Collaboration Software Market Outlook 2031
The global collaboration software market size was valued at USD 22.89 Billion in 2022 and is likely to reach USD 49.71 Billion by 2031, expanding at a CAGR of 9% during the forecast period, 2023–2031. The growth of the market is attributed to workplace evolution and the increasing necessity to implement efficient team collaboration strategies across companies.
Collaboration software is intended to maximize the effectiveness of teamwork by offering a central platform where staff members may freely share information, data, and documents to work together to solve particular business problems or finish creative projects.
Both business and leisure, entertainment, or the arts can benefit from collaboration. The popularity of video conferencing and team meeting solutions is anticipated to expand as enterprise collaboration technology advances, enabling more efficient communication with partners, clients, and onshore staff.
Businesses that have been proactively putting money into virtual communication solutions are estimated to enhance their operations in the future and utilize the benefits of remote work practices. Additionally, companies have confidence that the proper technical advancements can open doors to unforeseen and novel opportunities while also improving operational efficiency.
COVID-19 Impact on Collaboration Software Market
The COVID-19 outbreak forced several companies to prioritize updating their IT systems. To combat the threat of the coronavirus, many companies have adopted work-from-home policies for their employees. Organizations are canceling business travels and slowly shifting their preference for data sharing to other platforms, such as audio and video conferences.
Such interactive collaboration technologies will not only assist in addressing this ongoing issue but are projected to also boost productivity over the long run by making communication safe and affordable. The pandemic impact has affected the stock prices of many companies, but some software producers, like Zoom, have seen their share values climb significantly.
Collaboration Software Market Dynamics
The market research report on the global collaboration software market provides a detailed analysis by focusing on revenue growth, facts, figures, and historical data to determine major drivers, existing restraints, key opportunities, and competitive analysis. The report includes recent developments that can shape the overall performance of the market during the assessment period, 2023 to 2031.
Major Drivers
Increasing adoption of conferencing tools and collaboration software to drive the market
Modern technologies are making it possible for companies to foster an environment where employees are inspired to use their creativity to accomplish corporate objectives and produce long-lasting economic values. New product and service opportunities brought forth by digital transformation allow firms to increase sales dramatically while lowering expenses due to enhanced performance.
The establishment of effective corporate communications, which include document sharing, co-creation, and strong team communication, is being significantly aided by the next-generation collaboration and enterprise productivity solutions. As a result, organizations are now able to manage communication and collaboration tools efficiently due to the adoption of modern technologies like Artificial Intelligence (AI) and Machine Learning (ML).
Major players are introducing new work environments. Collaboration solutions offer a wide range of benefits, including cost savings, increased productivity, and improved security. These solutions enable virtual teams to collaborate across firms, functions, and locations to increase productivity and innovation.
In order to establish comprehensive collaboration strategies, firms are shifting their focus from traditional communication tactics toward advanced alternatives. Thus, it is anticipated that during the forecast period.
The increasing use of collaborative technologies to effectively manage projects is anticipated to boost the market
Recently, distributed project teams have tended to use collaboration technologies the most. Team collaboration software help firms organize and control all project phases and communicate ideas among all team members. Combining all the project information enables the team members to make informed decisions.
For instance, project teams can easily organize daily meetings and conferences using Asana Groupware's team management and collaboration tools. With collaborative software solutions, project activity coordination between diverse team members and teams is much simpler. The management procedure is very dependable because it is simple to communicate information and create deadlines.
Project progress control is crucial for businesses to succeed in the long run and to gain a competitive advantage. The management of the project phases is greatly aided by technology integration, which also enables timely completion of the projects.
Existing Restraints
Security concerns are increasing as companies use more interactive technical solutions. Safety is the top concern for firms investing in software, including collaborative tools that may store ideas on a single platform.
The use of collaborative tools may result in the opening of an unprotected channel that could introduce malicious malware or another type of ransomware, depending on how network security is configured. Additionally, it could provide a way for hackers to break into the network, damage valuable data, or hurt corporate operations.
Just by adhering to the normative web-based protocols, some hackers are able to access company websites. Many programs frequently gather metadata from the device itself in URLs, which increases the risk of sensitive data being accidentally exposed. This is anticipated to hinder the market growth.
Key Opportunities
In recent years, there has been significant growth in the use of personal or business-owned devices including computers, cell phones, and tablets. Employees and enterprises could attend conferences and meetings wherever they are due to the integration of such solutions on personal devices.
Furthermore, the growing use of bring-your-own-device policies is a result of the increasing number of small and medium-sized businesses, which helps to limit or cut down on the initial infrastructure expenses. BYOD technology is anticipated to generate significant development opportunities while guaranteeing operational flexibility as a result of the expanding start-up culture in both emerging and mature economies.
Companies that successfully implement BYOD technology at their workplaces are expected to benefit from increased employee happiness, workplace productivity, and corporate performance, which is expected to positively impact the global market.
Scope of Collaboration Software Market Report:
The report on the global collaboration software market includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Collaboration Software Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Software Types (Communication & Coordination Software and Conferencing Software), Deployments (On-premise and Cloud), Enterprise Sizes (Large Enterprises and Small & Medium-sized Enterprises), and Applications (Education, Logistics & Transportation, Healthcare, Retail, IT & Telecom, BFSI, and Manufacturing)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Zoom Video Communications, Inc.; Zoho Corporation Private Limited; TeamViewer GmbH; SMART Technologies; Slack Technologies, Inc.; Polycom, Inc.; Oracle Corporation; OpenText Corporation; Microsoft Corporation; Micro Focus International plc; LogMeIn, Inc.; IBM Corporation; Google LLC; Citrix Systems Inc.; Cisco Systems Inc.; BOX, Inc.; Blackboard Inc.; Avaya Inc.; AudioCodes Ltd.; Atlassian Corporation Plc; AT&T Inc.; Asana, Inc.; and Adobe
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Collaboration Software Market Segment Insights
Software Types Segment Analysis
Based on software types, the market is segregated into communication & coordination software and conferencing software. The conferencing software segment is projected to grow at a rapid pace during the forecast period.
Growth of the segment is attributed to the fact that online conferencing is increasingly used as the main method of communication between enterprises. Over the past few years, a number of platforms including Microsoft Teams and Google Workspace have become extremely popular as the preferred methods for hosting virtual meetings.
By enabling enterprise-wide, real-time, and online communication, these systems have facilitated the digital transformation of workplaces. Enterprises can easily install conferencing solutions due to the introduction of the Software as a Service (SaaS) concept, encouraging ongoing innovation and boosting collaboration capabilities.
Team collaboration software has been dramatically transformed into standalone applications due to the SaaS delivery model, which mitigates slower response times and results in fewer system failures.
Deployments Segment Analysis
On the basis of deployments, the market is bifurcated into on-premise and cloud. The cloud segment is estimated to expand at a CAGR of around 13.5% during the projected period owing to the increased number of employees working remotely, there is a growing demand for efficient team collaboration across companies.
In addition, these cloud platforms provide users the choice to access collaboration tools through cellphones. Additionally, they include improved features, such as the ability to record occurrences for later review.
The COVID-19 pandemic has promoted the use of cloud-based communication tools such as the use of instant messaging software and video conferencing technologies to promote efficient communication between organizations while workers work remotely. Cloud-based technologies equally enable distant teams to streamline their corporate operations and manage projects of all sizes.
Enterprise Sizes Segment Analysis
In terms of enterprise sizes, the market is fragmented into large enterprises and small & medium-sized enterprises. The large enterprise segment held a key market share in 2021. The demand for efficient project management and the requirement to initiate digital cooperation among large, scattered teams are driving the segment.
The SMEs segment is estimated to grow at a high CAGR. The rise of virtual commerce has made it possible for SMEs to employ collaborative software to improve business-to-business communication. Additionally, the rising operational expenditures for managing large offices are increasing the demand for collaboration solutions among SMEs. Growing BYOD trend among small and medium-sized organizations is anticipated to drive the segment.
Applications Segment Analysis
Based on applications, the market is divided into education, logistics & transportation, healthcare, retail, it & telecom, BFSI, and manufacturing. The healthcare segment is expected to account for a major market share during the forecast period.
Clinicians are increasingly using cutting-edge communication and collaboration systems for safe remote workflow management and real-time data exchange between departments. The development of the segment is being aided by numerous government programs in this sector.
The rental segment is projected to dominate the market in the coming years due to the rising demand for complete collaboration software for staff involvement, real-time data sharing, and the exchange of ideas, comments, and news.
Retailers with many locations or channels can increase communication by using team collaboration software for channels including contact centers, IM, and phone calls. This makes it possible for workers, stores, and back offices at different sites to communicate easily. Additionally, team collaboration tools can help retailers incorporate mobile apps and improve customer care.
Collaboration Software Market Regional Analysis
On the basis of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific held around 22% of the total market share in 2021 due to the increasing high-speed internet infrastructure and the continuous digitization of enterprises in the region.
Such advancements are prompting organizations to use team collaboration software to maximize their workforce and promote productive employee connections. For instance, in December 2021, In India, Microsoft unveiled Teams Essentials.
This solution is intended to provide a professional and economical collaboration solution, particularly for small businesses. Moreover, the outbreak of COVID-19 in key developing nations including Japan, India, and China is boosting the market in the region. The picture of the regional market is also being improved by the growing use of cloud computing services.
The market in North America accounted for a substantial market share in 2021 owing to the increasing adoption of collaboration portals and web conferencing solutions by enterprises.
Additionally, it is anticipated that convenient access to high-speed internet—which is required for using remote work models is estimated to fuel the market in the region. The presence of key market players such as Asana, Cisco Systems, Inc., and Microsoft is projected to create immense growth opportunities.
Segments
Software Types
- Communication & Coordination Software
- Conferencing Software
Deployments
Enterprise Sizes
- Large Enterprises
- Small & Medium-sized Enterprises
Applications
- Education
- Logistics & Transportation
- Healthcare
- Retail
- IT & Telecom
- BFSI
- Manufacturing
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Zoom Video Communications, Inc.
- Zoho Corporation Private Limited
- TeamViewer GmbH
- SMART Technologies
- Slack Technologies, Inc.
- Polycom, Inc.
- Oracle Corporation
- OpenText Corporation
- Microsoft Corporation
- Micro Focus International plc
- LogMeIn, Inc.
- IBM Corporation
- Google LLC
- Citrix Systems Inc.
- Cisco Systems Inc.
- BOX, Inc.
- Blackboard Inc.
- Avaya Inc.
- AudioCodes Ltd.
- Atlassian Corporation Plc
- AT&T Inc.
- Asana, Inc.
- Adobe
Competitive Landscape
Key players competing in the collaboration software market include Zoom Video Communications, Inc.; Zoho Corporation Private Limited; TeamViewer GmbH; SMART Technologies; Slack Technologies, Inc.; Polycom, Inc.; Oracle Corporation; OpenText Corporation; Microsoft Corporation; Micro Focus International plc; LogMeIn, Inc.; IBM Corporation; Google LLC; Citrix Systems Inc.; Cisco Systems Inc.; BOX, Inc.; Blackboard Inc.; Avaya Inc.; AudioCodes Ltd.; Atlassian Corporation Plc; AT&T Inc.; Asana, Inc.; and Adobe.
Some of these players are using several market strategies such as collaborations, mergers, capacity expansion, partnerships, acquisitions, and product launches to increase their market shares, generate revenue, and raise their production line of business in the coming years. For instance,
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In December 2020, Workfront, a web-based job management software company, was acquired by Adobe Inc., a multinational technology company. By combining their resources, the companies hope to provide a range of planning support, team management, and collaboration options.
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In September 2020, A strategic agreement between Google LLC and SISCO System, Inc. was announced in order to meet the growing need for team collaboration and communication tools by enabling interoperability for their various conference room hardware and software solutions.
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In June 2020, Slack Connect was introduced by Slack Technologies LLC, a Salesforce company, to improve communication between enterprises. Slack Connect is a secure communication platform made available by the firm to assist businesses in moving interactions with customers, partners outside the organization, and vendors into the slack solution.
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