Live Chat Software Market Expected to Reach $1.7 Billion by 2030—Allied Market Research

According to a new report published by Allied Market Research, titled, “Live Chat Software Market," The live chat software market was valued at $755.23 million in 2020, and is estimated to reach $1.7 billion by 2030, growing at a CAGR of 8.8% from 2021 to 2030.

The growth of the global live chat software market 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 increase 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 include increased sales, enhanced customer engagement, reduced expenses, and others are expected to create growth opportunities for this market.

On the basis of product, the customer service live chat system segment dominated the live chat software market in 2020, and is expected to maintain its dominance in the upcoming years. Customer service live chat systems strongly reduce the effort it takes for visitors to receive answers on 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, increase in awareness about the benefits of the online chat software, which include improved customer service & loyalty and customer convenience drive the market growth. However, sales live chat system is expected to register highest growth rate during live chat software market forecast period.

By device type, mobile sector dominated the live chat software market in 2020. This is due to rapid adoption of smartphones globally, internet penetration in emerging economies and rapid development of mobile applications for various industry verticals such as BFSI, retail and education.

North America dominated the live chat software market in 2020. The top start-up accelerators in North America are building artificial intelligence-enabled tools to help businesses with customer support, sales, and marketing. For instance, North American businesses are using bots such as Claire, which is used for testing consumer products,  ad campaigns and Scribe, which is an AI-powered “sales development representative” that can identify new leads. The combination of artificial intelligence and live chat software is anticipated to create enormous opportunities for this market.

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

The advantages of online chat software have become more obvious during the COVID-19 pandemic. This has led to increase in the sales of products and services through ecommerce channels, which has increased the adoption of live chat software to provide 24*7 customer support.

Key Findings of the Study

• By Product, in 2020 the customer service live chat system dominated the live chat software market size.
• By device, in 2020, the mobile segment dominated the live chat software market size.
• Depending on end user, retail and Ecommerce segment generated the highest revenue in 2020 of Live chat software market share. However, travel & hospitality sector is expected to witness significant growth in the forecasted period.
• Region wise, the live chat software industry was dominated by North America region. However, Asia-Pacific is expected to witness significant growth in the upcoming years.

Some of the key Live chat software industry players profiled in the report include LogMeIn, Inc., LivePerson, Inc., Zendesk, SnapEngage, Livechat, Inc., Olark, Kayako, Inc., Freshdesk, Inc., Woopra, Inc., and Provide Support LLC. This study includes market trends, Live chat software market analysis, and future estimations to determine the imminent investment pockets.