Generative AI Chatbot Market Revenue to Attain USD 151.88 Bn by 2035
Published: 04 Feb 2026
Author: Precedence Research
Generative AI Chatbot Market Revenue and Trends 2026 to 2035
The global generative AI chatbot market revenue was valued at USD 10.05 billion in 2025 and is expected to attain around USD 151.88 billion by 2035, growing at a CAGR of 31.20% during forecast period.This market is experiencing unprecedented growth, driven by the growing demand for automation and the increasing focus on reducing operational costs.
What are the Major Factors Contributing to the Growth of the Generative AI Chatbot Market?
The growing demand for 24/7 customer support is the major driver for the rapid growth of the market during the forecast period. Businesses across industries are increasingly adopting AI chatbots to provide instant responses, reducing wait times and enhancing customer satisfaction. The market’s growth is also primarily supported by the increasing focus to enhance customer interactions and rapid technological innovation.
Segment Insights
- By component, the software platforms & chatbot engines segment held the largest market share of 66% in 2025, owing to the ability of these platforms to provide the infrastructure for conversational intelligence. Moreover, the increasing adoption of these platforms has significantly increased demand for omnichannel engagement across mobile application, websites, and messaging platforms.
- By deployment mode, the cloud-based segment held a dominant market share of 62% in 2025, primarily driven by its scalability, flexibility, and ability to reduce the burden of initial infrastructure costs. Cloud-based infrastructure provides organizations with high-performance cloud computing resources for training and running large language models.
- By model type, the third-party/public LLM integrations segment registered its dominance in the market while holding a share of 47% in 2025. Third-party LLMs offer a strong foundation for reliability, accuracy, multilingual support, and ongoing vendor-driven updates, making them highly preferable for enterprise use.
- By end-user, the IT & telecom segment dominated the market with a share of 21% in 2025, held the largest share in the market. The rising integration of generative AI chatbots within the IT and telecom sector as operators seek to enhance customer experiences and enhancing operational efficiency.
Regional Insights
North America dominated the global Generative AI chatbot market. The region is home to the world's leading technology companies, such as OpenAI, Google, Microsoft, Meta, Amazon, Writesonic, Replika, Avaamo, and others. Several organizations are increasingly deploying generative AI chatbots to deliver personalized and real-time interactions with customers. These generative AI chatbots enhance service accuracy, reduce operational costs, and streamline service efficiency in several industries.
On the other hand, Asia Pacific is expected to grow at the fastest rate in the upcoming period. The growth of the region is attributed to the expanding digital infrastructure, increasing demand for human-like conversational, and growing demand across various industries such as IT/Telecom, healthcare, retail, finance, e-commerce, banking, telecommunications, and others.
Generative AI Chatbot Market Coverage
| Report Attribute | Key Statistics |
| Market Revenue in 2025 | USD 10.05 Billion |
| Market Revenue by 2035 | USD 151.88 Billion |
| CAGR from 2026 to 2035 | 31.20% |
| Quantitative Units | Revenue in USD million/billion, Volume in units |
| Largest Market | North America |
| Base Year | 2025 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa |
Recent Developments
- In August 2025, Amazon announced the launch of Rufus, a new generative AI-powered conversational shopping assistant, in India. Rufus is available to all Indian customers in the Amazon Shopping app and on desktop. Amazon Rufus enhances the shopping experience by providing personalized recommendations, product comparisons, and answers to queries based on Amazon’s vast product catalog, reviews, and web data. (Source: https://www.aboutamazon.in)
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