A collimated beam of light or other electromagnetic radiation has parallel rays, and therefore will spread minimally as it propagates. A laser is an archetypical example. A perfectly collimated light beam, with no divergence, would not disperse with distance. However, diffraction prevents the creation of any such beam.
Diagram of display system that uses collimated light and a real flight simulator
A collimator is a device which narrows a beam of particles or waves. To narrow can mean either to cause the directions of motion to become more aligned in a specific direction, or to cause the spatial cross section of the beam to become smaller.
Collimators used to record gamma rays and neutrons from a nuclear test.
Collimator for a neutron stream, University of Washington cyclotron