The market for chatbot market is estimated to grow from USD 5.4 billion in 2023 to USD 15.5 billion by 2028, at a CAGR of 23.3% during the forecast period. Increasing focus on customer engagement through various channels and rising usage of generative models in chatbots to drive growth in the chatbot market. Chatbots can be a valuable tool for enterprises looking to improve customer service, reduce costs, and increase efficiency.

The services segment is expected to grow at a higher CAGR during the forecast period
The global chatbot market is segmented based on offering solutions and services. Based on services segment is divided into managed services and professional services. The services segment is expected to grow at a higher CAGR during the forecast period. These services ensure faster and smoother implementation that maximizes the value of enterprise investments.

Voicebots segment to grow at a higher CAGR during the forecast period
The global chatbot market is segmented based on type into menu-based, linguistic-based, keyword recognition-based, contextual, hybrid, and voicebots. The voicebots segment is expected to grow rapidly during the forecast period. Voicebots can respond quickly and accurately to inquiries, providing a seamless customer experience. Voicebots can be a cost-effective way to provide customer support, as they can handle a large volume of inquiries without the need for human intervention. This can help to reduce the workload of customer support teams and lower overall costs.

Among verticals, retail and eCommerce segment hold the largest market size during the forecast period
Chatbots can benefit enterprises across various industries by improving customer service, reducing costs, and increasing efficiency. Across BFSI verticals, chatbots can provide customers with account information, answer inquiries about products and services, and help customers with transactions. This can help to improve customer service and reduce costs by automating routine tasks across BFSI verticals.

Asia Pacific to grow at a higher CAGR during the forecast period
The chatbot market has been segmented into five regions: North America, Europe, Asia Pacific, Middle East and Africa and Latin America. Asia Pacific is expected to gain traction in the coming years. Countries such as China, Singapore, Japan, South Korea, ANZ, and India to offer ample of opportunities for the end users to leverage chatbots for more personalized recommendations in real-time . The Asia Pacific region has one of the largest and fastest-growing populations of internet and smartphone users. This has created a large market for chatbots, which can provide a convenient and efficient way for users to access information, products, and services.

Breakdown of primaries
In-depth interviews were conducted with Chief Executive Officers (CEOs), innovation and technology directors, system integrators, and executives from various key organizations operating in the chatbot market.

  • By Company: Tier I: 35%, Tier II: 45%, and Tier III: 20%
  • By Designation: C-Level Executives: 35%, Directors: 25%, and Others: 40%
  • By Region: North America: 45%, Europe: 20%, Asia Pacific: 30%, Europe: 25%, ROW: 5%

The report includes the study of key players offering chatbot solutions and services. It profiles major vendors in the global chatbot market. The major vendors in the global chatbot market include Google (US), Microsoft (US), IBM (US), AWS (US), Baidu (China), Oracle (US), SAP (Germany), OpenAI (US), Salesforce (US), Meta (US), Artificial Solutions (Sweden), ServiceNow (US), [24] (US), (US), Conversica (US), Inbenta (US), Creative Virtual (US), Avaamo (US), Haptik (India), Solvvy (US), Gupshup (US), Aivo (US), Personetics (US), LivePerson (US), Freshworks (India), Engati (US), Botsify (Pakistan), (US), Drift (US), Intercom (US), Chatfuel (US), Landbot (Spain), Pandorabots (US), (US), Rasa (Germany), and BotsCrew (UK).

Research Coverage
The market study covers the chatbot market across segments. It aims at estimating the market size and the growth potential of this market across different segments, such as offering, type, business function, bot communication, channel integration, vertical, and region .It includes an in-depth competitive analysis of the key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.

Key Benefits of Buying the Report
The report would provide the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall market for chatbots and its subsegments. It would help stakeholders understand the competitive landscape and gain better to position their business and plan suitable go-to-market strategies. It also helps stakeholders understand the market’s pulse and provides information on key market drivers, restraints, challenges, and opportunities.

The report provides insights on the following pointers:

  • Analysis of key drivers (Integration of sentiment analysis with chatbots for meaningful customer insights, Advancements in technology coupled with rising customer demand for self-service operations, Growth in need for 24?7 customer support at lower operational costs and Increase in focus on customer engagement through various channels), restraints (Inability to recognize customer intent and respond effectively), opportunities (Initiatives toward the development of self-learning chatbots to deliver human-like conversational experience, Rise in demand for AI-based chatbots to deliver enhanced customer experience, and Integration of sentiment analysis with chatbots for meaningful customer insights), and challenges (Complex and time-consuming setup and maintenance, Lack of awareness about effect of chatbot technology on various applications) influencing the growth of the chatbot market
  • Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the chatbot market
  • Market Development: Comprehensive information about lucrative markets – the report analyses chatbot market across varied regions
  • Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in chatbot market strategies; the report also helps stakeholders understand the pulse of the chatbot market and provides them with information on key market drivers, restraints, challenges, and opportunities.
  • Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players such as Google (US), Microsoft (US), IBM (US), AWS (US), Baidu (China), Meta (US), SAP (Germany), and Oracle (US) among others in the chatbot market.