The Global Chatbot Market size accounted for USD 521 Million in 2021 and is expected to reach USD 3,411 Million by 2030 growing at a CAGR of 23.7% during the forecast period from 2022 to 2030.

The growth of the chatbot market is being driven by the advancement of artificial intelligence (AI) technology and the increase in online and retail purchasing worldwide. Furthermore, technological breakthroughs, raising customer demand for self-service and a growing need for 24*7 support desks at a lower operational cost are expected to drive chatbot market growth.

Chatbots are interactive software that connects with the audience via platforms such as WhatsApp, Skype, Facebook Messenger, and WeChat by using text as a means of communication. The basic goal of chatbots is to engage with humans in a human-like manner. Chatbots have been supporting individuals in a variety of sectors and industries, including retail, tourism, and e-commerce, among others. They are also known as virtual assistants who understand human capabilities. Bots interpret process requests and user intent and respond in real-time. A chatbot is a more practical and cost-effective one-time investment than developing specific cross-platform software or hiring more employees. Furthermore, chatbots can also assist in lowering the cost of difficulties caused by human mistakes.

Chatbot Market Drivers

• The rise of instant messaging platforms
• Improved customer service
• Cost savings on chatbot development
• Increasing usage of chatbots for advertising and promotion
• Continuing to increase investments in chatbot technology by SME

Chatbot Market Restraints

• Lack of understanding among businesses
• Concerns regarding security and privacy

Chatbot Market Opportunity

• The growing use of chatbots in the e-commerce sector
• Significant advances in AI, NLP, and cloud computing technologies

Report Coverage

Chatbot Market Dynamics

Rapid digitalization throughout industries, as well as increased demand for high-quality customer care teams across organizations, is one of the major factors driving chatbot market expansion. Chatbots are used to resolve client difficulties in a variety of businesses, including information technology (IT), banking, financial services and insurance (BFSI), e-commerce, telecommunications, and healthcare. BFSI organizations, for example, deploy chatbots to assist users with fund transfers, balance monitoring, account setup, and money-saving. Furthermore, rising consumer usage of over-the-top (OTT) networking and communication website applications, particularly among millennials, is driving market expansion. In addition, various recent technological advancements, such as the incorporation of advanced analytics, blockchain, machine learning (ML), and cloud computing technologies necessary in the development of self-learning chatbots, are also propelling chatbot market value. These intelligent bots can respond to varied digital environments and provide a human-like conversational experience by learning from the user's actions, experiences, and judgments.

Increasing acceptance for intelligent customer engagement, the rising concentration of website and mobile applications, growing incorporation of a chatbot with social networking sites, natural language processing (NLP), improvement of artificial intelligence (AI), single search hyperlink, and the increasing requirement for many languages customer support are some of the key drivers driving the global chatbot market size.

Chatbot Market Segmentation

The global chatbot market segmentation based on the type, application, product landscape, end-user and geography.

Chatbot Market By Type

• Standalone
• Web-based
• Third party/Messenger-based

In terms of type, the standalone sector held the greatest market share in 2021. This trend can be attributed to users' demand for visual assistant solutions in standalone messaging services, such as Amazon's Alexa, Google Home, and Apple's Siri. Standalone bots are ideal for creating brief campaigns for clients, such as a fun marketing inquiry. A standalone bot is a great way to enhance lead generation at specific events like sales conferences, networking exhibitions, or webinars. Effectively giving out personally identifiable information is more enjoyable than filling out a dull web form by personalizing the chatbot material for the occasion. However, as a result of this factor, this segment is projected to dominate the chatbot industry.

Chatbot Market By Application

• Bots for Social Media
• Bots for Service
• Bots for Marketing
• Bots for Payments/ Order processing
• Others

Based on the application, bots for the service industry will grow at the fastest rate in the market over the next few years. This growth can be attributed to its beneficial qualities for businesses, which include faster chat response times, personalization, less customer care agent work, more customer satisfaction, 24/7 accessibility, and many more. Chatbots in corporations will significantly cut labor costs by automating a portion of customer care and marketing, resulting in significant savings for businesses. Chatbots can be a highly useful tool for creating strong ties with clients. As a result, the bot for services segment in the IT and BFSI industries would expand significantly and increase the chatbot market shares over the forecasting years.

Chatbot Market By Product Landscape

• Artificial Intelligence
• Marketing
• Human Intelligence

Based on the product landscape, the artificial intelligence market will grow at the fastest rate over the next few years. As a result of increased expenditure by financial institutions in the artificial chatbots market, artificial intelligence chatbots are projected to gain traction in the industry. These actions were carried out in order to convert more customers and expand the customer database. Chatbots use artificial intelligence to analyze dialogue and engage with users (AI). Several chatbots for messaging platforms such as Facebook, Whatsapp, Telegram, and other social media and networking sites have been developed. Chatbot developers can directly link electronic purchases with assistance and use these electronic mediums for cashless ordering.

Chatbot Market By End-user

• Healthcare
• BFSI
• Retail
• Travel & Tourism
• Media and Entertainment
• E-commerce
• Others

According to the chatbot market forecast, the healthcare category would grow significantly in the global market. This is because chatbot services are increasingly being used in the medical and health care sectors. These online services can aid the healthcare industry by providing customers with health-related information, organizing appointments with doctors and specialists, and providing patients with diagnostic procedures. The focus of major manufacturers is on developing powerful customized chatbots for the healthcare infrastructure. Furthermore, these systems handle billing and insurance claims, provide 24/7 assistance and encouragement to Medicare beneficiaries, and provide inventory control, all of which contribute to their increased use in the healthcare industry.

Chatbot Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Latin America

• Mexico
• Brazil
• Rest of Latin America

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

The Middle East & Africa (MEA)

• Gulf Cooperation Council (GCC)
• South Africa
• Rest of the Middle East & Africa