Delivery Model – Segment Analysis
The on premise delivery model segment captured 55.05% revenue share of the team collaboration software market in 2019, as it delivers a 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.
Vertical – Segment Analysis
The market is segmented by vertical into BFSI, Communications & Media, Manufacturing, Government, Healthcare, Wholesale & Retail, Services, Transportation, and Utilities & Resources among Others. The Communications & Media segment dominated the market in 2019. The increased need for efficient coordination among team members during the lockdown period is creating lucrative team collaboration software market growth opportunities in IT and communications vertical. Team collaborations are helping organizations to improve productivity, secure document sharing and efficient coordination between departments. 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 offer value-added services to their 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.
Report Price: $ 4500 (Single User License)
Geography – Segment Analysis
North America dominated the global market for team collaboration software, with a share of 38.9% 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 this software in the region. Asia Pacific is expected to witness the fastest growth over the forecast period. 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.
Drivers – Team Collaboration Software Market
- Advent of 5G Delivery Model
One of the major factors that has boosted the adoption of team collaboration is the advent of 5G delivery model. Rising demands of clients and increasing remote workforce facilitate the requirement to be connected and be productive, which can be achieved by leveraging 5G technology. The provision of high-speed internet offers the ability to indulge in seamless video conferencing, superior VoIP experience, and faster data processing and transfer rates. Organizations are preparing to introduce 5G by investing in a flexible network, which can adapt to new collaboration and communications tools. The adoption of upgraded software with 5G capability is expected to trigger the market growth over the next few years.
- Growing trend among organizations to implement smart meeting rooms
The growing trend among organizations to implement smart meeting rooms is offering exciting prospects to market growth. Modern and innovative technologies enable corporations 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.
- Work from Home policy due to emergence of Covid-19 pandemic
The global pandemic, COVID-19 (coronavirus), offers significant growth aspects to the market. Emerging regulations from government bodies to practice social distancing due to the highly contagious nature of the disease has promoted companies to increasingly 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.
Challenges – Team Collaboration Software Market
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.
Talk to one of our sales representative about the full report by providing your details in the link below:
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Team Collaboration Software Market. Team Collaboration Software driver market is expected to be dominated by major companies such Adobe Systems (The U.S), AT&T (The U.S), Avaya (The U.S), Citrix Systems (The U.S), Cisco Systems (The U.S), YAHOO (The U.S), Smart Technologies (Canada), Unify Software and Solutions GmbH & Co. KG (Germany), Polycom (The U.S), Novell (The U.S), Microsoft Corporation (The U.S), IBM (The U.S), Oracle Corporation (The U.S), Blackboard (The U.S), AudioCodes (TIsrael) and Radisys (The U.S) among others.
- September 2018 – Astro was acquired by Slack for helping about more than 12M Daily Active Users (DAU) and over 100k paid customers by simplifying the job of moving conversations from an email into Slack. The company is planning its strategic acquisition for improving the regular customer experience in terms of slack application.
- July 2019 –A new Unified Communications (UC) product, namely Grasshopper Connect, was launched by LogMeln, Inc. This product is designed for providing all types of business communications in a single and easy-to-use application format to small businesses. This will further help to strengthen the Unified Communications portfolio on the one hand and help business management easier for small companies on the other.