Chatbot Market Size (2024 - 2029)

The market size of chatbots is expected to see significant growth due to the rising demand for messenger applications and the increased adoption of consumer analytics by businesses worldwide. Innovations in the market are being driven by the integration of technologies such as AI and NLP to meet customer needs and market requirements. The growth of messenger applications has led to a higher return on investment for chatbots, as they improve user experience by interacting with customers on their preferred platforms. The COVID-19 pandemic has further increased the reliance on chatbots to manage customer queries, with remote working conditions making them a vital tool for customer service. Additionally, chatbots offer round-the-clock availability and can handle a high volume of requests simultaneously, enhancing the consumer experience and supporting sales and marketing teams.

Market Size of Chatbot Industry

Single User License

$4750

Team License

$5250

Corporate License

$8750

Book before:
Chatbot Market Summary
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

setting-icon

Need a report that reflects how COVID-19 has impacted this market and its growth?

Single User License

$4750

Team License

$5250

Corporate License

$8750

Book before:

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.
  • 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 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

Chatbot Market Size Summary

The chatbot market is experiencing substantial growth, driven by increasing demand for messenger applications and the widespread adoption of consumer analytics by businesses globally. Significant product innovations are being made by vendors worldwide, integrating technologies such as AI and natural language processing to meet customer needs and market requirements. Chatbots, acting as virtual assistants for customer experience touchpoints, are primarily driven by the rising dominance of messenger applications and increasing demand for customer analytics. Their integration with messenger applications yields a higher return on investment, improving user experience and allowing for personalization and actionable insights. The market has seen further growth with the outbreak of COVID-19, with organizations increasingly deploying chatbots to respond to customer queries. Marketing and sales teams are leveraging chatbots to improve customer experience and manage high volumes of customer requests. In the retail industry, chatbots are being used for a variety of applications, including lead generation, in-store purchase support, and instant service. The Asia-Pacific region is experiencing significant growth in the chatbot market, driven by industrialization and the rise of retail and e-commerce businesses. The market is highly competitive, with numerous small and large players contributing to its fragmentation.

Explore More

Chatbot Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitutes

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Industry Value Chain Analysis

    4. 1.4 Assessment of the Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By End-user Vertical

      1. 2.1.1 BFSI

      2. 2.1.2 Healthcare

      3. 2.1.3 IT and Telecommunication

      4. 2.1.4 Retail

      5. 2.1.5 Travel and Hospitality

      6. 2.1.6 Other End-user Verticals

    2. 2.2 By Geography

      1. 2.2.1 North America

      2. 2.2.2 Europe

      3. 2.2.3 Asia

      4. 2.2.4 Australia and New Zealand

      5. 2.2.5 Latin America

      6. 2.2.6 Middle East and Africa

Chatbot Market Size FAQs

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.

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

Chatbot Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)