23 Dec 2020
Posted in Technology
Communication and collaboration software market in China registers 15.2% growth in 2020 amidst COVID-19, reveals GlobalData
While the overall enterprise ICT market value in China declined in 2020 due to the COVID-19 crisis, the communications and collaboration software market bucked the trend and registered year-on-year growth of 15.2%, reveals GlobalData, a leading data and analytics company.
According to GlobalData, the communications and collaboration software market size in the country increased from US$2.8bn in 2019 to about US$3.2bn by end of 2020. It is set to maintain a compounded annual growth rate (CAGR) of 11.8% during the forecast period 2019-2024.
With the COVID-19 pandemic compelling enterprises to embrace new ways of communication and collaboration, and accelerate their shift towards remote working to ensure business continuity, the adoption of communication and collaboration software has increased across enterprises in the country.
Nidhi Gupta, Technology Analyst at GlobalData, says: “Enterprise social networking and collaboration platforms that allow employees to collaborate remotely through features like instant messaging, audio and video conferencing, virtual workspaces and screen/application sharing are particularly gaining traction and will see their market value grow at the fastest CAGR of 17% over the forecast period.”
On the other hand, the market size for communication platforms, including cloud-based communication software, will grow by 3.2% CAGR over the forecast period.
Ms Gupta concludes: “Banking, financial services and insurance (BFSI) will be the single largest end-use vertical for communications and collaboration software in China during 2019-2024. The COVID-19 pandemic and the consequent surge in mobile and online banking transactions forced BFSI enterprises to adopt communications and collaboration tools that ease the shift to remote working. This is expected to play an instrumental role in driving the adoption of communication and collaboration software in China’s BFSI sector in 2020 and beyond.”