Unified Communication as a Service (UCaaS) Market to Reach US$ 60 Bn by 2030; Work-from-home Trend Due to COVID-19 Pandemic to Offer Growth Potential
May 05,2020 | Electronics, Semiconductors, and ICT
Continuous innovation in cloud communication is resulting in greater flexibility and cost-saving solutions for conferencing in enterprises. Over the past few years, subsequent development of cloud communication platforms and investments in digitizing workspaces have increased the demand for remote solutions in enterprises. These factors are critical in shaping the growth path of the unified communication as a service market. Moreover, changing IT adoption trends and increasing deployment of cloud computing solutions are creating potential growth opportunities for the UCaaS market. Today’s enterprises are functioning at multiple locations, thereby, increasing the number of mobile workers. As such, organizations are embracing UCaaS solutions that help their employees maintain communication efficiently.
On the back of these factors, the global UCaaS market is anticipated to exhibit a noteworthy CAGR of 15% during the forecast period of 2020-2030.
COVID-19 Pandemic to Accelerate Cloud Adoption
The coronavirus (COVID-19) pandemic is marking a rare occasion where business leaders, globally, have to quickly enable their workforces to work remotely for an extensive period of time. Consequently, businesses are incorporating remote work, where communication and remote work policies hold the key to meet the expectations between the management and workforce. According to Future Market Insights, the COVID-19 pandemic is likely to accelerate cloud adoption, not only as a technological shift, but also as an operating model, as enterprises across the globe are recognizing the limitations of their current environments and struggling with the impact of the pandemic on their businesses.
In response to the pandemic, UCaaS solution providers are taking special measures to meet customer demand for cloud usage, due to sudden shift to a remote-first workforce. According to FMI, almost 70% CIOs agree 'cloud services' would become a priority in 2020, and they expect to reduce on-premise workloads to 35% in 2021, compared to almost 60% in 2019. Moreover, the unified communication as a service market is expected to grow by 1.3X during 2019-2020, and will witness an upsurge in demand amidst the COVID-19 pandemic, as remote working becomes the new norm.
For More Detailed Insights on Unified Communication as a Service (UCaaS) Market
Key Takeaways of UCaaS Market Study
- North America is expected to hold a significant share in the global UCaaS market.
- Adoption of UCaaS in small and medium enterprises (SMEs) will remain prominent, as SMEs are largely banking on UCaaS and cloud-based solutions for better return on investments (ROI) and to increase flexibility in business.
- By solution, UCaaS platforms/suites are anticipated to capture a leading market share in global unified communication as a service market.
- Deployment of UCaaS in IT & telecom and banking, financial services and insurance (BFSI) sectors is estimated to grow at an impressive CAGR. Moreover, the BFSI vertical continues to hold greater revenue share in the global UCaaS market.
“Increasing adoption of cloud-based communication and collaboration tools such as web conferencing, cloud storage, unified messaging, and others, due to global lockdowns, is creating potential opportunities for the UCaaS market. Rising trend of work-from-home amidst the COVID-19 pandemic will drive the market for SaaS-based applications in the coming years. Also, the integration of new technologies such as artificial intelligence (AI), Internet of Things (IoT), and cognitive security will propel the UCaaS market over the decade ahead. However, cloud security has emerged to be a major concern, as cyber criminals are targeting remote workforces with spear phishing emails, account hijacking, and other attacks.”
Competition Landscape - Innovation is the Key
Intense competition and growing customer expectations are transforming the dynamics of the unified communication as a service market, compelling solution providers to innovate and improve customer engagement. Accelerated shift among customers towards cloud communication is accenting for the demand for enhanced user productivity and flexibility, and is offering opportunities for advanced communication and collaboration tools.
More Valuable Insights on UCaaS Market
Future Market Insights offers an unbiased analysis of the global UCaaS market, providing historical data of 2015-2019 and forecast statistics for 2020-2030. To understand the opportunities in the unified communication as a service market, the market is segmented on the basis of solution, enterprise size, and vertical, across six major regions.
For additional information, write to the analyst at [email protected]
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