Healthcare Chatbots Market: Current Analysis and Forecast (2020-2027)

Report Description

The global healthcare chatbot market is witnessing an uptick on account of rising internet penetration coupled with the adoption of pf smartphones in developing countries as well. In a study, it was revealed that around 4.66 billion people globally use the internet which is close to 60% of the global population. Moreover, the healthcare facilities, doctors, diagnostics labs, etc. are developing apps and raising venture capital, while some have already launched their chatbots due to the surging cases of COVID-19 and the need for cost optimization and enhanced user experience. The technological advancement in solutions such as advancements in natural language processing (NLP) and speech recognition by the prominent payers is also adding pace to the growth of the market.

Furthermore, the shortage of physicians across the globe to respond to queries is generating the demand for chatbots in the healthcare sector. As per WHO, there is a global shortage of 4.3 million physicians, nurses, and other health professionals, and the demand for physicians is projected to grow by 17% by 2025, due primarily to the growth in population size and the aging population.

Moreover, a shift towards the sedentary lifestyle coupled with the promulgating elderly population who are more prone to the disease is one of the leading causes of the rising chronic and other related diseases as well is generating the demand for chatbots in healthcare for consultation, checkups, reminders, etc.,  As per the American Heart Association, 56% of the adults in the United States have been told by the healthcare professional to improve their health and 99% of the Americans need to improve heart health.

The government across countries is investing more in healthcare, which is resulting in improved healthcare infrastructure and digitalization. As per OCED, the government in the United States spend USD 8,032.6 USD per capita in 2015 that increased to USD 9,386.5 USD per capita in 2019 same way in the U.K the government spent 3,043.6 USD per capita in 2015 that increased to USD 3,619.5 USD per capita in 2019.

Evolution of Chatbots in Healthcare

The global Healthcare chatbots market is highly fragmented. The availability of numerous global and local players across regions makes the industry highly competitive. The key players with a considerable market share in the industry are

Baidu, Sensely, Ada Digital Health Ltd, Babylon Health, Tencent, HealthTap, Infermedica, Buoy Health, Your.MD (Healthily) and Woebot Labs. Several M&A’s along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products.

Insights Presented in the Report

“Amongst component type, the software segment holds the major share”

Based on the components, the market is fragmented into software and service. The software segment dominated the market with a share of 81.9% in 2019 and is expected to maintain its dominance during the forecast period on account of the deployment of healthcare chatbots across healthcare facilities and increased consumer preference for the use of chatbots due to the benefits such as time savings, flexibility, etc.

“Amongst deployment type, on-cloud is expected to dominate the market during the analyzed period”

Based on the deployment type, the market is segmented into on-premise and on-cloud. In 2019, on-cloud deployment grabbed the major market share and accounted for 69.7% of the market revenue share. Surging spending on the cloud across healthcare facilities owing to the benefits such as easy deployment, upgraded software, etc. are resulting in the growing market share for the segment. Moreover, the on-premise segment is expected to grow with a CAGR of around 19.7% during the forecast period of 2021-27.

“Amongst application, medical triage is expected to dominate the market during the analyzed period”

Based on the application, the market is segmented into Medical Triage, Customer Service and Administration, Mental Health, Health and Fitness, Patient Engagement and Others (Clinical Trials, Medical Reminder, Chatbot in Research, Chatbots in Medical Procedures). In 2019, the Medical Triage segment grabbed the major market share and accounted for 37.8% of the market revenue share. Moreover, the mental health segment is expected to grow with a CAGR of around 21.6% during the forecast period of 2021-27.

“North America represents one of the largest markets of the healthcare chatbots market”

For a better understanding of the market dynamics of the healthcare chatbot market, a detailed analysis was conducted for different regions across the globe including North America (the U.S, Canada, and the Rest of North America), Europe (Germany, France, Italy, United Kingdom, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, and Rest of APAC), Middle East and Africa (UAE, Saudi Arabia, Rest of the Middle East and Africa) and Latin America (Mexico, Brazil, Rest of Latin America) has been conducted. North America dominated the market and generated revenue of US$ 41.6 billion in 2019 owing to the escalating healthcare IT investment in the countries such as the U.S and Canada. Moreover, the presence of well-established players and the latest technology upgraded software and services make the region dominant across the globe.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future market of the global healthcare chatbot market were the three major steps undertaken to create and analyze the adoption of healthcare chatbot across the healthcare verticals in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the healthcare chatbot market. Post assumption and validation of market numbers through primary interviews, we employed a top-down approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the healthcare chatbot through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the healthcare chatbot market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as type and subtypes. Further country-level analyses were conducted to evaluate the overall adoption of healthcare chatbots in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of chatbots. Further, we conducted factor analysis using dependent and independent variables such as the growth of the healthcare industry, surging prevalence of diseases, Investments, etc. A thorough analysis was conducted for demand and supply-side scenario considering top partnerships, merger and acquisition, business expansion, and product launches in the healthcare chatbot industry across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the healthcare chatbot market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e. top-down approach was applied to arrive at the market forecast about 2027 for different segments and subsegments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the adoption rate of healthcare chatbot across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the healthcare chatbot market in terms of services offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the healthcare chatbot market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of type and their type of the healthcare chatbot market.

The main objective of the healthcare chatbot Market Study

The current & future market trends of healthcare chatbots were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of healthcare chatbot in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of type and their subtypes
• Define and analysis of the regulatory framework for the healthcare chatbot industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
• Analyze the current and forecast market size of the healthcare chatbot market for the major region
• Major regions studied in the report include North America (the U.S and Canada), Europe (Germany, France, Italy, Spain, and United Kingdom), Asia-Pacific (China, Japan, India, Australia, and South Korea), Middle East and Africa (Saudi Arabia, UAE), Latin America (Mexico, Brazil) and the Rest of the World
• Company profiles of the healthcare chatbot market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry