GVR Report cover Team Collaboration Software Market Size, Share & Trends Report

Team Collaboration Software Market Size, Share & Trends Analysis Report By Software Type (Conferencing, Communication & Coordination), By Application (Retail, Healthcare), By Deployment, And Segment Forecasts, 2021 - 2028

  • Published Date: May, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-2-68038-633-2
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 140

Report Overview

The global team collaboration software market size was valued at USD 10.48 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 13.0% from 2021 to 2028. The growth can be attributed to the significant changes that organizations are making in their working culture and increasingly encouraging remote working while putting a strong emphasis on addressing the customers’ needs efficiently in the wake of the COVID-19 pandemic. Organizations are aggressively pursuing digital transformation strategies to ensure operational flexibility and enhance responsiveness and productivity. At the same time, organizations are also looking forward to the post-pandemic era and considering adopting a hybrid working culture, and are subsequently ramping up their investments in reliable collaboration solutions to ensure effective communication.

U.S. team collaboration software market size, by deployment, 2017 - 2028 (USD Million)

The growing trend among organizations to implement smart meeting rooms has opened new opportunities for the growth of the market. The latest, innovative technologies are particularly allowing corporates to facilitate seamless connectivity, boost productivity, and foster creativity while simultaneously gaining a competitive edge against their peers.

Meeting rooms equipped with integrated smart control panels can potentially simplify and consolidate input commands, encourage active collaboration, and subsequently enhance the meeting experience. Furthermore, these tools can also allow participants to record the meetings for following up later and taking references from meetings conducted previously.

Integration of Artificial Intelligence (AI) with collaboration tools is allowing to automate and improve communication within an organization. AI can potentially improve the accuracy of voice & chat assistants and help in translating messages in real-time. AI can also induce smart collaboration capabilities within emerging conversational workplace platforms, such as Slack, Cisco Spark, Microsoft Teams, IBM Watson, and Workplace by Facebook, Inc.

Deployment Insights

On-premise was the largest deployment segment in 2020 and accounted for a revenue share of more than 53%. However, the cloud segment is anticipated to lead the market, in terms of CAGR as well as revenue share, over the forecast years. The growing number of people working remotely is driving the need for cloud-based platforms to share and collaborate effectively and ensure enterprise-wide seamless communication. Moreover, cloud-based platforms provide the flexibility to access collaborative tools via a smartphone. Cloud-based collaboration tools also include enriched features, such as recording of the events, so that proceedings can be reviewed later.

The COVID-19 pandemic has prompted companies to aggressively deploy cloud-based communication tools, such as video conferencing tools and instant messaging software, which allow businesses to connect and communicate with employees remotely while ensuring their safety. Cloud-based platforms are equally allowing remote teams to streamline their business processes and manage projects of all sizes without compromising organizational productivity. At the same time, software bots are also being deployed as digital workers to support remote teams in collaboration and communication tasks.

Software Type Insights

The communication & coordination software accounted for the highest revenue share of over 57% in 2020. However, the conferencing software segment is estimated to grow at the fastest CAGR from 2021 to 2028. As organizations are encouraging employees to work from home due to the pandemic, they have started using web conferencing as the primary means to communicate with employees.

Platforms, such as Zoom and Microsoft Teams, have gained immense popularity as they have emerged as the go-to tool for conducting virtual meetings. Web conferencing solutions have particularly transformed conventional workplaces into digital workplaces by enabling enterprise-wide, real-time, online communication.

The Software as a Service (SaaS) delivery model is allowing enterprises to deploy conferencing solutions conveniently, as it can potentially facilitate continuous innovation and collaborative capabilities. The SaaS delivery model has eventually transformed team collaboration solutions into independent applications, thereby resulting in fewer system failures and annulling the possibilities of slower response times, which can hamper the efficiency of communication & collaboration solutions.

Application Insights

The IT & telecom segment led the global market with a revenue share of more than 27% in 2020. However, the segment will lose its share over the forecast period. The healthcare segment will expand at the fastest CAGR from 2021 to 2028. The evolving clinical communication & collaboration techniques are opening significant opportunities for implementing team collaboration solutions in the healthcare industry vertical. Clinicians are utilizing innovative communication tools to share data between departments in real-time and manage the changing workflows securely from remote locations. For instance, UCLA Health, the healthcare system in the U.S. city of Los Angeles, includes tools for remote patient monitoring to collect and transmit essential health status data after a discharge. These tools are helping caregivers in tracking the progress and identifying any irregularities remotely.

Global team collaboration software market share, by application, 2020 (%)

For the incumbents of the retail industry, team collaboration solutions are offering a comprehensive portal for collaboration, employee engagement, real-time information sharing, and exchanging feedback, news, and ideas. As such, team collaboration software can potentially help retail stores in augmenting sales and profits while ensuring brand integrity. Collaboration tools can particularly help retailers with multiple locations or channels in enhancing communication through Instant Messaging (IM), voice communication, and contact center channels; so that employees can easily connect with stores and back offices at other locations and access the CRM and inventory solutions. These tools can also help retailers in integrating mobility applications and subsequently improving customer service.

Regional Insights

Followed by Europe, North America accounted for the second-largest revenue share of more than 30% in 2020 and will expand at a steady CAGR from 2021 to 2028. The rapid adoption of web conferencing solutions, communication & coordination tools, and collaboration portals by enterprises in North America is expected to drive the growth of the regional market. The growing preference for visual meetings and the availability of high-speed data networks are also expected to contribute to the growth of the regional market. Easy accessibility to high-speed internet is particularly providing people working from home with the necessary flexibility, thereby driving the demand for collaboration tools in the region.

Asia Pacific accounted for a significant revenue share in 2020 in line with the increased emphasis on improving networking technology to cope with the COVID-19 pandemic. Continued digitization of enterprises is expected to drive the growth of the regional market over the coming years. Economies, such as India and China, are investing in rolling out high-speed data networks. This is encouraging organizations to deploy team collaboration software as part of the efforts to optimize the workforce and ensure efficient interaction among the employees. The deployment of these tools is expected to gain traction in the Asia Pacific as they facilitate real-time communication and sharing of information at relatively lower Capital Expenditure (CAPEX) and Operating Expenditure (OPEX) as compared to conventional solutions.

Key Companies & Market Share Insights

Key players are focusing on offering collective collaboration tools, popularly known as hubs for communicating, meeting, and calling. In the wake of the COVID-19 pandemic, solution providers are witnessing a drastic upsurge in their Daily Active Users (DAU). For instance, the DAU for Teams platform increased from around 11 million in July 2019 to over 115 million in October 2020. Some of the prominent players in the global team collaboration software market are:

  • Asana

  • Avaya Inc.

  • Cisco Systems, Inc.

  • Citrix Systems, Inc.

  • IBM Corp.

  • Microsoft Corp.

  • Slack Technologies, Inc.

Team Collaboration Software Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 11.65 billion

Revenue forecast in 2028

USD 27.47 billion

Growth Rate

CAGR of 13.0% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Deployment, software type, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico

Key companies profiled

Asana; Avaya Inc.; Cisco Systems, Inc.; Citrix Systems, Inc.; IBM Corp.; Microsoft Corp.; Slack Technologies, Inc.

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global team collaboration software market report on the basis of deployment, software type, application, and region:

  • Deployment Outlook (Revenue, USD Million, 2017 - 2028)

    • Cloud

    • On-premise

  • Software Type Outlook (Revenue, USD Million, 2017 - 2028)

    • Conferencing Software

    • Communication & Coordination Software

  • Application Outlook (Revenue, USD Million, 2017 - 2028)

    • Manufacturing

    • BFSI

    • IT & Telecom

    • Retail

    • Healthcare

    • Logistics & Transportation

    • Education

  • Regional Outlook (Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • MEA

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