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 news analysis Apple earnings: About that iPhone 'slump' in China Based on information from Thursday's earnings report, it seems that data pointing to an iPhone slump in China were over-baked. By Jonny Evans May 03, 2024 9 mins iMac iPhone Apple news Microsoft begins to phase out ‘classic’ Teams Microsoft is encouraging Teams customers to move to the new, faster version of the collaboration app; the older version will be switched off next year. By Matthew Finnegan May 03, 2024 3 mins Microsoft Teams Collaboration Software Productivity Software news analysis Apple confirms it will open up the iPad in Europe this fall The latest efforts to comply with Europe’s Digital Markets Act mean developers can offer to side load apps to both iPhones and iPads in the EU. Apple has also taken steps to improve what it offers to smaller and non-commercial developers in the By Jonny Evans May 02, 2024 6 mins iPad Apple Mobile Apps news Udacity offers laid-off US workers free access to its courses for 30 days Sign-ups will be available over the next 30 days By Lucas Mearian May 02, 2024 4 mins Technology Industry IT Jobs IT Skills 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