Global Retail Chatbot Market 2025-2035

Description

List of Tables

Retail Chatbot Market Size, Share & Trends Analysis Report by Type (Rule-Based Chatbots and Interactive Chatbot), by Application (Websites, Contact Center, Social Media, and Mobile App), by Use Case (Customer Support, Product Recommendation, Tracking and Notification, Loyalty Programs and Offers, and Feedback), by Deployment (On-Premise, and Cloud), and by Components (Platform/SDK Kit, and Services), Forecast Period (2025-2035)

Industry Overview

Global retail chatbot market is valued at $1.2 billion in 2024 and is anticipated to grow at a CAGR of 19.5%. By 2035, the global retail chatbot market will grow to $8.7 billion. The growing demand for enhanced customer engagement is inspiring the integration of conversational AI technology in retail. Retailers are using chatbots to automate customer service and reduce response times. Retailers can help customers around the clock and increase online conversions by integrating a chatbot into their e-commerce websites. Contextual understanding in chatbot conversations has improved due to developments in natural language processing. Retailers have begun incorporating intelligent chatbot capabilities, leading to increased consumer preference for personalized shopping experiences.

Market Dynamics

Personalization with AI-Driven Chatbots

AI-powered chatbots are being used by retailers to provide a more upscale, individualized shopping experience. Bots can access varying user preferences and shopping history, allowing real-time product recommendations. For instance, H&M sets its chatbot to provide outfit options based on choices and past purchases. This can increase engagement and, ultimately, increase conversion. The human-like capabilities and interactions of chatbots enable them to be a tool of importance in retailer customer experience strategy. Personalization can be a unique selling point that drives additional brands to implement intelligent chatbot solutions within their digital presence.

Increasing demand for seamless Omnichannel Integration

Retail chatbots are critical for an uninterrupted experience for customers across both digital and touchpoints. For instance, Chatbots are used by Sephora on messaging apps and their websites to schedule in-store appointments, provide beauty advice, and make product recommendations. Chatbots allow them to keep a consistent conversation, no matter the touchpoint or platform. The demand for frictionless shopping is leading retailers to start aligning their chatbot strategy with an omnichannel strategy. This boosts overall customer satisfaction and operational efficiency which predictably encourages more investment in smart conversational technologies.

Market Segmentation

Based on the type, the market is segmented into rule-based chatbots and interactive chatbots.
Based on the application, the market is segmented into websites, contact centers, social media, and mobile apps.
Based on the use case, the market is segmented into customer support, product recommendation, tracking and notification, loyalty programs and offers, and feedback.
Based on the deployment, the market is segmented into on-premise and cloud.
Based on the component, the market is segmented into platform/SDK kit and services.

Platform / SDK Kit Segment to Lead the Market with the Largest Share

Increased uptake of SDK and platform-based tools is a major driver of growth for the retail chatbot market. Companies are realizing the benefits of adopting modular development frameworks that can be scaled across channels. For instance, Kore.ai has developed a conversational-AI platform that allows retailers to use retail-based templates to create, manage, and deploy chatbots. These platforms mitigate development time and allow chatbots to have multilingual, context-aware conversations. Retailers have capitalized on these platforms to define chatbot capabilities based on their branding and customer experience objectives. More demand for personal, automated conversation experiences requires SDK kits as a foundational standard to allow for the future innovation of chatbots.

Websites: A Key Segment in Market Growth

Chatbots utilized on websites still represent a key portion of the retail chatbot market. Companies are looking for intelligent chatbots on their sites to improve user assistance while on the website, improve online conversions, and mitigate costs associated with customer support. For instance, Haptik builds AI-based chat solutions directly inside retail websites, with a penchant for addressing customer queries in real-time. This embedded chatbot drives better product recommendations, tracks orders, and allows returns at a velocity never before experienced. As website traffic continues to grow across the globe, the retail space is starting to realize the ROI of having real-time conversational assistance.

Regional Outlook

The global retail chatbot market is further divided by geography, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Growing Demand for Smart Building Automation Systems in the Asia-Pacific

In the Asia-Pacific region, new retail chatbots are more common as a result of smartphone adoption and digital commerce. Leading Indian conversational AI platform Haptik is partnering with retailers in India to develop innovative, intelligent chatbots that enhance the customer service experience. In Japan, one of the companies leading this charge is LINE Corp., which is enabling better consumer engagement through AI-mediated messaging between retailers and consumers. iFLYTEK is providing voice recognition solutions to enable customers in retail to engage and interact in China. Likewise, some South Korean retailers are engaging the bot technology of organizations such as Kakao Enterprise to facilitate multilingual communications. Many of these innovations are making it relatively easy and fast for companies to deploy chatbots across the region's different retail environments.

North America Region Dominates the Market with a Major Share

North America's retail chatbot technology growth, driven by evolving consumer demand for digital-first engagement options and innovation on the enterprise level. Retailers are leveraging AI-based consumer engagement interactions to improve customer service and build loyalty. Major retailers collaborate with LivePerson, an AI-based conversational messaging platform provider based in the US, to enable integrations that engage customers across digital touchpoints. A developed e-commerce infrastructure and meaningful investment in CX technologies have been elevating North American market share.

Market Players Outlook

The major companies operating in the global retail chatbot market include IBM Corp., Google LLC, Microsoft Corp., Oracle Corp., and Salesforce, Inc., among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.

Recent Developments

In September 2024, Salesforce introduced Agentforce, a collection of autonomous AI agents that supplement employees and perform tasks in the areas of service, sales, marketing, and commerce, enabling previously unheard-of efficiencies and customer satisfaction. Businesses can instantly scale their workforce with a few snaps using Agentforce. Agentforce has no limit to the number of digital AI agents assisting or working on behalf of people virtually, reviewing data, making decisions, or doing work that requires actuating a task, where they either respond to customer service questions, qualify sales leads, or recommend marketing campaigns.
In June 2024, ZALORA, Asia's fashion and lifestyle e-commerce platform, introduced a customer service chatbot powered by AI that aims to offer customers support services in Singapore, Malaysia, the Philippines, Indonesia, Hong Kong, and Taiwan in a seamless, personalized manner. The chatbot uses artificial intelligence (AI) that is programmed to comprehend and learn the purpose of the customer inquiry to provide pertinent and accurate answers in a very visual and user-friendly manner. It utilizes generative AI for simple queries and can draw from an ever-growing, comprehensive knowledge base of FAQs. Natural language processing is employed to understand customers' intentions, allowing for the provision of relevant, useful answers to more complex questions.
In May 2023, Global Message Services (GMS), the trusted communications service provider for enterprises and mobile operators internationally, announced the launch of its AI Chatbots solution for enterprise use, to improve productivity in customer care, HR and recruitment, marketing, and sales. GMS's AI Chatbots application provides enterprises with access to advanced Natural Language Understanding (NLU) and context-based AI, helping organizations improve customer experience, provide support, and increase engagement while lowering and optimizing costs.

The Report Covers:

Market value data analysis of 2024 and forecast to 2035.
Annualized market revenues ($ million) for each market segment.
Country-wise analysis of major geographical regions.
Key companies operating in the global retail chatbot market. Based on the availability of data, information related to new products and relevant news is also available in the report.
Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
Analysis of market-entry and market expansion strategies.
Competitive strategies by identifying 'who-stands-where' in the market.

Product Code: OMR2028380

1. Report Summary

Current Industry Analysis and Growth Potential Outlook
Global Retail Chatbot Market Sales Analysis - Type | Deployment | Component | Application | Use Case ($ Million)
Retail Chatbot Market Sales Performance of Top Countries
1.1. Research Methodology
Primary Research Approach
Secondary Research Approach
1.2. Market Snapshot

2. Market Overview and Insights

2.1. Scope of the Study
2.2. Analyst Insight & Current Market Trends
- 2.2.1. Key Retail Chatbot Market Trends
- 2.2.2. Market Recommendations
2.3. Porter's Five Forces Analysis for the Retail Chatbot Market
- 2.3.1. Competitive Rivalry
- 2.3.2. Threat of New Entrants
- 2.3.3. Bargaining Power of Suppliers
- 2.3.4. Bargaining Power of Buyers
- 2.3.5. Threat of Substitutes

3. Market Determinants

3.1. Market Drivers
- 3.1.1. Drivers For Global Retail Chatbot Market: Impact Analysis
3.2. Market Pain Points and Challenges
- 3.2.1. Restraints For Global Retail Chatbot Market: Impact Analysis
3.3. Market Opportunities
- 3.3.1. Opportunities For Global Retail Chatbot Market: Impact Analysis

4. Competitive Landscape

4.1. Competitive Dashboard - Retail Chatbot Market Revenue and Share by Manufacturers
Retail Chatbot Product Comparison Analysis
Top Market Player Ranking Matrix
4.2. Key Company Analysis
- 4.2.1. Google LLC
  - 4.2.1.1. Overview
  - 4.2.1.2. Product Portfolio
  - 4.2.1.3. Financial Analysis (Subject to Data Availability)
  - 4.2.1.4. SWOT Analysis
  - 4.2.1.5. Business Strategy
- 4.2.2. IBM Corp.
  - 4.2.2.1. Overview
  - 4.2.2.2. Product Portfolio
  - 4.2.2.3. Financial Analysis (Subject to Data Availability)
  - 4.2.2.4. SWOT Analysis
  - 4.2.2.5. Business Strategy
- 4.2.3. Microsoft Corp.
  - 4.2.3.1. Overview
  - 4.2.3.2. Product Portfolio
  - 4.2.3.3. Financial Analysis (Subject to Data Availability)
  - 4.2.3.4. SWOT Analysis
  - 4.2.3.5. Business Strategy
- 4.2.4. Oracle Corp.
  - 4.2.4.1. Overview
  - 4.2.4.2. Product Portfolio
  - 4.2.4.3. Financial Analysis (Subject to Data Availability)
  - 4.2.4.4. SWOT Analysis
  - 4.2.4.5. Business Strategy
- 4.2.5. Salesforce, Inc.
  - 4.2.5.1. Overview
  - 4.2.5.2. Product Portfolio
  - 4.2.5.3. Financial Analysis (Subject to Data Availability)
  - 4.2.5.4. SWOT Analysis
  - 4.2.5.5. Business Strategy
4.3. Top Winning Strategies by Market Players
- 4.3.1. Merger and Acquisition
- 4.3.2. Product Launch
- 4.3.3. Partnership And Collaboration

5. Global Retail Chatbot Market Sales Analysis by Type ($ Million)

5.1. Rule-Based Chatbot
5.2. Interactive Chatbot

6. Global Retail Chatbot Market Sales Analysis by Deployment ($ Million)

6.1. On-premises
6.2. Cloud

7. Global Retail Chatbot Market Sales Analysis by Component ($ Million)

7.1. Platform/ SDK kit
7.2. Services

8. Global Retail Chatbot Market Sales Analysis by Application ($ Million)

8.1. Websites
8.2. Contact Center
8.3. Social Media
8.4. Mobile App

9. Global Retail Chatbot Market Sales Analysis by Use Case ($ Million)

9.1. Customer support
9.2. Product recommendation
9.3. Tracking and notifications
9.4. Loyalty programs and offers
9.5. Feedback

10. Regional Analysis

10.1. North American Retail Chatbot Market Sales Analysis - Type | Deployment | Component | Application | Use Case | Country ($ Million)
Macroeconomic Factors for North America
- 10.1.1. United States
- 10.1.2. Canada
10.2. European Retail Chatbot Market Sales Analysis - Type | Deployment | Component | Application | Use Case | Country ($ Million)
Macroeconomic Factors for Europe
- 10.2.1. UK
- 10.2.2. Germany
- 10.2.3. Italy
- 10.2.4. Spain
- 10.2.5. France
- 10.2.6. Russia
- 10.2.7. Rest of Europe
10.3. Asia-Pacific Retail Chatbot Market Sales Analysis - Type | Deployment | Component | Application | Use Case | Country ($ Million)
Macroeconomic Factors for Asia-Pacific
- 10.3.1. China
- 10.3.2. Japan
- 10.3.3. South Korea
- 10.3.4. India
- 10.3.5. Australia & New Zealand
- 10.3.6. ASEAN Countries (Thailand, Indonesia, Vietnam, Singapore, And Other)
- 10.3.7. Rest of Asia-Pacific
10.4. Rest of the World Retail Chatbot Market Sales Analysis - Type | Deployment | Component | Application | Use Case | Country ($ Million)
Macroeconomic Factors for the Rest of the World
- 10.4.1. Latin America
- 10.4.2. Middle East and Africa

11. Company Profiles

11.1. Ada Support, Inc.
- 11.1.1. Quick Facts
- 11.1.2. Company Overview
- 11.1.3. Product Portfolio
- 11.1.4. Business Strategies
11.2. Aivo (an Engageware Co.)
- 11.2.1. Quick Facts
- 11.2.2. Company Overview
- 11.2.3. Product Portfolio
- 11.2.4. Business Strategies
11.3. Amazon Web Services, Inc.
- 11.3.1. Quick Facts
- 11.3.2. Company Overview
- 11.3.3. Product Portfolio
- 11.3.4. Business Strategies
11.4. Avaamo
- 11.4.1. Quick Facts
- 11.4.2. Company Overview
- 11.4.3. Product Portfolio
- 11.4.4. Business Strategies
11.5. Boost AI AS
- 11.5.1. Quick Facts
- 11.5.2. Company Overview
- 11.5.3. Product Portfolio
- 11.5.4. Business Strategies
11.6. Botpress Technologies, Inc.
- 11.6.1. Quick Facts
- 11.6.2. Company Overview
- 11.6.3. Product Portfolio
- 11.6.4. Business Strategies
11.7. Chatfuel
- 11.7.1. Quick Facts
- 11.7.2. Company Overview
- 11.7.3. Product Portfolio
- 11.7.4. Business Strategies
11.8. Cognigy GmbH
- 11.8.1. Quick Facts
- 11.8.2. Company Overview
- 11.8.3. Product Portfolio
- 11.8.4. Business Strategies
11.9. Google LLC
- 11.9.1. Quick Facts
- 11.9.2. Company Overview
- 11.9.3. Product Portfolio
- 11.9.4. Business Strategies
11.10. IBM Corp.
- 11.10.1. Quick Facts
- 11.10.2. Company Overview
- 11.10.3. Product Portfolio
- 11.10.4. Business Strategies
11.11. Inbenta Holdings Inc.
- 11.11.1. Quick Facts
- 11.11.2. Company Overview
- 11.11.3. Product Portfolio
- 11.11.4. Business Strategies
11.12. Intercom Inc.
- 11.12.1. Quick Facts
- 11.12.2. Company Overview
- 11.12.3. Product Portfolio
- 11.12.4. Business Strategies
11.13. Jio Haptik Technologies Ltd.
- 11.13.1. Quick Facts
- 11.13.2. Company Overview
- 11.13.3. Product Portfolio
- 11.13.4. Business Strategies
11.14. Kasisto, Inc.
- 11.14.1. Quick Facts
- 11.14.2. Company Overview
- 11.14.3. Product Portfolio
- 11.14.4. Business Strategies
11.15. Kore.ai, Inc.
- 11.15.1. Quick Facts
- 11.15.2. Company Overview
- 11.15.3. Product Portfolio
- 11.15.4. Business Strategies
11.16. LivePerson, Inc.
- 11.16.1. Quick Facts
- 11.16.2. Company Overview
- 11.16.3. Product Portfolio
- 11.16.4. Business Strategies
11.17. ManyChat, Inc.
- 11.17.1. Quick Facts
- 11.17.2. Company Overview
- 11.17.3. Product Portfolio
- 11.17.4. Business Strategies
11.18. Microsoft Corp.
- 11.18.1. Quick Facts
- 11.18.2. Company Overview
- 11.18.3. Product Portfolio
- 11.18.4. Business Strategies
11.19. Nuance Communications, Inc.
- 11.19.1. Quick Facts
- 11.19.2. Company Overview
- 11.19.3. Product Portfolio
- 11.19.4. Business Strategies
11.20. Oracle Corp.
- 11.20.1. Quick Facts
- 11.20.2. Company Overview
- 11.20.3. Product Portfolio
- 11.20.4. Business Strategies
11.21. Pandorabots, Inc.
- 11.21.1. Quick Facts
- 11.21.2. Company Overview
- 11.21.3. Product Portfolio
- 11.21.4. Business Strategies
11.22. Rasa Technologies Inc.
- 11.22.1. Quick Facts
- 11.22.2. Company Overview
- 11.22.3. Product Portfolio
- 11.22.4. Business Strategies
11.23. Salesforce, Inc.
- 11.23.1. Quick Facts
- 11.23.2. Company Overview
- 11.23.3. Product Portfolio
- 11.23.4. Business Strategies
11.24. SAP SE
- 11.24.1. Quick Facts
- 11.24.2. Company Overview
- 11.24.3. Product Portfolio
- 11.24.4. Business Strategies
11.25. Tars Technologies Inc.
- 11.25.1. Quick Facts
- 11.25.2. Company Overview
- 11.25.3. Product Portfolio
- 11.25.4. Business Strategies
11.26. Yellow.ai (Bitonic Technology Labs Inc.)
- 11.26.1. Quick Facts
- 11.26.2. Company Overview
- 11.26.3. Product Portfolio
- 11.26.4. Business Strategies
11.27. Zendesk, Inc.
- 11.27.1. Quick Facts
- 11.27.2. Company Overview
- 11.27.3. Product Portfolio
- 11.27.4. Business Strategies