The chatbot market size is projected to reach US$ 31.95 billion by 2031 from US$ 5.60 billion in 2023. The chatbot market is expected to register a CAGR of 24.3% in 2023–2031. The market is primarily driven by the raising dominance of messenger applications and the increasing demand for customer analytics.
Generative models can enhance chatbots' natural language processing (NLP) skills, leading to improved understanding and response to human language. Generative models, such as GPT-4, can improve chatbots' understanding of user preferences and habits, allowing for more tailored recommendations and support. Because of the growing popularity of messenger applications, integrating chatbots with messengers yields a higher return on investment because addressing clients through their preferred application improves user experience.
The chatbot market has grown significantly in recent years. The necessity to provide 24x7 customer service and reduce operating costs by delegating duties to chatbots, as well as the surge in customer desire for self-service operations, have all contributed to increased demand. This can be linked to individuals' rising preference for messaging applications over social networking sites. Chatbots designed for integration with messaging apps are likewise predicted to see high market demand in the future. Furthermore, chatbots are growing in popularity as organizations strive to automate their sales and customer care. The use of chatbots allows enterprises to provide timely services at lower cost.
Al has seen considerable developments recently, particularly around generative Al and LLMs. Deep learning-powered models generate fresh content by identifying patterns in vast datasets. OpenAl's chatbot, ChatGPT, uses the GPT-3.5 language model to generate human-like prose that recognizes context. In addition to text-to-text, generative AI can also convert images, videos, 3D models, music, and more. Generative AI enables businesses to generate unique ideas for products, services, and solutions faster and more efficiently. Generative Al provides organizations with data-driven knowledge for informed decision-making and reduces expenses connected with product development and marketing cycles.
Chatbots can adapt to changing environments and learn from their actions, experiences, and conclusions. Chatbots analyze data quickly and provide support in many languages, making it easier for clients to locate the information they need. Self-learning bots use data-driven behavior, NLP technology, and supervised machine learning to provide more natural communication. They can learn from their mistakes. Several efforts are underway for the creation of self-learning chatbots. Self-learning chatbots offer personalized and appropriate responses, enhancing the consumer experience. The chatbot continues to learn from user interactions.
Key segments that contributed to the derivation of the chatbot market analysis are component, deployment, usage organization size, and end user.
The geographic scope of the chatbot market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. Asia-Pacific is seeing tremendous industrialization, which increases the demand for chatbots in the market. The growing retail and e-commerce industries in rising nations such as China, India, Indonesia, Vietnam, Malaysia, the Philippines, and Thailand have accelerated the high demand and widespread acceptance of chatbots among merchants and e-commerce firm owners.
The regional trends and factors influencing the Chatbot Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Chatbot Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 5.60 billion |
| Market Size by 2031 | US$ 31.95 billion |
| Global CAGR (2023 - 2031) | 24.3% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Chatbot Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Chatbot Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The chatbot market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market:
(Source: Zendesk, Press Release, 2021)
(Source: Kore.ai, Press Release, 2023)
The "Chatbot Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
The global chatbot market was estimated to be US$ 5.60 billion in 2023 and is expected to grow at a CAGR of 24.3% during the forecast period 2023 - 2031.
Increased use of generative models in chatbots is the major factors that propel the global chatbot market.
The growing trend of speech-enabled chatbots is anticipated to play a significant role in the global chatbot market in the coming years.
The key players holding majority shares in the global chatbot market are Amazon Web Services, Artificial Solutions, Creative Virtual Pvt. Ltd., CX Company, and eGain Corporation.
The global chatbot market is expected to reach US$ 31.95 billion by 2031.