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  • 70 Essential Online Collaboration Software Statistics: 2022 Market Share Analysis & Data

70 Essential Online Collaboration Software Statistics: 2022 Market Share Analysis & Data

Globally, 80% of businesses have been rethinking and retooling company processes in view of the COVID-19 pandemic (Avaya, 2020). The latest online collaboration software statistics show how technology has propelled the way teams work together either as purely work from home or in hybrid mode.

The rate of adoption of online collaboration software gives a glimpse of the future of work—where hybrid work will be permanent. This means that online collaboration tools will be at the core of organizational strategies.

The following online collaboration software statistics for 2022 describe how collaboration software is growing and at the same time conquering new markets. The data also show how organizations are adopting new tools, and also offers other crucial information that will help your organization formulate a competitive strategy.

key online collaboration statistics

Online Collaboration Software Market Statistics

An operating model for the future that works for both employers and employees is at the core of the proliferation of online collaboration software. Since shelter-in-place policies were implemented due to the pandemic, organizations quickly learned to work remotely as enabled by technology.

After almost two years, companies are done with retooling and are now optimizing processes. As communication and collaboration continue to take place virtually, online collaboration software continues to offer enhanced features that address specific communication nuances.

Consequently, this brought massive stock market gains to the online collaboration software sector, which may eventually have an impact on the cost of collaboration tools. The following statistics highlight how this sector benefited from the rapid adoption that underscored the importance of collaboration tools in pandemic settings.

  • The revenue of collaboration applications worldwide grew to $22.6 billion in 2020, an increase of 32.9% over 2019 (IDC, 2021)
  • Microsoft had the biggest market share in global unified communication and collaboration at 35% from Q2 to Q4 of 2020 (IDC, 2021).
  • As of 2021, Slack’s paid version has over 3 million subscribers (Slack, 2021).
  • In 2020, Microsoft’s Productivity and Business segment accounted for 34% of its total revenue (Microsoft, 2021).
  • Zoom’s revenue increased by 370% from Q4 of 2020 to Q4 of 2021, with total sales soaring 326% to $2.6 billion (BBC, 2021).
  • As of Q3 of 2021, Zoom reported 2,507 customers contributing more than 100,000 each in revenue for the past 12 months (ZDNet, 2021).
  • As of May 2021, Microsoft led the office productivity software market with a share of 47.5% for MS Office 365. This is followed by Google with a share of 44.5% (Microsoft, 2021).
  • The business productivity market is expected to register a compound annual growth rate of 12.6% from 2021 to 2026 (Research and Markets, 2021).
  • T-Mobile’s conversational AI chatbot posted a 750% ROI in 2020 due to businesses offering enhanced collaboration with clients (ZDNet, 2021).
  • The team collaboration tools market is expected to register a compound annual growth rate of 18% from 2021 to 2026 (BusinessWire, 2021).
  • In April 2021, Slack reported total revenue of $273.4 million—a 36% increase year over year with over 169,000 paying customers (Slack, 2021).

Sources: Microsoft, Google, Cisco

Online Collaboration Software Adoption Statistics

Gone are the days when technology roll-outs in organizations take time. As companies pivoted in early 2020, the adoption of online collaboration software became quick because business survival largely depended on it.

The shift to remote work underscored the importance of investing in communication and collaboration tools that will make companies adapt to any type of work environment. The IT investments of businesses worldwide show that collaboration tools remain a priority.

Here, we present data points that show how organizations intend to make work processes resilient and adaptable. The objective is to adopt technologies that will sustain workplace collaboration and spark innovation between teams.

  • Among workers worldwide in 2021, 79% use digital collaboration tools (High Fidelity, 2021).
  • 99% of remote workers use an average of 4.8 different conferencing applications (IDC, 2020).
  • The use of online collaboration platforms increased by 322% from May 2019 to May 2020 (Comscore, 2020).
  • 72% of companies rolled out at least one new collaboration app to support remote employees in 2021 (Unify Square, 2020).
  • 96% of organizations want to improve their work environments with intelligent workplace technology (Cisco, 2021).
  • 90% of users are using Microsoft Teams exclusively on their desktop devices (Comscore, 2020).
  • 48% of CIOs predict that more than half of their IT budget will be spent to bring pandemic technology investments to their full potential (Cisco, 2021).
  • 72% of executives in the US consider new investments in tools for virtual collaboration as a top priority (PwC, 2021).
  • 70% of Zoom mobile usage are coming from mobile-only users (Comscore, 2020).
  • Sales teams posted the highest adoption rate of digital documentation tools at 62% (Forrester Research, 2020).
  • Worldwide, spending on digital transformation reached 1.5 trillion in 2021 and is expected to reach 2.8 trillion by 2025 (IDC, 2021).
  • 65% of organizations increased funding of digital technology initiatives in 2020 (McKinsey & Co., 2021).
  • The use of collaboration tools in the digital workplace increased from 65% in 2019 to 79% in 2021 (McKinsey & Co., 2021).
  • 72% of executives plan investments to support hybrid work, and 70% to invest in IT infrastructure to support virtual connectivity (PwC, 2021).
  • In the US, audiences spent a total of 6 billion minutes using collaboration tools in May 2020 (Comscore, 2020).
  • 81% of employed adults use video calling or online conferencing services like Zoom or Webex while 57% use instant messaging platforms such as Slack or Google Chat (Pew Research, 2020).
  • 200 million remote workers have used noise removal and speech enhancement from March to September 2021 (Cisco, 2021).
  • In May 2020, 40% of Microsoft Teams users also used Zoom (Comscore, 2020).

Online Collaboration Statistics 1

State of Collaboration in the Workplace Statistics

The rapid shift to full-time remote work caused work teams to become less interconnected, and this paved the way for the growth of online collaboration tools like social collaboration platforms. As these tools offered solutions to the challenges presented by remotely distributed teams, company operations stabilized.

Now that we are approaching almost two years since the transition, the effect of remote work on employee well-being is being examined. Since employee experience is crucial to the overall performance of the organization, more employers are making the employee experience a priority in the midst of IT investments.

The following statistics show how online collaboration tools have affected, both positively and negatively, the way remote workers perform their roles.

  • 83% of workers across industries agree that a hybrid work model would be optimal (Accenture, 2021).
  • 63% of high-growth companies have already adopted a “productivity anywhere” workforce model (Accenture, 2021).
  • 41% of remote workers say that the major change in remote working is how they communicate and collaborate (Buffer, 2021).
  • Nearly 30% of employees said their organizations have put new policies in place to facilitate more frequent one-on-one check-ins (Unify Square, 2020).
  • 45% of remote workers think that they are putting in more work in a remote setup. Meanwhile, 52% find that there are more meetings to attend (Buffer, 2021).
  • By the end of 2022, 70% of teams will rely on workstream collaboration as the primary means of communicating, coordinating, and sharing information (CIO Magazine, 2021).
  • Three out of five enterprise employees miss in-person interaction (Unify Square, 2020).
  • More than 61 million meetings take place globally every month via Webex, of which only 48% of participants are likely to speak (Cisco, 2021).
  • 55% of employees believe that with the collaboration tools they have in place, they are able to be successful in working remotely (Unify Square, 2020).
  • 73% of public sector workers in the US feel that they are a part of a community even when working remotely (Accenture, 2021).
  • 71.7% of C-suite executives agree that connected workplace technologies are very important to future workplace strategy (NTT, 2021).
  • More than 25% of enterprises that adopted new collaboration and communication apps had not integrated them with their existing systems (Unify Square, 2020).
  • From February 2020 to February 2021, weekly meeting time increased by 148% for Teams users (Microsoft, 2021).
  • As of February 2021, weekly team chats in Office 365 increased by 45% per person (Microsoft, 2021).
  • Pre-pandemic, people used mobile devices 9% of the time to connect to their meetings, that number has tripled in 2020 at 27% (Cisco, 2021).
  • 85% of end-users report using multiple platforms for collaboration (Unify Square, 2020).
  • The use of mobile devices in accessing meetings increased by 200% from February 2020 to August 2021 (Cisco, 2021).

Source: Owl Labs

Most Popular Collaboration Software

  1. monday.com. One of the most used collaboration tools for project teams. Learn more about this multi-awarded solution in this comprehensive monday.com review.
  2. Wrike. This collaboration solution is designed to enhance the efficiency and speed of teams. Our Wrike review will show you its robust features and other tools.
  3. Smartsheet. An innovative online collaboration platform that can easily adapt to the specific needs of different organizations. Read this Smartsheet review for more details.
  4. Slack. Feature-packed online collaboration solution for any type of project and can integrate with over 1,500 third-party apps. Know more about this robust tool in our Slack review.
  5. Asana. Widely-used collaboration software designed to help build high-performance teams and attain operational efficiency. For more details, read this Asana review.

Benefits of Online Collaboration Statistics

The wider adoption of teleworking practices shifted the way we work and brought a number of advantages to both employees and employers. Online collaboration software empowered workers as they continue to cope with the restrictions imposed by the pandemic.

When teams migrated collaborative activities online, organizations soon discovered that with the right tools, employees are able to work together even in virtual mode. The productivity levels achieved in online collaboration may not be able to rival what we used to achieve as we huddle together in one room, but VR and AR are slowly improving the virtual landscape.

The following statistics reveal that employers are past the coping stage. Instead, the path towards hybrid work has opened new opportunities to redefine work experience and personal growth.

  • 85% of people who feel they can be productive everywhere say that they plan to stay with their company for a long time (Accenture, 2021).
  • Remote workers scored 82% on self-assessed productivity (Microsoft, 2021).
  • 67% of organizations that have kept employees connected saw improved connections among employees (Cisco, 2021).
  • 52% of employers and 34% of employees agree that productivity improves over a prolonged work-from-home period (PwC, 2021).
  • 65% of teleworkers consider video conferencing and instant messaging platforms as a good substitute for in-person contact (Pew Research, 2020).
  • Four in 10 workers say their jobs can mostly be done at home (Pew Research, 2020).
  • 73% of employees want flexible remote work to stay because of the flexibility it offers (Microsoft, 2021).
  • 63% of high-growth organizations have enabled “productivity-anywhere” workforce models through the use of online collaboration tools (Accenture, 2021).
  • 70% of tech founders reported that productivity has either remained the same or increased as a result of working remotely (Entrepreneur, 2020).
  • 35% of US workers say they could be fully effective at their jobs and 28% said they could do their jobs with 90% efficiency while working remotely (Microsoft, 2021).

Online Collaboration Statistics 2

Statistics on Online Collaboration Challenges

Working from home now accounts for over 60% of US economic activity (Stanford, 2020). This shift, however, was not easy for all employees. Online collaboration brought different types of challenges depending on the employee’s prior experience on working offsite, age, role, and family dynamics. In addition, the constant use and presence of technology increased the level of fatigue.

Employee well-being, security issues, and app integration are three important points that organizations have to address. The following data points may be described as challenges, but these statistics also provide key opportunities for collaboration software developers to continually refine features and improve user and team experience.

  • 48% of meeting participants are not engaged in conversations (Cisco, 2021).
  • Only 40% of IT leaders in FT1000 companies have the right remote work tools, policies, and procedures in place to support a hybrid workplace (Forrester Research, 2020).
  • 58% of enterprises ranked risk assessment as the top security and compliance capability they need to effectively manage communications (Unify Square, 2020).
  • 64% of organizations frequently experience issues integrating technologies and applications from multiple collaboration vendors (Cisco, 2021).
  • 64% of companies are not seeing a boost in revenues from digital investments (Accenture, 2021).
  • 54% of remote workers feel overworked while 39% feel exhausted based on Microsoft 365 productivity signals (Microsoft, 2021).
  • 57% of information workers across a variety of industries said their meeting load increased since they shifted to remote work (Microsoft 2021).
  • 30% of information workers said that brainstorming and generating new ideas was the most challenging type of collaboration to do while working remotely (Microsoft 2021).
  • 57% reported a decrease in their ability to brainstorm with their colleagues (Microsoft 2021).
  • Nearly 25% of employees agreed on the ever-present challenge of clearly communicating ideas when working remotely (Vibe, 2021).
  • There was an over 200% growth in the use of AI capabilities from July to September 2021, which shows the need for improved meeting engagement (Cisco, 2021).
  • 98% of the workforce reports frequent frustrations with video meetings at home (Cisco, 2020).

Source: TrustRadius

The Growth of Online Collaboration

We have yet to fully unpack the benefits and associated challenges that go with online collaboration. However, organizations worldwide are certain that hybrid is the future of work. Employees will be given the flexibility to choose where to work and when to work in an increasingly connected environment.

As the pandemic redefined the way teams collaborate, online collaboration apps provided the needed tools to keep them cohesive and synced. Online collaboration software offered features to ensure that every aspect of a project is covered, even when teams are collaborating virtually.

These online collaboration software statistics show that this market will continue to see high growth as developers continue to design new tools that can address the pain points of remote teams.

 

References:

  1. Accenture (2020). How to Out-Collaborate The Crisis. Accenture
  2. Accenture (2021 July). State Workforce of the Future: Perspectives on Remote Work. Accenture
  3. Accenture (2021 July 7). Curious about returning to work? You’re not alone. Accenture
  4. Accenture (2021 April 30). The future of work: A hybrid work model. Accenture
  5. BBC (2021 March 1). Zoom sees more growth after ‘unprecedented’ 2020. BBC
  6. Bloom, N. (2020 June). How working from home works out. Stanford
  7. Buffer (2021). State of Remote Work. Buffer
  8. BusinessWire (2021 March 12). Global Team Collaboration Tools Market (2021 to 2026) – Growth, Trends, COVID-19 Impact, and Forecasts. BusinessWire
  9. CIO Magazine (2021 April 23). How workstream collaboration tools can shape the new future of work. CIO Magazine
  10. Cisco (2020). Global Workforce Survey. Cisco
  11. Cisco (2021). Hybrid Work. Cisco
  12. Cisco (2021 October). Hybrid Work Index. Cisco
  13. Comscore (2020 July 14). As Work-From-Home Numbers Rise Due to the Coronavirus Pandemic, Collaboration Tools See Spikes in Usage. Comscore
  14. Forrester Research (2020 August). How Digital Document Processes are Shifting from Best Practice to Business Necessity. Forrester Research
  15. Gavish, A. (2021 October 25). How Does Your SaaS Data Exposure Profile Look? DoControl
  16. Google (2021). Alphabet Investor Relations. Google
  17. Gmelius (2021). The State of Digital Collaboration. Gmelius
  18. Gmelius (2021). 2021 State of Remote Work. Gmelius
  19. Harrison, S. (2020 October). The rise of workstream collaboration: How COVID-19 is spurring the new future of work. Avaya
  20. High Fidelity (2021). 3 Amazing Benefits of Digital Collaboration. High Fidelity
  21. IDC (2021 August 30). Collaboration Applications Joined the Mainstream in 2020 with Worldwide Revenues Forecast to Nearly Double by 2025. IDC
  22. IDC (2020 July 6). What Virtual Conferences (Still) Miss. IDC
  23. IDC (2021 November 9). New IDC Spending Guide Shows Continued Growth for Digital Transformation as Organizations Focus on Strategic Priorities. IDC
  24. Keravala, Z. (2021 November 18). Why conversational AI is now ready for prime time. ZDNet
  25. Kung, J. (2020 June 9). Survey Reveals 4 Transformational Remote Work Trends. Entrepreneur
  26. McKinsey & Company (2020 August). The Next Normal: The recovery will be digital. McKinsey & Co.
  27. McKinsey & Company (2020 October 5). COVID-19 Digital Transformation & Technology. McKinsey & Co.
  28. McKinsey & Company (2020 October 5). How COVID-19 has pushed companies over the technology tipping point—and transformed business forever. McKinsey & Co.
  29. Metrigy (2021 September). Unified Communications Management and Endpoints 2021-22. Metrigy
  30. Microsoft (2021). The New Future of Work. Microsoft
  31. Microsoft (2021). Earnings Release FY20 Q4. Microsoft
  32. Microsoft (2021 March 22). The Next Great Disruption Is Hybrid Work—Are We Ready? Microsoft
  33. Microsoft (2021 July 27). Microsoft Cloud Strength Fuels Fourth Quarter Results. Microsoft
  34. NTT (2021) Global Workplace Report. NTT
  35. Pew Research (2020 December 4). How the Coronavirus Outbreak has – and hasn’t – changed the way Americans work. Pew Research
  36. PwC (2021 January 12). It’s time to reimagine where and how work will get done: PwC’s US Remote Work Survey. PwC
  37. Research and Markets (2021 January). Business Productivity Software Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026). Research and Markets
  38. Slack (2021 June 23). Slack Announces First Quarter Fiscal Year 2022 Results. Slack
  39. Unify Square (2021). Catching Up to the Evolution of Enterprise Communications and Collaboration. Unify Square
  40. Unify Square (2020 December 10). Workplace Collaboration Survey Finds Tech Industry Employees Three Times More Stressed Working From Home Than Those in Other Industries. Unify Square
  41. Vibe (2021). The State of Remote Collaboration 2021. Vibe
  42. ZDNet (2021 November 23). Zoom lands more large customers in Q3, beats market estimates. ZDNet
  43. Zoom (2021 November 22). Zoom Reports Financial Results for the Third Quarter of Fiscal Year 2022. Zoom
Jenny Chang

By Jenny Chang

Jenny Chang is a senior writer specializing in SaaS and B2B software solutions. Her decision to focus on these two industries was spurred by their explosive growth in the last decade, much of it she attributes to the emergence of disruptive technologies and the quick adoption by businesses that were quick to recognize their values to their organizations. She has covered all the major developments in SaaS and B2B software solutions, from the introduction of massive ERPs to small business platforms to help startups on their way to success.

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