Chatbot Market Size, Share, Trends, Growth Forecast & Industry Analysis (2025 - 2030)

The Chatbot Market report segments the industry into End-User Vertical (BFSI, Healthcare, IT and Telecommunication, Retail, Travel and Hospitality, Other End-user Verticals) and Geography (North America, Europe, Asia, Australia and New Zealand, Latin America, Middle East and Africa). Get five years of historical data alongside five-year market forecasts.

Chatbot Market Size

Compare market size and growth of Chatbot Market with other markets in Technology, Media and Telecom Industry

Chatbot Market Analysis

The Chatbot Market size is estimated at USD 8.71 billion in 2025, and is expected to reach USD 25.88 billion by 2030, at a CAGR of 24.32% during the forecast period (2025-2030).

The chatbot market is witnessing growth due to increasing demand for messenger applications and the growing adoption of consumer analytics by various businesses globally. Vendors globally are making significant product innovations by integrating technologies such as AI and NLP to cater to customer needs and market requirements.

  • Chatbots are software applications that utilize artificial intelligence and natural language processing to understand human needs and guide them to the desired outcome with as minimal work by the end user as possible. They act as virtual assistants for customer experience touchpoints. Bots not only interpret the user intent but also process their requests and give prompt relevant answers.
  • The market is primarily driven by the rising domination of messenger applications and increasing demand for customer analytics.
  • Due to the increasing use of messenger applications, integration of chatbots with messengers yield a higher return on investment as approaching the customers on their preferred application improves user experience. Moreover, messenger applications allow chatbots to save the user's chat history for future purposes to personalize the user experience and gain actionable insights.
  • The messaging app usage statistics of January 2022 released by Hootsuite show that WhatsApp has 2,000 million active monthly users, followed by WeChat with 1,263 million monthly active users, followed by Facebook Messenger with 998 million Monthly active users. Chatbots with the ability to reasonably mimic humans allow brands to engage consumers more efficiently on these growing messaging platforms.
  • Marketing and sales teams are often under pressure to gain sales and constantly improve the customer experience. In contrast to traditional customer service, chatbots are available around the clock, even when sales personnel fail to attend to customer queries. Chatbots help support customers without interruption of working hour limitations. Moreover, bots can easily handle a high number of requests and process them all simultaneously without ever being overworked. Thus, the availability of correct information without waiting helps enterprises boost consumer experience using chatbots.

Chatbot Market Overview

The chatbot market is highly competitive, owing to the presence of many small and large players. This fragmentation is due to the relative ease of developing chatbot applications using open-source frameworks, APIs, and development platforms. As a result, numerous small-scale vendors have entered the market, contributing to its fragmentation. Some prominent players in the market are IBM Corporation, eGain Corporation, Nuance Communications, Creative Virtual Ltd, and Avaamo Inc.

  • April 2023 - Zendesk partnered with OpenAI, a prominent America-based AI research laboratory. The firm would provide its users with AI-supported solutions to simplify ticket-generating activities for CX and customer service employees. Zendesk and OpenAI are working together to improve the capabilities of Zendesk's foundation models, which are proprietary, by integrating them with OpenAI's.
  • January 2023 - Kore.ai declared that the firm would introduce RetailAssist, a conversational sales assistant solution for the retail sector, at the National Federation of Retailers exhibition (NRF 2023) in New York City. RetailAssist helps retail and e-commerce businesses modernize, scale, and transform operations by developing expertise in self-service automation, customization, omnichannel fulfillment, and 24/7 pre-/post-sales service and support.

Chatbot Market Leaders

  1. IBM Corporation

  2. Creative Virtual Ltd

  3. Avaamo Inc.

  4. Egain Corporation

  5. Nuance Communications Inc (Microsoft Corp)

  6. *Disclaimer: Major Players sorted in no particular order
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Chatbot Market News

  • April 2023 - Kore.ai disclosed that the firm had integrated its conversational AgentAssist with automated intelligent virtual assistant (IVA) support for Zendesk Inc. Through an everyday user experience, this AI virtual assistant for contact center employees manages the generation and sales processes, extending the capabilities of Zendesk Support across digital channels.
  • March 2023 - Nuance launched the Nuance Mix Answers with GPT-powered functionality for its call center AI solutions. As a component of the Microsoft Digital Contact Centre Platform, the solution would complement the capabilities of Microsoft's low-code bot-building platform, Power Virtual Agents, and collaborate with recent GPT enhancements to give clients choices to suit their needs.

Chatbot Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS

  • 4.1 Market Overview
  • 4.2 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.2.1 Bargaining Power of Suppliers
    • 4.2.2 Bargaining Power of Buyers
    • 4.2.3 Threat of New Entrants
    • 4.2.4 Threat of Substitutes
    • 4.2.5 Intensity of Competitive Rivalry
  • 4.3 Industry Value Chain Analysis
  • 4.4 Assessment of the Impact of COVID-19 on the Market

5. MARKET DYNAMICS

  • 5.1 Market Drivers
    • 5.1.1 Rising Domination of Messenger Applications
    • 5.1.2 Increasing Demand for Consumer Analytics
  • 5.2 Market Restraints
    • 5.2.1 Integration Complexities and Data Concerns

6. MARKET SEGMENTATION

  • 6.1 By End-user Vertical
    • 6.1.1 BFSI
    • 6.1.2 Healthcare
    • 6.1.3 IT and Telecommunication
    • 6.1.4 Retail
    • 6.1.5 Travel and Hospitality
    • 6.1.6 Other End-user Verticals
  • 6.2 By Geography
    • 6.2.1 North America
    • 6.2.2 Europe
    • 6.2.3 Asia
    • 6.2.4 Australia and New Zealand
    • 6.2.5 Latin America
    • 6.2.6 Middle East and Africa

7. COMPETITIVE LANDSCAPE

  • 7.1 Company Profiles
    • 7.1.1 IBM Corporation
    • 7.1.2 Egain Corporation
    • 7.1.3 Nuance Communications Inc. (Microsoft Corp.)
    • 7.1.4 Creative Virtual Ltd
    • 7.1.5 Avaamo Inc.
    • 7.1.6 EdgeVerve Systems Limited
    • 7.1.7 Zendesk Inc.
    • 7.1.8 Inbenta Holdings Inc.
    • 7.1.9 Serviceaide Inc.
    • 7.1.10 Amelia US LLC (Ipsoft Inc.)
    • 7.1.11 Kore.ai Inc.
    • 7.1.12 AWS Inc. (Amazon.com Inc.)
    • 7.1.13 [24]7.ai Inc.
    • 7.1.14 Artificial Solutions International AB
    • 7.1.15 Dialogflow (Google)
    • 7.1.16 LiveChat Inc.
  • *List Not Exhaustive

8. INVESTMENT ANALYSIS

9. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
*** In the Final Report Asia, Australia and New Zealand will be Studied Together as 'Asia Pacific'
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Chatbot Market Industry Segmentation

The chatbot market is defined based on the revenues generated by solutions sold by various global market players. The analysis is based on the market insights captured through secondary research and primary. The market also covers the major factors impacting the market's growth in terms of drivers and restraints.

The chatbot market is segmented by end-user vertical (BFSI, healthcare, IT and telecommunication, retail, and travel and hospitality) and geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa). The Report Offers Market Forecasts and Size in Value (USD) for all the Above Segments.

By End-user Vertical BFSI
Healthcare
IT and Telecommunication
Retail
Travel and Hospitality
Other End-user Verticals
By Geography North America
Europe
Asia
Australia and New Zealand
Latin America
Middle East and Africa
By End-user Vertical
BFSI
Healthcare
IT and Telecommunication
Retail
Travel and Hospitality
Other End-user Verticals
By Geography
North America
Europe
Asia
Australia and New Zealand
Latin America
Middle East and Africa
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Chatbot Market Research FAQs

How big is the Chatbot Market?

The Chatbot Market size is expected to reach USD 7.01 billion in 2024 and grow at a CAGR of 24.32% to reach USD 20.81 billion by 2029.

What is the current Chatbot Market size?

In 2024, the Chatbot Market size is expected to reach USD 7.01 billion.

Who are the key players in Chatbot Market?

IBM Corporation, Creative Virtual Ltd, Avaamo Inc., Egain Corporation and Nuance Communications Inc (Microsoft Corp) are the major companies operating in the Chatbot Market.

Which is the fastest growing region in Chatbot Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

Which region has the biggest share in Chatbot Market?

In 2024, the North America accounts for the largest market share in Chatbot Market.

What years does this Chatbot Market cover, and what was the market size in 2023?

In 2023, the Chatbot Market size was estimated at USD 5.31 billion. The report covers the Chatbot Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Chatbot Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Chatbot Market Industry Report

The global chatbot market is witnessing expansion due to the escalating demand for messaging bot applications and the growing adoption of consumer analytics by businesses globally. AI assistants, or bots, are software applications that utilize artificial intelligence (AI) and natural language processing (NLP) to comprehend and respond to human requirements, functioning as digital assistants for customer experience touchpoints. The incorporation of automated chatbots with messaging applications enhances user experience and generates a higher return on investment for businesses. They also assist in supporting customers 24/7, managing a large volume of requests concurrently without overworking. The conversational AI market is categorized by end-user vertical and geography, with notable growth observed in the retail sector and the Asia-Pacific region. The market is fiercely competitive due to the existence of numerous small and large players. For a more comprehensive analysis, a complimentary PDF download of the complete report is accessible.

Chatbot Market Report Snapshots