The collections module in Python is a built-in library that provides specialized container data types. It enhances the functionality of standard data structures like lists, tuples, and dictionaries by offering alternatives such as Counter, deque, namedtuple, and defaultdict. These data types are designed to make certain tasks easier and more efficient, especially when dealing with large datasets. For example, a Counter is useful for counting hashable objects, while a deque allows for fast appends and pops from both ends of a list. The defaultdict automatically initializes a default value for missing keys, simplifying dictionary operations. Overall, the collections module helps streamline data management in Python programming.