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Chatbot Market To Reach $27.29Bn By 2030 | CAGR: 23.3%

Chatbot Market To Reach $27.29 Billion By 2030 | CAGR: 23.3%

January 2025 | Report Format: Electronic (PDF)

Chatbot Market Growth & Trends

The global chatbot market size is expected to reach USD 27.29 billion by 2030, registering a CAGR of 23.3% from 2025 to 2030, according to a new report by Grand View Research, Inc. The chatbot industry is expected to witness a significant growth during the forecast period as they enable enterprises to substantially reduce operating costs. Additionally, innovations in artificial intelligence and machine learning technologies are likely to enhance the features of chatbots, which acts as a major driver for the market.

A significant rise has been observed in the number of users of messaging services, which is expected to surpass the number of users of social networking sites. Additionally, there has been a significant development in the NLP field, which has resulted in streamlined interactions between computers and human languages. The entire chatbot ecosystem comprises various cross-linking features, which facilitates enhanced performance of the chatbots in all applications.

Most companies prefer in-built chatbots on their websites as they facilitate enterprises in providing instant customer interaction. For instance, Slack and Twitter messaging platforms are preferred by the majority of businesses.

One of the critical milestones in the Industry 4.0 idea is human-centered automation. Industry 4.0 seeks to develop a new interaction between machine capabilities and human flexibility, not to replace humans with machines. The manufacturing sector is also known as "Industry 4.0," which refers to how manufacturers incorporate new technology into their production processes to raise the productivity of their operations and the quality of their output.

Since a single bot can answer multiple inquiries simultaneously, they are available 365 days a year, around the clock. With the automation of repetitive activities, chatbots deliver accurate responses to every customer's question and, if necessary, can transfer the discussion to a human agent. This helps to distribute the burden effectively and boost business efficiency.

North America is expected to emerge as the major region for the chatbot market during the forecast period. The growth in this region is mainly attributed to the increasing deployment of the chatbots in various business verticals. Technologies such as artificial intelligence, IoT, and APIs, among others, are evolving at a rapid speed. Chatbots are integrated with these technologies to offer enhanced operations, thereby driving the market demand.

Artificial intelligence and audio speech-based chatbots are expected to account for the largest market share in the future. Additionally, speech recognition has improved drastically, especially in terms of native languages, which is expected to result in enhanced performance of chatbots in various applications.

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Chatbot Market Report Highlights

The solution segment dominated the chatbot market with a revenue share of 62.0% in 2024. These solutions include AI-powered platforms that deliver personalized, context-aware responses to users.
Standalone chatbots dominate the chatbot industry in 2024. This type of chatbots function independently, offering greater control and customization options.
The mobile applications segment accounted for the highest revenue share in 2024 and is anticipated to continue leading throughout the forecast period.
The sales and marketing segment accounted for the highest revenue share in 2024. Sales and marketing functions dominate the use of chatbots due to their effectiveness in automating customer interactions.
The customer service segment dominated the chatbot market in 2024. Customer service chatbots are a dominant force in the chatbot industry, as they improve response times and reduce the workload of human agents.
The retail and e-commerce segment dominated the market in 2024, with chatbots enhancing shopping experiences by providing personalized recommendations and assisting with order tracking.
North America chatbot market leads the global industry accounting for leading share of 31.1% in 2024. The regional market is marked by significant investment in AI and automation technologies.

Chatbot Market Segmentation

Grand View Research has segmented the global chatbot market on the basis of on offering, type, medium, business function, application, vertical, and region:

Chatbot Offering Outlook (Revenue, USD Million, 2018 - 2030)