Team Collaboration Tools Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Team Collaboration Tools Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The team collaboration tools market is expected to register a CAGR of 18%, over the forecast period (2021-2026). Team collaboration tools make working together on professional projects more comfortable and faster. It reduces queue in feedback and approval processes and allows for real-time communication. The areas that team collaboration tackles are for efficient means of communication, project and task management, and file sharing.

• The development of Artificial Intelligence and its integration with team collaboration tools are expected to create higher demand, in achieving automation and improved communication within an organization. Most organizations expect increased productivity and focus on high-value tasks, as significant team benefits of Artificial Intelligence.
• AI, along with team collaboration tools, can filter and highlight the most relevant messages according to work pattern and behavior, understand email content, propose intelligent response, and type emails based on voice commands, correct mistakes, and include related files, which can boost the organization's efficiency.
• The latest technological advancements in team collaboration tools include analyzation of information and data from different sources and connecting them, schedule meetings with relevant people at a time convenient for everyone, and also can be used for reminding workers of a meeting and join automatically via face recognition when the meeting starts.
• The outbreak of COVID-19 is expected to increase the usage of team collaboration tools. Due to lockdown, many organizations are promoting the usage of team 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 the businesses to remote work. Microsoft launched new Teams features, which are designed to improve remote meetings, as they become the default work mode rather than the pre-pandemic exception. In the week from March 11 to March 18, 2020, Microsoft Teams witnessed 12 million new users using its service on a daily basis.

• With the outbreak of COVID-19 in various countries, globally, many governments, including United States, major European countries, and the Asia-Pacific countries ( like China, India, and Singapore), announced lockdown to curb the virus. This resulted in many organizations and educational institutions promoting the usage of team collaboration tools, as employees and students are working from home during the crisis.
• Microsoft Teams, a team collaboration software from Microsoft, witnessed a 40% increase in demand, due to adjustment of the businesses to remote work and school closures, which required the adoption of e-learning techniques. The company even launched new Teams features that are designed to improve remote meetings, as Teams has become the default work mode, rather than the pre-pandemic exception. In the week from March 11 to March 18, 2020, Microsoft Teams witnessed 12 million new users using its service on a daily basis.
• With millions of people now suddenly working from home because of COVID-19's impact, team collaboration tools are witnessing considerable spikes in demand. Microsoft revealed its Microsoft Teams' collaboration, and its communication service has seen a 775% increase in monthly users in Italy, where social-distancing measures or shelter-in-place orders have been enforced. Moreover, companies, such as Ernst & Young, SAP, Continental AG, and Accenture, which together have over 440,000 employees are using Microsoft Teams.

• North America is expected to hold a significant market share, due to the increasing adoption of team collaboration tools by enterprises that offer enhanced features, such as web conferencing, communication, and coordination tools, and collaboration portals, which are expected to create a positive impact in the region.
• Moreover, the surge in the adoption of web conferences among enterprises, owing to increasing demand for visual meetings, which saves traveling time for organizations, growing user comfort, and rising access to high-quality internet connections are other factors that drive the market in this region.
• Major companies of the team collaboration tools market, such as Microsoft Corporation and Slack Technologies Inc., who occupy the majority of the share in the market, are based out of United States. Additionally, the region is witnessing the majority of technological advancements with the deployment of Artificial Intelligence in certain team collaborative software.
• United States witnessed the highest number of patients affected by COVID-19, in March 2020. Therefore, this is another factor for the massive surge in the usage of team collaboration tools, due to the lockdowns imposed in various states of the country.

The team collaboration tools market is moderately consolidated. The top players in the market occupy the majority of the market share. Additionally, existing players already have their customer base who generally do not switch to new players, and new players do face immense competition from the already established players in the market studied. Some of the key players include Microsoft Corporation, Slack Technologies Inc., Asana Inc., and Smartsheet Inc.

• March 2020 - The iOS and Android versions of the Microsoft Teams App were both updated with new features that are likely to enhance the functionality and usability of all users. The new update includes the capability to switch on live captions, while on a group call or meeting. The user can insert an option to add music when public switched telephone network callers are on hold, and support for tone alerts and vibration for incoming calls received while undergoing another call.
• December 2019 - SiriusXM, which is one of the largest audio entertainment companies, was rolling out Slack companywide. The company started to use Slack as part of its audio production, event management, and marketing, to bring together people and applications. The introduction of Slack as SiriusXM's choice of technology and productivity tools is part of the company's strategy to integrate its geographically diverse workforce.

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