Collaboration Software Market size worth over $30 Bn by 2026
Published Date: April 27, 2020 Authors: Preeti Wadhwani, Smriti Loomba
Collaboration Software Market size is set to surpass USD 30 billion by 2026, according to a new research report by Global Market Insights Inc.
Growing demand for effective communication and information exchange between various teams within an organization is fueling the collaboration software industry growth. Collaboration tools tightly integrate project management and division of work with the overall administrative control. This enables enterprises to efficiently manage their resources through well-defined communication channels.
Moreover, the COVID-19 pandemic has forced organizations to rethink their market strategies and assess their remote working readiness. The crisis is expected to increase the demand for collaboration software to support the remote workforce. Overlapping and integration of different business verticals are further creating new market opportunities.
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Increasing need for easier networking among employees propelling the demand of solutions segment
The Enterprise Social Networking (ESN) solutions segment is poised to attain a growth rate of over 15% through 2026 as organizations look for viable solutions to implement fluid communications and efficient networking between employees. Enterprise social networks are similar to social media networks, limited only to people within an organization. ESNs help organizations share information, collaborate, and strengthen company culture. These also improve efficiency by replacing time-consuming email threads with public or private discussions that are displayed concisely on the network.
Evolving cloud computing landscape is driving the adoption of cloud collaboration software
The cloud segment is anticipated to register significant gains of around 20% CAGR from 2020 to 2026. The surging uptake of virtualization technologies and the increasing popularity of cloud platforms for data sharing have accentuated the market growth of the cloud segment. The centralized nature of cloud computing provides a standard and unified platform for knowledge sharing, team collaborations, and information filtering, making cloud platforms a viable solution for collaborative processes.
Browse key industry insights spread across 270 pages with 410 market data tables and 28 figures & charts from the report, “Collaboration Software Market Size By Component (Solution [Conferencing, Content Sharing, Project Management, Enterprise Social Networking, Messaging], Service [Professional Services, Managed Services]), By Deployment Model (On-premise, Cloud), By Organization Size (SMEs, Large Enterprises), By Application (BFSI, IT and Telecom, Retail and Consumer Goods, Healthcare, Education, Government, Others), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Increasing trend of outsourcing amongst large enterprises proliferating the demand for collaboration software
The large enterprises segment captured more than 85% of the collaboration software market revenue share in 2019. Large enterprises are increasingly transitioning toward collaboration tools to connect and collaborate with third-party contractors and teleworkers. Moreover, increasing trends of outsourcing have forced large organizations to adopt collaboration software for efficient information exchange and maintain market competitiveness. A surge in the adoption of conferencing solutions by major enterprises across various industry verticals is set to further spur the market revenue.
Transition to virtual telehealth will surge the collaboration software industry across the healthcare sector
The healthcare segment accounted for about 10% revenue share in 2019 led by the rising uptake of conferencing solutions by healthcare institutes to speed-up decisions. Digitalization in the healthcare sector is assisting medical organizations in improving access to medical care, decreasing the need for physical diagnosis, and promoting virtual telehealth. Enhanced and real-time communications through collaboration software are helping medical professionals in efficiently handling critical cases.
Growing acceptance of collaboration software in Europe to streamline inter-departmental communications
The Europe collaboration software industry is likely to hold more than 30% share by 2026. Enterprises in the region are increasingly demanding secure enterprise collaboration solutions to manage the content and Software-as-a-Service (SaaS), leading to an expansion in the overall market. European industries are highly receptive about security, privacy, and regulatory issues, thereby showing a strong interest in the enterprise collaboration solution.
Focus on strategic partnerships by key players to augment the market share
The collaboration software market has witnessed several strategic acquisitions and mergers among major vendors to strengthen their presence. For instance, in August 2019, Cisco Systems announced the acquisition of Voicea, a voice collaboration platform. Similarly, in July 2018, Slack Technologies acquired the enterprise collaboration business from Atlassian in a bid to curb market rivalry and increase revenues.
Some of the key players operating in the industry include AT&T, Inc. Atlassian Corporation Plc, AudioCodes Ltd., Avaya, Inc., Blackboard Inc., BOX, Inc., Cisco Systems, Inc., Citrix Systems, Inc., Google LLC, IBM Corporation, LogMeIn, Inc., Micro Focus International plc, Microsoft Corporation, OpenText Corporation, Oracle Corporation, Polycom, Inc., Slack Technologies, Inc., SMART Technologies, Inc., TeamViewer GmbH, ZOHO Corporation Pvt Ltd., and Zoom Video Communications, Inc.
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