Enterprise Social Networks and Online Communities Market Overview
As per MRFR analysis, the enterprise social networks and online communities market size was estimated at 9.85 (USD Billion) in 2022.
The enterprise social networks and online communities market industry is expected to grow from 10.83 (USD Billion) in 2023 to 25.47 (USD Billion) by 2032. The enterprise social networks and online communities market CAGR (growth rate) is expected to be around 9.96% during the forecast period (2024-2032).
Key Enterprise Social Networks and Online Communities Market Trends Highlighted
Key drivers fueling the growth of this market include the need for improved collaboration and communication within organizations, the increasing adoption of remote work, and the rise of social media and online communities. Opportunities for growth lie in the expansion of cloud-based solutions, the integration of artificial intelligence and machine learning, and the development of dedicated platforms for specific industries and use cases.
Recent trends in the market include the shift towards a more personalized and user-centric approach, the emergence of hybrid work models, and the growing emphasis on employee engagement and well-being. Organizations are seeking solutions that foster a sense of community and belonging, while also providing a platform for sharing knowledge, ideas, and feedback.
Figure1: Enterprise Social Networks and Online Communities Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Enterprise Social Networks and Online Communities Market Drivers
Rise of Remote Work and Flexible Collaboration
The outbreak of the COVID-19 pandemic has stimulated the reliance on remote work and flexible collaboration, which created a prerequisite for the substantial increase in the demand for enterprise social networks and online communities.
Not only do these platforms allow employees to remain connected, share knowledge, and cooperate effectively regardless of the constraints related to geographical location and log-in time, but they also enable the companies to realize the integration and implementation of the hybrid model, which has been accepted as a novel trend across the globe.
The pressure for maintaining the growth of enterprise social networks and online communities is bound to rise within the next few years because the companies attempt to close the gap between on-office and remote employees. Enterprise social networks and online communities constitute the shared system and platform, where employees can locate authors of posts, like and share content, follow, and communicate privately while still retaining the option of uploading and participating in discussions.
The relationships, therefore, between employees grow stronger, new approaches, ideas, and concepts cogitated, which in its turn allows the companies to introduce innovative product, strengthen the flow of business ideas, and enhance the strategy-oriented cooperation within the teams.
Overall, the shared information flow helps to eliminate the silo effect and encourages the employees to adapt the perspective of understanding how different roles and responsibilities can be successfully merged into a single set of duties.
Growing Adoption of Digital Transformation Initiatives
Organizations in various sectors are currently implementing digital transformation strategies to improve their efficiency, enhance customer experiences, and ensure a competitive advantage. At the same time, enterprise social networks and online community tools are among the key resources that can be used to achieve these goals.
Indeed, these tools are essential for sharing information between departments and other organizational units. For example, they are used to communicate best practices and other solutions that may be relevant in specific contexts.
In environments where enterprise social networks and online communities are in place, workers can always find the necessary knowledge to complete their tasks and suggest meaningful improvements. In the end, it may allow it improves the pace of transformations and adds precision both in understanding the right strategies and in their implementation.
Increasing Demand for Employee Engagement and Retention
In today's competitive job market, organizations are increasingly focused on employee engagement and retention. Enterprise social networks and online communities can play a significant role in boosting employee morale, fostering a sense of belonging, and reducing turnover.
These platforms provide employees with a voice and a sense of community, allowing them to share their ideas, concerns, and feedback. They create opportunities for employees to connect with colleagues, participate in company-wide discussions, and receive recognition for their contributions. By fostering a positive and inclusive work environment, enterprise social networks and online communities enhance employee engagement and loyalty.
Enterprise Social Networks and Online Communities Market Segment Insights
Enterprise Social Networks and Online Communities Market Deployment Insights
The deployment segment is one of the most important factors determining the adoption and usage patterns for the ESNs and OCs. There are three types of deployment covered in the market: on-premises, cloud, and hybrid.
On-premises means that the ESN and OC software and the relevant infrastructure are installed and managed within the organization’s data center. This deployment type provides a company with the highest degree of control and security but demands big initial investments in physical, software, and human resources. The on-premises segment occupied a large share of the market revenue in 2023, mainly driven by the large companies’ preference for control and security.
Cloud deployment implies that the ESN and OC software and infrastructure are hosted by a cloud provider, which can be Amazon Web Services or Azure. This type of deployment provides an organization with the most flexibility, scalability, and cost-effectiveness. This segment will also experience significant growth in the next years, with the reasons being the rising popularity of cloud-based solutions and SaaS.
The hybrid deployment is defined by hosting some ESN and OC components on-premises and some in the cloud. This type of deployment provides companies with a balance between control, flexibility, and cost. The hybrid segment will see the growth of its share of the market as companies look to optimize their IT infrastructure.
Both on-premises and cloud ESN and OC deployment types will be characterized by their own advantages, and the choice in favor of one or the other will be made depending on various factors such as company size, industry, need to comply with certain regulation, and resources. Large companies with established IT facilities and strict security requirements are prone to choose on-premises deployment, while SMBs and IT-illiterate companies are the target audience for cloud or hybrid.
Figure2: Enterprise Social Networks and Online Communities Market, By Deployment, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Enterprise Social Networks and Online Communities Market Subscription Insights
Subscription-based pricing models are commonly adopted by vendors in the enterprise social networks and online communities market to offer their solutions. This model provides customers with the flexibility to pay for the services on a recurring basis, typically monthly, quarterly, or annually.
The annual subscription segment holds a significant share of the market, owing to its cost-effectiveness for long-term usage. The monthly subscription segment is gaining traction due to its lower upfront cost, making it suitable for customers who prefer short-term commitments.
The quarterly subscription segment offers a balance between the annual and monthly options, providing flexibility and cost optimization. As of 2023, revenue from subscription-based pricing is projected to be around USD X billion, with a projected growth rate of Y% by 2024. This growth is attributed to the increasing adoption of cloud-based solutions and the growing need for cost-effective and scalable collaboration tools.
Enterprise Social Networks and Online Communities Market Purpose Insights
The purpose of enterprise social networks and online communities (ESNOC) varies across organizations, with different use cases driving market growth. Communication and collaboration remain key drivers, with ESNOC platforms facilitating seamless information sharing, team discussions, and project coordination.
Knowledge management is another significant purpose, enabling organizations to capture, organize, and disseminate valuable knowledge and expertise. Community engagement is also a growing area, as ESNOCs foster connections between employees, customers, and partners, promoting a sense of belonging and loyalty. Learning and development are increasingly supported by ESNOCs, providing access to training materials, online courses, and peer-to-peer learning opportunities.
Enterprise Social Networks and Online Communities Market Insights
The IT and telecom sector is projected to account for a significant portion of the market revenue in 2024. The increasing adoption of digital technologies, cloud-based services, and the need for effective communication and collaboration within IT and Telecom organizations are driving the growth in this segment.
The healthcare industry is also expected to contribute substantially to the market due to the rising adoption of patient portals, telemedicine, and the need for secure and efficient communication among healthcare professionals.
The financial services sector is anticipated to witness notable growth, driven by the increasing demand for personalized customer experiences, regulatory compliance, and risk management. The manufacturing industry is expected to show promising growth prospects due to the need for improved collaboration, supply chain management, and remote workforce enablement.
The education sector is projected to contribute to the market growth, fueled by the increasing adoption of online learning platforms, virtual classrooms, and the need for effective student engagement and collaboration.
Enterprise Social Networks and Online Communities Market Regional Insights
North America is expected to hold the largest market share in 2023 and is projected to continue to lead the market throughout the forecast period. The growth in this region can be attributed to the increasing adoption of enterprise social networks and online communities by businesses of all sizes. These platforms offer several benefits, including improved communication and collaboration, increased employee engagement, and enhanced customer service.
Europe is expected to be the second-largest market for enterprise social networks and online communities in 2023. The market in this region is expected to grow at a CAGR of 9.5% during the forecast period. The growth in this region can be attributed to the increasing adoption of these platforms by businesses in various industries, including healthcare, manufacturing, and financial services.
APAC is expected to be the fastest-growing market for enterprise social networks and online communities in 2023. The market in this region is expected to grow at a CAGR of 11.2% during the forecast period. The growth in this region can be attributed to the increasing adoption of these platforms by businesses in emerging economies, such as China and India.
South America and MEA are expected to be the smallest markets for enterprise social networks and online communities in 2023. However, these regions are expected to experience significant growth over the forecast period. The growth in these regions can be attributed to the increasing adoption of these platforms by businesses in various industries, including retail, education, and government.
Figure3: Enterprise Social Networks and Online Communities Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Enterprise Social Networks and Online Communities Market Key Players and Competitive Insights:
Major players in the enterprise social networks and online communities market are constantly striving to gain a competitive edge. Leading market players are investing heavily in research and development to introduce innovative products and services. They are also focusing on strategic partnerships and acquisitions to expand their market reach and enhance their product portfolio.
The market’s development is driven by the increasing adoption of digital technologies by businesses. The growing need for effective communication and collaboration tools is also contributing to the market growth. The landscape is expected to remain highly competitive in the coming years.
Salesforce is a leading provider of enterprise social networks and online communities. The company's Salesforce Chatter platform is a cloud-based social networking service that allows businesses to connect with customers, partners, and employees. Salesforce Chatter is used by over 150,000 companies worldwide.
The company also offers a range of other social networking and collaboration tools, including Salesforce Communities, Salesforce Groups, and Salesforce Events. Salesforce is committed to providing its customers with the best possible social networking and collaboration experience. The company is constantly investing in research and development to introduce new features and functionality to its products. Salesforce is also focused on building strategic partnerships with other leading technology companies.Microsoft is another major player. It’s Microsoft Teams platform is a cloud-based collaboration tool that allows businesses to communicate and collaborate with each other. Microsoft Teams is used by over 250 million people worldwide. The company also offers a range of other social networking and collaboration tools, including Microsoft SharePoint, Microsoft Yammer, and Microsoft OneDrive.
Microsoft is committed to providing its customers with the best possible social networking and collaboration experience. The company is constantly investing in research and development to introduce new features and functionality to its products. Microsoft is also focused on building strategic partnerships with other leading technology companies.
Key Companies in the Enterprise Social Networks and Online Communities Market Include
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Salesforce
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Microsoft
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Bitrix24
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Facebook Workplace
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Yammer
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Slack
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Jive Communications
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Tibco Socialcast
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Huddle Technologies
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Jostle
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ThoughtFarmer
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Google Workspace
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LinkedIn Elevate
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Igloo Software
Enterprise Social Networks and Online Communities Market Developments
The enterprise social networks and online communities market reached a valuation of USD 12.17 billion in 2023 and is expected to grow at a CAGR of 9.96% during the forecast period of 2024-2032, reaching a value of USD 25.47 billion by 2032.
The market growth is driven by factors such as increasing adoption of social media and collaboration tools in businesses, rising demand for improved communication and collaboration within organizations, and growing need for knowledge management and sharing.
Recent developments in the market include the launch of new features and functionalities by vendors, strategic partnerships and acquisitions, and increasing adoption of cloud-based solutions. Key market players include Microsoft, Salesforce, IBM, SAP, and Oracle.
Enterprise Social Networks and Online Communities Market Segmentation Insights
Enterprise Social Networks and Online Communities Market Deployment Outlook
Enterprise Social Networks and Online Communities Market Subscription Outlook
Enterprise Social Networks and Online Communities Market Purpose Outlook
- Communication and Collaboration
- Knowledge Management
- Community Engagement
- Learning and Development
Enterprise Social Networks and Online Communities Market Outlook
- IT and Telecom
- Healthcare
- Financial Services
- Manufacturing
- Education
Enterprise Social Networks and Online Communities Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
9.85 (USD Billion) |
| Market Size 2023 |
10.83 (USD Billion) |
| Market Size 2032 |
25.47 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
9.96% (2024-2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2019-2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Salesforce, Microsoft, Bitrix24, Facebook Workplace, Yammer, Slack, Jive Communications, Tibco Socialcast, Huddle Technologies, Jostle, ThoughtFarmer, Google Workspace, LinkedIn Elevate, Igloo Software |
| Segments Covered |
Deployment, Subscription, Purpose, Industry, Region |
| Key Market Opportunities |
Adoption of AI Cloud Computing and Analytics Growing Remote Workforce Increased Demand for Collaboration Tools Expansion of Social Selling and Marketing Integration with Business Applications |
| Key Market Dynamics |
Rising Demand for Collaboration Tools Increased Adoption of Remote Work Growing Popularity of Social Learning Integration with Enterprise Applications Accelerating Digital Transformation Initiatives |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The enterprise social networks and online communities market was worth USD 10.83 billion in 2023.
The enterprise social networks and online communities market is projected to rise at a CAGR of 9.96% from 2024 to 2032.
North America was the largest regional market in 2023, accounting for 38% of the market.
Key applications of enterprise social networks and online communities include collaboration, communication, knowledge management, and social learning.
Major competitors in the market include Microsoft, Salesforce, Adobe, IBM, and SAP.
The growth of the market is driven by the increasing adoption of cloud-based solutions, the need for improved collaboration and communication, and the rising popularity of social learning.
Challenges faced by the market include security concerns, data privacy issues, and the need for integration with legacy systems.
Opportunities for growth include the expansion of mobile and social technologies, the development of new applications, and the growing adoption of machine learning and artificial intelligence.
Key factors to consider when selecting an enterprise social network and online community include the size of the organization, the industry, the specific needs of the organization, the budget, and the level of support required.
Benefits of implementing an enterprise social network and online community include improved communication and collaboration, increased employee engagement, enhanced knowledge sharing, and reduced costs.
