Live Chat Software Market

Live Chat Software Market Research, 2030

The global live chat software market was valued at $755.23 million in 2020, and is projected to reach $1.7 billion by 2030, growing at a CAGR of 8.8% from 2021 to 2030.

During the COVID-19 pandemic, live chat software played a vital role in resolving customer issues and providing quick solutions across the globe.The advantages of live chat software have become more obvious during the COVID-19 pandemic. The pandemic has altogether driven interest for live chat software as the main technology companies are integrating automation and intelligence into their operations for better and efficient customer engagement.

Live chat software is used by website providers to interact directly with visitors on their applications and websites through the combination of survey forms, instant messaging, or chat. It enables real-time communication between two users through a connected device that is appropriate for low to moderately complex product support. Live chat software is based on client server model, which allows client to start session after logging into user account. It helps organizations to serve customers without being intrusive.

The growth of the global live chat software industry is driven by increase in popularity of live chat, as certain part of population prefers live chat for online shopping questions. Moreover, rise in need to improve customer relationship management (CRM), as it is crucial for effective revenue generation in any enterprise, and number of advantages of live chat software over conventional customer support boost the growth of the market. However, lack of standardization and continuous surge in demand for web mobile self-services are the major restraints of this market. Conversely, integration of social media and live chat software is expected to provide lucrative opportunities for this market. In
addition, rise in awareness about benefits of the live chat software, which includes increased sales, enhanced customer engagement, reduced expenses, and others are expected to create growth opportunities for live chat software industry.

Segment Review

The live chat software market is segmented on the basis of product, device type, end user, and geography. Product segment covered in this study includes informational live chat systems, sales live chat systems, and customer service live chat systems. By device type, the market is segmented into mobile and desktop. By end user, the market is categorized into telecommunication & IT, retail, BFSI, travel & hospitality, education, healthcare, and others (entertainment, media, education, government, and real estate). By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of product, the customer service live chat system segment dominated the live chat software market share in 2020, and is expected to maintain its dominance in the upcoming years. Customer service live chat systems strongly reduces the effort it takes for visitors to receive answers to their questions. In the era of customer-focused businesses, live chat systems help to understand how and why unique customer events occur and what changes should be made to improve customer satisfaction. Moreover, rise in awareness about the benefits of the live chat software, which includes improved customer service & loyalty and customer convenience drive the market growth. However, sales live chat system is expected to register highest growth rate during forecasted period.

On the basis of end user, the retail & ecommerce segment dominated the live chat software market in 2020.  Online chat software help retailers to connect with the customer during the shopping process rather than after a purchase. This reduces the need for retailers to deal with customer service requests in the future and allows them to cross-sell or upsell items due to which they are preferred by many of the retailers. However, travel & hospitality registered highest growth during live chat software market forecast period. The proliferation of discount travel agencies and automated ticketing websites in recent years have increased the competition in the travel industry by making it harder to attract customers and make profit. This has fueled the adoption of online chat software by number of players in the global travel & hospitality industry to gain competitive advantages over others.

COVID-19 Impact Analysis

The current estimation of 2030 is projected to be higher than pre-COVID-19 estimates. During the COVID-19 pandemic, live chat software played a vital role in resolving customer issues and providing quick solutions across the globe.                                

The advantages of live chat software have become more obvious during the COVID-19 pandemic.  The effect of the pandemic altogether has driven interest for live chat software as the main technology companies are integrating automation and intelligence into their operations for better and efficient customer engagement.

Top impacting factors   

Increase in popularity of live chat software among end users

Live chat software is increasingly used by companies to offer instant assistance to their customers and website visitors. This software includes video, help desk, text chat, and CRM features. End users are increasingly using live chat software, which integrates seamlessly with their existing help desk, e-commerce, and CRM systems. In addition, the ability of the software to provide useful features such as preference settings for chat windows & reminders, share discussions, archive, and reporting tools have increased its popularity among industry verticals.

Rise in need to improve customer relationship management (CRM)

Multiple companies have integrated customer relationship management tool with live chat software to improve user experience for existing customers and potential leads. It helps them to keep history of an individual’s chats with the company, their account information, and recent purchases, which can expedite troubleshooting and problem solving that are essential when a customer is dissatisfied with the services. Use of live chat software improves customer relationship management by addressing issues rapidly and deftly. This boosts satisfaction and improves retention rates by saving organization’s money and protecting its customer base, which drives the live chat software market growth.

The live chat software market is segmented into End User, Product Type and Device Type.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the live chat software market analysis from 2020 to 2030 to identify the prevailing live chat software market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the live chat software market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global live chat software market trends, key players, market segments, application areas, and market growth strategies.

 Live Chat Software Market Report Highlights