Growing Investment towards Enhanced Employee Collaboration to Bolster the Enterprise Social Networks & Online Communities Market

The overall enterprise social networks & online communities market expected to demonstrate double digit CAGR during the forecast period from 2018 to 2026, up from US$ 2,562.3 Mn in 2017. Enterprise social networks and online communities have significantly enhanced internal collaboration among the employees due to ease of information sharing and communication. The most prominent factor responsible for introduction of social networks in corporate sector is the continually growing user base of social media worldwide. As of 2017, a person on an average spends more than 2½ hours every day on social media websites globally. Subsequently, enterprise social media has emerged as a powerful tool capable of transforming internal collaboration in corporate sector.

Enterprise social networking technology allows employees to connect, collaborate, and exchange learnings, informally over an online platform. The concept of introducing social media in enterprises focuses on encouraging socializing and sharing among people rather than broadcasting information to the masses. The market has been gaining rapid traction due to the immense convenience in communication offered to employees. This may include sharing information as short messages, documents, updates, links and videos with other interested employees.

With consistently growing penetration of cloud-based services, these social networks and online communities are made available on software as a service (SaaS) basis. Similarly, market players also offer on-premise installation of these platforms for enterprises seeking higher data security. Nevertheless, dominance of conventional communication and collaboration tools such as Instant Messaging, Emails, SharePoint, Skype and others remain as major challenge for the market growth.

Cloud-based Enterprise Social Network Platforms to Witness Higher Growth over the Forecast Period

The overall enterprise social networks and online communities market is primarily governed by large enterprises. Thus, majority of the companies prefer installing on-premise solution for ensuring higher level of data security. In 2017, the on-premise segment led the market accounting for nearly 2/3rd of the total market value generated worldwide. Nevertheless, cloud-based enterprise social networking segment is projected to register faster growth during the forecast period. Due to availability of deployment over more secure private cloud, the segment would experience higher growth in the following years.

North America to Continue Leading the Market; Asia Pacific to Emerge as the Fastest Growing Region

North America led the global enterprise social networks and online communities market, with a market share of over 45%, in 2017. The market here is primarily backed by the U.S., having high popularity of social media networks. The U.S. is among the top 10 countries having high penetration (approximately 71%) of social media networks across the world. In addition, presence of numerous companies including IBM Corporation, Jive Software, Inc., Communispace Corporation, Microsoft Corporation (Yammer) and few others is another major factor supporting the market growth. Over the forecast period, Asia Pacific is set to emerge as the fastest growing on account of growing IT & telecom and healthcare sectors in the region.

Large Number of Enterprise Social Network and Online Community Vendors Make the Market Highly Competitive

The overall market is still in nascent stage with limited adoption across different industry verticals. Due to presence of large number of players, the market has emerged highly competitive over the period. Majority of the companies including IBM Corporation, Jive Software, Inc., Communispace Corporation and Socialtext, Inc. focus on developing frequent updates in their software with an aim of improving user experience, convenience and look-and-feel of the platform. This further encourages the end-user organizations to adopt enterprise social networks and online communities for better employee engagement. Major players profiled in the market include IBM Corporation, Microsoft Corporation, Cisco Systems, Inc., Jive Software, Inc., Google, Inc., Communispace Corporation, VMware, Inc., SAP SE, Socialtext, Inc., Telligent, Inc., Mzinga, Inc., Lithium Technologies, Inc., TIBCO Software, Inc., Convo, Salesforce.com, Inc., Zyncro Tech SL and others.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Enterprise Social Networks And Online Communities market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Enterprise Social Networks And Online Communities market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Enterprise Social Networks And Online Communities market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Enterprise Social Networks And Online Communities market?
• Which is the largest regional market for Enterprise Social Networks And Online Communities market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Enterprise Social Networks And Online Communities market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Enterprise Social Networks And Online Communities market worldwide?