Chatbot Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[230+ Pages Report] According to the report published by Facts & Factors, the global chatbot market size was evaluated at $44 billion in 2022 and is slated to hit $75 billion by the end of 2030 with a CAGR of nearly 13.2% between 2023 and 2030. The market report is an indispensable guide on growth factors, challenges, restraints, and opportunities in the global marketspace.

The chatbot industry report covers the geographical market along with a comprehensive competitive landscape analysis. It also includes cash flow analysis, profit ratio analysis, market basket analysis, market attractiveness analysis, PESTEL analysis, SWOT analysis, Porter’s five force analysis, and value chain analysis. Additionally, the chatbot market report explores the investor and stakeholder space to help companies make data-driven decisions.

Market Overview

Chatbot is a software application aimed at mimicking human conversation with the help of text or voice interactions. Modern chatbots make use of artificial intelligence systems capable of maintaining a conversation with end-user with the help of natural language. It also helps in simulating the way an individual behaves as a conversational partner. Reportedly, a chatbot is a collaborative application that is programmed by using AI systems. It is intended for interacting with human beings through textual conversation methods and is embedded with a slew of messaging amenities.     

Key Insights

• As per the analysis shared by our research analyst, the global chatbot market is projected to expand annually at the annual growth rate of around 13.2% over the forecast timespan (2023-2030)
• In terms of revenue, the global chatbot market size was evaluated at nearly $44 billion in 2022 and is expected to reach $75 billion by 2030.
• The global chatbot market is anticipated to record massive growth over the forecast period owing to the growing adoption of chatbots in various businesses for reducing operational costs.
• Based on the application, the customer services segment is predicted to contribute majorly towards the global market share over the forecast timeline.
• In terms of the offering, the solutions segment is slated to register the fastest CAGR over the forecast period.
• On the basis of type, the standalone segment is slated to dominate the segmental surge over the forecast period.
• Based on vertical, the retail & commerce segment is slated to dominate the segmental surge over the forecast period.
• Region-wise, the Asia-Pacific chatbot market is projected to register the highest CAGR during the assessment period.

Industry Growth Factors

• Huge penetration of chatbots in a plethora of businesses will prop up the global market surge

The growing adoption of chatbots in various businesses for reducing operational costs will prop up the expansion of the global chatbot market. Breakthroughs in AI and machine learning tools as well as deep learning tools are set to improve the chatbot features, thereby driving global market trends.

Furthermore, chatbots are becoming more common among online businesses as they provide the best form of digital communication between entrepreneurs and customers. The surging integration of chatbots with social media tools is predicted to propel global market trends.

Furthermore, the large-scale demand of individuals for messaging apps has translated into the humungous popularity of chatbots in recent years. For the record, Open.AI, a U.S.-based AI firm, launched ChatGPT, an AI-based tool that answers each question. Moreover, it is the latest AI series of GPT. Chatbots have assisted the medical & healthcare sectors in tougher times, thereby steering the expansion of the market across the globe.                                                                               

Restraints

• Low awareness about chatbot usage can hinder industry growth across the globe

The inability of determining consumer intent and respond effectively will hamper the growth of the global chatbot industry. A lack of awareness about the use of chatbots can put brakes on the expansion of the global industry.

Opportunities

• The blending of sentiment analysis and chatbots will generate new growth opportunities for the global market

Escalating demand for self-learning chatbots offering a seamless experience to customers will open new growth avenues for the global chatbot market. With a large number of giant firms deploying integrated technologies, the market for chatbot is likely to gain traction in the years ahead. Integrating sentiment analytics and chatbots for offering actionable insights to consumers will open new growth horizons for the global market.

Challenges

• High maintenance costs can prove to be a big challenge in the growth path of the industry across the globe

Need for complex and time-consuming setup and maintenance is projected to pose a huge challenge for the expansion of the chatbot industry across the globe.

Segmentation Analysis

The global chatbot market is sectored into offering, application, type, vertical, and region.  

In offering terms, the global chatbot market is segregated into solutions, training & consulting, services, support & maintenance, and system integration & implementation segments. In addition to this, the solutions segment, which accrued over 60% of the global market share in 2022, is slated to record the fastest CAGR in the coming years. The segmental growth in the forecasting years can be due to the large-scale acceptance of in-house chatbot systems.

On the basis of application, the chatbot industry across the globe is sectored into customer services, data privacy & compliance, branding & advertising, personal assistance, and payment processing segments. Furthermore, the customer services segment, which accrued a major share of the global industry in 2022, is slated to lead the segmental surge in the upcoming years.

The segmental growth in the forecasting years can be due to a large number of businesses choosing automation of routine tasks for reducing operational costs. Firms are focusing on automating their businesses and this will prompt the demand for chatbots in the customer services segment.

On the basis of the type, the global chatbot market is divided into standalone, messenger-based, and web-based segments. Moreover, the standalone segment, which accumulated a major share of the global market in 2022, is anticipated to establish a leadership position in the type segment over the forecast timeline. The growth of the segment over 2023-2030 can be subject to the large-scale use of virtual assistants such as Google Assistant, Siri, and Alexa as standalone messaging tools.

Based on the vertical, the chatbot industry across the globe is divided into healthcare, BFSI, retail & commerce, travel & tourism, transport & logistics, and media & entertainment segments. Additionally, the retail & commerce segment, which garnered a major share of the global industry in 2022, is anticipated to lead the vertical segment over the forecast timeline.

The growth of the segment over the upcoming years can be subject to a rise in the use of chatbots in the retail & commerce segment for improving sales, aiding in-store purchase operations, and providing alerts & updates on smartphones along with offering quick services.

Recent Breakthroughs:

• In the first half of 2023, Zendesk, Inc., a U.S.-based firm offering SaaS products, entered into a partnership with OpenAI, a U.S.-based AI firm. The latter is predicted to provide users with AI-based services for simplifying ticket-generating events for customers. The move is likely to enhance Zendesk’s capabilities.
• In the first quarter of 2023, Kore.AI, a firm providing AI-optimized consumer & employee experience, launched RetailAssist, a conversational sales assistant solution for the retail industry. Reportedly, RetailAssist assists retail & e-commerce firms in transforming operations by creating expertise in self-automation, omnichannel fulfillment, and customization along with 24/7 pre-sales & post-sales services.

Report Scope

Chatbot Market: Regional Insights

• North American Chatbot market to establish a leading position over the forecast timeframe

North America, which accumulated more than 53% of the global chatbot market revenue in 2022, is anticipated to record notable growth during the projected timeline. The regional market expansion over 2023-2030 can be subject to the growing number of startups in the market.

Apart from this, the increase in the end-user demand for self-services and the growing use of generative chatbot models in large enterprises will steer the regional market demand. Surge in the focus on consumer engagement via various touchpoints will proliferate the expansion of the market in North America.

Furthermore, the chatbot industry in the Asia-Pacific region is anticipated to register the highest CAGR in the anticipated timespan. The factors that are likely to favorably leverage the growth of the regional industry are the humungous demand for AI-driven chatbots to enhance the end-user experience.

Additionally, giant firms are adopting chatbots in their consumer services. Demand for improving operational efficiency, consumer satisfaction, and minimizing operating costs will scale up the expansion of the industry in the Asia-Pacific zone.

Competitive Space

• [24]7. ai Inc. 
• Acuvate 
• Next IT Corp. 
• Aivo 
• IBM Corporation 
• Artificial Solutions 
• Creative Virtual Ltd. 
• Botsify Inc. 
• eGain Corporation 
• Inbenta Technologies Inc. 
• Nuance Communications Inc.

The global chatbot market is segmented as follows:

By Offering Segment Analysis

• Solutions
• Training & Consulting
• Services
• Support & Maintenance
• System Integration & Implementation

By Application Segment Analysis

• Customer Services
• Data Privacy & Compliance
• Branding & Advertising
• Personal Assistance
• Payment Processing

By Type Segment Analysis

• Standalone
• Messenger-Based
• Web

By Vertical Segment Analysis

• Healthcare
• BFSI
• Retail & Commerce
• Travel & Tourism
• Transport & Logistics
• Media & Entertainment

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America