Chatbot Market in BFSI by Type (Software and Service), by Platform (Web-based and Mobile-based), by End User (Bank, Insurance Company, and Others) - Global Opportunity Analysis and Industry Forecast, 2020 – 2030

"Market Definition:
The Global Chatbot Market in BFSI was valued at USD 586 million in 2019, and is expected to reach USD 6.83 billion by 2030 at a CAGR of 24.9% during the forecast period from 2020 to 2030.
A chatbot is a software application used to simulate online conversation using text or text-to-speech. Chatbot establishes communication between the company or an organization and their consumers to provide customer support, important information, query resolution, or a brief essence of the organization.
The requirement for chatbots is rising in the BFSI sector, as face-to-face interactions are not feasible all the time. According to Chatbots Magazine, organizations can decrease the cost for traditional customer services by nearly 30%, with the adoption of conversational solutions such as chatbots and virtual agents.
Market Dynamics and Trends
Cost advantages offered by chatbots are fueling the growth of the chatbot market in BFSI sector. Also, expansion of the BFSI industry, increasing penetration of artificial intelligence (AI) in client servicing, emergence of Internet of Things (IoT), and application programming interface (API) technologies; and rising demand for intelligent customer engagement technologies are fueling the global chatbot market in BFSI. Further, benefits offered by chatbots in the BFSI sector, such as quick query resolution, 24 hours customer support, and improved customer relationship management (CRM) are expected to drive the market.
However, lack of skilled work-force, unavailability of product differentiation, high cost of installations, and need for continuous software updates are likely to impede the market. On the other hand, advancements in the features of chatbot software system, growing demand for effective customer services, and easy integration of chatbots with social media, are expected to create opportunities in the chatbot market in BFSI sector.
Market Segmentations and Scope of the Study:
The global chatbot market in BFSI has been segmented based on component, platform type, end user, application and geography. On the basis of component, the market is bifurcated into solution and service. In terms of platform type, the market is classified as web-based and mobile-based. Based on end user, the market is segregated into bank, insurance company, and others. In terms of application, the market is categorized as customer support, branding & advertisement, data security, data security & compliance, and others. On the basis of geography, the market is split into North America, Europe, Asia-Pacific, and Rest of the World (RoW).
Geographical Analysis
North America is anticipated to retain its dominance in the global chatbot market in BFSI sector during the forecast period due to the presence of a well-established IT infrastructure, high penetration of AI, IoT, and API technologies, and proliferating the BFSI sector.
The market in Asia-Pacific is growing due to rising adoption of AI & IoT technologies, budding IT sector, growing BFSI sector, and increasing consumer awareness regarding the advantages of Chatbots, as compared to traditional conversational modes.

Competitive Landscape

Key players in the chatbot market in BFSI include [24]7.ai, Inc, Acuvate, Aivo, Artificial Solutions, Creative Virtual Ltd., eGain Corporation, IBM Corporation, Inbenta Technologies Inc., Next IT Corp., and Nuance Communications, Inc.
In April 2020, Nuance Communications, Inc., announced the launch of its open-enterprise grade, software-as-a-service tooling suite, ‘Nuance Mix.’ By using Nuance’s industry-leading and cloud-agnostic conversational AI, Nuance Mix plans to create advanced conversational experiences, thereby reinforcing virtual assistants (VA) and interactive voice response (IVR).
In May 2020, Nuance Communications announced its supply of technology to Albertsons. Nuance’s AI-powered platform enables Albertsons to respond to consumer’s inquiries around topics including item availability, mode of delivery, online order tracking, and locating near-by stores and working-hours.
KEY MARKET SEGMENTS:
• Global Chatbot Market in BFSI – By Component
o Solution
o Service
• Global Chatbot Market in BFSI – By Platform Type
o Web-based
o Mobile-based
• Global Chatbot Market in BFSI – By End User
o Bank
o Insurance Company
o Others
• Global Chatbot Market in BFSI –

By Application

o Customer Support
o Branding & Advertisement
o Data Security
o Data Security & Compliance
o Others
• Global Chatbot Market in BFSI – By Geography
o North America
 U.S.
 Canada
o Europe
 UK
 Germany
 France
 Italy
 Spain
 Netherlands
 Rest of Europe
o Asia-Pacific
 China
 India
 Japan
 Australia
 Singapore
 Rest of Asia-Pacific
o RoW
 UAE
 Saudi Arabia
 South Africa
 Brazil
 Remaining Countries

KEY PLAYERS:
• [24]7.ai, Inc
• Acuvate, Aivo
• Artificial Solutions
• Creative Virtual Ltd.
• eGain Corporation
• IBM Corporation
• Inbenta Technologies Inc.
• Next IT Corp.
• Nuance Communications, Inc."