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Chatbot Market Analysis

The Chatbot Market size is estimated at USD 7.01 billion in 2024, and is expected to reach USD 20.81 billion by 2029, growing at a CAGR of 24.32% during the forecast period (2024-2029).

The chatbot market is witnessing growth due to increasing demand for messenger applications and the growing adoption of consumer analytics by various businesses globally. Vendors globally are making significant product innovations by integrating technologies such as AI and NLP to cater to customer needs and market requirements.

• Chatbots are software applications that utilize artificial intelligence and natural language processing to understand human needs and guide them to the desired outcome with as minimal work by the end user as possible. They act as virtual assistants for customer experience touchpoints. Bots not only interpret the user intent but also process their requests and give prompt relevant answers.
• The market is primarily driven by the rising domination of messenger applications and increasing demand for customer analytics.
• Due to the increasing use of messenger applications, integration of chatbots with messengers yield a higher return on investment as approaching the customers on their preferred application improves user experience. Moreover, messenger applications allow chatbots to save the user's chat history for future purposes to personalize the user experience and gain actionable insights.
• The messaging app usage statistics of January 2022 released by Hootsuite show that WhatsApp has 2,000 million active monthly users, followed by WeChat with 1,263 million monthly active users, followed by Facebook Messenger with 998 million Monthly active users. Chatbots with the ability to reasonably mimic humans allow brands to engage consumers more efficiently on these growing messaging platforms.
• Marketing and sales teams are often under pressure to gain sales and constantly improve the customer experience. In contrast to traditional customer service, chatbots are available around the clock, even when sales personnel fail to attend to customer queries. Chatbots help support customers without interruption of working hour limitations. Moreover, bots can easily handle a high number of requests and process them all simultaneously without ever being overworked. Thus, the availability of correct information without waiting helps enterprises boost consumer experience using chatbots.

Chatbot Industry Segmentation

The chatbot market is defined based on the revenues generated by solutions sold by various global market players. The analysis is based on the market insights captured through secondary research and primary. The market also covers the major factors impacting the market's growth in terms of drivers and restraints.

The chatbot market is segmented by end-user vertical (BFSI, healthcare, IT and telecommunication, retail, and travel and hospitality) and geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa). The Report Offers Market Forecasts and Size in Value (USD) for all the Above Segments.