Enterprise social networks and online communities are a networking method, in which individuals communicate with each other via a secure platform. Many organizations are adopting this platform, in order to collaborate with external and internal parties to exchange organizational information. Such platforms allow collaboration with online communities to gain certain benefits to user such as internal knowledge improvement, productivity in teamwork, promotion of organization’s business, sharing ideas, group solving of complex problems, and social collaboration of employees for blogging and others.
The global enterprise social networks and online communities market is estimated to be valued at US$ 5,539.0 million in 2021 and is expected to exhibit a CAGR of 16.5 % over the forecast period (2021-2028).
In October 2020, Google launched their new platform called as google workplace. Google workplace is a enterprise social networking application which includes all the productivity applications such as Gmail, Drive, Docs, Sheets, Slides, Meet, and many more.
In March 2021, eXo platform, the enterprise social networking application company introduced its application’s latest version eXo platform 6.2. This new version allows users to easily create and confirm events through date polls.
In October 2021, U.S based Microsoft Corporation acquired Two Hat, a leading content moderation solution provider company. This acquisition helps to provide online safety and digital wellness solution for online communities.
Figure 1. Global Enterprise Social Networks and Online Communities Market Value (US$ Mn), by Region, 2020
North America held dominant position in the global enterprise social networks and online communities market in 2020, accounting for 31.9% share in terms of volume, followed by Asia Pacific and Western Europe, respectively.
Market Dynamics- Drivers
Increasing usage of social among enterprises is expected to drive growth of the global enterprise social networks and online communities market during the forecast period
Various social media platforms are being increasingly adopted in organizations and business houses. Some of these platforms include LinkedIn and Twitter that are primarily used by business professionals and companies to interact and remain updated related to job openings and opportunities, except for engaging in promotional and marketing activities. Furthermore, companies are advertising new product launches and offering details regarding product discount, in order to drive sales and increase brand visibility online. Thus, these factors are expected to drive growth of the global enterprise social networks and online communities market during the forecast period.
Creation of a favorable environment for enterprise social network is expected to propel the global enterprise social networks and online communities market growth over the forecast period
Constant advancements in modern technologies by major companies such as Tibbr and Socialtext has facilitated integration of social media platforms with business technologies. Moreover, many companies are adopting social media platforms to communicate and share information with clients and employees. Thus, it has become necessary to integrate the same with other business technologies to take proper advantage of these technologies for partnership and collaboration purposes. Therefore, these factors are expected to propel the market growth in the near future.
Growing acceptance of BYOD culture can present major business opportunities
Bring your own device (BYOD) culture is gaining traction among various corporate companies. This trend is creating opportunities for growth of this market to a significant extent. Organizations in various sectors are adopting BYOD technology so as to reduce costs to the company in terms of devices and PC and laptops etc. BOYD allows employees to connect with clients and coworkers on a real-time basis. Major companies can capitalize on these opportunities by providing novel solutions and gain a competitive edge in the market.
High growth of social learning platforms can provide major growth opportunities
Over 65% of Internet users use social media platforms and online services on a daily basis. Many companies are deploying social networking tools for training of employees. This does not increase the cost to the company and allows employees to learn through virtual simulation. Companies also use social media to drive interaction among online communities and experts to invite ideas for solving various complex issues and challenges related to their businesses. For instance, Twitter introduced Twitter chat, which allows users to use enterprise social networking to organize online discussions.
|Base Year:||2020||Market Size in 2021:||US$ 5,539.0 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||16.5%||2028 Value Projection:||US$ 16,556.5 Mn|
Microsoft Corporation, Socialtext Inc., Google, Inc., IBM Corporation, Zyncro tech, SL, Cisco Systems, TIBCO Software, VMWare, Inc., Jive Software, and Salesforce.com
|Restraints & Challenges:||
Growing demand for services among large enterprises
Large enterprises account for larger share of the global market as compared to smaller players in the market due to more capital to invest and strong global presence. Large enterprises adopt these enterprise social networks and online collaboration solutions, in order to connect with employees working globally and to promote their products and analyze user behavior related to respective products. It is expected that in the near future demand for services such as consulting and implementation among large enterprises is expected to increase significantly due to high adoption of enterprise social networking platforms currently.
Development of social networking analytics
Emergence of social networking analytics is creating major opportunities for market players. This technology uses data and obtains high volumes of information to aid organizations in taking vital decisions, owing to the use of big data and analytics. Social networking analytics tools allow users to analyze social media information with the help of graphs and other tabular forms of data. For instance, organizations are adopting Twitter and LinkedIn to post and publish advertisements of their products, and with the help of analytical tools, companies are able to analyze product growth and popularity.
Figure 2. Global Enterprise Social Networks and Online Communities Market Share, By Enterprise, 2020
Key Takeaways of the Graph:
Market Dynamics- Restraints
Lack of secured connections is expected to hinder the global enterprise social networks and online communities’ market growth over the forecast period
Lack of adequate security is a major challenge that organizations face. Online collaboration of business information with social networking websites makes the businesses susceptible to cyber-attacks such as unauthorized access to critical business data. Integration of ERP or CRM with enterprise social networking facilitates clients, vendors, and other users to access the content of a company, which in turn, makes preference for social networking among companies relatively low. Thus, these factors are expected to hinder the market growth in the near future.
High cost of implementation is expected to restrain growth of the global enterprise social networks and online communities market during the forecast period
Enterprise social networking is advanced technology. To implement this technology in organizations, IT expansion and up-training of employees is a must. Moreover, this technology needs other business technologies for integration, so that companies can publish content and gather information about customers. Hence, these factors are expected to restrain growth of the global enterprise social networks and online communities market during the forecast period.
Major companies involved in the global enterprise social networks and online communities market are Microsoft Corporation, Socialtext Inc., Google, Inc., IBM Corporation, Zyncro tech, SL, Cisco Systems, TIBCO Software, VMWare, Inc., Jive Software, and Salesforce.com
Enterprise social networking focuses on the application of social relations or online social communities among individuals who share similar business interests and/or occupational activities. Enterprise social networking is often a service of business social software, which simply is basically social software used within an organization. It may provide tools to coordinate various communication processes within an organization, or it may be used to deliver business or organizational information to external sources using any of a wide range of communication technologies. In most cases, though, enterprise social networking relies on existing technology, either for developing new applications or for providing existing tools that can be extended.
Increasing expenditure on social and collaboration software is expected to propel growth of the global enterprise social networks and online communities market during the forecast period. For instance, according to Gartner’s “Forecast Analysis: Social and Collaboration Software in the Workplace, Worldwide,” revenues in three software market segments – collaborative work management, enterprise social networks, and employee communication software – are set to reach almost US$ 4.5 billion in 2021, a 17% increase from US$ 3.8 billion in 2020.
Moreover, increasing funding in social and analytics platforms is also expected to aid in growth of the market. For instance, in August 2021, Knoetic, a startup developing a social and analytics platform for enterprise employee management, raised US$ 18 million in funding.
Key features of the study:
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