The global chatbot market size is expected to reach USD 9.54 Bn in 2025 and exhibit a compound annual growth rate (CAGR) of 25.7% during the assessment period, totalling USD 47.3 Bn by 2032.
The global chatbot market is expected to register strong growth during the forecast period. This is mostly due to rapid digital transformation, escalating demand for improved customer engagement, and increasing use of AI-powered chatbots across sectors like retail, BFSI, healthcare, and e-commerce.
Chatbots are sophisticated software applications designed to enable seamless interaction between humans and machines, typically through text or voice conversations over the Internet. This implementation relies on artificial intelligence to enable natural and meaningful interactions with users.
Chatbots help businesses communicate easily with their customers using different methods like text, voice, video, images, and file sharing. They can be used on digital platforms such as websites, mobile apps, and other devices, making them simple and convenient for users.
Additionally, Over-the-top (OTT) messaging apps are pioneering new ways for businesses to engage with their audiences. This provides both businesses and consumers with great opportunities for optimized and efficient communication.
In the ever-evolving landscape of business communications, organizations are increasingly adopting platform-based approaches. For example, Lyft partnered with Anthropic to deploy the AI assistant Claude as a chatbot for handling customer & driver support requests.
By integrating their chatbot services and offers into communication apps, businesses can enable many features such as games, payment processing, advertising, and others. Thus, rising adoption will play a key role in stimulating growth of the chat market during the forecast period.
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As per Coherent Market Insights’ latest analysis, mobile chatbot segment is expected to dominate the market, holding a share of 48% in 2025. This can be attributed to rising adoption of online chatbots by businesses.
There is a boom in online businesses that are looking for cost-effective ways to improve customer engagement and automate customer service. This is putting online chatbots into the spotlight.
Chatbots built for mobile apps improve user engagement as well as provide personalized recommendations. The popularization of smartphones and increasing demand for real-time support on the go are expected to further boost the mobile chatbots segment in the coming years.
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North America, with an estimated share of 29% in 2025, is expected to dominate the global chatbot market during the forecast period. The market growth in this region is primarily driven by the significant increase in the use of chatbots across multiple business verticals.
There is a rising adoption of AI chatbots across the U.S. industries. For instance, the U.S. General Services Administration (GSA) made a deal with Elon Musk’s company xAI under its OneGov program in September 2025. The agreement allows federal agencies to use xAI’s Grok chatbot models (Grok 4 and Grok 4 Fast).
Technological innovations, such as Internet of Things, Application Programming Interface, and artificial intelligence, are also evolving rapidly. Sophisticated chatbots are integrated with these technologies, enabling operational improvements and increasing market demand.
Asia Pacific chatbot market is expected to experience remarkable growth during the forecast period. This is mostly due to rapid digital transformation, increasing government support, and high smartphone adoption.
Advances in artificial intelligence (AI) are also helping businesses adopt chatbots for customer support, sales, and other services. For instance, in October 2025, Alibaba Group launched a new AI chatbot assistant integrated into its Quark app.
Chatbot demand in the region is also increasing due to improvements in digital and communication infrastructure. More reliable internet, better ICT systems, and expanding technology access are making it easier for companies to implement chatbots and reach more users across different industries.
For example, the state‑run SSG Hospital in Vadodara, Gujarat, recently launched an AI‑powered oncology chatbot. The new chatbot is designed to assist cancer patients and their families with treatment guidance, post-care, and follow-up support.
The U.S. chatbot industry is expected to grow rapidly during the projection period. This is mostly due to high adoption of artificial intelligence and advanced technologies across industries like retail, banking, and healthcare.
Businesses in the nation are increasingly using chatbots for customer support, lead generation, and personalized marketing. This is driving strong demand for chatbots. Moreover, widespread smartphone and internet penetration make it easier for companies to implement as well as scale chatbot solutions.
China is poised to emerge as a highly lucrative market for chatbots during the forthcoming period. This is mostly due to robust growth of e-commerce, social media platforms, and digital payment systems.
Companies in China are using chatbots for online shopping assistance, customer service, and interactive marketing campaigns. Government initiatives promoting AI adoption and increasing tech-savvy consumers are also slated to boost market growth in China during the forecast period.
Leading chatbot developers are introducing novel solutions to meet the evolving needs of the end-use industries. For instance, French startup Mistral launched its Le Chat chatbot for corporate use.
Many companies are forming partnerships and alliance to boost their sales as well as stay ahead of the competition. Similarly, strategies like mergers, collaborations, and acquisitions are becoming popular in the market.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 9.54 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 25.7% | 2032 Value Projection: | USD 47.3 Bn |
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| Companies covered: |
Facebook, Inc., Kiwi, Inc., Astute Solutions, Google, Inc., Pandorabots, Inc., Haptik, Inc., Yahoo Inc., Helpshift, ToyTalk (PullString Inc.), Imperson Ltd., Slack Technologies, Inc., Kasisto Inc., and Microsoft Corporation |
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Chatbots have emerged as ideal solutions to meet the growing demand for immediate and effective customer support regardless of geographic restrictions. By offering 24/7 support, businesses can ensure uninterrupted service and give consumers access to world-class support to get their queries answered quickly.
The tendency of chatbots to simulate human-like conversations has become a key factor in increasing their value and improving the live chat customer service experience. Due to these benefits, companies in various industries are adopting chatbot technology to meet customer expectations and streamline customer support processes.
For instance, in July 2023, the CEO of Dukaan, an e-commerce company, has been reported to have laid off 90% of customer support staff and replaced them with artificial intelligence chatbot. The response time has gone down from 2 hours 13 minutes to 3 min 12 seconds and customer support costs have gone down by ~85%.
Rising use of generative models in chatbots has become a major growth driver for the global chatbot market. By leveraging advanced language models, such as GPT-3, the chatbot's Natural Language Processing (NLP) capabilities have been enhanced to enable more sophisticated and contextual conversations with users. This improves the user experience by allowing chatbots to provide personalized, human-like responses.
Additionally, the flexibility and adaptability of generative models allow chatbots to be tailored to specific industries and use cases. This is making them a very popular solution across multiple industries.
As businesses increasingly realize the value of efficient and interactive customer interactions, the demand for chatbots based on generative models is expected to continue growing. This will likely boost growth of the chatbot market during the forthcoming period.
For instance, Swiggy recently started using generative AI to improve its services. In July 2023, the company announced a pilot of its “neural search” feature, which uses a Large Language Model to answer users’ open-ended queries and provide personalized food and grocery recommendations.
The system is trained on Swiggy’s food catalog of over 50 million items. Swiggy is also working with a third party to develop a GPT-4-powered chatbot for customer support. These developments are expected to support expansion of the chatbot industry in the coming years.
The global chatbot industry presents great opportunities through efforts aimed at developing self-learning chatbots that can provide a human-like conversational experience. As companies strive to improve customer retention and satisfaction, it is becoming increasingly important to focus on developing self-learning chatbots.
Using artificial intelligence and machine learning technology, these chatbots can continuously analyze and adapt user interactions to better understand customer intent and context. This evolution to self-learning chatbots can provide more personalized and contextual responses, similar to human conversations, ultimately leading to increased customer satisfaction and loyalty.
Additionally, self-learning chatbots reduce the need for manual intervention and constant program updates, improving operational efficiency. By capitalizing on this market opportunity, businesses can remain competitive, provide superior customer experience, and drive the growth of the global chatbot market.
The global chatbot market outlook appears bright, owing to rising adoption of chatbots across various industries. However, the inability to recognize and effectively respond to customer intent might slow down market growth to some extent during the forecast period.
Although chatbots have made great strides in natural language processing, they still face challenges in accurately deciphering complex user intent and providing appropriate responses. This limitation often leads to a frustrating customer experience and can hinder the smooth flow of conversations between users and chatbots.
Customers expect personalized and contextual interactions. Thus, the inability of chatbots to capture customer intent and effectively respond to their queries can lead to reduced customer satisfaction and loss of trust.
Overcoming this limitation will require further advances in machine learning and AI technology to improve the understanding capabilities of chatbots. Moreover, combining chatbot functionality with human assistance when needed is proving to be beneficial in providing a more satisfying customer experience and driving the growth of the global chatbot market.
According to a study by Aivo, over 30% of customers are willing to abandon a brand if their customer service experience is unsatisfactory. It also mentions that bad experiences are usually caused by a lack of empathy on the part of the customer-facing side, auto auto-responder with no solution.
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About Author
Monica Shevgan has 9+ years of experience in market research and business consulting driving client-centric product delivery of the Information and Communication Technology (ICT) team, enhancing client experiences, and shaping business strategy for optimal outcomes. Passionate about client success.
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