Team Collaboration Software Market Report

Team Collaboration Software Market Analysis Report By Application, By Software Type (Conferencing, Communication & Coordination), By Deployment (Cloud, On-Premise), And Segment Forecasts, 2018 - 2025

  • Published Date: Nov, 2018
  • Base Year for Estimate: 2017
  • Report ID: GVR-2-68038-633-2
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 141

Industry Insights

The global team collaboration software market size was valued at USD 8.19 billion in 2017. It is poised to progress at a CAGR exceeding 9.0% from 2018 to 2025. Rapid advancements in Artificial Intelligence (AI) and Machine Learning (ML) have resulted in increased deployment of team collaboration solutions for enhancing communication & collaboration efficiency within the workplace.

Increasing integration of AI with team collaboration software is leading to their greater demand in achieving automation and improved communication within an organization. The software integrated with AI is particularly useful in improving the accuracy of voice & chat assistants as well as in translating messages in real-time in organizations with linguistic diversity. Moreover, AI has brought intelligent collaboration capabilities to evolving conversational workplace platforms, represented by vendors/offerings such as Slack, Cisco Spark, Microsoft Teams, IBM Watson, and Workplace by Facebook, Inc.

U.S. team collaboration software market

Proliferation of Internet of Things (IoT) systems is enabling organizations to achieve their digital transformation goal. Soaring need for integrating devices & data with analytical IoT tools is allowing organizations to become more responsive towards improving their customer service experience. Integration of predictive analytics tools and sensors with collaborative platforms can help enterprises foresee outcomes or issues and address them before they occur. Such factors are leading to rise in need for deploying enterprise collaboration solutions in different end-use industries.

Collaboration platforms are helping organizations in streamlining their operations and boosting their productivity levels irrespective of location of team members and size of the project. As such, the trend of deploying virtual teams or geographically-dispersed teams is providing an impetus to the market growth. Besides this, growing penetration of software bots that can act as digital workers and assist remotely-located staff in collaborating and communicating with each other is likely to propel the market.

Deployment Insights

The on-premise segment dominated the market in 2017. However, the demand for on-premise solutions is expected to decline over the forecast period owing to high initial costs and maintenance costs associated with on-premise deployments. Moreover, deploying on-premise solutions incurs an additional cost of training the staff in order to manage and operate enterprise software solutions.

The cloud-based software segment captured a revenue share of just over 45.0% in 2017. Growing number of remotely located teams, which require a cloud-based platform to share, collaborate, and communicate with all locations seamlessly, is estimated to contribute to the growth of the market over the coming years. This type of deployment enables employees to access collaborative tools via their smartphone, thereby giving them flexibility to access platform remotely. This is stirring up the demand for cloud-based team collaborative software.

The segment is anticipated to register the highest growth during the forecast period owing to increasing need for flexible office spaces. Organizations are deploying cloud-based platforms across various time zones, which has enabled them to improve the interaction among highly mobile members. Cloud-based software also offers the feature of recording the events and allowing others to review the proceedings later.

Software Type Insights

The conferencing software dominated the team collaboration software market in 2017. Burgeoning trend of integrating Web Real-Time Communications (WebRTC) with collaboration tools is projected to supplement the growth of the segment. For instance, Slack uses WebRTC to integrate video conferencing solutions with its team collaboration application. Moreover, the integration of WebRTC is an efficient tool for developing effective enterprise collaboration products, since it can enable video and audio conference calls as well as promote safe data transfers.

The conferencing software has transformed traditional workplace into a digital workplace by enabling real-time online communication across the organization. Emergence of Software as a Service (SaaS) with collaborative and continuous innovation capabilities has further encouraged enterprises to deploy conferencing solutions. SaaS has transformed the enterprise collaboration segment as an independent application resulting in fewer system failures.

Moreover, the industry is witnessing wide adoption of cloud-based video conferencing solution, which provides access to a huge amount of data over the cloud. The conferencing software aided with AI allows enterprise owners to determine optimal meeting length, ideal number of participants, or identify ways to improve productivity of a meeting.

Application Insights

The healthcare sector is poised to represent more than 10.0% of the overall market revenue in 2017. Clinical enterprises are adopting these software to quickly access information from numerous locations to enhance operational performance and improve patient safety. Integration of voice, data, and location into one collaborative platform can act as a crucial strategy for healthcare professionals for processing patient information in critical situations.

Global team collaboration software market

Further, in the retail sector, these solutions offer a comprehensive portal for teamwork, employee-engagement, sharing of real-time information, feedback, news, and ideas. Implementation of team collaboration software in retail stores is likely to augment the sales and profit of the store.

Regional Insights

North America dominated the market in 2017. Rapid adoption of collaboration software by enterprises to offer enhanced features such as web conferencing, communication & coordination tools, and collaboration portals is expected to drive the regional market. Moreover, surging adoption of web conferencing among enterprises owing to increasing demand for visual meetings, growing user comfort, and rising access to high-quality internet connections is estimated to spur the growth of the regional market.

Furthermore, Asia Pacific is anticipated to emerge as the fastest growing regional market during the forecast period. Growing inclination towards digitization of enterprises is projected to stimulate the growth of the market. Increasing investments and presence of a large customer base is poised to boost high-speed data networks in economies such as India and China. Spiraling demand for workforce communication interaction and workforce optimization is making enterprise collaboration solution deployment necessary.

Team Collaboration Software Market Share Insights

Some of the prominent companies operating in the market are Cisco Systems, Inc.; Microsoft Corporation; Citrix Systems, Inc.; and Slack Technologies, Inc. Industry players are focusing on offering collective tools known as hubs for communicating, meeting, and collaborating application at workplaces. For instance, Microsoft Corporation offers Microsoft Teams, which combines workplace chat, meetings, notes, and attachments into a hub.

Moreover, solution providers are integrating AI technology to make tedious communication & coordination processes faster in their enterprise solution offerings. AI-integrated tools have the capability to boost innovation, increase efficiency, and improve employee outcomes.

Solution providers such as Cisco Systems, Inc. and Slack Technologies are offering AI-based tools, which are allowing users to build intelligent and human-like conversational interfaces for any application or device. In May 2017, Cisco Systems, Inc. acquired MindMeld, Inc., to bring AI capabilities into their collaboration portfolio.

Report Scope



Base year for estimation


Actual/Historical data

2014 - 2016

Forecast period

2018 - 2025

Market representation

Market revenue in USD Million, CAGR from 2018 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, U.K., Germany, China, India, Japan, Brazil, and Mexico

Report coverage

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

15% free customization scope (equivalent to five analyst working days)

If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2016 to 2025. 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, 2014 - 2025)

    • Cloud

    • On-premise

  • Software Type Outlook (Revenue, USD Million, 2014 - 2025)

    • Conferencing software

    • Communication and coordination software

  • Application Outlook (Revenue, USD Million, 2014 - 2025)

    • Manufacturing

    • BFSI

    • IT & telecom

    • Retail

    • Healthcare

    • Logistics & transportation

    • Education

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America 

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • MEA

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