Latin America Unified Communications as a Service (UCaaS) Market Research Report: Forecast (2022-2027)

Market Definition

Unified Communications (UC) is an umbrella term used for multiple enterprise communication tools, including video conferencing, instant messaging (IM), voice calling, presence, content sharing, etc., integrated into a single, streamlined interface. Unified Communications as a Service (UCaaS) offer users an unparalleled experience in terms of switching between modes of communication in a single session for improved productivity.

As more businesses are adopting a fully remote or hybrid workforce, the need for a secure, flexible collaboration and communication solution, i.e., UCaaS, is increasing exponentially across regions, especially in Latin America. Unified communications technology supports numerous operations for an organization, like meetings, collaboration platforms, unified & instant messaging, and enterprise telephony, among others like reporting & analytics, etc.

With the swift expansion of the telecommunication industry and the growing adoption of these mediums by different sectors, the demand for UCaaS is set to mount substantially and generate lucrative opportunities for the leading players during the forecast period.

Market Insights

The Latin America Unified Communications as a Service (UCaaS) Market is likely to witness notable growth in the forecast years, 2022-27. The market is driven primarily by the rapid adoption of Unified Communication as a Service (UCaaS), offering communication platforms & Application Program Interfaces (APIs) to organizations. Amidst the pandemic, the surge in the Work-from-Home culture demonstrated a burgeoning need to enhance employee productivity while working remotely, making organizations adopt cloud service models.

Consequently, the demand for unified communication & collaborative tools & platforms rose substantially & benefitted the overall market growth. Likewise, the growing adoption of digital learning approaches, intending to provide a brilliant learning experience, set forth a stage for several UCaaS platforms like Microsoft Teams, Zoom, & Google Meet, among others. Hence, with the extensive acceptance of work from home, the demand for these services accelerated substantially and is anticipated to remain prevalent across Latin America during the forecast period.

Further, UCaaS offers a cost-effective & secure solution to organizations that require flexibility & scalability in their communication channels that involve a high number of people. It is a prominent aspect of digital transformation since it eases the workload of IT teams & enhances the overall communication infrastructure of an organization. Hence, these aspects indicate a pool of lucrative opportunities for the market in the coming years.

Additionally, technological advancements like Artificial Intelligence (AI), Machine Learning (ML), and voice assistance, among others in UCaaS, provide several end-user industries with benefits like AI-powered translation engines, supportive & improved communication, streamlined workflows & internal communication, etc.

Market Segmentation

Based on End User Industries:

• IT/Telecom
• BFSI
• Government & Utilities
• Education
• Healthcare
• Others (Consumer Goods, Hospitality, etc.)

Of them all, IT/Telecom is anticipated to dominate the market with the largest share in the coming years. It owes to the rapid transition of businesses toward cloud-based unified communication services to access the designated tools through a single application or service. IT/Telecom companies are increasingly adopting UCaaS due to its capabilities to sync the phone & application and exercise functions like Do Not Disturb & call forwarding.

On the other hand, Other End Users like Consumer Goods are projected to hold a significant market share in the forecast period, principally to enhance customer experience through cost-optimized & collaborative platforms/applications for interaction. Besides, advantages like meeting physical experiences with virtual, presenting smarter interaction ways while reducing costs & enabling flexible expansions of the enterprise also drive the market across the Consumer Goods End-User.

Based on Enterprise Size:

• Large (Headcount Above 500)
• Medium (Headcount 101- 500)
• Small (Headcount up to 100)

Of them all, Small enterprises are likely to witness significant market growth in the coming years, while Large enterprises shall notably boost the market. Small Organizations have tight IT budgets, and most of them have not yet adopted IP-based communications. However, leading players like Avaya are offering flexibility to incorporate & use legacy equipment without hampering the existing communication infrastructure. With this, small organizations are anticipated to shift to cloud-based unified communication as a service in the coming years and fuel the overall market growth.

On the other front, Large Organizations with massive IT budgets are actively adopting advanced collaborative communication platforms, especially since the outbreak of Covid-19, owing to the paradigm shift toward Work-from-Home & Bring-Your-Own Devices (BYOD) trends, reveals MarkNtel Advisors in their research report, “Latin America Unified Communications as a Service (UCaaS) Market Analysis, 2022.”

Country Projection

Geographically, the Latin America Unified Communications as a Service (UCaaS) Market expands across:

• Brazil
• Mexico
• Argentina
• Chile
• Peru
• Rest of Latin America

Among all, Brazil is anticipated to dominate the market with the largest share during the forecast period. It owes principally to the widening hybrid & remote work environments across the country, demonstrating an upsurging demand for UCaaS by organizations to enhance remote communications & a dire need to improve collaboration among their employees. In fact, recent substantial GDP growth across the region calls for massive investment in digital transformation, which in turn, is anticipated to boost the telecommunication industry and directly influence the UCaaS industry across Brazil.

Besides, leading players like Avaya are actively grabbing opportunities to provide cloud-based unified communication services across the country. The company has become the first service provider in Brazil to offer flexibilities wherein organizations can incorporate & use their existing equipment. It, in turn, is allowing businesses to leverage investment in these devices & infrastructure & expanding the Return on Investment (ROI).

Nonetheless, a significant number of organizations have not adopted IP-based communication & are still dependent on conventional digital technologies. They are emerging as an area of remunerative opportunities for the stakeholders to expand their service offering & contribute to the industry growth across Brazil in the coming years.

Recent Developments in the Latin America Unified Communications as a Service (UCaaS) Market

• A leading global communications solutions provider, Orange Business Services has come together on a single platform with Cisco to provide managed unified communications and collaboration services to firms operating across Latin America. They seek to cater to users in remote locations with a lifelike meeting experience via integrated Cisco Certified TelePresence. With broader coverage in 44 countries, such as Brazil, Chile, Argentina, Colombia, Mexico, and Venezuela, the service lets customers minimize travel costs and improve staff efficiency. Additionally, based on Cisco WebEx, Orange's high-quality audio and Web conferencing service offer corporations a shared workspace when the partnership needs further expansion.
• Formed as the result of the acquisition of BT Latin America by CIH Telecommunications Americas, Sencinet is provisioned and licensed to offer a VNO capacity of 106 Mbps in 11 countries and 358 MHz of satellite spectrum across Latin America. With this, the company is expected to maintain a strong presence in the region while offering next-generation cloud, networking, and security services to international clients across 21 countries.

Market Dynamics

Key Driver

• Increasing adoption of distributed workforce & remote work trends to accelerate the demand for Unified Communication as a Service to increase productivity, enhance internal communication, and bring cost-efficiency.
• The mounting use of Application Programming Interface (API) with audio, messaging, programmable video, and other services to automate the communication process shall boost the market.

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Latin America Unified Communications as a Service (UCaaS) Market?
2. What are the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Latin America Unified Communications as a Service (UCaaS) Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Latin America Unified Communications as a Service (UCaaS) Market based on the competitive benchmarking matrix?
5. What are the key results derived from surveys conducted during the Latin America Unified Communications as a Service (UCaaS) Market study?