IDC Forecasts Collaboration Applications Market Revenues to Double
August 30, 2021
was a transformational year for collaboration applications as
organizations everywhere turned to "work from anywhere" business
models to meet the challenges posed by the COVID-19 pandemic. As a
result, worldwide collaboration applications revenues grew to $22.6
billion in 2020, an increase of 32.9% over 2019. According to a new
forecast from International Data Corporation (IDC), this was the
fourth consecutive and most significant year of double-digit,
year-over-year growth for the market.
"While consumers and early adopter businesses had widely embraced
collaborative applications prior to the pandemic, the market saw
five years' worth of new users in the first six months of 2020,"
Wayne Kurtzman, research director, Social and
Collaboration at IDC. "This has cemented collaboration,
at least to some extent, for every business, large and small."
The top 5 collaboration application vendors in 2020 based on
worldwide revenue were Microsoft, Google, Zoom, Cisco, and Slack.
Combined, the top 5 vendors captured 64.2% 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%.
forward, 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 new 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:
Deep 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
"The future of collaborative applications will see the introduction
of more intelligence, new and more visual ways of connecting with
each other, and measuring true value for customers," Kurtzman noted.
"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."