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The global productivity software market is expanding with a rise in the adoption of cloud-based collaborative software. Companies such as Canon, Microsoft, and Adobe have been in a race to procure cloud-based productivity software services that allow real-time co-authoring, seamless file sharing, and integrated communication functionalities to help facilitate remote work and remote teams. Available in the productivity software market is a large variety of the types of apps that fall under this category, from basic word processing and spreadsheet programs to modern project management applications to communication suites.
There is a surge in AI-based productivity tools that take away the repetitive tasks, provide intelligent insights, and personalise user experiences in the market.
Artificial Intelligence to Expand the Market
The tremendous surge in adoption of Artificial Intelligence (AI) is the main driving force behind the growth of the productivity market. AI is integrated into the productivity tools for the automation of the repetitive work, the analysis of the enormous datasets, and giving intelligent insights for making better decisions.
Remote Work to Advance the Market
The other major reason for the good growth shown by the productivity software market is the transition toward working remotely and in the hybrid mode. As the adoption of remote work accelerated due to the global pandemic, many of them have not stopped accepting flexible work arrangements.
Cybersecurity Concerns to Pose Potential Impediments on this Market
Ever-increasing cybersecurity concerns present a significant restraining factor in the market for productivity software. Data breaches, unauthorised access, and cyberattacks are simply the risk that productivity tools are increasingly based on cloud storage and collaborative platforms that double in proportion to the level of reliance.
AI-Fueled Arena to Create Opportunity in this Market
With the rise of opportunities in the AI-fueled arena, the productivity software can see a big growth. Rather, artificial intelligence’s integration in the productivity tools is not a trend but a transformative force for greater efficiency and capability.
The report covers the following key insights:
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By Solution |
By Deployment |
By Enterprise Type |
By Industry Vertical |
By Geography |
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By solution, the productivity software market is divided into content management & collaboration, AI & predictive analytics, structured work management, and others.
Software designed to help create, store, share, and manage digital content is included in the Content Management & Collaboration segment, as well as tools enable effortless teamwork and communication. It expands significantly as the majority of companies start to manage too much of their data and work on distributed teams to be super productive.
The productivity software market is rapidly expanding through the introduction of AI & predictive analytics and intelligent automation and data-driven decision-making with AI & predictive analytics. The availability of more sophisticated AI algorithms and the growing need to make data-driven decisions are spurring the development of increasingly more sophisticated AI-strength productivity instruments.
Based on deployment, the market is divided into on-premise & cloud.
In on-premise deployment, software is installed and run on the organisation’s hardware and infrastructure, allowing higher control of the data and security. In a shift, the cloud is big, but on-premise solutions are still able to expand the market with their ability to provide a tailored solution that solves a unique organisation’s need.
With explosive growth for cloud deployment and increased productivity for software generally, the cloud deployment segment is rapidly expanding the size of the productivity software market. Many advantages can be reaped from cloud-based solutions, such as accessibility from any area, scalability, cost-effectiveness, and automatic updating.
Based on enterprise type, the market is divided into large enterprises and SMEs (small & medium enterprises).
The traditional workflow and data collection in large enterprises are normally very complex and span a large number of people spread across a large geographical area. There is a strong demand for productivity software by them, which is due to the need to streamline operations, deepen the collaboration, and increase the level of efficiency as the scale. The segment may expand significantly.
The productivity software market is driven by the SMEs (Small and Medium Enterprises) segment. The most situations of SMEs depend upon needless use of the productive and genuine person, and it is critical that their usefulness and top-of-the-line presence be enhanced inside a less demanding and least expensive answer.
Based on industry vertical, the market is divided into BFSI, IT & telecom, healthcare, manufacturing, education, and others.
The software is being adopted in the BFSI sector as it has stringent regulatory requirements, high data security concerns, and involved complex operational workflows. Specialised productivity solutions are adopted due to the need for secure and reliable communication platforms, document management systems, and data analytics tools.
IT & telecom is a major adopter and innovator of productivity tools, inherently technology-driven. There are the needs of agile development methods and continuous integration/continuous deployment pipelines as levers to adapt tools supporting the organisation's collaboration and workflow.
Based on region, the productivity software market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
The productivity software market is dominated by North America, mainly as it has a host of technology giants such as Microsoft, Google, and Salesforce. This is a region where advanced technologies are highly adopted, such as cloud computing, AI, and others.
The productivity software market is very mature and diverse. Europe has stringent data privacy and governmental regulations. Secure and compliant productivity spinouts are still being implemented by many regulations such as GDPR.
Rapid digitalisation, rising internet penetration, and the rise in the number of SMEs in the Asia Pacific drive the fastest growth in the productivity software market. Cloud-based collaboration tools and mobile productivity solutions are in high demand from China, India, Japan, and other countries.
The report includes the profiles of the following key players:
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