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The global team collaboration software market size was USD 8.53 Billion in 2018 is projected to reach USD 18.30 Billion by 2026, exhibiting a CAGR of 10.3% during the forecast period.
Team collaboration solutions changed the way how employees communicate and enabled them to work collaboratively. Team collaboration software offers a wide range of opportunities because of its ability to create a virtual environment for team meetings and conferences. It also helps organizations in terms of work scheduling, project management, data storage, and reporting and analytics. It assists organizations in real-time data transferring and speeds up the business process. Increasing technological integrations with team collaboration solutions would drive the global team collaboration software market growth.
Team collaboration solutions enable teams to share content in multiple formats such as files, audio, video, and messages from any place and anytime. The growing awareness of the advantages associated with the team collaboration software, including enhanced business process and increased process transparency among organizations, have further boosted the global team collaboration software market growth. Geographical expansion of the businesses contributes to the demand for audio and video team conferencing.
Moreover, growing digitization across industries and the need to handle the employees working from different locations fuel the growth of the global market. Also, the proliferation of the internet of things (IoT) across organizations has generated a need for integrated, analytical & collaborative tools to improve their customer service experience. Additionally, the increasing adoption of team collaboration software among industries such as BFSI, IT and telecommunications, manufacturing retail and consumer goods, and healthcare is anticipated to attract high team collaboration software market revenues in the forecast period.
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“Increasing Adoption of Artificial Intelligence (AI) Based Team Collaboration Solutions is Fuelling Growth of Global Team Collaboration Market”
Due to the increasing demand for high-quality collaboration solutions, companies are shifting from traditional collaborative solutions to artificial intelligence (AI) and machine learning-based team collaboration solutions. AI-based Bots and Virtual Assistants are finding their way into today’s work environment. Team collaboration solutions enable organizations to revolutionize the way how teams collaborate and improve productivity. Moreover, advanced team collaboration solutions are more accurate in voice and chat processes and translate messages with linguistic diversity in real-time. Organizations are working continuously on the evolution of team collaboration solutions to provide conversational workplace platforms. Thus, advancements in the latest technology would contribute to the market growth in the coming years. Additionally, the easy availability of smart-phones and increased proliferation of high-speed internet will help increase the team collaboration software market size across regions. The advancements in communication technology and ongoing developments in 4G and 5G technologies in the economically developing regions are expected to create new team collaboration software market growth opportunities.
“Growing Demand for Work from Home Concept and BYOD Trend is Likely to Boost Team Collaboration Market Growth”
Organizations these days are shifting towards work from home concepts, which helps them to reduce operational expenses. Team collaboration platforms are helping organizations to streamline and monitor employee’s operations irrespective of their location. As an example, sales and marketing companies are implementing team collaboration software to track the working of individuals and maintain proper documentation of the project.
Increased BYOD trend positively affected the adoption of team collaboration solutions across organizations. Key team collaboration software market manufacturers offer secure and easy-to-use solutions for the organizations and enable employees to communicate and collaborate anywhere at any time. Moreover, the growing demand for a flexible work environment is creating numerous growth opportunities for the global market in the forecast period.
“Solutions segment is expected to augment team collaboration software market during forecast period.”
Based on component, the market is classified into solutions and services. Among these, the solutions segment held the largest market share in 2018 and is expected to continue so during the forecast period. This surging team collaboration software market growth is mainly owing to increasing demand for visual meetings across international businesses, coupled with the rising awareness about the advantages of team collaboration software among industry players. Besides this, the latest team collaboration solutions help companies to increase their employee's comfort through enhanced and secured collaborative features, which will further increase the team collaboration market share.
The services segment on the other hand, is expected to be the fastest-growing segment during the forecast period. Along with solutions, organizations are also providing professional and managed services. Professional services include integration and implementation, support and maintenance, and training and education. Among them, integration and implementation segment hold the largest market share in the forecast period.
“By Deployment type, the cloud-based software segment accounted for the largest market share.”
Based on the deployment, the global team collaboration software market has been segmented into cloud-based and on-premises segments.
The cloud-based team collaboration solutions segment is expected to witness substantial growth over the forecast period as it is a more secure way for organizations to store and transfer data. In addition to this, cloud-based models are easy to deploy and also cost-effective. Cloud-based team collaboration software increases flexibility and scalability of data handling among teams.
Additionally, cloud-based team collaboration software helps employees to access data from any place and at any time. In on-premise deployment, data is stored on personal servers rather than on the vendor's server, which increases the capital expenditure of the organization. Thus, organizations are shifting towards cloud-based team collaboration software from on-premise deployment. The cloud-based team collaboration solutions segment is expected to grow at the highest CAGR in the forecast period.
“Small and mid-size enterprises segment is expected to witness highest CAGR during forecast period”
By organization size, the team collaboration software market has been segmented into SMEs and large enterprises.
The small and medium-size enterprise segment is expected to be the fastest-growing segment during the forecast period. The adoption of team collaboration solutions is rapidly increasing among SMEs owing to the emergence of virtual businesses, growing need for connectivity, and digitization across the business process. Also, team collaboration software enables SMEs to smoothen communication across the organization.
On the other side, the large enterprise segment accounted for a major team collaboration software market share in 2018. The demand for team collaboration software is high in large enterprises owing to the need to launch digital collaboration within large distributed teams and controlling the overseas businesses through time-to-time updates.
“Growing need for time-to-time communication and advent of digitization are contributing to growth of team collaboration software in IT and telecommunication industry.”
By end-user, the global team collaboration software market has been segmented into BFSI, IT and telecommunications, manufacturing, retail and consumer goods, healthcare, travel and transportation, education, and others.
The IT and telecommunications industry segment is dominating the market in 2018 and is expected to hold the largest market share during the forecast period. The increased need for efficient coordination among team members is creating lucrative team collaboration software market growth opportunities in IT and telecommunications sector.
Team collaboration solutions help organizations to improve productivity, secure document sharing, and frictionless coordination between departments. Thus, the IT and telecommunication industry is preferably using it to manage projects better and enable them to resolve issues faster.
The use of team collaboration software in the healthcare industry is expected to witness the fastest growth during the forecast period. Healthcare companies deal with huge volumes of data on daily bases such as medical documentation, physician certification forms, invoices, and others. In the healthcare sector, team collaboration solutions help organizations to coordinate activities and data flows between nurses, physicians, clinicians, and other medical professionals. Owing to the growing need for smooth collaboration within healthcare departments, the demand for team collaboration software is expected to increase in the forecast period.
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The team collaboration software market has been analyzed across five major regions, which are North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America these regions are further categorized into countries.
North America emerged as the dominant region in the team collaboration software market. In 2018, North America generated a team collaboration software market revenue of USD 4.54 Billion and this is expected to reach USD 9.26 Billion by 2026. This lucrative growth in North America is owing to the stable economic growth and technological developments, along with the increasing penetration of smartphones across the region. Organizations in North America are using team collaboration software to improve business transparency and get time-to-time project updates. This helps them to enhance the overall productivity of the business. The U.S. holds the largest market share in the North America team collaboration software market, owing to the presence of prominent players working in the team collaboration software market. Organizations in this region are making new investments in team collaboration solutions. Apart from this, growing adoption of advanced technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), machine learning, and cloud computing will impact North America’s team collaboration software market in the forecast period.
Europe is expected to hold a leading position in the global team collaboration software market and is expected to grow at a remarkable CAGR till 2026. Europe is considered as one of the most technologically advanced regions, mainly due to the most significant number of smartphone users and the high pace of industrial developments. Also, the emergence of virtual businesses supports market growth across the region.
Asia Pacific is positioned to be the fastest-growing region in the global team collaboration software market in terms of CAGR. Increasing demand for team collaboration software in various industrial sectors including BFSI, retail, transportation & logistics, and IT and telecom will cultivate the growth of the market in the Asia Pacific region. Apart from this, the growing adoption of work-from-home concepts and rising industrialization in the Asian region such as Japan, China and India will offer lucrative team collaboration software market growth opportunities.
The Middle East and Africa are anticipated to witness a steady growth rate in the market. Team collaboration software manufacturers of the Middle East and Africa are working to develop software platforms to connect, improve, and enhance communication and collaboration services across the region.
North America Team collaboration software Market Size, 2018 (USD Billion)
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“Microsoft corporation, LogMeIn, Inc. and Zoom Video Communications, Inc. will strengthen their market position, backed by heavy investments and developments as market strategies.”
Microsoft is continually working on the advanced version of the team collaboration software that helps in improved communication among the team members. In 2018, The company launched a free version of Microsoft Teams, that allows customers in free chats, collaboration meetings and calls as well as additional storage, enterprise security, and compliance. This software is suitable for the organization of any size.
LogMeIn, Inc. offers a wide range of communication and collaboration solutions including GoToConnect, GoToMeeting, GoToRoom, GoToWebinar, GoToTraining, Openvoice, Jive, Jion.me, and Grasshopper. The company provides web, audio and video conferencing into a single reliable and flexible solution where employees can talk, chat, meet, text and collaborate seamlessly. LogMeIn solutions provide optimized real-time internal and external collaboration even through smartphones.
Zoom Video Communications, Inc. offers a wide range of team collaboration software and solutions, such as Zoom Meetings, Zoom Chats, Zoom Rooms, Zoom phone and Zoom Video Webinars. Zoom team collaboration solutions aim to provide improved communication and co-ordination through audio, video and web conferencing, online meetings, calls, messages and cross-platform messaging. It offers services and solutions to various end-use industries such as education, finance, government and healthcare.
The report offers an elaborative analysis of the market dynamics and competitive landscape. Various key insights provided in the report are macro and microeconomic factors, SWOT analysis, Porter’s five forces analysis, and key team collaboration software industry trends, competitive landscape, and company profiles inclusive of recent industry developments such as mergers & acquisitions.
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Value (USD Billion)
By Deployment Type
By Organization Size
July 2019 – LogMeIn, Inc. launched Grasshopper Connect, a new Unified Communications (UC) product mainly designed for small businesses to provide all forms of business communication into a single and easy-to-use application to strengthen its Unified Communications product portfolio.
September 2018 – Slack acquired Astro to help more than 100K paid customers and over 12M Daily Active Users (DAU) by simplifying the task of moving conversations from an email into Slack. The company is involved in strategic acquisition to improve the regular customer experience regarding the slack application.
As per our (Fortune Business Insights) study, the team collaboration software market is predicted to reach USD 18.30 Billion by 2026 with a CAGR of 10.3% (2019 -2026).
As per our study, business owners are more inclined towards team collaboration software. Currently (in 2018), the team collaboration software market is valued at USD 8.53 Billion, and it is anticipated to reach USD 18.30 Billion by 2026 at a CAGR of 10.3% during the forecast period (2019 -2026).
Globally, spending on team collaboration software is increasing each year. For instance, North America generated a revenue of USD 4.55 Billion in 2018 and is expected to create a remarkable revenue share by 2026.
In the team collaboration software market, communications is the leading solutions segment owing to advent of digitization and increasing investment by key players.
Some of the driving factors for the team collaboration software market are inclination of businesses to increase their productivity through adoption of team collaboration software, and the growing concept of work from home and remote workplaces.
In the team collaboration software market, some of the key players are IBM Corporation, Microsoft Corporation, Oracle Corporation, Cisco System Inc., Slack Technologies, Inc., MindMeld Inc., Citrix Systems Inc., AT&T Intellectual Property, Google (Alphabet Inc.), SMART Technologies ULC, LogMeIn, Inc., BOX, Inc. and TeamViewer GmbH.
North America is expected to hold the highest market share owing to the increasing penetration of smart phones and presence major key players in this region.
The communication team collaboration solution would generate the highest revenue during the forecast period owing to the growing adoption of advanced cloud-based technologies.
The IT and Telecommunications industry is expected to lead the team collaboration software market owing to increasing research and development activities.