Collaboration Software Market worth over $30bn by 2026
Published Date: April 27, 2020 Authors: Preeti Wadhwani, Sachin Kasnale
Collaboration Software Market size is set to surpass USD 30 billion by 2026, according to a new research report by Global Market Insights, Inc.
Collaboration software offers a secure online platform for users to carry out business processes in a unified and centralized environment though efficient collaboration with other users. Collaboration tools assist enterprises in connecting with business partners, contracts, vendors, clients, and consultants for exchange of valuable information. This helps organizations to better serve their clientele and compete effectively in a dynamic market.
Holistic approach for improved inter-team communications to spur the market growth
The collaboration software market has witnessed a growing demand for effective communication and information exchange between various teams within an organization. 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.
In addition, 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 expected to create new market opportunities.
Increasing need for easier networking among employees propelling the growth of the solutions segment
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The enterprise social networking (ESN) solutions segment is poised to attain a growth rate of over 15% till 2026 as organizations look for viable solutions to implement fluid communications and efficient networking between employees.
Enterprise social networks are like 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.
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 Service, Managed Service]), By Deployment Model (On-Premise, Cloud), By Organization Size (Large Enterprises, SMEs), By Application (BFSI, IT & Telecom, Retail & Consumer Goods, Healthcare, Education, Government” in detail along with the table of contents:
Increasing trend of outsourcing amongst large enterprises proliferating the collaboration software market demand
The large enterprises segment held over 85% share of the global market in 2019. Large enterprises are increasingly transitioning toward collaboration tools to connect and collaborate with third-party contractors and teleworkers.
Additionally, 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 expected to further fuel the market growth.
Evolving cloud computing landscape driving the adoption of cloud collaboration software
The cloud segment is anticipated to register significant gains of around 20% 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.
Transition to virtual telehealth will surge the collaboration software market across the healthcare sector
The healthcare segment accounted for over 10% market revenue share in 2019. The market growth is characterized by 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, expanding the overall market share.
Growing adoption of collaboration software in Europe to streamline inter-departmental communications
The Europe collaboration software market is estimated to account for over 30% share of the global market 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 market 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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