Team Collaboration Software Market 2020 and Forecast 2021-2027

                                          
Report Overview: Team Collaboration Software Market


The global team collaboration software market size was valued at USD 8.4 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 11.6% from 2021 to 2027. Incrementing the need for visual data exchange and digitization is offering an impetus to the market growth. Integrating web conferencing applications with other communication tools enhances the functionality of collaboration solutions and provides the ability to practice efficient communication between participating members. Additionally, organizations have started realizing the benefits of leveraging affordable video conferencing solutions, which is facilitating wide-scale adoption of team collaboration software.


The growing trend among organizations to implement smart meeting rooms is offering exciting prospects to market growth. Modern and innovative technologies enable corporates to facilitate seamless connectivity amongst their workforce, which boosts productivity, fosters creativity, and gives companies a competitive edge against their peers. Meeting rooms equipped with integrated smart control panels enhance meeting experiences by simplifying and consolidating input commands, which facilitates better user experience and encourages positive collaboration. Furthermore, these tools offer the ability to record meetings for participants to follow up and take points from a previously conducted meeting.

The emerging need amongst employees to gain uninterrupted wireless access to interactive meeting rooms is further offering an impetus to the market growth. Additionally, service providers have been partnering with other companies to provide mobility solutions to facilitate operation procedure from any space and engage in active collaboration and efficient product development or content creation. For instance, Microsoft Corporation announced its collaboration with Steelcase, Inc., and APC by Schneider Electric, in April 2019, to offer the Roam Mobile Stand and APC Charge Mobile Battery to enable creative content creation and delivery on the move while staying connected with the team. Moreover, organizations have started investing heavily in mobile technologies, which is further enabling an anywhere, anytime workforce.

The advent of Application Program Interfaces (APIs) has enabled enterprises and SMEs to deploy collaboration solutions for various devices and platforms that facilitate secure data collection. Essential feedback from users allows developers to make necessary changes to offer seamless user experience, which is augmented by the presence of efficient collaboration software and solutions. Furthermore, the presence of team collaboration software enables development teams to interact with other teams on a real-time basis, thus helping one another to develop high-quality solutions. APIs facilitate the integration of on-premise and cloud-based applications, thus enabling efficient communication between on-site employees and remote workers.


Covid-19 Impact Insights: Team Collaboration Software Market

The global pandemic, COVID-19 (coronavirus), offers significant growth aspects to the market. Emerging demand for government bodies to practice social distancing due to the highly contagious nature of the disease has promoted companies to deploy work-from-home (WFH) business practices. The implementation of these strategies for continual operational practices, and the subsequent need to collaborate with various team members and other cross-functional teams is providing an impetus to the market growth.

Furthermore, the emerging need amongst enterprises and SMEs to conduct video conferences to ensure continual and efficient business processes is further aiding the market growth. However, the growing use of video conferencing applications offers security challenges for users. Rising instances of hacking by individuals with malicious intent deters growth opportunities. Furthermore, a globally slowing economy restricts companies from investing in IT-related infrastructure, which may act as a challenge for industry growth.

Deployment Insights: Team Collaboration Software Market

The on-premise deployment segment captured 55.05% revenue share of the team collaboration software market in 2019, on account of a more secure medium of meeting compliance and data security issues. On-premise solutions ensure low latency in data transfer rates, which in return aids organizations in practicing cost-effective data management. The adoption of on-premise deployment mitigates the need to invest in expensive internet plans, which offers cost-saving opportunities to organizations and also ensures continual operational practices in cases of a data outage. Such solutions also provide the ability to exercise greater control on server hardware along with flexible customization of storage distribution.

The cloud deployment segment accounted for significant revenue share in 2019. The ability to reduce IT spending, such as high initial costs, maintenance costs, and staff training, is promoting the wide-scale adoption of cloud deployment practices. Furthermore, the provision to access data at anytime from anywhere ensures operational continuance for the remote task force. The ease in the deployment of cloud-based solutions offers a competitive edge to users over their peers, which is delivering significant growth opportunities.

Software Type Insights: Team Collaboration Software Market

The use of team collaboration software for communication and coordination captured the highest revenue share of 58.16% in 2019. Team collaboration software facilitates real-time data sharing and enables cross-functional teams to stay connected via emails, instant messaging, voice mails, and conferencing. Efficient communication by leveraging between teams facilitates content creation functionality for production and publication between internal and external audiences. The ability to track numerous events such as meetings and deadlines promotes seamless functioning of business practices, thus encouraging organization-wide adoption.

The conferencing segment captured significant revenue share in 2019. The rising trend in the use of Augmented Reality (AR) and Virtual Reality (VR) based collaboration software to conduct meetings with the on-site and remote workforce to offer productive and accessible telepresence solutions has resulted in higher adoption rates. The ability to generate holograms via these technologies enhances brainstorming sessions and presentations, as well as creates a virtual presence of an individual, offering opportunities to build effective employee relationships. Furthermore, cloud-based collaboration software allows more efficient conferencing and ensures the connection of all participating members on a single network, which facilitates easier conferencing.

Application Insights: Team Collaboration Software Market

The IT and Telecom segment accounted for a revenue share of 29.10% in 2019. Rising adoption of Unified Communication as a Service (UCaaS) amongst IT companies to facilitate efficient communication and collaboration is offering an impetus to the market growth. Telecom companies, including AT&T Inc., have started collaborating with OTT media streaming providers to offers value-added services to its customers, which augments the need to deploy team collaboration software between OTT service providers and the company. Furthermore, rising demand amongst companies in this sector to indulge in video conferencing to facilitate knowledge sharing is also acting as a major driving factor for the market growth.

The BFSI sector captured more than 20% revenue share in 2019. The rising trend in the banking sector to digitize existing communication practices between staff for more efficient productivity is offering an impetus to the market growth. Presence of several branches in diverse geographical locations and demand amongst decision-makers and influencers to indulge in meetings and discussions to strategize effective banking schemes is further boosting the market growth. Moreover, reducing communication time between different departments enhances operational performance and in-return offers better profit-generating capabilities.

Regional Insights: Team Collaboration Software Market

North America dominated the global market for team collaboration software, with a share of 31.38% in 2019. This can be attributed to an incrementing trend amongst corporations to increase IT budgets to transform legacy communication systems and enhance employee productivity. Enterprises are also increasing IT spend on account of enhanced security measures such as encryption of end-to-end data transfer, and access, which is expected to impact the market growth positively. Additionally, the growing penetration of high-speed internet in several households is facilitating employee flexibility, thereby increasing the demand for these software in the region.

Asia Pacific is expected to witness the fastest growth over the forecast period 2021-2027. The growth can be attributed to a rise in several investments in infrastructure, cloud service providers, and smartphone users. Rapid industrialization in countries, such as India and Japan, due to improved government initiatives such as the Make in India and Startup India initiatives, and the new immigration bill passed in Japan in 2018; is further augmenting the need to develop efficient team collaboration systems. Additionally, changes in FDI policies in countries such as Singapore, Indonesia, and India are promoting corporations to open up centers in these regions, which facilitate the need to deploy effective collaboration solutions on an organizational scale.
effective collaboration solutions on an organizational scale.

Key Companies & Market Share Insights: Team Collaboration Software Market

Service providers have started providing cloud-based solutions for teams and enterprise customers, which are easy to integrate into existing systems. Solution developers are continuously trying to increase safety and security measures, encouraging higher adoption. Team collaboration solutions offered by Adobe Systems Incorporated, offer teams to quickly collaborate on commercials, promos, and news stories, and enable faster information and content sharing.

Furthermore, service providers have also started offering integrated analytics tools to create business intelligence dashboards, which enables teams to monitor insights and determine the success of programs. For instance, Microsoft 365, the flagship solution of Microsoft Corporation, offers the Power BI tool that measures the success of programs used by teams for collaboration. The tool also enables the sharing of content such as excel sheets and presentations, thus enabling teams to work in a coordinated fashion. Some of the prominent players in the team collaboration software market include:

Key companies Profiled: Team Collaboration Software Market Report

 	
Adobe Systems Incorporated
 	
 Avaya Inc.
 	
AT&T, Inc.
 	
IBM Corporation
 	
 Microsoft Corporation.

This report forecasts revenue growths at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2020 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global team collaboration software market report based on deployment, software, application, and region:

Deployment Outlook (Revenue, USD Million, 2016 - 2027)

 	
Cloud
 	
On-premise

Software Type Outlook (Revenue, USD Million, 2016 - 2027)

 	
Conferencing
 	
Communication and Coordination

Application Outlook (Revenue, USD Million, 2016 - 2027)

 	
Manufacturing
 	
BFSI
 	
IT & Telecom
 	
Retail
 	
Healthcare
 	
Logistics & Transportation
 	
Education