Worldwide collaboration applications revenues grew 32.9 percent to $22.6 billion in 2020, according to a new forecast from International Data Corporation (IDC).
The top 5 collaboration application vendors in 2020 based on revenue were Microsoft, Google, Zoom, Cisco, and Slack. Combined, the top 5 vendors captured 64.2 percent of the market revenue — 4.0 percentage points more than 2019.
While all the top 5 vendors experienced double-digit year-over-year revenue growth in 2020, IDC estimates Zoom led the pack in annual growth with 277.1 percent.
IDC expects a new generation of collaboration tools will enter the market — not necessarily to replace the leaders but to augment them with new features. This will include document and asset types that provide more ways to collaborate, document, and measure what is happening in the enterprise.
Other key developments expected in the collaboration application market include:
Integrations with third-party applications that will increase insights, minimize context switching, and according to IDC research, provide faster time to market/project completion.
New metrics will emerge to measure performance in the fully connected enterprise, augmented with collaboration and intelligence.
Artificial Intelligence (AI), Machine Learning (ML), and automation will move beyond workflows to remove friction from work for nearly every function.
Fast-evolving features, intelligence, a need to work together from anywhere, and a still growing demand will drive collaborative applications to become a $50.7 billion market by 2025, said Wayne Kurtzman, research director, Social and Collaboration at IDC.