The global chatbot market is projected to reach USD 27.29 billion by 2030, growing at a compound annual growth rate (CAGR) of 23.3% from 2025 to 2030, as per a new report by Grand View Research, Inc. This growth trajectory is driven by the ability of chatbots to significantly reduce operating costs for businesses. Additionally, advancements in artificial intelligence (AI) and machine learning (ML) are expected to enhance chatbot features, acting as a key driver for market expansion.

An increasing number of users on messaging platforms is expected to surpass the number of users on social media platforms, contributing to the demand for chatbot solutions. Significant developments in natural language processing (NLP) have streamlined interactions between humans and computers, further enhancing chatbot performance. The chatbot ecosystem integrates various interconnected features, improving their efficiency across diverse applications.

Many businesses now prefer in-built chatbots on their websites as they provide instant customer support and interaction. For instance, messaging platforms like Slack and Twitter are commonly adopted by businesses for chatbot integration.

A key concept in Industry 4.0 is human-centered automation, which emphasizes collaboration between machine capabilities and human flexibility, rather than replacing humans with machines. The manufacturing industry, often referred to as "Industry 4.0," is increasingly incorporating advanced technologies to enhance productivity and improve the quality of production processes.

One of the main advantages of chatbots is their ability to handle multiple inquiries simultaneously. Chatbots operate 24/7, providing accurate answers to customers' questions, and can seamlessly transfer the conversation to a human agent when necessary. This automation of repetitive tasks not only reduces the workload on human agents but also increases business efficiency.

North America is expected to lead the chatbot market during the forecast period, driven by the growing adoption of chatbots across various business sectors. The rapid evolution of technologies such as AI, the Internet of Things (IoT), and APIs is fueling the integration of chatbots with these technologies to enhance business operations and drive market growth.

AI-powered and speech-based chatbots are anticipated to dominate the market share in the future. Improvements in speech recognition, particularly in native languages, are expected to boost chatbot performance across different applications.

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Chatbot Market Report Highlights

• Solution Segment: The solution segment led the chatbot market with a 62.0% revenue share in 2024. These AI-powered platforms are designed to deliver personalized, context-aware responses to users.

• Standalone Chatbots: Standalone chatbots, which operate independently, held the dominant position in 2024, offering businesses more control and customization.

• Mobile Applications Segment: The mobile applications segment accounted for the highest revenue share in 2024 and is expected to maintain its leadership throughout the forecast period.

• Sales and Marketing Segment: Sales and marketing functions represented the largest revenue share in 2024. Chatbots play a critical role in automating customer interactions, improving efficiency in these functions.

• Customer Service Segment: The customer service segment was the dominant force in the chatbot market in 2024. Chatbots in customer service improve response times and ease the workload on human agents.

• Retail and E-Commerce Segment: The retail and e-commerce segment led the market in 2024, with chatbots enhancing the shopping experience by providing personalized recommendations and assisting with order tracking.

• North America Market: North America held the largest market share, accounting for 31.1% in 2024. The region is characterized by significant investment in AI and automation technologies, contributing to its dominance in the global chatbot industry.

Browse through Grand View Research's Next Generation Technologies Industry Research Reports.

• AI Apps Market: The global AI apps market size was valued at USD 2,940.0 million in 2024 and is expected to witness a CAGR of 38.7% from 2025 to 2030.

• Enterprise Agentic AI Market: The global enterprise agentic AI market size was estimated at USD 2.59 billion in 2024 and is expected to grow at a CAGR of 46.2% from 2025 to 2030. 

Chatbot Market Segmentation

Grand View Research has segmented the global chatbot market on the basis of on offering, type, medium, business function, application, vertical, and region:

Chatbot Offering Outlook (Revenue, USD Million, 2018 - 2030)

• Solution

• Services

Chatbot Type Outlook (Revenue, USD Million, 2018 - 2030)

• Standalone

• Web-based

• Messenger-based/Third Party

Chatbot Medium Outlook (Revenue, USD Million, 2018 - 2030)

• Contact Centers

• Websites

• Social Media

• Mobile Applications

Chatbot Business Function Outlook Revenue, USD Million, 2018 - 2030 )

• IT Services

• HR Services

• Sales & Marketing

• Finance

Chatbot Application Outlook (Revenue, USD Million, 2018 - 2030)

• Customer Services

• Branding & Advertising

• Personal Assistance

• Data Privacy & Compliance

• Payment Processing

• Others

Chatbot Vertical Outlook (Revenue, USD Million, 2018 - 2030)

• Healthcare

• Retail & E-commerce

• BFSI

• Media & Entertainment

• Travel & Tourism

• Transportation & Logistics

• Others

Chatbot Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

o U.S.

o Canada

o Mexico

• Europe

o UK

o Germany

o France

• Asia Pacific

o China

o Japan

o India

o Australia

o South Korea

• Latin America

o Brazil

• Middle East & Africa (MEA)

o KSA

o UAE

o South Africa

List of Key Players in the Chatbot Market

• [24]7. ai, Inc.

• Acuvate

• Aivo

• Artificial Solutions

• Botsify Inc.

• Creative Virtual Ltd.

• eGain Corporation

• IBM Corporation

• Inbenta Technologies Inc.

• Next IT Corp.

• Nuance Communications, Inc.

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