The bot services market size in revenue is projected to reach USD 6.7 billion by 2027 from USD 1.6 billion in 2022, growing at a 33.2% Compound Annual Growth Rate during the forecast period. Factors such as technology enhancements across AI and ML-based tools for the development of smart bots delivering better customer experience combined with widespread implementation of automation for efficient customer services throughout pandemic will drive the adoption of bot services across the key industry vertical, according to a report done by MarketsandMarkets.
Bot services typically refer to the development process using software platforms or tools that empower developers to design and deploy bots across multiple channels, including mobile applications, websites, contact centres, email, and social media. Moreover, these tools comprise conversational User Interface (UI) built across different interface modes, namely text, audio, and video and cater to various enterprise use cases for enhanced communication. Furthermore, these bots support medium-sized businesses and enterprises to enhance the customer experience across different communication channels.
The market is categorized into platforms and frameworks for the services offered. The framework service category is projected to grow faster than platform service during the forecast period. A bot framework is a set of software tools or programs to build or produce bots, including its creation, connection, testing, and deployment, apart from AI-driven technologies like artificial neural networks, natural language processing (NLP), machine learning (ML) and deep learning. A bot framework provider also offers other tools, which include bot analytics and chat flow analyzers. The bot framework enables developers to design bots with speech recognition capabilities and other advanced features to manage complex users’ queries in real-time efficiently.
The vendors in the market offer bot services through various deployment models that include on-premises and cloud deployment modes. The on-premises segment continues to drive market revenue with a larger market share during the forecast period.