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The global team collaboration software market size was USD 13.44 billion in 2019 and is projected to reach USD 35.71 billion by 2027, exhibiting a CAGR of 13.2% during the forecast period.
The rising trend among companies in implementing intelligent meeting solutions provides exciting business growth prospects. Modern and creative technology makes seamless collaboration among employees easier and more profitable, stimulates innovation, and provides companies with a competitive edge. In addition, collaboration tools allow participants to record meetings and take points from a meeting that has already been held. The growing need for employees to enter immersive meeting rooms without interruption would further boost the development of the industry. Service providers have also collaborated with other organizations to provide mobility solutions to automate work processes from any region, to collaborate effectively, and to maintain communication among teams.
In major developing countries such as China, India, and Japan, the emergence of the COVID-19 pandemic would accelerate the demand for team collaboration solutions to efficiently carry out team meetings and conferences. Cloud computing services are being widely used to promote business development in the region. The rising popularity of work from home trends in startups and small and medium-sized companies is also set to boost the market for team collaboration software solutions.
Team Collaboration Software to Power Remote Work and Video Conferencing amidst COVID-19 Pandemic
The outbreak of COVID-19 prompted several businesses to take priority in revising their IT strategies. A large number of companies have implemented work from home programs for their workers in order to fight against the threat of coronavirus. Business trips are being cancelled and organizations are gradually preferring audio and video conferences and other platforms for data sharing. Such interactive collaboration systems by making communication safe and cost-effective, will not only help tackle this continuing problem, but will also increase the productivity in long-term operation. Although several businesses have seen their stock prices battered by the destruction of the virus, some software providers, such as Zoom, have seen their share value rise considerably.
With technological advancements in the enterprise collaboration technology, the adoption of video conferencing and team meeting solutions is expected to grow and increase for effectively communicating with partners, customers, and onshore teams. Corporations that have been proactively investing in virtual communication tools will now prove their operations in the future and maximize the impact of remote work practices. Also, businesses should be assured that the right technological innovations will pave the way to discover new and unexpected opportunities while also enhancing business efficiency.
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Bring-Your-Own-Device (BYOD) Trend to Bring Substantial Enterprise Benefits and Enhanced Productivity
The usage of personal or enterprise-owned devices such as laptops, mobile phones, and tablets has increased enormously in recent years. The integration of team collaboration software solutions in personal devices can enable employees and businesses to attend conferences and meetings regardless of the place.
In addition to that, the increasing number of small and medium-sized enterprises (SMEs) is leading to the rising adoption of bring-your-own-device (BYOD) practices in order to reduce or restrict the initial infrastructure costs. The latter often limits early development, as a result of the rising start-up culture in both emerging and developed economies.
Successfully adopting BYOD technology at workplaces is likely to benefit companies in terms of corporate performance, workplace efficiency, and employee satisfaction. It will also have a positive impact on the global market.
Adoption of Collaboration Software and Conferencing Tools among Businesses to Drive Growth
Advanced technologies are playing a crucial role in enabling businesses to create an environment that would encourage employees to achieve business goals with creativity to develop lasting economic values. Digital transformation produces new product and service possibilities that would enable businesses to raise sales significantly and reduce costs by achieving higher performance.
The next-generation collaboration and enterprise productivity tools are playing a significant role in establishing efficient business communications that encompasses richer team communication, co-creation, and document sharing. Thus, the adoption of advanced technologies such as machine learning (ML), artificial intelligence (AI), and others are enabling businesses to efficiently manage communication and collaboration between teams.
Collaboration tools deliver a wide range of advantages from cost savings to increased productivity, and enhanced security. These tools allow virtual teams to work together across geographies, functions, and organizations to boost efficiency and innovation. Thus, businesses are shifting from traditional communication techniques to advanced solutions and are building holistic collaboration strategies. The usage of team collaboration software is thereby expected to showcase an exponential growth during the forecast period.
Usage of Collaboration Tools to Efficiently Manage Projects will Boost Growth
Recently, collaboration tools have become the most widely used tools by distributed project teams. Team collaboration software enables businesses to plan and manage all phases of the project and to share ideas between all team members. It also helps the team members to make informed choices by combining all the project details. For instance, Asana Groupware provides team management and collaboration solutions that enable project teams to schedule daily meetings and conferences just in one click.
The coordination of project activities among various team members and teams is much easier with collaborative software solutions. The details can be exchanged and deadlines can be set easily so that the management process is highly reliable. Control of the project progress is important for companies for long-term success and to gain a competitive edge. Technology integration plays a significant role in the management of the project phases and makes it possible to ensure that the projects are completed on time. Thus, the adoption of collaboration tools to easily manage projects is expected to contribute to the team collaboration software market growth.
Risks of Cybersecurity Attacks and Loss of Important Data Backed by Malware May Hinder Growth
With businesses embracing more diverse interactive technical methods, security issues are growing. For businesses that invest in software, safety is the top priority – this includes tools for collaboration that can accommodate company details, customer data, as well as the latest product ideas in a single platform.
Depending on the configuration of network security, the adoption of collaboration tools may open an insecure channel that can introduce malicious code or other forms of ransomware. It can also open a path for hackers to access the network and compromise personally identifiable information (PPI) or sensitive data that can harm business processes. Some hackers are able to reach corporate websites simply by following the standard web-based protocols. Many applications often collect metadata from the device itself in URLs, so that sensitive data can be exposed unintentionally. This, in turn, is expected to hinder the market growth.
Solution Segment is likely to Hold Largest Market Share during the Forecast Period
Based on components, the solution segment held the largest market share in 2019 and is expected to maintain its dominance over the forecast period. This growth is mainly due to the rising demand for visual meetings in all the international companies, along with a growing knowledge of the advantages of team collaboration among businesses.
The most significant revenue share was generated in 2019 by the use of team collaboration tools for conferencing. Collaboration tools enable data sharing in real-time and allow cross-functional teams to remain linked through emails, direct messages, voice mails, and conferences. Effective contact between teams enables the development of content for internal and external audiences, for production and publishing. The ability to monitor different activities, such as meetings and deadlines, allows businesses to work efficiently, thereby enabling corporate adoption.
The services segment is expected to be the fastest-growing segment during the forecast period. Along with solutions, organizations are also providing managed and professional services. Professional services include integration and implementation, training and education, and support and maintenance. Among them, the integration and implementation sub-segment would hold the largest market share in the forecast period.
Cloud Segment to Hold Significant Share Stoked by Need to Reduce IT Infrastructure Costs
In terms of deployment, the global market has been fragmented into cloud and on-premises. The on-premises segment is expected to hold the largest share during the forecast period. The segment guarantees low latency at data transfer levels, which, in turn, allows enterprises to handle cost-effective data. Adopting on-premises implementation mitigates the need to invest in costly internet services that provide companies with cost-saving opportunities and also ensure stable business practices in the event of data failures. These solutions also require greater control of server hardware and versatile storage delivery configuration.
The cloud segment is expected to be the fastest growing segment during the forecast period. The ability of cloud deployment practices to reduce IT infrastructure costs and cost related to staff training is promoting the widespread adoption of this model. In addition, cloud deployment guarantees operational flexibility of the remote task force to access data from any location at any time. The ease with which cloud systems are implemented gives users competitive advantage over peers, offering significant opportunities for development.
Large Enterprises Segment to Dominate Fueled by Demand for Digital Collaboration
In terms of enterprise size, the global market has been fragmented into SMEs and large enterprises. The large enterprises segment accounted for the largest market share in 2019. The need to initiate digital collaboration among large, dispersed teams and manage projects efficiently is contributing to the growth of this segment.
In the forecast period, the SMEs segment is projected to rise at the highest CAGR. This growth is due to the increasing digitalization of small and medium-sized enterprises. The emergence of virtual business is enabling SMEs to use collaborative software to enhance communication across businesses. Also, the growing demand for collaboration applications across SMEs is driven by the increasing operational costs for managing large offices. The rising BYOD trend in small and medium-sized enterprises would also support the growth of this segment.
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IT and Telecommunications Segment to Show High Growth Backed by Demand for Video Conferencing Solutions
Based on end-user, the market is segregated into banking, financial services and insurance (BFSI), IT and telecommunications, manufacturing, retail and consumer goods, healthcare, transportation and logistics, education, others.
In 2019, the IT and telecommunications segment had the largest share of the market. The adoption of unified communication solutions by IT companies to promote efficient communication and cooperation is set to boost the growth of this segment. In addition, the increased demand among companies for video conferencing solutions to promote the sharing of information is also an important driver of the growth of the segment.
In 2019, the BFSI sector held considerable market share in terms of revenue. The trend for digitization in banking among employees in order to increase their production efficiency would provide an impetus for business growth. The emergence of a number of branches and the high demand among policy makers and influencers to engage in meetings and discussions to strategize successful banking systems are further boosting the growth of this segment. Apart from that, the reducing contact time across different departments improves operational efficiency and enhances the ability to generate profit.
North America Team Collaboration Software Market Size, 2019 (USD Billion)
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North America is expected to generate the largest team collaboration software market share. The growth of the region is mainly owing to the technological advancements and stable economic growth. Organizations in the region are showcasing lucrative growth in the adoption of collaboration and enterprise communications tools for internal team communications and for efficiently carrying out project activities. Because of improved security measures such as encryption of data transmission and access to end-to-end transfers, businesses are also growing their IT expenditures, which are estimated to have a positive effect on the market in the region.
Moreover, the penetration of high-speed Internet in many countries makes it easier for employees to flexibly use the software in the area, thus raising their demand. The outbreak of the COVID-19 epidemic prompted SMEs and large companies in the region to adopt collaboration tools to meet work from home needs.
Asia Pacific is expected to be the fastest growing region in the global market in terms of CAGR. The growth is mainly attributed to the increasing investments in advanced technology, availability of cloud service providers, and large number smartphone users in the region. The rapid industrialization in countries such as India and Japan is further strengthening the importance of developing efficient team coordination structures. Also, due to the improving government initiatives such as Make in India and Startup India and the 2018 immigration bill adopted in Japan would aid growth. In addition to this, the emerging trend of BYOD among businesses will have a positive effect on the market growth in this region.
Europe is expected to lead the global market and is set to expand by exhibiting an excellent CAGR by 2027. It is one of the most technologically developed regions, mostly because of the highest mobile usage and industrial developments. Furthermore, virtual companies are emerging that would help the businesses to grow in the region.
Key Players Are Adopting Various Strategies to Sustain their Market Position
Collaborations, partnerships, and acquisitions are the key strategies adopted by prominent market players to sustain competitiveness. Besides, these players are focusing on broadening the application area of collaborative solutions which would help them to expand their business portfolio across various industries. Several topmost industry players are investing their capital share in the research and development activities. Various emerging players are offering superior integrated systems, software, and services for strengthening their positions.
An Infographic Representation of Team Collaboration Software Market
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The team collaboration software market research report provides a detailed industry analysis and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth rate of the advanced market over the recent years.
Value (USD Billion)
By Enterprise Size
Fortune Business Insights says that the global market size was USD 13.44 billion in 2019 and is projected to reach USD 35.71 billion by 2027.
In 2019, the North America market value stood at USD 5.65 billion.
Registering a CAGR of 13.2%, the market will exhibit steady growth in the forecast period (2020-2027).
The solution segment is set to be the leading segment in this market during the forecast period.
The adoption of collaboration tools to efficiently manage projects is a key factor driving the market growth.
Bluebeam, Inc., IBM Corporation, Microsoft Corporation, Oracle Corporation, Cisco System Inc., Slack Technologies, Inc., MindMeld Inc., and Citrix Systems Inc. are the major players in the global market.
North America held the highest market share in 2019.
The rising usage by several businesses is set to drive the adoption of team collaboration software.
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