The collaboration application market has experienced its fifth consecutive year of double-digit growth, as organizations continue to embrace hybrid and remote work. Credit: Supplied by Google Global spending on collaboration applications grew by 28.4% year on year in 2021, generating sales of $29.1 billion, according to a new report from IDC. It was the fifth consecutive year the market experienced double-digit growth, with sales up $6.5 billion from IDC’s estimate of the collaboration application market last year. Although formal work-from-home orders are no longer in place, the popularity of hybrid and remote work models has continued to prevail at companies across the globe, leading organizations to expand the use of collaboration software to more employees. In addition, the purchase and integration of multiple applications to better meet corporate needs, as well as price increases and feature upgrades, have all been identified by IDC as the key driving forces behind the growth. The growth extends across all the collaboration markets and submarkets identified by IDC. These include team collaboration applications, like Slack and Microsoft Teams; conferencing applications, such as Zoom, Webex, and the conferencing portions of Google and Microsoft Teams; enterprise application platforms, such as Khoros and Salesforce; virtual events, such as Cvent and On24; and email. However, the rate of inflation, now reaching double digits in some countries, and the fear of a possible recession looming on the horizon, may be putting the brakes on growth. Though the collaboration software market is forecast to maintain a double-digit CAGR (compound annual growth rate) growth in the next five years, it is expected to slow, said Wayne Kurtzman, research vice president of social, communities and collaboration at IDC and author of the report. Ultimately, though, the trend for companies to implement technology to make business processes more efficient will help sustain growth. “Companies, like their workforce, are evolving into the digital business era. Most companies, according to IDC research, are concerned that their workforce is more tech savvy than the company,” he said. “The adoption of collaborative platforms, especially when paired with integrated applications and an internal culture of collaboration, help drive significant and new efficiencies and create a better-connected workforce.” Kurtzman said sales of all applications identified in IDC’s report will continue to grow, led by team collaboration applications and enterprise application platforms, with the overall collaborative applications market expected to reach $63.8 billion by 2026. Related content feature Office 365: A guide to the updates Get the latest info on new features, bug fixes, and security updates for Office 365/Microsoft 365 for Windows as they roll out from Microsoft. Now updated for Version 2404 (Build 17531.20152), released on May 14, 2024. By Preston Gralla May 14, 2024 110 mins Microsoft 365 Microsoft Office Office Suites feature Windows 11: A guide to the updates Here’s what you need to know about the latest updates to Windows 11 as they’re released from Microsoft. Now updated for KB5037771, released on May 14, 2024. By Preston Gralla May 14, 2024 60 mins Small and Medium Business Microsoft Windows 11 feature Windows 10: A guide to the updates Here's what you need to know about each update to the current version of Windows 10 as it's released from Microsoft. Now updated for KB5037768, released on May 14, 2024. By Preston Gralla May 14, 2024 172 mins Small and Medium Business Windows 10 Microsoft news analysis Apple reports on its forever war against App Store fraud Apple prevented over $1.8 billion worth of potential fraud in 2023 alone — that’s up 20% in four years. By Jonny Evans May 14, 2024 6 mins Apple Mobile Apps Application Security Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe