Enterprise Collaboration Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Enterprise Collaboration Market Analysis

The enterprise collaboration market was valued at USD 47.24 billion in 2021 and is expected to register a CAGR of over 10.7% during the forecast period (2022 - 2027). Enterprises are utilizing advanced tools, such as virtual reality, robotic process automation, and artificial intelligence bots, to augment internal productivity and promote better employee communication. According to Goldman Sachs, the virtual and augmented reality market's enterprise and public sector segments are expected to account for around USD 16.1 billion by 2025. Virtual reality companies, such as RealSense and DORA, offer immersive experiences for the boardroom.

• Enterprise collaboration tools help organizations by providing seamless communication between employees and improving their operational efficiency and productivity, helping them meet their business goals. Enterprise collaboration tools provide data synchronization and collaboration solutions across organizations and include features such as checking official emails, calendars, and contacts. Furthermore, video conferencing helps to give the employees more engaging communication and sharing of ideas.
• Advanced technologies such as AI and ML are being implemented into enterprise collaboration tools to enhance collaborative capabilities. AI-based enterprise collaboration tools can track the activities of employees and the contents being shared and are used to deliver anticipated business insights to the employees and help get the work done quicker by correlating visual analytics with production checkpoints such as consumer behavior, employee retention, office utilization, and performance optimization.
• The cloud-based deployment of workloads is anticipated to be primarily driven by the consistent growth in the generated data. Various end-user industries are dealing with a massive volume of data being generated. The data centers are more suited for an organization that has to run many applications and complex workloads for enterprise collaboration. It also enables high productivity, with access to real-time data with all application tools.
• The growing usage of mobile devices to operate numerous social networking platforms boosts the enterprise collaboration market growth. It is observed that few people access social networking sites via computers, while most people use smartphones to access these websites. For Instance, In 2021, more than 80% of the users in the U.S. accessed their smartphones to respond to emails or operate social networking platforms. Furthermore, emerging economies, such as China and India, are also experiencing a similar trend, owing to the increasing usage of smartphones due to their easy accessibility. These advantages are propelling the growth of the enterprise collaboration market.
• Data privacy concern is one of the significant challenges for the growth of the enterprise collaboration market. While many enterprises focus on preventing malicious data hacking and theft, data breaches are most commonly caused due to lack of data security or accidental mishandling. Furthermore, as enterprises step toward a more collaborative environment, the exchange of data increases, both within the company and with external enterprises. With the increasing data exchange among enterprises and employees, there is a growing need to address the challenges of safeguarding shared data during collaboration activities. Such challenges are hampering the market growth at a certain level.
• The recent outbreak of COVID-19 is anticipated to increase the usage of collaboration tools. Due to the lockdown, multiple organizations are promoting collaboration tools as employees tend to work from home during the crisis. Microsoft Teams, a team collaboration software from Microsoft, witnessed a 40% increase in demand due to the adjustment of businesses to remote work. Microsoft launched new Teams features, primarily designed to improve remote meetings. Enterprises have reduced operational spending and focused more on business continuity and sustainability. SMEs are expected to accelerate the deployment of enterprise collaboration solutions.

Enterprise Collaboration Industry Segmentation

The enterprise collaboration market is currently seeing a surge in innovation, which has led to several new approaches that have real potential to become digital workplace breakthroughs. The demand for cloud-deployed enterprise collaboration solutions is increasing in organizations due to their scalability functions. Virtual reality, data collaboration, visual collaboration tools, and artificial intelligence bots are changing the way that enterprises conduct business.

The Enterprise Collaboration Market is Segmented by Deployment (On-premise, Cloud-based), Application (Communication Tools, Conferencing Tools, Coordination Tools), End-user Industry (Telecommunications and IT, Travel and Hospitality, BFSI, Retail and Consumer Goods, Education, Transportation and Logistics, Healthcare), and Geography

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Enterprise Collaboration Market Trends

This section covers the major market trends shaping the Enterprise Collaboration Market according to our research experts:

Cloud-based Deployment to Increase the Market Growth

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