As chatbots become increasingly adopted by businesses, their overall market size is expected to keep growing. Although chatbot technology can be applied to marketing, payments, and service, service-oriented chatbots constitute the bulk of the chatbot market’s revenue.

According to Tidio’s report, by 2023, the chatbot market is estimated to expand to $994 million, representing a yearly rise of approximately $200 million. Furthermore, the compound annual growth rate (CAGR) is currently at around 22%, so this figure is projected to climb to 3 billion dollars by the end of the decade.

Additionally, Juniper Research predicts that in 2024, consumer spending through chatbots worldwide will be an astonishing $142 billion – a huge increase from 2019’s figure of $2.8 billion.

Smaller companies have already adopted chatbots with the help of readily available third-party customer service bots that can be set up with one of the popular chatbot builders. Conversely, larger companies take a more calculated approach, developing their own in-house solution that can be time-consuming.