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The Live Chat Software Market size is estimated to grow at a CAGR of 8.91% between 2022 and 2027. The market size is forecast to increase by USD 428.8 million. The growth of the market depends on several factors, including increasing customer expectations for real-time support and personalized interactions, growing adoption of digital channels and online platforms by businesses, and rising demand for efficient and cost-effective customer service solutions. Numerous manufacturers are contending for market dominance in the highly competitive global live chat software market. The market in focus is dominated by key competitors due to their all-inclusive live chat solutions. These businesses put a strong emphasis on ongoing innovation and offer cutting-edge services like analytics, omnichannel assistance, and AI-powered chatbots.
This live chat software market report extensively covers market segmentation by type (customer service live chat systems, informational service live chat systems, and sales live chat systems), end-user (large enterprises and SMEs), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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One of the key factors driving the live chat software market growth is the increasing customer expectations for real-time support and personalized interactions. Some of the key factors which are significantly contributing to the growth of the global live chat software market is the rising demand for personalized services in real-time and increased client expectations. Most customers currently seek immediate assistance and individualized experiences while interacting with online businesses.
As a result, most online businesses are increasingly adopting live chat software in order to meet these expectations as these software can offer prompt responses, real-time query resolutions, and personalized recommendations. Thus, live chat software offers customers convenience, effectiveness, and personalized touch during the interaction which is expected to drive the global live chat software market growth during the forecast period.
A key factor shaping the global live chat software market growth is the increased adoption of AI-powered chatbots and virtual assistants for automated customer interactions. One of the emerging trends in the global live chat software market is the growing popularity of AI-powered chatbots and virtual assistants. Several companies are leveraging AI technologies to streamline operations and automate consumer interactions.
Some of the main advantages of implementing AI chatbots are this software can handle common consumer inquiries, deliver quick responses, and even make personalized recommendations. With the help of natural language processing (NLP), these chatbots comprehend user inquiries and give appropriate answers. Hence, such factors are expected to drive the global live chat software market growth during the forecast period.
Intense competition from alternative communication channels is one of the key challenges hindering the global live chat software market growth. One of the main challenges which pose a significant threat is the intense competition from alternate forms of communication in the market. Some of the alternate ways of communication that are leveraged by businesses include email, phone help, self-service portals, and social media platforms.
Hence, it has become essential to demonstrate the advantages of live chat software in order to businesses to adopt it. Thus, it has become a major challenge to convince companies to shift their customer service to live chat software which can negatively impact the market. Hence such factors are expected to hinder the global live chat software market growth during the forecast period.
The customer service live chat systems segment is estimated to witness significant growth during the forecast period. One of the main factors for the significant growth of the customer service live chat systems segment is the high demand for personalized interactions and real-time customer care in the market. By leveraging live chat platforms, many businesses are able to rapidly communicate with customers, address queries, and provide proactive assistance.
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The customer service live chat systems segment was the largest segment and was valued at USD 372.06 million in 2017. There is a growing popularity for live chat software across enterprises due to its several advantages, such as ease, effectiveness, and affordability in a number of different areas, including e-commerce, telecommunications, and healthcare. Furthermore, developments in artificial intelligence and chatbot technologies are significantly contributing to the market growth. Factors such as increased use of digital communication channels and increased focus on providing excellent customer experiences are expected to drive the growth of this segment which in turn is expected to drive the global live chat software market growth during the forecast period.
The superior client experience is expected to drive the adoption of live chat software across large enterprise segments during the forecast period. There is increasing adoption of live chat software across large enterprises as it can increase client engagement, speed up reaction times, and offer personalized assistance. Some of the large-scale enterprises which use live chat software include Amazon, Microsoft, and Apple which require it to manage their high volume of client contacts across several channels. Hence, better customer relationship management and increasing operational efficiency are expected to drive the growth of this segment which in turn will drive the global live chat software market growth during the forecast period.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. There is a growing popularity for live chat software market in North America across small-scale and large-scale enterprises due to factors such as the growing need for seamless client engagement, individualized support, and improved user experience. Some of the prominent players in the global live chat software in North America are LivePerson, Zendesk, and LiveChat. There is a growing popularity for live chat software among companies in North America due to the increasing need to improve conversions, increase consumer satisfaction, and gain a competitive advantage in the market. Hence, such factors are expected to drive the global live chat software market in the region during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global live chat software market witnessed significant growth as many large-scale businesses shifted to remote work and internet interactions increased, which resulted in the adoption of live chat software across North America. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the economic recovery and resumption of operations across numerous industries. Such factors are expected to drive the market during the forecast period.
The Live Chat Software market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Live Chat Software Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
3CX: The company offers 3CX free livechat software.
ByteQuack: The company offers Live chat Bots with customized message suggestions, live agents, and customer dashboards.
HubSpot Inc: The company offers website Live chat Bots.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The live chat software market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Live Chat Software Market Scope |
|
Report Coverage |
Details |
Page number |
147 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.91% |
Market growth 2023-2027 |
USD 428.8 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.09 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
3CX, Appy Pie LLC, ByteQuack, Chaport Inc., Drift.com Inc., Freshworks Inc., Grexit Inc., Habla Inc., HelpCrunch Corp., HubSpot Inc., LiveChat Inc., Podium Corp Inc., Roger Wilco LLC, The Pipedrive Services, ThriveDesk, Tidio LLC, Userlike UG, Vision Helpdesk, Zoho Corp. Pvt. Ltd., and ZoomInfo Technologies Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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