The Chatbot Market Is Poised for Massive Growth

The chatbot market is gearing up for substantial growth over the next few years, two separate reports found this week.

According to ResearchandMarkets, the market size is projected to grow from its current value of $2.6 billion to $9.4 billion by 2024, at a compoud annual rate of 29.7 percent. Meanwhile, global technology research and advisory firm Technavio predicts a compounded annual growth rate of more than 24 percent  through 2022, which is on par with ResearchandMarkets’ prediction. 

The ongoing growth in the chatbot market is largely driven by advancement in the artificial intelligence technology that powers it, as well as growing expectations from customers for 24/7 customer assistance. Organizations, too, have growing expectations for providing customer support at a more affordable cost. 

Currently, the retail and e-commerce industry segments are driving the most growth in chatbot use, as consumers increasingly rely on online ordering and demand access to reliable support at any time. 

Meanwhile, the region that’s driving the most chatbot growth is Asia Pacific. “Asia Pacific (APAC) is expected to grow at the highest CAGR during the forecast period. Factors such as flexible economic conditions, industrialization- and globalization-motivated policies of the governments, as well as expanding digitalization, will support the growth of the chatbot market in the region,” the report states. 

Technavio had a different take on the region driving the most growth, however. Its findings led to the prediction that the Americas will drive adoption in the global market, largely due to the massive influx of chatbots that support travel and shopping. 

“The increased demand for web self-service and the focus on improving CRM are some other major factors that will boost market growth during the forecast period,” a senior analyst at Technavio said in a company statement.

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