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Market Definition
Unified Communications (UC) comprises multiple communication functions, including but not limited to enterprise communication, audio/video/web conferencing, unified messaging (IM), content sharing, etc., integrated into a single, streamlined interface. Unified Communications as a Service (UCaaS) is a cloud-based model that supports these functions and provides users with an unparalleled experience of switching between communication modes in a single session for enhanced productivity. The demand for UCaaS is proliferating worldwide as more & more businesses are deploying a fully remote or hybrid workforce alongside the swiftly expanding telecommunication sector and the mounting adoption of these mediums by end-user verticals.
Market Insights
The Global Unified Communications as a Service (UCaaS) Market is likely to grow at a CAGR of around 14.3% during the forecast period, i.e., 2023-28. The market has witnessed significant expansion in the previous few years owing to the emergence of remote working that surged the adoption of cloud-based service models for enhanced employee productivity.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 14.3% |
| Regions Covered | North America: US, Canada, Mexico |
| Europe: Germany, The UK, France, Spain, Italy | |
| Asia-Pacific: China, India, Japan, New Zealand, Australia, Rest of Asia-Pacific | |
| South America: Brazil, Argentina, Peru | |
| Middle East & Africa: The UAE, Saudi Arabia, Turkey, South Africa, Rest of MEA | |
| Key Companies Profiled | Google LLC, Microsoft Corporation, Cisco Systems, Inc., Zoom Video Communications, Inc., Avaya Inc., RingCentral, Inc., Mitel, Vonage, LogMeIn, Orange Business Services, 8x8, Inc., Huawei, Unify, GoTo, Windstream, Wildix, Dialpad, and Sangoma. |
| Unit Denominations | USD Million/Billion |
As a result, unified communication & collaborative tools & platforms witnessed substantial demand & contributed to the market expansion. Similarly, the mounting adoption of digital learning approaches with the advent of the pandemic to deliver brilliant learning experiences is another prominent aspect that boded well for the industry with the ever-increased use of UCaaS platforms like Google Meet, Zoom, and Microsoft Teams, among others.
UCaaS provides a cost-effective & secure solution to organizations aspiring for flexibility & scalability in their communication channels involving a large number of people. It eases the workload of IT teams and helps improve the overall communication infrastructure of an organization.
Advanced technologies like AI (Artificial Intelligence), ML (Machine Learning), and voice assistance integrated into UCaaS are offering various end-user verticals with streamlined workflows & internal communication, supportive & improved communication, AI-powered translation engines, etc. Hence, these aspects are creating new avenues for the Global Unified Communications as a Service (UCaaS) Market to witness significant expansion in the coming years.
Market Segmentation
Based on Size of Enterprise:
Among all, small enterprises are projected to witness notable growth in the Global Unified Communications as a Service (UCaaS) Market during 2023-28. Most small organizations have tight IT budgets and have not yet adopted IP-based communications. As some providers have now started offering flexibility in legacy equipment that can be incorporated & used without changing the existing communication infrastructure, small firms are increasingly deploying cloud-based UCaaS models and leveraging their benefits.
On the other front, large organizations hold the dominant position in the market as they are the largest end-users of UCaaS models. With the emergence of remote working & BYOD (Bring-Your-Own Devices) trends due to the Covid-19 pandemic, large enterprises with massive IT budgets have increasingly deployed advanced collaborative communication platforms and, in turn, fueled the growth of the Global Unified Communications as a Service (UCaaS) Market during 2023-28.
Based on End User:
Here, the IT/Telecom sector is the largest end-user of UCaaS and holds the dominating position in the market. Telecom & IT organizations are showing active interest in UCaaS owing to its ability to sync the phone & applications and support functions like call forwarding & DND (Do Not Disturb). These firms often deal with government institutions & law enforcement agencies that require efficient & secure information exchange. The swift shift of telecom & IT firms to cloud-based unified communication services in recent years in order to access the designated tools through a single application or service is the prime aspect that has contributed to the market expansion across the IT/telecom sector.
On the other hand, the hospitality sector is also gaining traction in the global market as incumbents of this industry are massively investing in UCaaS solutions for enhanced efficiency & productivity of employees in order to provide seamless travel experiences to tourists worldwide. Moreover, as the hospitality sector relies excessively on effective teamwork & coordination among managers, customer service experts, and front-end receptionists, the increasing adoption of UCaaS solutions in this sector is driving the Global Unified Communications as a Service (UCaaS) Market.
Regional Projection
Geographically, the Global Unified Communications as a Service (UCaaS) Market expands across:
Of them all, North America holds a majority share of the Unified Communications as a Service (UCaaS) Market. It owes to the ever-growing adoption of advanced business communication services by different enterprises across the region for video & audio conferencing, chats, emails, telephony, & other communication functions as an integrated part of their operations, coupled with the extensive presence of leading IT firms like Google LLC, Avaya Inc., IBM Corporation, and Verizon Communication Inc.
Moreover, increasing investments in digitizing the IT infrastructure, the ever-rising popularity of cloud-based communication solutions, and the continuously mounting penetration of smart devices are other prominent aspects contributing to the North America Unified Communications as a Service (UCaaS) Market.
Key Growth Driver for the Global Unified Communications as a Service (UCaaS) Market
Increasing adoption of distributed workforce & remote work trends continue to amplify the demand for UCaaS in order to increase productivity, improve internal communication, and bring cost-efficiency. Moreover, the mounting use of Application Programming Interface (API) with audio, messaging, programmable video, and other services to automate the communication process shall further provide the necessary impetus to the market expansion in the coming years.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Unified Communications as a Service (UCaaS) Market is likely to witness around 14.3% CAGR during 2023-28.
A. The ever-increasing adoption of distributed workforce & remote work trends by various enterprises in order to enhance productivity, enhance internal communication, and bring cost-efficiency is the prime aspect projected to drive the Unified Communication as a Service (UCaaS) Market during 2023-28.
A. Google LLC, Microsoft Corporation, Cisco Systems, Inc., Zoom Video Communications, Inc., Avaya Inc., RingCentral, Inc., Mitel, Vonage, LogMeIn, Orange Business Services, 8x8, Inc., Huawei, Unify, GoTo, Windstream, Wildix, Dialpad, and Sangoma are the key companies participating in the Unified Communications as a Service (UCaaS) Market.
A. The Healthcare sector is expected to emerge as an area of lucrative growth opportunities for the leading players in the Unified Communications as a Service (UCaaS) Market during 2023-28.
A. North America would offer substantial growth prospects in the Unified Communications as a Service (UCaaS) Market during 2023-28.
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