Team Collaboration Software Market Size, Share & Industry Analysis, By Component (Solution, Services), By Deployment (Cloud, On-premises), By Enterprise Size (Small & Medium-sized Enterprises, Large Enterprises), By End-User (Banking, Financial Services, and Insurance, IT and Telecommunications, Manufacturing, Retail and Consumer Goods, Healthcare, Transportation and Logistics, Education, and Others), and Regional Forecast, 2024-2032

The global team collaboration software market size was USD 21.79 billion in 2023. The market is projected to grow from USD 24.63 billion in 2024 to USD 60.38 billion by 2032 at a CAGR of 11.9% during the 2024-2032 period.

The global market size is inclusive of several team collaboration tools offered such as IceWarp Mail Server by IceWarp Ltd., Zoom Cloud Meetings by Zoom Video Communications, Inc., among others. The global impact of COVID-19 has been unprecedented and staggering, with team collaboration software and solutions witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 12.3% in 2020 as compared to year-on-year growth during 2017-2019. The steady rise in CAGR is attributable to this market’s demand and growth rate, returning to pre-pandemic levels once the pandemic is over.

The rising trend among companies in implementing intelligent meeting solutions for remote working provides exciting business growth prospects. Modern and creative technology makes seamless collaboration among employees easier and more profitable, stimulates innovation, and provides companies with a competitive edge. In addition, collaboration tools allow participants to record meetings and take points from a meeting that has already been held. The growing need for employees to enter immersive meeting rooms without interruption would further boost the development of the industry. Key players are collaborating with other significant players to provide remote solutions to automate work processes from any region, to collaborate effectively, and to maintain communication among teams.

• For instance, in October 2022, Cisco and Microsoft Corp. revealed a new collaboration at Microsoft's annual Ignite conference, giving customers additional options. They will allow Microsoft Teams to be used on Desk Devices Certified for Microsoft Teams and Cisco Room, with the choice of making Teams the default experience.

In countries such as China, India, and Japan, the emergence of the COVID-19 pandemic would accelerate the demand for team collaboration software to efficiently carry out team meetings and conferences. Cloud computing services are being widely used to promote business development in the region. The rising popularity of work from home trends in startups and small and medium-sized companies is also set to contribute to the global team collaboration software market share.

Team Collaboration Software Market Trends

Bring-Your-Own-Device (BYOD) Trend to Bring Substantial Enterprise Benefits and Enhance Productivity

The usage of personal or enterprise-owned devices such as laptops, mobile phones, and tablets has increased enormously in recent years. The integration of such solutions in personal devices can enable employees and businesses to attend conferences and meetings regardless of the place.

In addition to that, the cumulative number of Small and Medium-sized Enterprises (SMEs) are leading to the rising adoption of Bring-Your-Own-Device (BYOD) practices in order to reduce or restrict the initial infrastructure costs. As a result of the rising start-up culture in both emerging and developed economies, BYOD technology will create enormous growth opportunities while ensuring operational flexibility.

Successfully adopting BYOD technology at workplaces is likely to benefit companies in terms of corporate performance, workplace efficiency, and employee satisfaction, thus contributing positively to the global market.

Team Collaboration Software Market Growth Factors

Adoption of Collaboration Software and Conferencing Tools among Businesses to Drive Growth

Advanced technologies are playing a crucial role in enabling businesses to create an environment that would encourage employees to achieve business goals with creativity to develop lasting economic values. Digital transformation produces new product and service possibilities that would enable businesses to raise sales significantly and reduce costs by achieving higher performance. The next-generation collaboration and enterprise productivity tools are playing a significant role in establishing efficient business communications that encompasses richer team communication, co-creation, and document sharing. Thus, adoption of advanced technologies such as Machine Learning (ML), Artificial Intelligence (AI), and others have enabled businesses to efficiently manage communication and collaboration between teams. In order to offer companies with better team communication and collaboration tools, key players are launching different work environments. For instance,

• In February 2022, work management platform provider Asana released Asana Flow, a complete range of solutions businesses can use to build, run, and enhance their workflows.

Business collaboration tools enhance communication among employees, boosting efficiency and productivity. They enable data synchronization and collaboration, offering features, such as email, calendars, and contacts. Video conferencing also facilitates interactive communication and idea sharing. Team collaboration software usage is expected to showcase an exponential growth during the forecast period.

Adoption of Collaboration Tools to Efficiently Manage Projects will Boost Growth

In recent times, the collaboration tools have become the most widely used tools by distributed project teams. Team collaboration software enables businesses to plan and manage all phases of the project and share ideas between all team members. It also helps the team members to make informed choices by combining all the project details. For instance, Asana Groupware provides team management and collaboration solutions that enable project teams to schedule daily meetings and conferences just in one click.

The coordination of project activities among various team members and teams is much easier with collaborative software solutions. The details can be exchanged and deadlines can be set easily so that the management process is highly reliable. Control of the project progress is important for companies for long-term success and to gain a competitive edge. Technology integration plays a significant role in the management of the project phases and makes it possible to ensure that the projects are completed on time. Thus, the adoption of collaboration tools to easily manage projects is expected to contribute to the team collaboration software market growth.

RESTRAINING FACTORS

Risks of Cyber Security Attacks and Loss of Important Data May Hinder Growth

With businesses embracing more diverse interactive technical methods, security issues are growing. For businesses that invest in software, safety is the top priority – this includes tools for collaboration that can accommodate company details, customer data, and the latest product ideas in a single platform. Developing and underdeveloped countries globally continue to rely on outdated telecom systems that cannot provide fast and reliable internet connections. This lack of high-speed internet hinders the adoption of essential tools like video conferencing and cloud services for businesses.

Depending on the configuration of network security, the adoption of collaboration tools may open an insecure channel that can introduce malicious code or other forms of ransomware. It can also open a path for hackers to access the network and compromise personally identifiable information (PPI) or sensitive data that can harm business processes. Some hackers are able to reach corporate websites simply by following the standard web-based protocols. Many applications often collect metadata from the device itself in URLs, so that sensitive data can be exposed unintentionally. This, in turn, is expected to hinder the market growth.

Team Collaboration Software Market Segmentation Analysis

By Component Analysis

Solution Captured Maximum Market Share

Based on component, the global market has been segmented into solution and services.

The solution held the largest market share in 2023 and is expected to maintain its dominance over the forecast period. The market size is inclusive of various team collaboration software and solutions offered by key players such as Microsoft Corporation’s Microsoft Teams, Workplace by Facebook, Oracle Beehive by Oracle Corporation, among others. This growth is mainly due to the rising demand for visual meetings in all the international companies, along with a growing knowledge of the advantages of team collaboration software among businesses. The most significant revenue share was generated in 2020 by the use of team collaboration software for conferencing. Collaboration tools enable data sharing in real time and allow cross-functional teams to remain linked through emails, direct messages, voice mails, and conferences. Effective contact between teams enables the development of content for internal and external audiences, for production and publishing. The ability to monitor different activities, such as meetings and deadlines, allows businesses to work efficiently, thereby enabling corporate adoption.

The services segment is expected to grow at the highest CAGR over the forecast period. Along with solutions, organizations are also offering managed and professional services. Professional services include integration and implementation, training and education, and support and maintenance. Among them, the integration and implementation sub-segment would hold the largest market share in the forecast period.

By Deployment Analysis

Cloud to Grow Significantly Backed by Need to Reduce IT Infrastructure Costs

Based on deployment, the market is segmented into cloud and on-premises.

The on-premises captured maximum market share. The on-premises deployment of collaboration tools guarantees low latency at data transfer levels, which, in turn, allows enterprises gain control over enterprise data. Adopting on-premises implementation mitigates the need to invest in costly internet services that provide companies with cost-saving opportunities and also ensure stable business practices in the event of data failures. These solutions also require greater control of server hardware and versatile storage delivery configuration.

The cloud segment is expected to be the fastest growing segment during the forecast period. This segment comprises of team collaboration tools deployed on cloud environments. For instance, ProofHub, a team collaboration tool offered by ProofHub LLC, is deployed on cloud environment and delivers streamlined experience with a hassle free work management system. The ability of cloud deployment practices to reduce IT infrastructure costs and cost related to staff training is promoting the widespread adoption of this model. In addition, cloud deployment guarantees operational flexibility of the remote task force to access data from any location at any time. The ease with which cloud systems are implemented gives users competitive advantage over peers, offering significant opportunities for development.

By Enterprise Size Analysis

Large Enterprises to Dominate Market Fueled by Demand for Digital Collaboration

Based on enterprise size, the global market is segmented into large enterprises and SMEs.

The large enterprises segment accounted for the largest market share in 2023. The need to initiate digital collaboration among large, dispersed teams and manage projects efficiently is contributing to the growth of this segment.

In the forecast period, the SMEs segment is projected to rise at the highest CAGR. This growth is due to the increasing digitalization of small and medium-sized enterprises. The emergence of virtual business is enabling SMEs to use collaborative software to enhance communication across businesses. Also, the growing demand for collaboration applications across SMEs is driven by the increasing operational costs for managing large offices. The rising BYOD trend in small and medium-sized enterprises would also support the growth of this segment.

By End-User Analysis

IT and Telecommunications Segment to Show High Growth Backed by Demand for Video Conferencing Solutions

Based on end-user, the market is segmented into BFSI, IT and telecommunications, manufacturing, retail and consumer goods, healthcare, travel and transportation, education, and others.

The IT and telecommunications segment had the largest market share in 2023. The segment covers the team collaboration software adopted by IT and telecom companies. The example includes nTask, a solution offered by nTask that is vigorously adopted by IT companies globally. The adoption of unified communication solutions by IT companies to promote efficient communication and cooperation is set to boost the growth of this segment. In addition, the increased demand among companies for video conferencing solutions to promote the sharing of information is also an important driver of the growth of the segment.

The BFSI sector captured considerable market share in terms of revenue. The trend for digitization in banking among employees in order to increase their production efficiency would provide an impetus for business growth. The emergence of a number of branches and the high demand among policy makers and influencers to engage in meetings and discussions to strategize successful banking systems are further boosting the growth of this segment. Apart from that, the reducing contact time across different departments improves operational efficiency and enhances the ability to generate profit.

The healthcare sector is expected to witness exponential adoption of collaboration tools and will grow at highest CAGR over the forecast period. The growth of the segment would occur on account of rising expenditure in healthcare industry and adoption of collaboration tools to effectively manage communication among healthcare professionals and teams.

REGIONAL INSIGHTS 

Geographically, the market is segmented across five major regions, namely, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

North America dominated the global market in 2023. The growth of the region is mainly owing to the technological advancements and stable economic growth. Organizations in the region are showcasing lucrative growth in the adoption of collaboration and enterprise communications tools for internal team communications and for efficiently carrying out project activities. Businesses are increasing their IT expenditures as a result of enhanced security measures such as data encryption and access to end-to-end transfers, which is expected to have a favorable influence on the market in the area. Moreover, the penetration of high-speed Internet in many countries makes it easier for employees to flexibly use the software in the area, thus raising their demand. The outbreak of the COVID-19 epidemic prompted SMEs and large companies in the region to adopt collaboration tools to meet work from home needs.    

Asia Pacific is expected to be the fastest growing region in the global market in terms of CAGR. The growth is mainly attributed to the increasing investments in advanced technology, availability of cloud service providers, and large number smartphone users in the region. Developing economies such as China and India are also witnessing a comparable pattern. This is primarily due to the widespread use of smartphones, which are easily accessible. These benefits are driving the expansion of the enterprise collaboration market. As per Ericsson, global smartphone mobile network subscriptions reached nearly USD 6.6 billion in 2022 and are projected to surpass USD 7.8 billion by 2028. The countries with the highest smartphone mobile network subscriptions are India, China, and the U.S. In addition to this, the emerging trend of BYOD among businesses will have a positive effect on the market growth in this region.

Europe is expected to lead the global market and is set to expand by exhibiting an exceptional CAGR by 2028. The region is one of the most technologically developed regions, mostly because of the highest mobile usage and industrial developments. Furthermore, virtual companies are emerging that would help the businesses to grow in the region.

In accordance with the increased emphasis on upgrading networking technology to cope with the COVID-19 pandemic, the Middle East and Africa and Latin America accounted for a substantial revenue share in 2020. In the future years, the regional market will be driven by continued enterprise digitalization.

List of Key Companies in Team Collaboration Software Market

Major Players to Focus on Mergers to Cater towards Rising Demand among Consumers

Companies operating in the market such as Oracle Corporation, Slack Technologies, Inc., TeamViewer GmbH, Zoom Video Communications, Inc., Trello (Atlassian Corporation Plc), Cisco System, Inc., LogMeIn, Inc., nTask, Citrix Systems, Inc., AT&T, Inc., among others are focused on developing and offering different types of software and tools. Also, the high competition in the market is forcing companies to adopt different business strategies to gain optimal market share.

• July 2022 - Microsoft unveiled the Microsoft Cloud for Sovereignty, a special offering for public sector clients, particularly in Europe. Organizations can enhance their data control by incorporating Microsoft Cloud for Sovereignty and gain more insight into the cloud's operational and governance processes.

LIST OF KEY COMPANIES PROFILED:

• Microsoft Corporation (U.S.)


• TeamViewer GmbH (Germany)


• Slack Technologies, Inc. (U.S.)


• Trello (Atlassian Corporation Plc) (Australia)


• Cisco System, Inc. (U.S.)


• Zoom Video Communications, Inc. (U.S.)


• LogMeIn, Inc. (U.S.)


• nTask (U.S.)


• Citrix Systems, Inc. (U.S.)


• AT&T, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• October 2023 – Cisco revealed the latest progress in collaborating with NVIDIA to provide AI-enhanced meetings for hybrid employees. Cisco introduced Room Kit EQX and expanded its Cinematic Meetings features, utilizing NVIDIA's AI technology to improve collaboration through advanced audio and video capabilities for more inclusive hybrid meetings.


• October 2023 — Atlassian Corporation, a company that offers software for team collaboration and productivity, recently announced that it will acquire Loom, a video messaging platform. This acquisition will allow Loom customers to integrate video messages seamlessly into their workflows in Jira and Confluence, thanks to Atlassian's platform and range of products.


• May 2023 — TeamViewer opened a new office in Mumbai, India, to expand its operations in Asia Pacific. This move shows TeamViewer's dedication to the Indian market and its regional growth strategy.


• April 2022 — Slack Technologies Inc. and Salesforce introduced new tools to boost team productivity. These tools include the digital HQ, which allows customers to personalize Slack, automate tasks, and tailor workspaces to their teams' unique requirements.


• January 2022 — Zoom Video Communications, Inc. launched a new Zoom Events Expo feature, which offers organizations additional ways to interact with participants. This virtual platform allows users to navigate through a 2D space using avatars and connect with sponsors, exhibitors, and other users.

REPORT COVERAGE

The global market research report provides an in-depth analysis of the market. It focuses on key aspects such as leading companies, product Industry, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several key factors that have contributed to the market's growth over recent years.

Report Scope and Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 11.9% from 2024 to 2032
Unit	Value (USD Billion)
Segmentation	By Component Solution Web Conferencing Communications Task Management File Sharing and Synchronization Enterprise Social Network Others (Unified Messaging, Portals, Etc.) Services Professional Integration and Implementation Training and Education Support and Maintenance Managed By Deployment Cloud On-Premises By Enterprise Size Small & Medium-sized Enterprises (SMEs) Large Enterprises By End-User Banking, Financial Services and Insurance (BFSI) IT and Telecommunications Manufacturing Retail and Consumer Goods Healthcare Transportation and Logistics Education Others (Government, Energy and Utilities, etc.) By Region North America (By Component, By Deployment, By Enterprise Size, By End-User, and By Country) U.S. (By End-User) Canada (By End-User) Europe (By Component, By Deployment, By Enterprise Size, By End-User, and By Country) U.K. (By End-User) Germany (By End-User) France (By End-User) Italy (By End-User) Spain (By End-User) Rest of Europe Asia Pacific (By Component, By Deployment, By Enterprise Size, By End-User, and By Country) China (By End-User) India (By End-User) Japan (By End-User) Australia (By End-User) Southeast Asia (By End-User) Rest of Asia Pacific Middle East & Africa (By Component, By Deployment, By Enterprise Size, By End-User, and By Country) GCC (By End-User) South Africa (By End-User) Rest of the Middle East & Africa Latin America (By Component, By Deployment, By Enterprise Size, By End-User, and By Country) Brazil (By End-User) Mexico (By End-User) Argentina (By End-User) Rest of Latin America