAIL CHATBOT MARKET SIZE, 2023-2031 ($ MILLION)
30. INDIA RETAIL CHATBOT MARKET SIZE, 2023-2031 ($ MILLION)
31. CHINA RETAIL CHATBOT MARKET SIZE, 2023-2031 ($ MILLION)
32. JAPAN RETAIL CHATBOT MARKET SIZE, 2023-2031 ($ MILLION)
33. SOUTH KOREA RETAIL CHATBOT MARKET SIZE, 2023-2031 ($ MILLION)
34. REST OF ASIA-PACIFIC RETAIL CHATBOT MARKET SIZE, 2023-2031 ($ MILLION)
35. LATIN AMERICA RETAIL CHATBOT MARKET SIZE, 2023-2031 ($ MILLION)
36. MIDDLE EAST AND AFRICA RETAIL CHATBOT MARKET SIZE, 2023-2031 ($ MILLION)
