The communication software market is projected to gain $1,605 million by 2026, growing at a rate of 15%, a Research Dive report found. The outbreak of the coronavirus pandemic has a marked impact on this growth, as communication software has become integral to employee engagement.
SEE: Top 100+ tips for telecommuters and managers (free PDF) (TechRepublic)
Web conferencing platforms, in particular, have become increasingly popular as employees move meetings, conferences, and interviews virtual. However, other communication software including email and enterprise instant messaging services are also seeing increased use, the report found.
Contributing growth factors
Low employee commitments, including employees leaving channels or emails on read, results in an ineffective sharing of information, which has a positive impact on the market, according to the report.
Capital investment of the installation of employee communication software, however, may have a negative impact on the development of the global market.
As the cloud continues proliferating the enterprise, it does the same in regards to this software. The cloud-based segment of communication software is projected to occupy the highest share, collecting more than $769 million in revenue by 2026, growing at 16%.
The reason for the growth of cloud-based systems is because of the flexibility, compatibility, and ease of this software. For example, cloud-type software allows management teams to gain access via mobile devices, the report found.
Enterprises seeing most growth
When looking at the end-user, the report found that the global market for small- and medium-sized enterprises (SMEs) are expected to hit $687 million by 2026, a growth rate of more than 15%.
SMEs around the world rely on communication software to connect and share information with one another, from anywhere, which is why the growth is so exponential for them, according to the report.
As for the regions leading the global market, the Asia-Pacific area is anticipated to see the most growth, generating revenue of more than $320 million by 2026, a growth rate of nearly 17%. Organizations in this region are increasing their investments in communication softwares in order to stay competitive, the report found.
The report also identified some of the major leaders in the market, which included GuideSpark, Sociabble, Nudge Rewards Inc., Guide Sparke, Poppulo, Smarp, The Employee App, and Social Chorus Inc. These companies are using mergers and acquisitions as well as collaboration and partnerships to gain market share across the board.
For more, check out 4 tips for enterprise holding virtual events and digital summits amid COVID-19 on TechRepublic.
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