The global team collaboration software market is expected to grow at a CAGR of around 13.5% from 2021 to 2028 and expected to reach the market value of around US$ 27.8 Bn by 2028.
Team collaboration software is any type of software or app designed to assist teams in brainstorming, communicating, and working effectively together to complete tasks efficiently. Every successful team in any organization is built on effective team collaboration. With the rapid expansion of workplaces and employees worldwide, it is critical to establish a system that connects everyone at the workplace. For such a successful implementation, the collaboration tool will go beyond simply connecting people and will work with growing organizations and employees to help turn ideas into realities.
What is the future of team collaboration software market?
According to the Orangescrum report, as the business world undergoes a drastic change, so do the expectations of entrepreneurs. Team collaboration software is a method of communicating data or sharing information among employees that includes a collaboration platform, enterprise networking tools, a corporate intranet, and public internet access. Furthermore, cultivating the ability to build relationships is one of the most important skills in today's marketplace. The advantages of team collaboration software include user convenience, data security, and a low cost. A good platform provides a high-quality experience for teams. In 2014, for example, "Orangescrum" was the most well-known collaboration platform. It is currently widely used by companies such as Honda, IBM, and other large IT firms to track their employees' work. Furthermore, team collaboration software has grown in importance for effective communication between teams, departments, and individual employees with the goal of achieving business success.
COVID-19 pandemic is the key factor having positive influence for the growth of global team collaboration software market
According to a report released by the U.S. BUREAU OF LABOR STATISTICS, social distancing has been one of the key public responses to the global COVID-19 pandemic. Remote or teleworking has been on the rise in recent years, and more people are now working remotely whenever possible. Telework is more common in the private sector than in state or local government. It is available to approximately 7% of private-industry workers, versus 4% of state and local workers. Such factors fuel the growth of global team collaboration software market.
Rising trend of hybrid working model post-pandemic will gain 100% traction for the growth of global team collaboration software market
According to a World Economic Forum report, nearly half (48%) of US employees polled indicated a desire to continue hybrid working. As a result, there is a high demand for team collaboration software among working groups all over the world. For example, team collaboration platforms such as Zoom and Microsoft Teams are in high demand, which has a positive impact on the overall market's growth. For example, HP developed "Connect with Enrique," which reached 85% of the company's employees in just a few months. Apart from that, the hybrid work model has been accelerated as a result of the pandemic-the success of remote work on a large scale has resulted in less expensive locales, as well as redesigning of office spaces to accommodate social distancing for the organization. Such factors have a positive impact on the global team collaboration software market growth.
The global team collaboration software market is segmented as deployment, software type, and application. Deployment is bifurcated into cloud and on-premise. Software type is classified into conferencing software and communication & coordination software. Based on application, the market is segregated as Manufacturing, BFSI, IT & telecom, retail, healthcare, logistics & transportation, and education.
The on-premise segment is expected to dominate the global team collaboration software market in terms of deployment. When compared to cloud-based solutions, on-premise solutions provide a wider range of features and tools. Furthermore, on-premise solutions provide tools to help monitor projects from a strategic standpoint, which helps to streamline all connected tasks and projects by tracking/monitoring the team's performance. This, in turn, improves the organizational team's efficiency and productivity. These factors are driving the expansion of the global team collaboration software market.
Based on software type, communication and coordination software accounted for the majority of market share in 2020 and is expected to maintain this trend throughout the forecast period. Communication and coordination have become increasingly important during hybrid work in the pandemic. Communication and coordination are improved when teams work remotely by using asynchronous tools such as Slack or the chat function in platforms such as Microsoft Teams. This gave teams more scheduling flexibility, as well as location flexibility and a reduction in online meeting time. These factors are primarily responsible for the global team collaboration software market's expansion.
The IT and telecom segment dominated the team collaboration software market in 2020 and is expected to continue this trend throughout the forecast period. As a result of hybrid working across countries, sectors, and communication, productivity has increased significantly. Team collaboration software is widely used in the most productive industries, such as IT and telecommunications, resulting in high performance. Such factors encourage segmental growth, which benefits the team collaboration software market.
North America dominates; Asia Pacific records stupendous growth for team collaboration software market
In 2020, North America held the lion's share of the team collaboration software market, and this trend is expected to continue throughout the forecast period. Because remote working is common in North America, it has grown in market importance. Furthermore, team collaboration software has received a lot of attention in the United States in 2020. According to Statista data, Slack was the most popular enterprise collaboration and sharing tool, accounting for 22% of adoption. Furthermore, North America leads the team collaboration software market due to early adoption of technologically advanced products or tools. Such factors contribute to the market's expansion in the North America regional market.
In contrast, Asia Pacific is expected to have the fastest growing CAGR in the team collaboration software market in the coming years. Rising influx of technologically advanced products and tools, along with robust adoption of such advanced technologies, have resulted in stupendous growth in the APAC regional market over the years and will continue to do so throughout the forecast period.
The prominent players of the global team collaboration software market involve Asana, Avaya, Cisco Systems, Inc., Citrix Systems, Inc., International Business Machines Corporation (IBM), Microsoft Corporation, Slack Technologies, Inc., and among others
Market By Deployment
Market By Software Type
Communication & Coordination Software
Market By Application
IT & Telecom
Logistics & Transportation
Market By Geography
• Rest of Europe
• South Korea
• Rest of Asia-Pacific
• Rest of Latin America
Middle East & Africa
• South Africa
• Rest of Middle East & Africa
Team collaboration software market is expected to reach a market value of around US$ 27.8 Bn by 2028.
The team collaboration software market is expected to grow at a CAGR of around 13.5% from 2021 to 2028.
Based on deployment, on-premise segment is the leading segment in the overall market.
Technological advancement is one of the prominent factors that drive the demand for team collaboration software market.
Asana, Avaya, Cisco Systems, Inc., Citrix Systems, Inc., International Business Machines Corporation (IBM), Microsoft Corporation, Slack Technologies, Inc., and among others.
North America is anticipated to grab the highest market share in the regional market
Asia Pacific is expected to be the fastest growing market in the forthcoming years