Chatbot Market To Be Worth $15.5 Billion by 2028

Research firm MarketsandMarkets expects the worldwide chatbot market to grow from $5.4 billion today to $15.5 billion by 2028 at a compound annual rate of 23.3 percent.

The firm expects contact centers to hold the largest market share during the forecast period, noting that chatbots can handle many routine customer inquiries and free up human agents to deal with more complex issues. Chatbots, it said further, can handle the initial screening of customer inquiries, such as verifying account information or determining the nature of the customer's issue; handle frequently asked questions, such as billing inquiries, account changes, and product information; and provide 24/7 customer support.

MarketsandMarkets also expects the mobile app segment to hold the largest market share during the forecast period. Mobile app chatbots, which can be integrated into messaging apps such as WhatsApp, Facebook Messenger, and Telegram, and websites can assist users with tasks such as filling out forms, answering frequently asked questions, and providing personalized recommendations based on user preferences and behavior, according to the firm.

MarketsandMarkets also sees huge growth potential for menu-based chatbots, which use a series of pre-defined menus and options to guide users through conversations instead of forcing users to enter free-form text. These menu-based chatbots are often used when possible user inputs are limited and well-defined, such as when ordering food from a restaurant, scheduling appointments, or selecting from a list of frequently asked questions.

MarketsandMarkets identified Google, Microsoft, IBM, Amazon Web Services, Baidu, Oracle, and SAP as the prominent players in the chatbot market.