Enterprise Social Network Market Research Report By Deployment Type (On-Premise, Cloud), By Organization Size (Small and Medium-sized Enterprises (SMEs), Large Enterprises), By Industry Vertical (Healthcare, Financial Services, Manufacturing, Technology, Government), By Functionality (Collaboration, Communication, Knowledge Management, Social Learning, Employee Engagement), By Pricing Model (Per User, Per Feature, Subscription-based) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to

Enterprise Social Network Market Overview

Enterprise Social Network Market Size was estimated at 4.57 (USD Billion) in 2022. The Enterprise Social Network Market Industry is expected to grow from 5.15(USD Billion) in 2023 to 15.0 (USD Billion) by 2032. The Enterprise Social Network Market CAGR (growth rate) is expected to be around 12.62% during the forecast period (2024 - 2032).

Key Enterprise Social Network Market Trends Highlighted

The enterprise social network market continues to evolve rapidly, driven by the need for businesses to improve communication, collaboration, and productivity. Key market drivers include the increasing adoption of remote and hybrid work models, the need for enhanced employee engagement, and the growing popularity of artificial intelligence (AI) and machine learning (ML) technologies.

Opportunities for capturing market share lie in the development of new features and functionalities, such as improved analytics and reporting capabilities, as well as the integration of AI and ML to enhance user experience and automate tasks. Recent trends include the rise of mobile-first platforms, the integration of social media features, and the increasing emphasis on data privacy and security. Enterprises are seeking solutions that offer seamless collaboration, foster innovation, and drive business outcomes.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Enterprise Social Network Market Drivers

Increasing Need for Enhanced Collaboration and Communication

Emerging Technology: Enterprise Social Networks The use of remote or hybrid types of work significantly increases the demand for collaboration and communication tools as well. In such conditions, being the advanced form of workplace-based social media, enterprise social networks give various opportunities to employees to contact each other, share news and different types of information. These platforms help their users interact in real-time even if the employees are separated by large distances. The additional positive effect of such social networks is the reduction of communication barriers and the increase in team spirit. Moreover, providing a vast majority of information about the company and the sphere of work, enterprise social networks help employees to orient themselves in their organization and complete necessary tasks. In such a way, the implementation of enterprise social networks, in the case of business, leads to a rise in productivity, increased pace of work and improved levels of innovation and employee engagement due to better communication and teamwork.

Growing Adoption of Cloud-Based Solutions and Digital Transformation

The trending move to cloud-based solutions has made enterprise social networks more available and less expensive for smaller and middle market businesses. “Cloud-based” also obviates the cost of on-premise infrastructure deployment, maintenance and the cost-benefit of seamless integration with other cloud-based applications has accelerated the adoption of enterprise social networks as a component of broader “digital transformation” efforts. Indeed digital transformation is the current fashion for a series of objectives all companies are actively pursuing across the planet – to operate more efficiently, to make customer experiences better, and to gain an edge on industry trends that are changing at a speed that is both breathtaking and accelerating.

Rising Emphasis on Employee Engagement and Talent Retention

Amid today’s competitive labor market, employee engagement and retention hold great importance for businesses. Effective and harmonious work environment is promoted through the utilization of enterprise social networks which provide employees with the opportunity to stay in touch with their colleagues, share expertise, and add to the company’s goals. Thanks to the intrinsic connection to the firm, the employees’ morale rises, the turnover rates fall, and the company is able to attract new talent. Thus, the success and growth of the Enterprise Social Network Market Industry are significantly influenced by these issues.

Enterprise Social Network Market Segment Insights

Enterprise Social Network Market Deployment Type Insights

The Enterprise Social Network Market is segmented into two deployment types, namely on-premise and cloud. The cloud deployment is expected to account for the largest share of the market in the coming years, primarily due to its inherent benefits such as scalability, flexibility, and cost-effectiveness. On the other hand, the on-premise deployment is also expected to grow in the forecast period; however, the growth may not be as significant as that of the cloud segment. Under the on-premise deployment model, the Enterprise Social Network software is hosted and installed on the company’s servers.

This deployment model allows companies to have more control over their data security and customization preferences. However, this deployment option also involves substantial upfront investment, as well as significant maintenance and tech personnel costs. The cloud deployment model, on the other hand, is based on hosting the Enterprise Social Network software on a third-party cloud provider. Once again, this software deployment option allows for more flexibility, scalability, and cost-efficiency, as the companies only pay for the resources they actively use, as well as the option to access enterprise social networking software via any location and any time.

The choice between on-premise and cloud deployment is based on several factors, not limited to the company size, IT infrastructure peculiarities, security demands, and business strategy. While large companies with complex IT infrastructure and high data security demands are more likely to adopt the on-premise option, small businesses lacking the necessary IT resources and budget will most likely focus on the cloud model. The cloud deployment mode appears to be the most relevant for companies choosing the hybrid IT approach, and, thus, hosting some applications on-premise, and others in the cloud.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Enterprise Social Network Market Organization Size Insights

The Enterprise Social Network Market is segmented by organization size into Small and Medium-sized Enterprises (SMEs) and Large Enterprises. Among these segments, SMEs are expected to hold a significant share of the market in 2023, owing to the increasing adoption of cloud-based enterprise social networking solutions by SMEs to improve collaboration and communication within their organizations. Large enterprises, on the other hand, are expected to witness a higher growth rate during the forecast period, due to their greater investment capacity in advanced enterprise social networking technologies to enhance employee engagement, knowledge sharing, and innovation.

Enterprise Social Network Market Industry Vertical Insights

The Enterprise Social Network Market segmentation by Industry Vertical includes Healthcare, Financial Services, Manufacturing, Technology, and Government. Healthcare is expected to hold the largest market share due to the increasing need for collaboration and communication among healthcare professionals. Financial Services is another major segment, where Enterprise Social Networks are used for secure collaboration, knowledge sharing, and customer engagement. Manufacturing and Technology sectors are also witnessing growing adoption of Enterprise Social Networks for improved productivity and innovation. The Government segment is expected to show significant growth due to the increasing need for secure and efficient communication and collaboration among government agencies.

Enterprise Social Network Market Functionality Insights

Collaboration, Communication, Knowledge Management, Social Learning, and Employee Engagement are key functionalities of Enterprise Social Network (ESN) solutions. The Enterprise Social Network Market revenue for Collaboration is projected to reach USD 2.45 billion by 2024, growing at a CAGR of 12.8%. Communication functionality is expected to contribute USD 1.89 billion to the market revenue by 2024, with a CAGR of 11.9%. Knowledge Management is estimated to grow at a CAGR of 10.9%, reaching USD 1.32 billion in revenue by 2024. Social Learning and Employee Engagement functionalities are anticipated to contribute USD 1.03 billion and USD 0.96 billion, respectively, to the Enterprise Social Network Market by 2024. These functionalities enable seamless collaboration, effective communication, efficient knowledge sharing, enhanced learning experiences, and improved employee engagement within organizations.

Enterprise Social Network Market Pricing Model Insights

The pricing model segment is a crucial factor in determining the Enterprise Social Network Market revenue and growth. Among the various pricing models, three primary types stand out: per user, per feature, and subscription-based. The per user pricing model charges a fixed fee for each user accessing the enterprise social network. This model is straightforward and easy to manage, but it can become expensive for organizations with a large number of users. The per feature pricing model, on the other hand, charges based on the specific features and functionalities used by each user. This model offers more flexibility and customization, allowing organizations to tailor their spending to their specific needs. The subscription-based pricing model provides access to the enterprise social network for a fixed period of time, typically on a monthly or annual basis. This model offers predictability and cost savings for organizations that plan to use the platform extensively over time. The Enterprise Social Network Market data indicates that the subscription-based model is gaining popularity due to its cost-effectiveness and flexibility.

Enterprise Social Network Market Regional Insights

The regional segmentation of the Enterprise Social Network Market offers valuable insights into the market dynamics across different regions. North America is anticipated to dominate the market with a substantial revenue share, driven by the high adoption of advanced technologies and the presence of major industry players. Europe follows closely, with a significant contribution to the market revenue. The Asia-Pacific region is expected to witness notable growth, owing to the rising number of small and medium-sized enterprises and increasing internet penetration. South America and MEA are also expected to contribute to the market growth, albeit at a slower pace compared to the other regions. These regional insights help businesses understand the market potential, identify growth opportunities, and tailor their strategies accordingly.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Enterprise Social Network Market Key Players And Competitive Insights

The ecosystem of the Enterprise Social Network Market is extremely competitive. A wide range of leading players drives the ecosystem’s evolution, investing in various features and applications targeting different audiences and accounts. Prominent vendors include Microsoft, Salesforce, Oracle, IBM, Jive Software, SAP, and others. These companies aim to support the market’s development through introducing innovative features and functions. Vendors are regularly developing new updates to improve their offerings and ensure that they meet the evolving requirements of enterprise customers. Importantly, the ecosystem also benefits from the robust levels of cooperation between existing service providers, as they need to be prepared to address the extensive and varied requirements of target audiences.

Microsoft is a major player in the Enterprise Social Network Market due to its constant innovation and popular product. Its main application, Microsoft Teams, is a thoroughgoing solution for workplace collaboration needs, including chat, video meetings, file sharing, and integration with hundreds of third-party applications. It enables enhanced communication among teams, boosted productivity, and knowledge sharing among enterprise employees. The scale of Microsoft’s presence in the market is determined by its popular existing market solutions, such as the Windows operating system, as well as by its dedication to offering an extensive and constantly updated functionality range.

Salesforce is another significant vendor in the Enterprise Social Network Market due to its popular platform, Salesforce Chatter. It is a social network collaboration tool targeted at employees in the Salesforce account. It allows enterprise employees to connect to each other, share knowledge, learn about projects and customers, and communicate about important work-related issues. Chatter includes a wide range of social media tools, such as walls, updates, comments, forums, and files. At the same time, it also links seamlessly with other Salesforce functions and platforms, including the Sales and Service clouds as well as various applications, allowing enterprises to support social collaboration effectively while working with their customer database within the single account. This approach facilitated the high levels of adoption of Salesforce’s solution among company employees and propelled the service provider to its current prominent position in the market.

Key Companies in the Enterprise Social Network Market Include

• 
  

  Tibco

  
  


• 
  

  Salesforce

  
  


• 
  

  Microsoft

  
  


• 
  

  Hootsuite

  
  


• 
  

  Zoho

  
  


• 
  

  Workplace by Meta

  
  


• 
  

  Igloo Software

  
  


• 
  

  SAP

  
  


• 
  

  Google

  
  


• 
  

  Jive Software

  
  


• 
  

  Rypple

  
  


• 
  

  Yammer

  
  


• 
  

  Slack

  
  


• 
  

  IBM

  
  


• 
  

  LinkedIn

  
  

Enterprise Social Network Market Industry Developments

The Enterprise Social Network Market is projected to reach $15.0 billion by 2032, exhibiting a CAGR of 12.62% during the forecast period (2024-2032). The market is driven by the increasing adoption of digital workplace solutions, the need for improved communication and collaboration, and the growing popularity of remote work. The market is dominated by vendors such as Microsoft, Salesforce, IBM, and Jive Software. Recent developments in the market include the integration of AI and machine learning into enterprise social networks, the rise of mobile-first platforms, and the increasing focus on employee experience. The market is expected to witness significant growth in the coming years, as more and more organizations realize the benefits of using enterprise social networks to improve communication, collaboration, and productivity.

Enterprise Social Network Market Segmentation Insights

• 
  

  Enterprise Social Network Market Deployment Type Outlook

  
  
  
  
  • 
    

    On-Premise

    
    
  
  
  • 
    

    Cloud

    
    
  
  
  
  


• 
  

  Enterprise Social Network Market Organization Size Outlook

  
  
  
  
  • 
    

    Small and Medium-sized Enterprises (SMEs)

    
    
  
  
  • 
    

    Large Enterprises

    
    
  
  
  
  


• 
  

  Enterprise Social Network Market Industry Vertical Outlook

  
  
  
  
  • 
    

    Healthcare

    
    
  
  
  • 
    

    Financial Services

    
    
  
  
  • 
    

    Manufacturing

    
    
  
  
  • 
    

    Technology

    
    
  
  
  • 
    

    Government

    
    
  
  
  
  


• 
  

  Enterprise Social Network Market Functionality Outlook

  
  
  
  
  • 
    

    Collaboration

    
    
  
  
  • 
    

    Communication

    
    
  
  
  • 
    

    Knowledge Management

    
    
  
  
  • 
    

    Social Learning

    
    
  
  
  • 
    

    Employee Engagement

    
    
  
  
  
  


• 
  

  Enterprise Social Network Market Pricing Model Outlook

  
  
  
  
  • 
    

    Per User

    
    
  
  
  • 
    

    Per Feature

    
    
  
  
  • 
    

    Subscription-based

    
    
  
  
  
  


• 
  

  Enterprise Social Network Market Regional Outlook

  
  
  
  
  • 
    

    North America

    
    
  
  
  • 
    

    Europe

    
    
  
  
  • 
    

    South America

    
    
  
  
  • 
    

    Asia Pacific

    
    
  
  
  • 
    

    Middle East and Africa