Chatbot Market Growth & Trends
The global chatbot market size is expected to reach USD 27,297.2 million by 2030, registering a CAGR of 23.3% from 2023 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
Chatbot Market Report Highlights
- Chatbots find various applications in e-commerce, healthcare, and BFSI sectors. Large enterprise emerged as the largest end-user segment in 2022 and is estimated to register a CAGR of 23.3% during the forecast period
- The chatbots for marketing segment are expected to witness the largest growth during the forecast period as these chatbots can connect the customers directly to service providers
- The standalone segment is estimated to expand at a CAGR of 23.7% during the forecast period
- Asia Pacific market is estimated to witness substantial growth during the next decade owing to the various technological developments across major economies. The regional market is expected to extend at a CAGR of 24.7% from 2023 to 2030
- Chatbots have found wide applications in large enterprises as they enable better understanding of consumer behavior with the help of machine learning
