Collaboration Software Global Market Report 2024

The collaboration software market size has grown steadily in recent years. It will grow from $13.58 billion in 2023 to $14.16 billion in 2024 at a compound annual growth rate (CAGR) of 4.3%. The growth observed during the historical period can be attributed to various factors, including the effects of globalization and the increasing prevalence of remote work, the heightened adoption of cloud computing, the mobility and 'bring your own device' (BYOD) trend, the growing demand for productivity and efficiency, and the rise of Software as a Service (SaaS) models.

The collaboration software market size is expected to see steady growth in the next few years. It will grow to $16.53 billion in 2028 at a compound annual growth rate (CAGR) of 3.9%. The anticipated growth in the forecast period can be attributed to several factors, including the integration of artificial intelligence, the rise of hybrid work environments, a heightened focus on security and compliance, an emphasis on improving user experience, and a growing need for interoperability and integration. Key trends expected in the forecast period encompass the use of team collaboration and messaging tools, the popularity of video conferencing and virtual meetings, document collaboration and sharing solutions, the integration of project management tools, and the emergence of augmented reality (AR) integration in collaborative software.

The increasing prevalence of remote work is poised to drive the growth of the collaboration software market in the foreseeable future. Remote work, characterized by employees performing their job responsibilities from locations outside the traditional office, including their homes or other remote settings, has gained prominence. This shift has accelerated the development and adoption of collaboration software, as organizations recognize the necessity for effective remote collaboration tools to maintain productivity, communication, and teamwork. For example, data from June 2023, as reported by the US-based business magazine Forbes, indicates that 38% of the workforce comprises men working remotely full-time, with an additional 23% working remotely part-time. Similarly, 30% of women work remotely full-time, and 22% work part-time. This trend underlines the pivotal role of increasing remote work in propelling the growth of the collaboration software market.

The primary types of collaboration software include conferencing software and communication and coordination software. Conferencing software offers features such as chat, screen sharing, and recording, facilitating online communication for audio meetings, video meetings, and seminars. These applications are instrumental in supporting long-distance or international communication, enhancing collaboration, and reducing travel expenses. Collaboration software can be deployed through cloud-based or on-premise modes and is utilized by a range of industries, including IT and telecom, BFSI (Banking, Financial Services, and Insurance), retail, healthcare, government, and other end users.

The collaboration software market research report is one of a series of new reports that provides collaboration software market statistics, including collaboration software industry global market size, regional shares, competitors with a collaboration software market share, detailed collaboration software market segments, market trends and opportunities, and any further data you may need to thrive in the collaboration software industry. This collaboration software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The growing emphasis on data protection is expected to be a key driver for the collaboration software market's expansion. Data protection involves a set of practices, policies, and measures implemented to secure data from unauthorized access, use, disclosure, alteration, or destruction. Collaboration software plays a vital role in ensuring secure data sharing among team members. It employs access controls and encryption methods to safeguard sensitive information from unauthorized access, thereby enhancing the trustworthiness of these platforms. For instance, data from April 2023, as per the UK-based government body, the Government Digital Service, indicates that 3% of companies and 1% of charities have fallen victim to cybercrime, primarily due to data breaches or fraud. This highlights the significance of data security in driving the growth of the collaboration software market.

The growing concerns regarding security and privacy are anticipated to act as a significant limitation on market growth during the forecast period. According to the global cyber economy researcher Cybersecurity Ventures, cybercrime is projected to cost the world $10.5 trillion annually by 2025. These costs encompass financial losses, decreased productivity, theft of intellectual property, personal and financial data breaches, data damage or destruction, embezzlement, fraud, and more. Consequently, the mounting security and privacy concerns represent a notable restraint on the growth of the team collaboration software market in the coming years.

Companies in the collaboration software market are increasingly investing in research and development to meet user needs and enhance team coordination. A noteworthy example is Microsoft, which introduced a free version of Microsoft Teams software. This software facilitates joint meetings, calls, and discussions, while also offering company security measures and additional storage, making it accessible for organizations of all sizes. Such initiatives are likely to intensify market competition among players and consequently contribute to the projected growth of the overall team collaboration software market.

Major companies operating in the collaboration software sector are introducing innovative technologies such as The Lucid Suite to enhance their market profitability. The Lucid Suite, a visual collaboration platform, was launched by the US-based software company Lucid Software Inc. in May 2023. This suite offers an effective way for dispersed, hybrid, and cross-functional teams to collaborate anytime and anywhere. With a shared visual language, it expedites project management and facilitates team alignment and productivity.

In June 2021, US-based IT services and consulting company Unisys Corporation entered into an agreement to acquire Unify Square for $152.5 million on a cash-free, debt-free basis. This strategic acquisition is expected to bolster Unisys' digital workplace services business, leading to increased revenue growth, improved profitability, and enhanced cash flow. Unify Square, a US-based provider of secure collaboration and communications software, is set to play a significant role in this development.

Major companies operating in the collaboration software market include Citrix Systems Inc., Slack Technologies Inc., Oracle Corporation, IBM Corporation, AT&T Intellectual Property, Cisco System Inc., Microsoft Corporation, Google LLC, BOX Inc., TeamViewer GmbH, LogMeIn Inc., Zoom Video Communications Inc., SMART Technologies ULC, MindMeld Inc., Adobe Systems Incorporated, Asana Inc., Avaya Inc., Blackboard Inc., OpenText Corporation, Siemens AG, Dropbox, Box Inc., Intralinks Holdings Incorporations and Survey Monkey, International Business Machines Corporation, Zoho Corporation, Smartsheet Inc., Wrike Inc., Notion Labs Inc., Trello Inc., Airtable Inc.

Asia-Pacific was the largest region in the collaboration software market in 2023. North America was the second largest region of the collaboration software market. The regions covered in the collaboration software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the collaboration software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The collaboration software market includes revenues earned by entities by offering software, which facilitates communication between the team members by providing a convenient and informal space for the user to perform group talks and share relevant information. Collaboration software is a platform to facilitate quick communication, address questions and queries, access shared knowledge & files, and check tasks. It offers various features such as task management, file sharing, messaging, document collaboration, VoIP and video conferencing, task management, calendar, integration, and search. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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