Chatbot Market Size

Statistics for the 2023 & 2024 Chatbot market size, created by Mordor Intelligenceā„¢ Industry Reports. Chatbot size report includes a market forecast to 2029 and historical overview. Get a sample of this industry size analysis as a free report PDF download.

Market Size of Chatbot Industry

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Chatbot Market Summary
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Study Period 2019 - 2029
Market Size (2024) USD 7.01 Billion
Market Size (2029) USD 20.81 Billion
CAGR (2024 - 2029) 24.32 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Chatbot Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Chatbot Market Analysis

The Chatbot Market size is estimated at USD 7.01 billion in 2024, and is expected to reach USD 20.81 billion by 2029, growing at a CAGR of 24.32% during the forecast period (2024-2029).

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.
  • With the outbreak of COVID-19, chatbots have been increasingly deployed by various organizations to respond to customer queries and other related information. As different organizations adopted remote working due to the lockdowns imposed, companies became heavily dependent on chatbots to reduce the burden of customer queries due to the minimal availability of customer service employees.
  • 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 Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)