Unified Communication as A Service Market

Unified Communications as a Service Market (UCaaS) Market Size & Growth (2021-2022)

The global Unified Communications as a Service (UCaaS) market is projected to rise at a Compound Annual Growth Rate (CAGR) of 9.5 percent from USD 15.8 billion in 2019 to USD 24.8 billion by 2024. The business is expected to see new growth opportunities as people prefer to combine seamless communication and IoT. Businesses are expected to shift away from conventional communication and toward UCaaS solutions as cloud-based unified communication systems, in combination with IoT devices and solutions, allow real-time connectivity and contribute to process automation. Cloud services consume 20.6 zettabytes of data annually, according to CISCO's global cloud traffic analysis. According to 92 percent of Americans, multiple customer-oriented services facilitated by UCaaS cloud utility, such as chatbots, audio conferencing, and automated customer query response, are gaining high market demand and building strong relationships with customers.

Recent Developments:

• Verizon and Zoom teamed up in July 2019 to provide a new unified networking solution. This partnership allows current Verizon customers to join Zoom meetings using their Verizon cell phones or VoIP solutions without having to pay for extra support or personnel.
• Ribbon Communications reported that IBM Cloud for Financial Services would offer stable UCaaS to financial services organizations in September 2020. Kandy Business Solutions from Ribbon will provide financial institutions with a complete suite of cloud-based UC services and customers, including chat, video, audio, and text, allowing for the cloud migration of business communications.
• Altura collaborated with RingCentral in January 2020 to improve cloud networking and contact center solutions. Altura will assist RingCentral in bringing its cloud communications and contact center technologies to businesses in the United States in a variety of industries, including healthcare, government, and education.

Market Drivers and Restraints

Drivers:

UcaaS reduces in-house software and hardware problems by depending solely on a third-party service provider. This helps business owners concentrate on their primary objectives without being distracted by the growth of the UCaaS market. The UCaaS market demand is driven by organizations' reliance on connectivity, which leads to innovations and existing clientele reliance across various channels such as web-based messaging, screen sharing, and video and voice media. Additional digital features of pay-per-use services, the integration of multiple applications into a single user interface, powerful networking infrastructure, and the replacement of traditional telephonic systems with VoIP solutions are all increasing to boost the UCaaS market.

Restraints:

Since cloud computing primarily involves UCaaS integrators and service providers, it's critical to pick the right vendor. UCaaS removes critical cloud IT requirements in order to offer low-cost services, but this results in major disadvantages such as security breaches and data backup redundancy due to an insufficient data control environment.

UNIFIED COMMUNICATIONS AS A SERVICE MARKET REPORT COVERAGE:

Segmentation Analysis

Unified Communication As A Services Market - By Organization Size:

• Large Enterprises
• SMEs

The large enterprise segment is dominating the market during the forecast period. Large businesses are gradually implementing BYOD patterns, which is pushing up demand for UCaaS solutions indirectly. This form of solution offers excellent benefits that are close to those offered by cloud services.

Unified Communication As A Services Market - By Component:

• Unified Messaging
• Telephony
• Conferencing
• Collaboration Platforms and Applications

During the forecast period, the telephony segment is expected to expand at a faster CAGR. Due to the high demand for small and medium businesses (SMEs), vendors are offering telephony as a key commodity. These solutions aid in streamlining enterprise communication and overall profitability. This is one of the most important factors influencing the segment's development in the coming years.

Unified Communication As A Services Market - By Vertical:

• Banking
• Financial Services, and Insurance Information Technology (IT)
• Telecom
• Healthcare
• Logistics and Transportation
• Consumer goods
• Retail
• Travel and Hospitality
• Public sector and Utilities (BFSI)

During the forecast period, the BFSI segment is expected to grow at a faster rate. A significant factor driving the segment's growth is banking institutions' growing adoption of private cloud delivery models for securing sensitive data.

Regional Analysis:

The market for Unified Communications as a Service (UCaaS) is divided into five major geographical regions:

1. North America
2. Asia Pacific (APAC)
3. Europe
4. Middle East and Africa (MEA)
5. Latin America

North America is expected to have the largest market size during the forecast period, owing to growing technology adoption by North American businesses to improve productivity and the presence of a large number of UCaaS vendors.

Due to continued digitization and an increasingly mobile workforce in the region, Asia Pacific is projected to expand significantly over the forecast period. People can function remotely due to the ambitious deployment of high-speed internet at affordable prices and the rapid proliferation of smartphones in the country, which is motivating businesses to use UCaaS solutions. Furthermore, the existence of a major AI development center in several Asian countries, including Singapore, has resulted in the emergence of a number of start-ups that provide AI-related services to clients all over the world. This is usually what drives the adoption of UCaaS solutions and platforms in the area, and it is expected to contribute to market growth over the forecast period.

Impact of Covid-19 on Unified Communications as a Service Market (UCaaS) Market

Companies have requested workers to work from home as the number of COVID-19 cases continues to rise in many countries. This allows employees to continue working without interruption. The remote working culture is changing existing modes of communication, with face-to-face interaction temporarily taking a back seat as the most common form of communication. Understanding the situation, businesses are gravitating toward virtual partnerships, and UCaaS adoption would increase as a result of remote access. The pandemic is reshaping global working cultures. On a more optimistic note, UCaaS is allowing businesses to fulfill their needs in this unexpected situation. While there is currently no one-stop solution to meet the needs of remote workers, individual apps rather than an all-inclusive suite will provide remote workers with the best virtual collaboration experience. Companies are implementing UCaaS (Unified Communication as a Service) solutions in response to the increasing number of workers working from home. As a result, market demand will be boosted by rising work from home practices during this pandemic.

Key Players

LogMeIn (US), Mitel (US), Cisco (US), Vonage (US), Fuze, Inc. (US), Microsoft (US), Google (US), Verizon (US), BT (UK), Orange S.A. (France), DialPad (US), StarBlue (Ireland), Windstream (US), Alcatel-Lucent Enterprise (US) are the main players in the Unified Communications as a Service (UCaaS) market.