AI Chatbots Industry Trends: Market Size, Share, and Growth

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AI Chatbots Industry Trends: Market Size, Share, and Growth

Recent research predicts the AI chatbots market will expand to $22.6 billion by 2031, registering a CAGR of 27.8% between 2024 and 2031.

Meticulous Research®, a leading global market research company, has released a new report titled, ‘AI Chatbots Market - Global Opportunity Analysis and Industry Forecast (2024-2031)’. According to this recent publication, the AI chatbots market is set to achieve a valuation of $22.6 billion by 2031, growing at a CAGR of 27.8% from 2024 to 2031.

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This sector is experiencing substantial growth due to various crucial factors, including increased adoption across the IT and telecom sectors, an enhanced focus on improving self-service operations, the rising utilization of generative models in AI chatbots, and a growing demand for 24/7 customer support. However, the expansion of the market is hindered by concerns surrounding data privacy and security.

Furthermore, the escalating need for business process automation, the integration of AI chatbots with smart devices, and an uptick in their adoption within the retail and e-commerce sectors create significant opportunities for market participants. Conversely, the market faces challenges like misconceptions about AI chatbots and a lack of awareness regarding their solutions. Emerging trends within the AI chatbots landscape include the growing usage of voice-enabled chatbots, increased adoption for customer interactions, and advancements in natural language processing.

Key Players:

The competitive landscape of the AI chatbots market is characterized by moderate competition, with numerous global, regional, and local players. Key companies in the AI chatbots space include OpenAI OpCo, LLC (U.S.), Microsoft Corporation (U.S.), Google LLC (U.S.), Amazon Web Services, Inc. (U.S.), NVIDIA Corporation (U.S.), International Business Machines Corporation (U.S.), Perplexity AI, Inc. (U.S.), Zoho Corporation Pvt. Ltd. (U.S.), GET JENNY OY (Finland), Acuvate (U.K.), Freshworks Inc. (U.S.), Jasper AI, Inc. (U.S.), Anthropic PBC (U.S.), Writesonic, Inc. (U.S.), and Next IT & Systems LLC (UAE).

The AI chatbots market is segmented by offering, organization size, deployment mode, medium, and end-use industry. The report also evaluates industry competitors and conducts a regional and country-level analysis.

Among the offerings studied, the platforms segment is expected to lead, holding 73% of the market share in 2024. The dominance of the IT and telecommunications sectors is due to increased adoption of AI chatbot platforms for addressing various customer inquiries, high demand for multilingual support, and the potential to lower operational costs by managing multiple users simultaneously.

In terms of organization size, the large enterprises segment is forecasted to capture a 64% share of the market in 2024. This dominance is driven by the growing need to handle substantial volumes of queries and complaints, a strong demand for minimizing extended customer service wait times, and an increasing emphasis on understanding customer preferences for delivering personalized responses.

Within the deployment modes, the cloud-based segment is anticipated to dominate, holding a 57% share of the market in 2024. This growth is attributed to the rapid adoption of cloud-based AI chatbots, enabling 24/7 customer support from any location. Their implementation in retail and e-commerce sectors to assist customers, the rising demand for omnichannel support, and their ability to collect, analyze, and scale data further contribute to this growth.

Regarding mediums, the websites segment is projected to hold a 63% share of the market in 2024. This segment’s leadership is driven by the extensive adoption of website-based AI chatbots, which serve as effective online interaction models that enhance user experience. The increasing use of AI chatbots on websites to improve customer engagement across primary digital channels and the growing emphasis on enhancing businesses' digital presence and understanding customer needs reinforce this trend.

Among the end-use industriesanalyzed, the IT & telecommunications sector is expected to dominate, capturing 31% of the market in 2024. This segment’s leadership is due to the rising adoption of AI chatbots in the IT and telecommunications sectors, which manage a high volume of queries. Additionally, the need for these chatbots to enhance operational efficiency, reduce costs, and improve customer satisfaction plays a significant role in this growth, alongside the demand for analyzing customer data to gain insights into behaviors and preferences.

Geographic Review:

This research report provides a comprehensive analysis of major geographies, including North America (U.S., Canada), Europe (Germany, U.K., France, Italy, Spain, Switzerland, Netherlands, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Singapore, Australia & New Zealand, Indonesia, Rest of Asia-Pacific), Latin America (Brazil, Mexico, Rest of Latin America), and the Middle East & Africa (UAE, Israel, Rest of Middle East & Africa).

Among the regions studied, North America is expected to dominate with a 39% share of the market in 2024. This dominant position is supported by the strong presence of leading companies providing AI chatbot platforms and services, an increasing demand for AI-driven customer support solutions, and a high focus among key players on aligning with consumer preferences to enhance customer engagement.

To gain more insights into the market with a detailed table of content and figures, click here:https://www.meticulousresearch.com/product/ai-chatbots-market-6026

Key questions answered in the report-

Which are the high-growth market segments based on offering, organization size, deployment mode, medium, and end use industry?
What was the historical market for AI chatbots?
What are the market forecasts and estimates for the period 2024–2031?
What are the major drivers, restraints, and opportunities in the AI chatbots market?
Who are the major players, and what shares do they hold in the AI chatbots market?
How is the competitive landscape in the AI chatbots market?
What are the recent developments in the AI chatbots market?
What are the different strategies adopted by the major players in the AI chatbots market?
What are the key geographic trends, and which are the high-growth countries?
Who are the local emerging players in the AI chatbots market, and how do they compete with the other players?