Chatbot Market Size, Share and Scope 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
Market Size Value in US$ 1072.4 million in 2018 Market Size Value by US$ 9475.1 million by 2027 Growth rate CAGR 27.9% from 2019 to 2027. Forecast Period 2019-2027 Base Year 2019
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Chatbot Market: Strategic Insights
| Market Size Value in | US$ 1072.4 million in 2018 |
| Market Size Value by | US$ 9475.1 million by 2027 |
| Growth rate | CAGR 27.9% from 2019 to 2027. |
| Forecast Period | 2019-2027 |
| Base Year | 2019 |
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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
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
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, Deployment, Usage, and End User
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Frequently Asked Questions
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.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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