The Global Enterprise Collaboration Service Market, By Solution (Messaging (Video Conferencing,Contact Centre) and Mobility/Telephony (Collaborative Tool), By Deployment (On Premise, Off Premise and Hybrid), By Type (Hardware, Software, Services, Consulting, Integration and Maintenance), By End-Use Industry (Banking, Financial services and Insurance (BFSI),Retail, Healthcare, Government, Education, Information Technology, Media and Entertainment, Other (Transportation and Manufacturing)) and by Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 76.86 billion by 2027, exhibiting a CAGR of 10.5% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
Enterprise collaboration service (ECS) is a comprehensive set of networking capabilities and collaborative processes that facilitate employees to store, share, and jointly make changes to information and data with one another irrespective of geographic locations. Various technologies are used in collaboration services including video conferencing, document sharing capabilities, groupware, etc. Enterprise communication may include phone, email, video conference, texting, web chat, etc. Moreover, ECS functions optimally in a collaborative working environment. Apart from employees, other stakeholders such as customers, vendors, contractors, and partners are all key contributors to work getting done. Hence, service providers are introducing software and hardware technologies for effective collaboration with other stakeholders, in order to aid enterprises to achieve their designated targets.
The global enterprise collaboration service market was valued US$ 34.52 Bn in 2019 and expected to reach US$ 76.86 Bn by 2027.
High adoption of enterprise collaboration service due to numerous benefits offered by the same is expected to boost the global enterprise collaboration service market growth over the forecast period
The deployment of enterprise collaboration services has allowed enterprises to minimize their CAPEX related to the installation of hardware and also supports the organization in improving their focus on revenue generation, removing the need for hiring, and retaining operational staff for managing communication equipment in the organization. Collaboration service includes cloud-based unified communication solutions, in order to help the users access the information from any internet-connected device. This enhances productivity and enables remote usage of unified communication and collaboration services from any location. Moreover, it allows employees to remain connected with the organization and other employees, thereby increasing work efficiency. Thus, these factors are expected to drive the global enterprise collaboration service market growth during the forecast period.
Emerging potential markets can offer excellent growth opportunities in the near future
Countries from developed regions such as North America and Western Europe have been the early adopters of enterprise collaboration service, thereby making the market saturated. However, emerging economies such as India, China, Brazil, and South Africa are increasing adoption of these services, in order to enhance the productivities of their businesses. Key players in the market can focus on these high potential markets and provide lucrative services, in order to expand their consumer base. Moreover, growing proliferation of the internet and smartphones is expected to aid service providers to gain a competitive edge in these high potential markets.
Accidental mishandling of data leading to data breaches is expected to hinder the global enterprise collaboration service market growth during the forecast period
The data shared through enterprise collaboration service is confidential and is supposed to be transferred among desired parties. However, accidental mishandling of data can lead to data breaches, which then becomes a severe threat of organizations. Moreover, Voice over Internet Protocol (VoIP) and streaming media service encounter security threats and are vulnerable to cyber-attacks thereby putting voice data transmitted over internet lines in jeopardy. This, in turn, is expected to restrict adoption of these services and hinder the global enterprise collaboration service market growth in the near future.
Increasing collaboration of video conferencing solutions
Services providers have started incorporating video conferencing solutions in their unified communication product offering, owing to increasing demand for video conferencing solutions in region. For instance, in 2016, ThinkingPhones, Inc. (renamed to Fuze Inc. after acquisition) acquired Fuze Inc. based in San Francisco, the U.S. to collaborate its video conferencing solutions with its suite of unified communication services. Moreover, increasing the application of video conferencing in the defense and military has further created the demand for collaborating video conferencing solutions to product offerings by the vendors in the market.
Increasing smartphone subscription in MEA
The availability of low-priced smartphones has accelerated the adoption of smartphones in the MEA region. According to the Ericsson Mobility Report, 2016 by Ericsson AB, smartphone Internet subscriptions are expected to reach 6.3 billion by 2021, owing majorly to a rapid rise in smartphone subscriptions in MEA. According to the same source, it is also expected that the smartphone subscriptions will increase by 200% in MEA between 2015 and 2021. Moreover, growing smartphone subscription is expected to increase the mobility and BOYD trends in RoW, which in turn, is expected to drive growth of the regional market.
Rising investment in unified communication and collaboration solution
Various enterprises in the MEA region are focused on strategic collaboration solutions and planning out the budget to invest in it. Unified communication is widely treated as strategic opportunity by many large enterprises in MEA. This, in turn, is expected to drive growth of the regional market growth in the near future.
Key players operating in the global enterprise collaboration service market are Fuze Inc., Cisco Systems, Inc., GENBAND, Inc., IBM Corporation, Atlassian Corp PLC, Microsoft Corporation, Xura, Inc., Alcatel-Lucent SA (Nokia Networks), Vonage Networks LLC, Unify, Inc. (Atos SE), Tropo, Inc., Hewlett-Packard Development Company, L.P., Cafex Communications Inc., Mitel Networks Corporation, ShoreTel Inc., Polycom, Inc., and 8x8, Inc.