The global chatbot market size crossed USD 8.57 billion in 2025 and is likely to register a CAGR of around 23.8%, exceeding USD 72.47 billion revenue by 2035, attributed to adoption of sentiment analysis and chatbot for insightful consumer data.

The chatbot market size reached a value of USD 839.33 Million in 2024. The market is expected to grow at a CAGR of 24.90% during the forecast period of 2025-2034. By 2034, the market is expected to reach USD 7754.56 Million.

The chatbot market revenue is expanding with businesses increasingly recognizing the importance of providing round-the-clock customer service. Chatbots meet this demand by offering instant, consistent responses without breaks or delays. With global customers operating in different time zones, companies leverage chatbots to ensure uninterrupted support. In May 2025, French AI startup Mistral AI launched Le Chat Enterprise, a corporate-focused chatbot designed for deep integration with enterprise content systems and offer scalable solution for global businesses. Such launches improve customer satisfaction, reduces churn, and allows human agents to focus on complex issues.

The chatbot industry is revolutionizing e-commerce via conversational interfaces that guide users from product discovery to purchase. Consumers increasingly prefer real-time conversations over static websites, particularly on mobile. Brands use chatbots to simulate the in-store assistant experience, reducing cart abandonment and increasing sales. In June 2025, Walmart launched its new generative AI shopping chatbot Sparky to help users find, plan, compare, and repurchase products effortlessly. As digital transactions rise and mobile commerce dominates, the need for interactive, conversational sales channels propels the market forward.

As per Cognitive Market Research's latest published report, the Global Chatbot market size was USD 3.02 Billion in 2022 and it is forecasted to reach USD 24.58 Billion by 2030. Chatbot Industry's Compound Annual Growth Rate will be 21.58% from 2023 to 2030. Chatbot Market Dynamics

Key Drivers of Chatbot Market

High integration of chatbot in various industrial verticals:

Use of chatbots is rising exponentially in both the business sector as well as in consumer market. It is an instant messaging app that creates natural conversations between businesses and customers. The demand for chatbot has increased in recent years attributed to the rising inclination of people across the world towards online shopping. In online shopping platforms, sales team uses chatbots to answer non-complex product questions which helps in improving the satisfaction level and convenience of customers.

Moreover, the world is moving rapidly towards digitalization. Amid COVID-19 pandemic, the world has been turned totally into digital world. Hence, healthcare industry, like all other industries have started using chatbot aggressively which helps in connecting patients with hospitalists for general diagnosis and treatment. It also allows in scheduling appointments with physicians without needing to travel to the hospital.

Chatbot have been connected through websites, mobile applications, along with social media platforms which further drives the growth of market. As AI implementation in chatbot is rising, it is revolutionizing the business processes in multiple industries. AI-powered chatbot has thus no limits for its usage in various sectors, including BFSI, telecommunication, e-commerce, and others accrediting the growth market across the world.

Increasing need for customer analytics and emergence of messenger apps to drive the market

Key Restrains of Chatbot Market

Drawbacks regarding the full understanding of natural language:

In order to ensure that chatbot is providing correct and relevant information to the customers, it must be updated with the correct information. However, people in today's world widely uses shortforms out of their habit for speedy responses. Such kind of slangs or misspellings are frequently misunderstood by these chatbots. Hence, inability in understanding this kind of natural language may hamper the growth of chatbot market. However, rising use of cloud services by various enterprises will help chatbot to retrieve huge amount of data from the cloud which will enhance the understanding of natural language and further stimulating the growth of chatbot market.

Key Trends in Chatbot market:

AI chatbots with high emotional intelligence will drives the market in coming years:

Using artificial intelligence and real time data, chatbot is now able to do sentiment analysis by using facial emotion recognition, eye tracking technology and video interactions in real-time. This allows it to understand the mood, pitch, and feelings and customize their responses to deliver custom-made communication.

Thus, it will not be wrong to say that AI-powered chatbot is going to enhance values in business sectors by providing limitless applications in large, medium and small enterprises. When more companies use the cloud, their ability to manage customer interactions, data management, and internal communication effectively will greatly increase their business agility without having to worry about increased infrastructure costs or security risks.

What is the impact of the COVID-19 pandemic on Chatbot Market:

Advent of COVID-19 pandemic has reshaped the lives of people across the globe by changing the way of work, shop, and learn. Every sector has been impacted due to the sudden out-break of pandemic. Lockdowns were announced and many customer service centers were closed. Disruption in supply chain occurred and online services failed to handle additional volumes effectively. Hence, to handle this chaos effectively, companies started investing in new technologies to provide additional support and allow workers to adapt to work-from-home setups.

Lockdown during year 2020, embraced digital world like never before. Thus, digital literacy rate during the pandemic increases exponentially which results in stimulation of chatbot use. Retail businesses increases the use of chatbot during COVID-19 to fulfil consumer needs and giving retailers...

This statistic shows the size of the global chatbot market in 2017 and gives a forecast of the predicted market size in 2024. In 2017, chatbot market revenues reached almost *** million U.S. dollars, and forecasts suggest that this number will continue to grow rapidly in the coming years.

The Japan chatbot market size reached USD 414.0 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 2,040.6 Million by 2033, exhibiting a growth rate (CAGR) of 19.4% during 2025-2033. The escalating promotion and funding of AI research and development, the widespread integration of chatbots in customer service, and the COVID-19 pandemic prompting businesses to shift towards digital platforms represent some of the key factors driving the market.

IMARC Group provides an analysis of the key trends in each segment of the Japan chatbot market report, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on type, product, application, organization size, and vertical.

The North America Chatbot market is segmented by Enterprise Size ( Small and Medium Enterprises and Large Enterprises), by End-User Vertical (Retail, BFSI, Healthcare, IT and Telecom, and Travel and Hospitality), and by Country ( United States, Canada). The market sizes and forecasts are provided in terms of value (in USD million) for all the above segments.

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Chatbot Market Size 2025-2029

The chatbot market size is forecast to increase by USD 9.63 billion, at a CAGR of 42.9% between 2024 and 2029. Several benefits associated with using chatbots solutions will drive the chatbot market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 37% growth during the forecast period.
By End-user - Retail segment was valued at USD 210.60 billion in 2023
By Product - Solutions segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 1.00 billion
Market Future Opportunities: USD 9.63 billion 
CAGR : 42.9%
APAC: Largest market in 2023

Market Summary

The market is a dynamic and evolving landscape, characterized by the integration of advanced technologies and innovative applications. Core technologies such as natural language processing (NLP) and machine learning (ML) enable chatbots to understand and respond to user queries in a conversational manner, transforming customer engagement across industries. However, the lack of standardization and awareness surrounding chatbot services poses a challenge to market growth. As of now, chatbots are increasingly being adopted in various sectors, including healthcare, finance, and e-commerce, with customer service being the primary application. According to recent estimates, over 50% of businesses are expected to invest in chatbots by 2025.
In terms of service types, chatbots can be categorized into rule-based and AI-powered, each offering unique benefits and challenges. Key companies, such as Microsoft, IBM, and Google, are continuously pushing the boundaries of chatbot technology, introducing new features and capabilities. Regulatory frameworks, including GDPR and HIPAA, play a crucial role in shaping the market landscape. Looking ahead, the forecast period presents significant opportunities for growth, as chatbots continue to reshape the way businesses interact with their customers. Related markets such as voice assistants and conversational AI also contribute to the broader context of the market.
Stay tuned for more insights and analysis on this continuously unfolding market.

What will be the Size of the Chatbot Market during the forecast period?

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How is the Chatbot Market Segmented and what are the key trends of market segmentation?

The chatbot industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Retail
  BFSI
  Government
  Travel and hospitality
  Others


Product

  Solutions
  Services


Deployment

  Cloud-Based
  On-Premise
  Hybrid


Application

  Customer Service
  Sales and Marketing
  Healthcare Support
  E-Commerce Assistance


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    Egypt
    KSA
    Oman
    UAE


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By End-user Insights

The retail segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth, with adoption in various sectors escalating at a remarkable pace. According to recent reports, the chatbot industry is projected to expand by 25% in the upcoming year, while current market penetration hovers around 27%. This growth can be attributed to the increasing adoption of conversational AI platforms in customer service and e-commerce applications. Unsupervised learning techniques and machine learning models play a pivotal role in chatbot development, enabling natural language processing and understanding. Dialog management systems, including F1-score calculation and dialogue state tracking, ensure effective conversation flow. Human-in-the-loop training and contextual understanding further enhance chatbot performance.

Natural language generation, intent recognition technology, and knowledge graph integration are essential components of advanced chatbot systems. Multi-lingual chatbot support and speech-to-text conversion cater to a diverse user base. Reinforcement learning methods and deep learning algorithms enable chatbots to learn and improve from user interactions. Chatbot development platforms employ various data augmentation methods and active learning strategies to create training datasets for transfer learning applications. Question answering systems and voice-enabled chatbot features provide seamless user experiences. Sentiment analysis techniques and user interface design contribute to enhancing customer engagement and satisfaction. Conversational flow design and response generation models ensure e

Available data formats for the Artificial Intelligence (AI) Chatbot Market Report, Size, Share, Opportunities, And Trends By Component (Hardware, Software And Services), By Deployment (Cloud, On-Premises), By Industry Vertical (BFSI, Media & Entertainment, Education, Retail, Healthcare, Others) And By Geography - Forecasts From 2025 To 2030 report.

The chatbot market size is projected to grow from $ 5.84 billion in 2024 to $61.97 billion by 2035, representing a CAGR of 23.94% during the forecast period 2024-2035.

chatbot market size was USD 3.49 Billion in 2021 and is expected to register a revenue CAGR of 25.4% during the forecast period, Rising demand for self-service and advancements in AI, ML, and NLP driven customer support services are the major factors driving chatbot market revenue growth

The Chatbot Market is estimated to be valued at USD 1.0 billion in 2025 and is projected to reach USD 7.3 billion by 2035, registering a compound annual growth rate (CAGR) of 21.6% over the forecast period.

The value of the generative artificial intelligence (AI) chatbot market in Japan was projected to reach *** billion Japanese yen in fiscal year 2024. Although it was expected that the distinction of chatbots based on functions would become more difficult and that the increase in companies offering chatbots would lead to falling prices due to an intensifying price competition, the market size was forecast to more than ****** by fiscal year 2028.

Chatbot Market reached USD 7.4 billion in 2024 and is projected to grow at a CAGR of 22.7% during 2024-2032 reaching USD 37.8 billion in 2032

The global healthcare chatbots market size reached USD 352.5 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,403.8 Million by 2033, exhibiting a growth rate (CAGR) of 16.6% during 2025-2033. The market is witnessing steady growth driven by the growing adoption of digital technologies in healthcare, the impact of the COVID-19 pandemic, rising prevalence of chronic diseases, advancements in natural language processing, regulatory support for telehealth, and increasing demand for 24/7 healthcare.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on component, deployment mode, application, and end user.

Chatbot Market size is valued at around USD 6.9 billion in 2025 and is projected to reach USD 29.87 billion by 2030 with a CAGR of around 21.2%.

The report covers Chatbot Companies in North America and Europe and the Market is segmented by Enterprise Size (Small and Medium Enterprises, Large Enterprises), End-user Vertical (Retail, BFSI, Healthcare, IT and Telecom, Travel and Hospitality), and Region (North America, Europe). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

With an estimated market share of ***** percent during the period between April 2024 and March 2025, ChatGPT was the most popular artificial intelligence (AI) chatbot globally. The Chinese company DeepSeek had a **** percent share, which was just above Google's Gemini, which had a **** percent share, and Perplexity, which had a **** percent share.

Chatbot Market By Size, Share, Trends, Opportunity, and Forecast, 2018-2028, Segmented By Type, By Application, By Product, By Organization Size, By Vertical, By Region, Competition Forecast and Opportunities

AI Chatbots Market Size, Share, Forecast, & Trends Analysis by Offering (Platforms, Services), Organization Size (Large, Small & Medium), Deployment Mode, Medium (Websites, Mobile Apps), End-use Industry (IT & Telecommunications, Retail & E-commerce, Others) & Geography - Global Forecast to 2032