Chatbot Market Size, Trends and Growth Analysis by 2027

In 2018, the global chatbot market was valued at approximately US$ 1072.4 million and is projected to experience a remarkable growth rate of 27.9% CAGR from 2019 to 2027, ultimately reaching around US$ 9475.1 million by the end of the forecast period. Vendors in the chatbot sector are increasingly providing virtual assistance features, driven by advantages such as quicker response times, decreased labor costs, and overall efficiency. A significant number of users of smartphones and tablets are leveraging virtual assistants to enhance the usability of their devices. Within the realm of consumer services, business automation consulting is becoming integral, as chatbot providers are integrating multiple applications into cohesive tasks to stimulate business growth. Chatbots are typically embedded within individual websites and operate within the ecosystem established by the businesses that develop them.

Beyond engaging with customers through online platforms and telephone services, chatbots also utilize popular messaging channels like Skype and Facebook Messenger. The growing acceptance of virtual assistance and the proliferation of messaging platforms are contributing to an increased demand for chatbots, which is anticipated to significantly boost the market throughout the forecast period.

Key players in the chatbot industry are concentrating on enhancing their solutions by incorporating cutting-edge technologies. They are pursuing partnerships, contracts, joint ventures, and funding opportunities, as well as establishing new offices across Europe, Asia Pacific, North America, and other regions to strengthen their global brand presence. Numerous established companies and third-party service providers are available in the market, offering a variety of tailored chatbot solutions to meet customer needs. Larger organizations are employing strategies that involve acquiring and collaborating with other firms to improve their capabilities and broaden their geographical reach. This approach not only fortifies their market presence but also enhances their brand recognition. Prominent participants in the global chatbot market include Amazon Web Services, Artificial Solutions, Creative Virtual Pvt. Ltd., CX Company, eGain Corporation, IBM Corporation, Inbenta Technologies Inc., Microsoft, Nuance Communications, Inc., and Verint Systems Inc.

The global chatbot market is categorized based on components into solutions and services. Additionally, the market is segmented by deployment methods into on-premise and cloud-based options. In terms of usage, chatbots are classified into various platforms, including websites, contact centers, social media, and mobile applications. The end-user segmentation includes education, retail and e-commerce, banking, financial services and insurance (BFSI), healthcare, travel and tourism, among others. Currently, developed regions, particularly North America, dominate the chatbot market; however, the market is expected to shift favorably towards the Asia Pacific region in the coming years.

The overall size of the chatbot market has been determined through a combination of primary and secondary research methods. The research process initiates with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative insights related to the chatbot market. Furthermore, primary interviews are conducted with industry participants and commentators to validate the data and analysis. Participants in this process typically include industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the chatbot sector.