“Global Chatbots Market to reach a market value of 29.31 Billion by 2031 growing at a CAGR of 24.1%”
The Global Chatbots Market size is expected to reach $29.31 billion by 2031, rising at a market growth of 24.1% CAGR during the forecast period.
The North America region witnessed 37% revenue share in the market in 2023. The significant adoption of these in North America can be attributed to the advanced technological infrastructure, high internet penetration, and the presence of major market players. Businesses across various industries, such as retail, BFSI, healthcare, and communication, leverage them to enhance customer engagement, streamline operations, and improve service delivery.
As customer expectations rise, businesses are under increasing pressure to provide constant availability for customer inquiries. Traditional customer service systems rely on human agents and are often limited by business hours and the ability to scale during high-demand periods. They address this challenge by providing round-the-clock support, allowing businesses to engage with customers anytime. This ensures customers receive responses to questions outside standard working hours, increasing customer satisfaction and loyalty. In conclusion, increasing demand for 24/7 customer support across industries drives the market's growth.
Additionally, Personalized customer experiences have become a competitive differentiator in today’s market. Consumers expect interactions with businesses to be tailored to their preferences, needs, and past behaviors. They, powered by artificial intelligence and machine learning algorithms, can analyze data from previous interactions to offer a more personalized service. Therefore, the growing importance of personalized customer experiences propels the market's growth.
However, One of the primary barriers to widespread chatbot adoption is the high initial cost of implementation. Developing, customizing, and integrating them into existing systems can require significant investment, particularly for businesses that need a high level of sophistication or specialized functionality. While off-the-shelf chatbot solutions may be more affordable, many organizations require tailored solutions that integrate seamlessly with their customer service systems, CRM platforms, and other internal tools, which can drive up costs. In conclusion, high initial implementation and integration costs for businesses impede the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
Based on offering, the market is divided into solution and services. In 2023, the services segment acquired 31% revenue share in the market. This segment includes professional services such as consulting, implementation, training, and ongoing support that facilitate the deployment and management of chatbot solutions. Services also encompass customization and integration assistance, ensuring that they are tailored to meet specific business needs and can seamlessly interact with other enterprise systems.
On the basis of bot communication, the market is segmented into text, audio/voice, and video. In 2023, the audio/voice segment attained a noteworthy revenue share in the market. This segment includes chatbots integrated into mobile applications, providing users with seamless and interactive experiences directly on their smartphones or tablets. Mobile app chatbots are commonly used in various applications such as banking, retail, healthcare, and entertainment, offering functionalities like customer support, information retrieval, and transaction processing.
Based on channel integration, the market is categorized into mobile apps, email & website, messaging apps, and telephone/ IVR. The messaging apps segment witnessed 30% revenue share in the market in 2023. This segment encompasses chatbots deployed on popular messaging platforms such as WhatsApp, Facebook Messenger, and WeChat. Chatbots on messaging apps allow users to access services and support within their preferred communication channels. They are extensively used for customer service, marketing, and engagement, leveraging the high user engagement on these platforms.
By type, the market is divided into menu-based, linguistic-based, keyword recognition-based, contextual, and hybrid & voicebots. The contextual segment procured 23% revenue share in the market in 2023. Contextual chatbots leverage machine learning and artificial intelligence to understand the context of user interactions, providing more personalized and relevant responses. These chatbots can maintain the context of a conversation across multiple interactions, making them highly effective for complex tasks, customer support, and personalized services.
Based on business function, the market is divided into contact centers, sales & marketing, information technology service management (ITSM), finance & accounting, HR, and operations & supply chain. In 2023, the sales & marketing segment procured 24% revenue share in the market. Chatbots engage potential customers, generate leads, provide product recommendations, and support marketing campaigns in this segment. They can initiate conversations with website visitors, offer personalized suggestions, and assist with sales by answering product-related questions.
By vertical, the market segment is segmented into retail & ecommerce, BFSI, communication, Utilities, healthcare, travel & hospitality, government, education, and others. In 2023, the BFSI segment attained 18% revenue share in the market. Chatbots are deployed in the banking, financial services, and insurance sectors to handle customer inquiries, provide financial advice, assist with transactions, and support various banking services. They improve customer service efficiency, reduce wait times, and enhance user experience by providing quick and accurate responses to queries.
Free Valuable Insights: Global Chatbots Market size to reach USD 29.31 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the Asia Pacific region generated 28% revenue share in the market. The growing adoption of chatbots in Asia Pacific is driven by rapid digitalization, increasing internet and smartphone usage, and the expanding e-commerce sector. Countries like China, India, and Japan are witnessing significant growth in the deployment of chatbots across various industries, including retail, healthcare, and BFSI.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 5.40 Billion |
| Market size forecast in 2031 | USD 29.31 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 24.1% from 2024 to 2031 |
| Number of Pages | 498 |
| Tables | 910 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Offering, Bot Communication, Channel Integration, Type, Business Function, Vertical, Region |
| Country scope |
|
| Companies Included | Baidu, Inc., ServiceNow, Inc., Botsify, Amazon Web Services, Inc. (Amazon.com, Inc.), HubSpot, Inc., Oracle Corporation, Google LLC (Alphabet Inc.), IBM Corporation, Microsoft Corporation, and Salesforce, Inc. |
By Offering
By Bot Communication
By Channel Integration
By Type
By Business Function
By Vertical
By Geography
Our team of dedicated experts can provide you with attractive expansion opportunities for your business.
Unique Offerings 