Team Collaboration Software Market Statistics: 2027
The team collaboration software market size was valued at $9,878 million in 2019, and is projected to reach $26,493 million by 2027, growing at a CAGR of 13.2% from 2020 to 2027. Team collaboration software is developed with an intent to collaborate team communications, information sharing, and task status into one platform. The primary factor for businesses to use team collaboration software is to improve the productivity among its employees who don’t necessarily work in the same office space, and are working in diversified offices. Collaborative technologies have created online workspace that helps an organization’s employees to share data and documents. Team collaboration software vary depending upon an organization’s needs. Trends such as remote working and freelancing has proliferated the demand for team collaboration software from the recent past.
Collaborative technologies are a set of applications integrate together to make real time communication and collaboration between teams regardless of their location. Rise in number of collaborative workspaces is a major factor that drive the growth of the team collaboration software market. This is attributed to ability of the collaboration software to bring diversified teams work together into a workspace and allow them share and schedule task in real time. Many of the team collaboration software combine video conferencing with real-time content collaboration in office documents, PDFs, images, whiteboards, and texts. Aforementioned are the factors that anticipate high growth of team collaboration software among various organizations across the globe.
On-premise team collaboration software are widely deployed, owing to security framework of an organization that protect the data as it stays on-premise within the organizations framework. Whereas, rise in remote working has proliferated the adoption of cloud-based team collaboration software services, as these services are cost-effective due to pay-as-you-go model and provide access to high volume of data. Cloud-based team collaboration software are highly adopted by large enterprises, where the data volumes and number of teams working in an organization are high. Thus, cloud based deployments are expected to dominate the market at present and is expected to witness significant CAGR in the team collaboration software market forecast period.
The IT & telecommunication industry anticipate high adoption of team collaboration software in the coming years. This is attributed to growth in IT spending of various industries to adopt technological solutions into their operations. Also, the BFSI sector has increased its IT budgets to adopt various collaborative platforms to help cope with on-going disruptions due to COVID-19 pandemic.
Asia-Pacific countries are expected to garner high CAGR in the coming years, as the industries are adopting various business growth strategies such as digitization, industry 4.0, and others. Furthermore, North America dominates the team collaboration software market in 2019, owing to high number of players operating in the region. In addition, North American players are introducing innovative collaboration software with additional in the existing software. For instance, in June 2020, Google LLC, introduced roll free access to “advanced” features for Hangouts Meet to all G Suite and G Suite for education customers globally.
The report focuses on the growth prospects, restraints, and market analysis. The study provides Porter’s five forces analysis of the team collaboration software industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the market.
The team collaboration software market is segmented on the basis of component, deployment, software type, industry vertical, and region. On the basis of component, it is categorized into software and service. On the basis of deployment, it is classified into on-premise and cloud. By software type, it is bifurcated into conferencing and communication and co-ordination. Depending on industry vertical, it is divided into BFSI, manufacturing, healthcare, IT & telecommunications, retail & e-commerce, government & defense, media & entertainment, education, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Service segment is projected as one of the most lucrative segments.
The players operating in the team collaboration software market analysis include AT&T Intellectual Property, Cisco System Inc., Citrix Systems Inc., Google LLC, IBM Corporation, Microsoft Corporation, MindMeld Inc., Oracle Corporation, Slack Technologies, Inc., and SMART Technologies ULC.
These major players have adopted various key development strategies such as business expansion and new product launch, which drives the team collaboration software market growth.
By Deployment Mode
Cloud deployment mode is projected as one of the most lucrative segments.
Impact of COVID-19
Team collaboration software have witnessed positive impact during the COVID-19 pandemic, as policies such as work from home imposed by the government across the globe have compelled business leaders to opt for collaborative platforms. Industries such as BFSI, manufacturing, and e-commerce witnessed disruptions in their business operations and workforce management. Such industries adopted technological solutions to ease the negative revenue growth. Moreover, smart offices witnessed high productivity, owing to collaborative platforms which in turn supported the growth of the market.
Many collaborative platform players helped industries to cope in their disrupted business. For instance, in June 2020, Microsoft Corporation offered a free six-month trial globally for a premium tier of Microsoft Teams. The tier was originally designed to enable hospitals, schools, and businesses in China to run quickly on Microsoft Teams, and that tier is now available globally.
By Software Type
Conferencing segment is one of the most significant segments.
Top Impacting Factors
Top impacting factors that drive the team collaboration market growth include increase in adoption of cloud-based Software as a Service (SaaS) among various industries, rise in shift toward virtual businesses due to COVID-19 pandemic, and growing popularity of team collaboration software to reduce administration and maintenance cost. Moreover, the ability of team collaboration software that provides coordination of cross-continent teams is driving the demand for collaborative platforms to improve the workflow efficiencies. However, lack of IT infrastructure in developing regions could hamper the market growth to a certain extent. On the contrary, integration of advanced technologies in team collaboration software is anticipated to provide team collaboration software market opportunity.
Increase in Adoption of Cloud-based Software as a Service (SaaS)
As the workspace is evolving across the globe, software services play a vital role. Globalization and digitization are dominating initiatives proliferating the Software as a Service (SaaS) model at a significant rate. With the corona virus disruption in day-to-day business operation, SaaS-based models have witnessed high adoption in 2019-2020. Thus, cloud-based SaaS models are expected to drive the market growth in the coming years.
Asia-Pacific region is projected as one of the most significant segments.
Players are innovating collaborative tools for high adoption rates. For instance, in July 2020, Kona bot for Slack was launched by Sike Insights. The Kona bot is infused with artificial intelligence that helps companies to understand the working styles and communication preferences of team members. As people work together, Kona checks out how they communicate and provides business leaders with insights on how to manage future interactions.
Key Benefits for Stakeholders
- This study includes team collaboration software market trends, opportunity, analysis, and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities of the team collaboration software industry.
- The team collaboration software market share is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the industry.
- Porter’s five forces analysis illustrates the potency of the buyers & suppliers in the team collaboration software market.
Team Collaboration Software Market Report Highlights
By SOFTWARE TYPE
By INDUSTRY VERTICAL
Key Market Players
MICROSOFT CORPORATION, ORACLE CORPORATION, CITRIX SYSTEMS, INC, SMART TECHNOLOGIES ULC, GOOGLE LLC, CISCO SYSTEMS, INC, SLACK TECHNOLOGIES, INC, AVAYA INC, AT&T INC, INTERNATIONAL BUSINESS MACHINES CORPORATION
Collaborative working environment have witnessed change from desk–based work jobs to remote working, which has evolved the way teams works together. Nowadays, transparency in working environment has become the necessity to achieve maximum productivity in an organization. Due to this, many top-level executives expect that the team collaboration software will gain high traction among young generation teams.
Team productivity leads a business to success and high production. Thus, many business leaders opt for solutions that work to facilitate teamwork and increase transparency to gain per employee performance. Moreover, organizations are focused toward achieving professional communication channels that do not distract their employees with personal work. Thus, almost all companies across the globe opt for team collaboration software as an immediate mode of communication with their employees. For instance, in 2017, Slack Technologies that offers team collaboration software registered 6 million daily active users.
According to the Allied Market Research analysis, online team collaboration software will garner high adoption rate in the 2019-2020. This anticipates to fast-tracking trends such as digitalization, automation, and innovation. In terms of innovations, team collaboration software has evolved to live streaming presentation from sending emails. Some of the advance features such as white boarding, screen sharing, multi-presenter, and others have proliferated high awareness for the need for team collaboration software as a day-to-day operation in an organization.
In this COVID-19 pandemic companies are focusing toward innovations through collaboration. This helps the company to achieve their goal and target. Diversified teams in terms of skills or geographically, needs to communicate, manage, coordinate together to collectively achieve an organizations’ goal. This has positively impacted the team collaboration software market from the recent past.
Major players operating in the global workforce management market include ADP, LLC, Infor, IBM Corporation, Kronos Incorporated, Oracle Corporation, SAP SE, SumTotal Systems, LLC, Verint Systems Inc., Workday, Inc., and WorkForce Software, LLC. Some of the top players in the team collaboration software market allows integration between software, which helps them to expand their product portfolio and garner high consumer base. For example, IBM Connections software integrates Microsoft Office, Windows, Sharepoint, WebSphere Portal, and Lotus Quikr.