Workstream Collaboration Tool Market Overview
The Workstream Collaboration Tool Market size is projected to grow at a CAGR of 17.28% during the forecast period 2022-2027 and reach US$15,208.66 million by 2027. Rapid growth in the adoption of remote working culture after the COVID-19 pandemic has generated a surge in the adoption of workstream collaboration tools in 2021 as organizations are replacing existing unified communications systems with more effective workstream collaboration applications. Workstream collaboration tools enable employees within an organization to maximize productivity and communication levels through the use of capabilities such as chat, voice, video and more. These applications provide superior workflow integration and coordination, while also providing rapid access to relevant information, thereby improving both internal as well as external collaboration. Furthermore, the use of workstream collaboration tools helps organizations connect remote workers, boost workflow, improve employee engagement and drive return on investment.
Workstream Collaboration Tool Market Report Coverage
The "Workstream Collaboration Tool Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Workstream Collaboration Tool Market.
By Deployment Type: On-premise and Cloud-based.
By End-user: Banking & Financial Services, Healthcare, Government, Retail, IT Sector, Media, Education and Others.
By Organization Size: Small Scale & Medium Businesses and Large Enterprises.
By Type: Platform and Software.
By Features: Document Management, Real-time Editing, Video Conferencing, Version Control, Content Management, Project Management and Others.
By Geography: North America (the U.S., Canada and Mexico), South America (Brazil, Argentina and the Rest of South America), Europe (the UK, Germany, France, Italy, Spain and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, New Zealand and the Rest of APAC) and the Rest of the World (the Middle East and Africa).
- Cloud-based collaboration tools are witnessing major demand in the Workstream Collaboration Tools market due to improved version control features.
- North America dominated the Workstream Collaboration Tool Market in 2021, owing to the rising adoption of web and application-based services for digital workplaces.
- There is an increasing demand for Workstream Collaboration Tools by large organizations due to their ability to offer optimum transparency and team coordination in the work environment.
Figure: Workstream Collaboration Tool Market Share, by Geography, 2021 (%)
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Workstream Collaboration Tool Market Segment Analysis – by Deployment Type
The cloud-based segment held the largest share in the Workstream Collaboration Tool Market and it is expected to grow at a CAGR of 19.88% between 2022 and 2027. This is due to the range of characteristics and benefits it offers over the on-premise deployment model. For instance, cloud-based workstream collaboration tools offer a range of benefits such as ease of use, multi-functionality, integrations, higher scalability and flexibility as per the budget and usage. Moreover, it is more economical and cost-effective as compared to on-premise deployment models as it eliminates upfront capital costs of on-premise hardware and servers. Hence, all these benefits of cloud-based deployment are driving its demand over the on-premise deployment model. Additionally, the surging adoption of remote or hybrid work culture among various end-use industries such as banking, education, IT and other sectors are driving the adoption of cloud-based Workstream Collaboration Tools, which in turn, would boost the market growth during the forecast period.
Workstream Collaboration Tool Market Segment Analysis – by End-user
The IT sector held the largest share in the Workstream Collaboration Tool Market and it is expected to grow at a CAGR of 16.29% between 2022 and 2027. An increase in the adoption of remote work culture within the IT sector is expected to fuel market growth. For instance, according to Forbes, the number of remote work positions associated with the IT sector in the UK increased by up to 23% in 2021 as compared to 4% in 2020, owing to the surging employee preference towards the remote work model post the COVID-19 pandemic. Thus, such increasing adoption of remote work culture in the IT sector would drive the demand for workstream collaboration tools for efficient collaboration of employees working remotely within an organization. This would ensure maximum productivity by allowing them to make decisions or solve business-critical problems together. This would also accelerate the market growth during the forecast period.
Workstream Collaboration Tool Market Segment Analysis – by Geography
North America dominated the Workstream Collaboration Tool Market with over 35% market share in 2021. The consumption of workstream collaboration tools is particularly high in this region due to its increasing demand from the banking & financial, IT and educational sectors. The surging growth of the remote or hybrid work culture in such sectors is the key factor driving the demand for workstream collaboration tools in the region. For instance, in April 2022, some of the leading banks in the U.S. such as Citigroup, Wells Fargo, UBS, HSBC and BNY Mellon announced flexible work schedules and the adoption of hybrid work models within the enterprises. Moreover, according to Nomad List, Mexico has been expanding its remote work culture across many cities in 2021. This surge in increasing adoption of remote or hybrid work culture in the region would drive the adoption of workstream collaboration tools to ensure efficient document management, team collaboration, increased productivity and other similar factors. This would propel the growth of the Workstream Collaboration Tool market in the upcoming years.
Workstream Collaboration Tool Market Drivers
Increasing trend for remote or hybrid work culture in the IT sector:
The global pandemic has allowed employees to identify several benefits related to working from home, both for themselves and the organization. These benefits include improved work-life balance, increased focus with fewer distractions, reduced commuting time and costs, IT upskilling and high levels of motivation. These factors have been driving the expansion of the global team collaboration software market. According to a World Economic Forum report statistics, 69% of U.S. service companies or nearly two-thirds of the workforce, expect to work from home once or twice a week in the coming years. Additionally, 48% of employees across the globe wanted to continue working from home after the pandemic. As a result of these factors, there has been a significant increase in the adoption of team collaboration software in order to track or monitor the performance of employees at the workplace, which in turn, is driving the market growth.
Adoption of advanced technologies:
The high demand for hybrid models among various organizations has resulted in the widespread adoption of advanced technology tools for monitoring performance, such as team collaboration software. Such factors contribute to the expansion of the global team collaboration software market. For instance, in October 2020, IBM announced the acceleration of a hybrid cloud growth strategy that could drive digital transformation for its client base. In March 2021, Avaya announced Avaya Spaces, a modern workstream collaboration (WSC) platform that provides evolved unified communication capabilities through a preferred device. Hence, such new developments associated with Workstream Collaboration Tools are set to drive the growth of the market.
Workstream Collaboration Tool Market Challenges
Cybersecurity issues associated with collaboration tools:
Online collaboration faces cybersecurity issues, such as data theft, hackers, malware and identity theft. Uninvited guests may gain access to collaborative platforms, spaces and tools and impersonate a team member or make away with confidential information. The major challenge faced by workstream collaboration tools is the security issues while accessing the work collaboration platforms, which may limit the market growth. Security is a major concern for an organization due to the massive amount of sensitive data stored in systems. While choosing a workstream collaboration tool, organizations should consider file security as their topmost priority. Developers of workstream collaboration tools should try to balance out end-user productivity along with building up high-level security strategies.
Workstream Collaboration Tool Industry Outlook
Technology launches, acquisitions and increased R&D activities are key strategies adopted by players in the Workstream Collaboration Tool Market. The top companies in the Workstream Collaboration Tool Market are:
- Microsoft Corporation
- Slack Technologies
- RingCentral Inc.
- Google LLC
- Meta Inc. (Facebook)
- Atlassian Corporation
- Asana Inc.
- GoTo (LogMeIn Inc.)
- Smartsheet Inc.
- In September 2022, Adobe acquired Figma at US$20 billion with the aim of enhancing its collaboration tools for the hybrid workplace. The main motive of this acquisition is to strengthen the company’s position in the market.
- In November 2021, Microsoft launched Loop, an Office app that people can use to collaborate on projects. It includes a combination of features that is ideal for use in hybrid work configurations, where everyone is not located in the same physical space.
- In June 2021, Cisco launched its Webex Suite. It combines tools across meetings, messaging, calling, events and polling. The launch aimed at bringing together collaboration tools with virtual events for enhanced user experience.
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