A new version of this article, featuring the latest data and statistics is available. Check out our report on Online Collaboration Software Statistics for 2022.
When talented, highly motivated individuals with brilliant minds work together on a shared objective, great things are achieved. By working together, employees can build upon each other’s strengths and enhance their imperfections to become a robust, highly productive, and cohesive business unit. This is why teamwork and collaboration play a crucial role in the success of any business. And in today’s digital workplace, the crucial engine that helps keep the wheels of teamwork rolling can be found in collaboration tools, especially the ones based online.
Since they were first conceptualized in the 1960s, collaborative work systems have been providing vast benefits to businesses. Relative to the history of collaboration software, where are we now in this progress toward a seamless collaborative work environment among teams working together regardless of geographical location? Let’s look at these online collaboration statistics, collaboration technology trends, their deployment practices, upcoming technological developments, and other important information that will come in handy when choosing a new collaboration tool for your business.
30+ Online Collaboration Statistics Table of Contents
Collaboration Software Market Size Statistics
Business spending on online collaboration solutions is predicted to expand in the coming years as the demand for these collaborative platforms continues to grow, further boosting the collaboration software market size. Companies are increasingly deploying various types of collaborative tools to continue driving innovation, to remain relevant, and to resolve issues more efficiently in order to meet evolving consumer expectations, maintain market share, and gain competitive advantage. This, also, has been exacerbated by the COVID-19 crisis.
- The global online collaboration market is expected to increase from $12.4 billion in 2019 to $13.5 billion in 2024 (Apps Run The World, 2020)
- A 176% increase in collaboration apps installation on enterprise devices was found after the COVID-19 crisis just in May 2020. The number may be higher today. (Absolute, 2020)
- Around 93.4% of XR professionals worldwide use VR and 47.5% use AR for workplace/project collaboration in Q3 of 2019. (VRX, 2019)
- The market size of video conferencing will reach $8.67 billion in 2025 with a CAGR of 9.5%. (The Business Research Company, 2021)
- The collaboration adoption rate has been expected to go higher as, in a survey, 66% of employees are working remotely due to COVID-19 fears and protocols. Around 44% are working from home five or more days a week, registering an increase of 17% before the outbreak. (Clutch, 2020)
Source: Apps Run The World, 2020
The continued increase in market demand for online collaboration apps is attributed to a wide array of factors. File sharing tools, for one, are increasingly becoming more flexible while getting more powerful. Others include the seamless exchange of data and team conversations, better user access controls, improved communication, creative input, mobile access, efficient problem-solving, greater innovative ability, task scheduling, and overall increased productivity. Likewise, it is likely that cloud-based collaboration apps will be replacing conventional on-premise tools in the near future. And, because of the COVID-19 pandemic, the adoption rate of these tools has increased.
Collaboration Technology in Business Statistics
Collaboration technology in business, complemented by related workplace technologies like project management platforms, has been changing how we work for the past several decades, mostly resulting in benefits for both employees and their organizations. Here are some key workplace statistics on the impact of online collaboration apps.
- Collaborations can drive 10% productivity improvements. (Forrester, 2020)
- Employees could save 5-10% of their time, around two to four hours in a 40-hour week. (Forrester, 2020)
- For a 100-employee strong company with a 1:1 ratio of knowledge workers and frontline workers with hourly salaries of $60 and $40 respectively, using collaboration tools can help reach up to $247, 500 in productivity benefits. (Forrester, 2020)
- Promoting effective team building and collaboration is the highest-ranked aspect of a great workplace. It was chosen by 43% of respondents in a survey. The next ranked aspect is health and well-being support at 36%. (Gensler, 2019)
- It was found that of collaboration software users, 85% are more likely to identify as being happy (Wrike, 2019)
- Communication tools (74%), remote work tools (74%), and collaboration tools (67%) are the most likely to be cited as important prerequisites for employees to be efficient. (Harvard Business Review, 2020)
- In fact, more than 75% of Millennials believe that a work-from-anywhere setup or remote work is an important company policy. (Klaxoon, 2020)
- In the midst of the COVID-19 outbreak and moving forward, 39% of executives find that introducing digital collaboration platforms is the most important factor in making remote work sustainable. (Deloitte, 2020)
- Only 20% of employed adults in the US worked from home before the COVID-19 outbreak, 71% were found to be working at home after the outbreak, and 54% want to work from home after the outbreak. However, only 38% of employed adults can say that their jobs can mostly be done at home. (Pew Research Center, 2020)
- 86% of business owners and staff attribute workplace problems to inadequate or poor communication tools. (Stone, 2019)
- Most companies need their behaviors, attitudes, and perceptions regarding the use of company-wide collaboration tools improved. Around 75% of executives state that their business functions compete instead of collaborating on their digital projects. As a result, 64% are not seeing a boost in their revenue growth from their digital investments. (Help Net Security, 2020)
- 91% of Gen Zers state that technical sophistication affects their interest in working in a company (McKinsey Digital, 2016)
- Effective communication systems help in retaining the best talents by as much as 4.5 times. (Jabra, 2019)
- When workers collaborate, 73% do better work, 60% are more innovative, 56% feel more satisfied, and 15% work faster. (Deloitte, 2018)
- 85% of employees with access to collaborative management tools are more likely to perceive themselves as happy in the workplace. (Wrike, 2019).
- CEOs, on average, expect 36% of their employees to work remotely in January 2022. This is up from 13% before the pandemic. (Deloitte, 2020)
- As of June 2020, over 40% of American workers have been working full-time at home. (Deloitte, 2020)
The above statistics clearly indicate the vast advantages that online collaboration technology has been providing to employees and organizations alike. Proven to provide substantial productivity and efficiency improvements, not to mention helping improve how employees perceive their jobs, online collaboration tools are likely to offer more new benefits in the years to come.
Deployment of Workplace Collaboration Technology Statistics
Workplace collaboration technology is required to help modern teams achieve productivity and efficiency. Teams must not be limited by geographical and even cultural boundaries. As today’s businesses continue to be composed of distributed teams, employees must have ready and secure access to business data. Collaboration solutions make this possible.
- Humans and AI are collaborating in 1,500 corporations worldwide by complementing each other’s strengths. (Harvard Business Review, 2018)
- 53% of businesses believe AI-powered smart meeting rooms will improve business processes, while 95% of employees think that AI can help enhance their job quality. (Cisco, 2018)
- 67% of businesses have some portions of their online collaboration apps in the cloud, while almost one-third have all their collaboration apps in the cloud. (McKinsey Digital, 2017)
- BYOD and computer in-room equipment in the market, along with the development of new AI technology, will see increased use in conference spaces. (UC Today, 2019)
- More businesses are integrating Web Real-Time Communications (WebRTC) with collaboration tools as it helps deploy improved video and audio conference calls and ensure secure data transfers. (Grand View Research, 2020)
- Message-based platforms are key to providing enhanced collaboration to support agile work systems such as scrums, innovation hubs, and cross-functional work teams. (McKinsey Digital, 2017)
- In terms of collaboration between companies and their customers, 85% of businesses will be offering live chat on mobile devices or their websites by 2022. (IFS)
- The most popular communication tools used by US remote workers for collaboration in 2020 are Zoom (36%), Microsoft Teams (19%), Skype (17%) Google Hangouts (9%), and Slack (7%). (Clutch, 2020)
Source: Clutch, 2020
The much-improved integration of people, work, and technology via online collaboration tools define today’s collaboration solutions. The most exciting deployment feature nowadays is AI. It already allows businesses to set the ideal number of meeting attendees and the best meeting duration. it is even able to determine the effectivity of an online brainstorming session. The increasing use of AI with online collaboration solutions is driving the demand for enhanced communication and workflow management tools.
Most Popular Collaboration Software
- 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.
- 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.
- Smartsheet. An innovative online collaboration platform that can easily adapt to the specific needs of different organizations. Read this Smartsheet review for more details.
- 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.
- Asana. Widely-used collaboration software designed to help build high-performance teams and attain operational efficiency. For more details, read this Asana review.
Future of Collaboration Technology
Upcoming and emerging collaborative tools are expected to carry extra capabilities aside from core features. They will be able to integrate untapped business and consumer data to provide teams with powerful insights. This is already evident in the marked improvement of business intelligence tools for small businesses and enterprises alike. As collaboration technology continues to evolve, it will dramatically change the way businesses collaborate. Here are key future trends:
- There will be a sustained rise of a wide array of AI-powered bots, such as Xor.ai, AllyO, and Text Recruit. They can help in various HR and project management tasks, like finding job candidates, scheduling meetings, and conducting interviews. (CMSWire, 2018)
- AR and VR will be the final team collaboration and creativity frontier. (Virtual Reality Pop, 2017)
- Businesses will increasingly use AI bots and Smart Virtual Personal Assistants (SVPAs) to automate tasks and enhance workplace collaboration. (Future of Work, 2018)
- Data access by work teams will be simplified further by chatbots or conversational user interfaces. (Shopify, 2018)
- Robotic Process Automation (RPA) technology will handle the bulk of cumbersome work to save resources, prevent errors, and allow work teams to collaborate more. (CIO, 2018)
- Computer-supported collaborative design (CSCD) allows simultaneous sharing and interaction with a focus on creative ideas and information. (Brisco, Whitfield, & Grierson, 2018)
- Crowd-based collaboration uses direct consumer participation via crowdsourcing systems to shape their products. (Visual Capitalist, 2018)
- Apps that recognize and simulate body language will guide team interaction. (AltspaceVR, 2021)
- Data blending will streamline the use of personalized data sets from large and complicated business data, so work teams get answers quickly. (Harvard Business Review, 2015)
These are only but a few of the extensive areas of development regarding the future of online collaboration technologies. To benefit from these trends, the proper mindset should be on how to productively exist and utilize AI. Besides, bots and robots could likely improve human lives in the future, including transforming jobs and workplaces.
Online Collaboration Challenges
While online collaboration offers immense benefits, businesses face challenges when adopting and maintaining digital tools for remote or hybrid teams. Here are some of the common issues organizations may encounter:
- Security Concerns: Cybersecurity has become a major challenge, with sensitive business data shared across digital platforms. Businesses must ensure that collaboration tools are secure, implement strong access controls, and train employees to recognize phishing attempts or other cyber threats.
- Technology Barriers: Not all employees are familiar with the latest collaboration tools, and inconsistent technological access can hinder productivity. Businesses may face difficulties in getting team members to adopt new platforms, especially if the tools are complicated or not intuitive to use.
- Communication Breakdowns: Online communication is often less personal than in-person interaction, which can lead to misunderstandings or miscommunications. Without the non-verbal cues typically available in face-to-face meetings, teams may struggle to interpret tone and intent, leading to confusion or conflict.
- Integration Challenges: Many businesses use multiple software applications for different tasks, and ensuring smooth integration between collaboration tools and other systems (such as CRM, email, or project management tools) can be a technical challenge.
- Employee Overload: The convenience of collaboration tools can lead to an overwhelming volume of messages, notifications, and requests. This constant connectivity may cause employees to feel distracted or overburdened, reducing productivity.
- Cultural and Team Dynamics Issues: Online collaboration can make building strong team dynamics or maintaining a company culture harder. Some employees may feel isolated, and remote interactions can sometimes hinder the development of trust and rapport between team members.
Take advantage of these statistics when buying collaboration software
The above industry statistics and collaboration trends were carefully selected to help you make a well-informed purchasing decision when choosing the best collaboration programs for your business. Knowing these technology highlights will not only get you updated on the ins and outs of the industry. It will also help you better situate your requirements in light of the existing and upcoming technology trends. In summary, here are some key takeaways:
- The growth of the collaboration software market is very likely to accelerate further. New capabilities will drive the expansion of cloud-based collaboration solutions.
- Businesses steered by collaboration technology will reap significant benefits, enhanced efficiencies, and improved revenues.
- Work teams will be more productive as more businesses adopt cloud solutions for better agility, mobility, and security.
- AI will be integrated into a range of business operations across organizations.
With all these major developments in collaborative software solutions, it’s high time that companies focus on collaboration itself. We must ensure that whenever people connect and collaborate, these translate to organizational productivity, business value, and competitive advantage.
If you need a collaboration tool that’ll help bring your team closer and become more productive, it’s highly suggested that you first try some of the leading collaboration software in the market today before purchasing one.
Key Insights
- Market Growth: The global online collaboration market is projected to grow from $12.4 billion in 2019 to $13.5 billion by 2024, driven by increasing demand for collaborative platforms.
- Impact of COVID-19: The COVID-19 pandemic has significantly accelerated the adoption of collaboration tools, with a 176% increase in app installations on enterprise devices by May 2020.
- Technology Adoption: Advanced technologies like AI, VR, and AR are being increasingly integrated into collaboration tools, enhancing user experience and productivity.
- Business Benefits: Companies that use collaboration tools can see productivity improvements of up to 10%, saving employees 2-4 hours per week and generating substantial financial benefits.
- Remote Work: The shift to remote work is substantial, with 66% of employees working remotely due to COVID-19, and many preferring to continue remote work post-pandemic.
- AI Integration: AI-powered features in collaboration tools are expected to become more prevalent, assisting with tasks like meeting scheduling, data analysis, and enhancing team interactions.
- Popular Tools: Tools like monday.com, Wrike, Smartsheet, Slack, and Asana are among the most popular for facilitating team collaboration and project management.
- Future Trends: The future of collaboration technology includes more AI-powered bots, enhanced VR and AR applications, chatbots, and robotic process automation, all aimed at streamlining workflows and enhancing collaboration.
FAQ
- What is the current market size of online collaboration tools? The global online collaboration market was valued at $12.4 billion in 2019 and is expected to grow to $13.5 billion by 2024.
- How has the COVID-19 pandemic affected the use of collaboration tools? The pandemic has significantly increased the adoption of collaboration tools, with a 176% rise in app installations on enterprise devices by May 2020.
- What are some key benefits of using collaboration tools in business? Collaboration tools can improve productivity by 10%, save employees 2-4 hours per week, enhance team communication, and generate substantial financial benefits for companies.
- Which collaboration tools are currently popular in the market? Some of the most popular collaboration tools include monday.com, Wrike, Smartsheet, Slack, and Asana.
- What role does AI play in collaboration tools? AI enhances collaboration tools by assisting with meeting scheduling, data analysis, and improving team interactions. It also powers smart virtual personal assistants and chatbots for streamlined workflows.
- What trends are shaping the future of collaboration technology? Future trends include the rise of AI-powered bots, increased use of VR and AR, advanced chatbots, robotic process automation, and improved data access through conversational user interfaces.
- How can collaboration tools benefit remote work setups? Collaboration tools facilitate remote work by providing robust communication platforms, project management features, and seamless access to business data, thus enhancing productivity and team cohesion.
- Why is there a shift from on-premise to cloud-based collaboration tools? Cloud-based collaboration tools offer better flexibility, mobility, and security compared to on-premise solutions, making them more suitable for modern, distributed teams.
- How do collaboration tools impact employee satisfaction? Employees with access to collaboration tools are more likely to feel happy, innovative, and satisfied with their work, as these tools improve communication and streamline workflows.
- What should businesses consider when choosing a collaboration tool? Businesses should consider the tool’s features, integration capabilities, user experience, and how well it aligns with their specific needs and workflows. Trying leading tools before making a purchase is recommended.
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