Australian Community Management Software Industry
Online community management software enables businesses and brands to create, host, and manage online communities. It can be used for many purposes, such as creating online communities, managing customer relationships or conducting market research. Online community management software is revolutionizing customer engagement, brand advocacy, and support. Let’s break down the highlights, trends, and insights driving this AUD 13.33 billion industry (USD 8.32 billion) 2023 1
Market Overview
The global market was valued at AUD 13.33 billion (USD 8.32 billion) in 2023 1, making up 1.2% of the overall software market. It’s expected to reach AUD 58.66 billion (USD 36.68 billion) by 2032 1 with a CAGR of 17.93%1, far outpacing the parent software industry’s CAGR of 11.5% 2. This growth is driven by the rising importance of community engagement, remote work, and virtual events.
Key Revenue Models
The industry’s financial strategies rely on diverse revenue models, including:
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- SaaS subscriptions: Regular recurring revenue streams.
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- Freemium models: Attract users with free options, monetize premium features.
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- Advertising models: Generate income from ad placements.
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- White-label systems: Allow brands to customize the software as their own.
Why It’s Booming
Online communities are no longer “nice-to-have” – they’re essential for modern businesses. Key benefits include:
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- Boosting customer engagement: Direct interactions drive loyalty.
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- Collecting product feedback: A built-in mechanism to improve products.
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- Supporting brand advocacy: Empower customers to champion brands.
Growing trends in remote work and virtual events have only intensified the need for online communities.
Trends Driving Growth
The software market is witnessing exciting innovations, including:
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- AI and ML integrations: Personalizing user experiences at scale.
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- Focus on privacy: Companies are addressing concerns around data ownership and control.
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- Remote collaboration tools: Helping teams work efficiently from anywhere.
Top Use Cases for Online Communities 3
Online communities serve a range of purposes:
External Communities:
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- Customer support (70% of respondents)
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- Product feedback (65%)
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- Brand advocacy (60%)
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- Customer engagement (50%)
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- Networking (45%)
Internal Communities:
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- Employee collaboration (75%)
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- Knowledge sharing (70%)
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- Onboarding (60%)
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- Training (55%)
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- Feedback collection (50%)
Porter’s Five Forces
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- Threat of New Entrants: Medium. Established players benefit from network effects, but open-source tools lower entry barriers.
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- Bargaining Power of Customers: Moderate. SMEs seek affordability, while large enterprises negotiate on scale.
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- Rivalry Among Competitors: High. Established players and open-source options make this a competitive market.
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- Threat of Substitutes: Medium. Platforms like LinkedIn, Facebook, and Discord are alternatives but lack data ownership and control.
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- Bargaining Power of Suppliers: Low. Hosting providers and coding tools have alternatives, reducing switching costs.
Trading Comparables
Transaction Comparables
Sources:
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2. https://www.grandviewresearch.com/industry-analysis/software-market-report
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3. https://www.higherlogic.com/blog/online-communities-key-facts-statistics-2020/
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7. https://finance.yahoo.com/quote/WIX/key-statistics
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9. https://www.techradar.com/news/vista-equity-partners-purchases-acquia-in-dollar1bn-acquisition
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10. https://www.insightpartners.com/ideas/insight-venture-partners-invests-in-episerver/
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11. https://www.eweek.com/enterprise-apps/jive-software-acquired-for-462-million-by-private-equity-firm/
