Collaboration in the Workplace Continues to Fuel Software Sales in the U.S. B2B Tech Channel

Content and collaboration software sales are up 15% year to date, according to NPD

Port Washington, NY, October 9, 2019 – Collaboration in the workplace across departments and geographies is driving the need to seamlessly communicate from varying locations and on multiple devices. This need for digitalization and visual data sharing is expected to increase demand for communication and conferencing solutions, contributing to growth in the Content and Collaboration software category in the U.S. B2B technology market. In fact, according to The NPD Group’s U.S. B2B Distributor and Reseller Tracking Service, this category has seen steady growth year-over-year up 7% in 2017, 14% in 2018, and 15% year to date (Jan.- Aug.).

Overall U.S. B2B software market sales have been strong, up 8% in 2017, 11% in 2018 and 10% year to date. Within this segment, Content and Collaboration software has been a growth leader as companies implement software to improve productivity, time management, file sharing, division of work, project tracking, and communication. Sales in this category are dominated by the top four vendors with Microsoft, Autodesk, Adobe, and Cisco, holding 86% of dollar sales (12 ME Aug. 2019).

While on-premise Content and Collaboration software dollar sales captured 71% of the market, cloud enabled software sales grew at slightly faster rate, up 11% year over year compared to 10% (12 ME Aug. 2019). A shift to cloud-based software is expected to continue, as it reduces infrastructure cost and offers a centralized management system. 

“As an increasing number of workers telecommute and younger generations enter the workforce with greater expectations of collaboration, the demand for communication and collaboration solutions will continue to grow,” said Kate Roe-Semyon, President, B2B Technology Practice, The NPD Group. “While cloud-enablement is a key factor in growth, APIs integrating both cloud and on-premise applications will be just as important, as they create seamless communication between systems and employees.”

Source: The NPD Group, Inc., U.S. B2B Distributor Track® and Reseller Tracking service. Sales are adjusted for 5wk Jan. 2018 vs. 4wk Jan. 2019.


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