Chatbot Market Growth, Forecast, and Trends 2031

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.

Chatbot Market Analysis

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. 

Chatbot Market Overview

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.

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Chatbot Market: Strategic Insights

Chatbot Market

• 
  CAGR (2023 - 2031)

  24.3%
• Market Size 2023
  US$ 5.60 billion
• Market Size 2031
  US$ 31.95 billion

Market Dynamics

GROWTH DRIVERS

• Initiatives Toward the Creation of Self-Learning Chatbots to Provide Human-Like Conversational Experience

FUTURE TRENDS

• The growing trend of speech-enabled chatbots

OPPORTUNITIES

• Increased use of generative models in chatbots

Key Players

• Amazon Web Services
• Artificial Solutions
• Creative Virtual Pvt Ltd
• CX Company
• eGain Corporation
• IBM Corporation
• INBENTA TECHNOLOGIES INC
• Microsoft
• Nuance Communications Inc
• Verint Systems Inc

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Component

• Solution and Services

Deployment

• On-premise and Cloud

Usage

• Website
• Contact Centers
• Social Media
• Mobile Platform

End User

• Education
• Retail & E-Commerce
• BFSI
• Healthcare
• Travel & Tourism

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Chatbot Market Drivers and Opportunities

 Increased use of generative models in chatbots to Favor Market

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.

Initiatives Toward the Creation of Self-Learning Chatbots to Provide Human-Like Conversational Experience

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.

Chatbot Market Report Segmentation Analysis

Key segments that contributed to the derivation of the chatbot market analysis are component, deployment, usage organization size, and end user.

• Based on component, the chatbot market is segmented into solution and services.
• Based on deployment, the chatbot market is segmented into on-premise and cloud.
• Based on usage, the chatbot market is segmented into websites, contact centers, social media, and mobile platforms.
• Based on the end user, the chatbot market is segmented into education, retail & e-commerce, BFSI, healthcare, travel & tourism, and others.

Chatbot Market Share Analysis by Geography

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.

Chatbot Market Report Scope

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Chatbot Market News and Recent Developments

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:

• In April 2023, - Zendesk partnered with OpenAI, a prominent America-based AI research laboratory. The firm would provide its users with AI-supported solutions to simplify ticket-generating activities for CX and customer service employees. Zendesk and OpenAI are working together to improve the capabilities of Zendesk's foundation models, which are proprietary, by integrating them with OpenAI's.

(Source: Zendesk, Press Release, 2021)

• In January 2023, Kore.ai said that it will debut RetailAssist, a conversational sales assistant solution for the retail industry, at the National Federation of Retailers (NRF 2023) exhibition in New York City.

(Source: Kore.ai, Press Release, 2023)

Chatbot Market Report Coverage and Deliverables

The "Chatbot Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST/Porter's Five Forces and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles