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The global chatbot market size stood at a value of around USD 839.33 million in 2023. The market is further expected to grow at a CAGR of 24.9% in the forecast period of 2024-2032 to attain a value of USD 6,210.48 million by 2032.
Base Year
Historical Year
Forecast Year
Global Chatbot Market Report Summary | Description | Value |
Base Year | USD Million | 2023 |
Historical Period | USD Million | 2018-2023 |
Forecast Period | USD Million | 2024-2032 |
Market Size 2023 | USD Million | 839.33 |
Market Size 2032 | USD Million | 6,210.48 |
CAGR 2018-2023 | Percentage | XX% |
CAGR 2024-2032 | Percentage | 24.9% |
CAGR 2024-2032 - Market by Region | Asia Pacific | 28.7% |
CAGR 2024-2032 - Market by Country | India | 32.9% |
CAGR 2024-2032 - Market by Country | China | 27.5% |
CAGR 2024-2032 - Market by Type | Messenger Based/Third Party | 27.9% |
CAGR 2024-2032 - Market by End Use | Banking Financial Services and Insurance (BFSI) | 28.4% |
Market Share by Country 2023 | Germany | 4.8% |
A chatbot, as the name suggests, is a software application that utilises artificial intelligence and natural language processing to conduct online chat conversations with an individual. Chatbots are software programs that simulate human-like conversation.
These dialogue systems are mainly adopted by businesses for customer service enhancement, as they provide immediate automated responses and make the experience more personalised. For example, there are rule-based chatbots that answer set questions such as frequently asked questions. In contrast, AI chatbots learn from human behaviour over time, predict subsequent interactions and offer relevant information.
With the advent of smartphones and smart speakers, companies like Apple, Amazon, and Google introduced virtual assistants that use voice recognition and complex algorithms to assist users. Recent years have seen significant improvements in AI, with chatbots becoming more capable of handling complex conversations and tasks.
Chatbots also assist in scheduling appointments, providing medical information, and even offering preliminary diagnoses in some cases. E-commerce sites use chatbots to assist customers in shopping, recommending products, and managing transactions. Furthermore, they are used in games and as virtual companions for entertainment purposes. As technology continues to advance, the capabilities and applications of chatbots are likely to expand even further.
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By type, the market is divided into:
The demand for web-based chatbots in the market has been steadily growing, driven by several key factors. These chatbots are easy to integrate into existing websites, making them a popular choice for businesses of all sizes. They do not require users to download an app or join a new platform, making them immediately accessible to anyone visiting a website.
A significant driver of web-based chatbot demand is their ability to enhance customer service. These chatbots can provide instant responses to customer queries, guide users through websites, assist in finding products or information, and even handle basic transactions. This instant assistance improves user experience and can help businesses reduce the workload on human customer service representatives.
On the basis of product landscape, the market can be segmented into:
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The rapid technological advancements in the fields of artificial intelligence (AI) and machine learning (ML) are expected to drive chatbot market growth in the forecast period. Technological interventions such as the adoption of AI are proving to be a game-changer in the dynamic market. Artificial intelligence allows chatbots to simulate human dialogues by learning from past interactions and predicting subsequent interactions, which would allow for speedy and convenient interaction.
Moreover, their self-learning interface would enable them to correct their mistakes with each passing interaction, therefore, making them more human-like. Furthermore, with growing technological interventions, the leading manufacturers are increasingly creating sector-specific chatbots, providing a wide variety of options to different enterprises based on their service requirements.
In April 2020, WHO introduced a chatbot on the Facebook Messenger app to combat COVID-19 misinformation, which aimed to offer accurate and quick information about COVID-19 through Factbook’s global outreach. Such developments are expected to enhance the popularity of chatbots in the forecast period.
Based on application, the market can be categorised into:
Bots for service, often referred to as customer service bots or support bots, play a crucial role in the chatbots market. They are specifically designed to enhance customer service and support processes in various industries. Service bots are programmed to provide instant responses to common customer inquiries. This includes answering FAQs, providing product information, or giving updates about services.
These bots can assist in resolving simple issues or problems faced by customers, such as troubleshooting basic technical issues or guiding them through a process. Service bots can identify queries that require human intervention and route these to the appropriate human customer service representatives for further assistance.
On the basis of end use, the market can be segregated into:
Based on end use, the e-commerce segment is predicted to hold a significant chatbot market share. This growth can be associated with the growing adoption of chatbot services by various e-commerce companies, as chatbots help with improving customer service. In addition, chatbots also reduce marketing costs while increasing business returns due to which chatbots are being widely deployed in various industries like banking, healthcare, retail, and entertainment, among others.
Furthermore, other benefits associated with chatbots include 24/7 customer engagement, personalised experience, handling routine customer queries with immediate responses, and reduced human interventions, which are expected to propel the growth of the market.
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The report also covers the major regional markets for chatbots, which are as follows:
The market has witnessed significant growth and evolution, driven by advancements in artificial intelligence, machine learning, and natural language processing. One of the major market drivers is the rising adoption of chatbots by businesses seeking efficient ways to handle customer inquiries and improve service quality. Chatbots offer a cost-effective alternative to traditional customer service models as well as valuable insights into customer behaviour and preferences.
Modern chatbots are increasingly powered by sophisticated AI, allowing for more natural and effective interactions. The increased integration of chatbots with other technologies like CRM systems, payment gateways, and analytics tools is one of the key chatbot market trends.
North America to Occupy a Significant Market Share
North America is estimated to possess a considerable share of the market in the forecast period. This growth can be attributed to the increased implementation of chatbot services by various companies across different industry verticals in the region. In addition, chatbots are increasingly used for routine customer service applications, as they improve customer satisfaction and enhance overall operational efficiency.
CAGR 2024-2032 - Market by | Country |
India | 32.9% |
China | 27.5% |
UK | 22.8% |
USA | 22.2% |
Germany | 20.5% |
Canada | XX% |
France | XX% |
Italy | XX% |
Japan | 17.2% |
Australia | XX% |
Saudi Arabia | XX% |
Brazil | XX% |
Mexico | XX% |
Moreover, the rise in chatbot market demand is also the result of the growing presence of the major market players in the region, which, in turn, is leading to increased investments in the research and development of chatbot technology. These factors are expected to catalyse the growth of the market in the forecast period.
The report gives a detailed analysis of the following key players in the global chatbot market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:
The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model and SWOT analysis.
REPORT FEATURES | DETAILS |
Base Year | 2023 |
Historical Period | 2018-2023 |
Forecast Period | 2024-2032 |
Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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Breakup by Type |
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Breakup by Product Landscape |
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Breakup by Application |
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Breakup by End Use |
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Breakup by Region |
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Market Dynamics |
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Competitive Landscape |
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Companies Covered |
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2023, the global chatbot market attained a value of nearly USD 839.33 million.
The market is projected to grow at a CAGR of 24.9% between 2024 and 2032.
The major drivers of the market are the increasing demand for automated customer services, the growing implementation of chatbots in various industry verticals, and the increasing demand for enhanced and speedy customer experiences.
The increasing development in artificial intelligence and the rapid technological advancements are the key trends guiding the market growth.
The major regions in the market are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific.
The significant types of chatbot are standalone, web based, and messenger based/third party.
Artificial intelligence, marketing, and human intelligence are the various product landscapes of chatbot considered in the market report.
The major applications of the product include bots for service, bots for social media, bots for payments/order processing, and bots for marketing, among others.
The different end uses of chatbot include healthcare, retail, banking financial services and insurance (BFSI), media and entertainment, travel and tourism, and e-commerce, among others.
The major players in the market are [24]7.ai, Inc, Aivo LLC, Artificial Solutions International AB, Botsify Inc., Creative Virtual Private Limited, Inbenta Technologies Inc., IBM Corporation, and eGain Corporation, among others.
The market is estimated to witness a healthy growth in the forecast period of 2024-2032 to reach USD 6,210.48 million by 2032.
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United States (Head Office)
30 North Gould Street, Sheridan, WY 82801
+1-415-325-5166
Australia
63 Fiona Drive, Tamworth, NSW
+61 448 06 17 27
India
C130 Sector 2 Noida, Uttar Pradesh 201301
+91-858-608-1494
Philippines
40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.
+63 287899028, +63 967 048 3306
United Kingdom
6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London
+44-753-713-2163
Vietnam
193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City
+84865399124
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