Unified Communication as a Service (UCaaS) Market

2020 Analysis and Review of Unified Communication as a Service (UCaaS) Market by Solution - UCaaS Platforms/Suites and Standalone Solutions for 2020-2030

UNIFIED COMMUNICATION AS A SERVICE (UCAAS) MARKET: KEY INSIGHTS

  • The global unified communication as a service (UCaaS) market will cross US$ 60 Bn in 2030.
  • Rising adoption of remote and cloud-based solutions are key factors outlining unified communication as a service market growth.
  • Small and medium enterprises (SMEs) will remain immediate customers of UCaaS solutions; adoption in large enterprises to surge.
  • UCaaS platforms/suites continue to procure leading market share; standalone solutions to lose traction.
  • Banking, financial services and insurance (BFSI) and IT & telecom sectors continue to engage UCaaS market players.
  • North America stays in the vanguard; UCaaS market in South Asia & Pacific to exhibit tremendous CAGR.

KEY FACTORS SHAPING UNIFIED COMMUNICATION AS A SERVICE (UCAAS) MARKET

Rise in Demand for Remote Solutions Shaping UCaaS Market Growth

UCaaS has been at the center stage, as the adoption of cloud solutions and services is increasing with each passing year. The demand for UCaaS is rising, as businesses around the globe are looking to have more unified communication capabilities to ensure their ability to get work done, and to acknowledge the cost and productivity benefits of cloud communication.

Over the past few years, continuous development of digitizing workspaces has increased the demand for remote solutions in enterprises, which is further creating potential growth opportunities for the growth of the unified communication as a service market. Moreover, rising demand for mobile devices, apps, and a variety of collaboration tools, is enabling employees to connect across geographies, platforms, and devices, and this is further transforming IT consumption trends and increasing the adoption of cloud computing and UCaaS solutions.

Covid-19 Pandemic Effect on UCaaS Market

The coronavirus (COVID-19) pandemic is compelling business leaders around the world to promptly instruct their employees to work remotely until the virus is totally contained. This would be critical in meeting the requisites between the management and workforce. FMI suggests that, the COVID-19 pandemic is likely to trigger the adoption of cloud-based solutions as a technological shift and as an operating model, as companies across the world are getting exposed to the drawbacks of existing workflow models, and are struggling with the effect of the pandemic on their profit pools.

Growing Demand for Cloud Communication Solutions and Growing Mobile Workers

Continuous innovation in cloud communication is resulting in greater choice, flexibility, and cost-saving solutions for conferencing in enterprises. By adopting cloud communication solutions, enterprises are benefited from standardized capabilities and total interoperability across different locations of an enterprise.

Nowadays, enterprises across the globe are adopting cloud communication solutions for video and web conferencing to reduce the complexity of implementation and maintenance processes. Moreover, today’s enterprises are functioning out of multiple locations, which is further increasing the number of mobile workers, and therefore, the need for adopting advanced connectivity and unified communication solutions is driving the growth of the unified communication as a service market.

Regional Analysis - North America UCaaS Market Remains Prominent

In terms of value, the UCaaS market in North America led the global unified communication as a service market in 2019. The UCaaS market in the U.S. is projected to offer the most lucrative opportunities for revenue generation over the forecast period. The presence of various key players in the U.S. and growing trend of WFH (work from home) and BYOD (bring-your-own-device) are some of the key reasons behind the high adoption of UCaaS solutions in the country.

The market in South Asia & Pacific is expected to record the highest growth rate over the forecast period, owing to the increasing investments in digitalizing IT infrastructure, rising popularity of cloud-based communication solutions, growing number of mobile workers, and continuous increase in the penetration of smart devices.

UCAAS MARKET: STRUCTURE ANALYSIS

  • Rising use cases of UCaaS and growing demand for integration with CRM (customer relationship management) and other line-of-business applications by customers is resulting in a differentiation and expansion strategy by UCaaS vendors to provide a competitive edge and strengthen their market presence, specifically to the desired vertical.
  • Business partnerships and collaborations is one of the key strategies followed by leading UCaaS providers in the market, to enhance their sales footprint and regional expansion.
  • Zoom Video Communications, Inc., Microsoft Corporation, 8x8, Inc., Fuze, RingCentral, Cisco, and Google are the largest and most experienced players in the global unified communication as a service market.
  • Base Year - 2019
  • Historical Period - 2015-2019
  • Forecast Period - 2020-2030
  • Market Value in 2019 - US$ 12.6 Bn
  • Segments Covered - Solution, Enterprise Type, Vertical, and Region
  • Regions Covered - North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East & Africa
  • Key Companies - Zoom Video Communications, Inc., Microsoft Corporation, 8x8, Inc., Fuze, RingCentral, Cisco, and Google.
  • Growth Drivers -
    • High demand for enterprise mobility and mobile workforce
    • Rising penetration of mobile gadgets
    • Paradigm shift towards cloud-based solutions

BFSI and IT & Telecom Sectors Remain Primary End Users

The banking, financial services and insurance (BFSI) sector relies on UCaaS solutions in order to improve customer interaction and support. Several banks are turning to private cloud-based models to protect classified information. Further, UCaaS enables financial organizations to practice scalability critical for at-scale execution, such as phone assistance, mobile transactions, and chatbot-driven messaging.

Moving ahead, cost-containment models and increasing capital constraints will be a priority in IT & telecom industry. The industry is focusing on reducing IT expenditures, particularly small and medium businesses (SMBs), by deploying cloud-based UCaaS solutions. Moreover, UCaaS solutions are garnering rapid traction in the IT & telecom sector, worldwide, owing to intensifying trends of bring-your-own-device (BYOD) and enterprise mobility.

Regional Outlook of UCaaS Market

The unified communication as a service market in North America is mature, and has observed large-scale deployment of cloud and on-premise solutions by UCaaS providers. As these solutions are inching towards the end of their service life, organizations are striving to improve their communication framework by moving towards solutions apropos UCaaS. These upgradation requirements in various SMBs are adding to the revenue pool of the UCaaS market in North America.

Furthermore, the growing trend of work from home (WFH) and BYOD are enabling greater adoption of UCaaS solutions in the region. Governments in South Asia & Pacific are notably spending on the digitalization of IT infrastructure. The unified communication as a service market in the region is receiving impetus from an increasing shift towards cloud-based communication technologies and fast-paced penetration of smart consumer electronics.

Cloud-based Communication Solutions to Mold Future Outlook

Cloud-based communication provides enterprises with better flexibility and cost-saving solutions for conferencing. In addition, its offers total interoperability and standardized capabilities across various areas of businesses. Several companies are incorporating cloud-based communication solutions in a bid to curb the complexity of the implementation and maintenance procedures.

This cloud-centric transformation holds great promise in overcoming the headwinds confronted by enterprises, large or small. Furthermore, enterprises are renewing their focus on processes, people, and policies, to unleash full potential of cloud-based communication solutions.

How Growth will Unfold

  • Small- and medium-sized enterprises (SMEs) are the immediate beneficiaries of UCaaS solutions. They require these UCaaS in an effort to streamline hiring and training process, minimize travel time, and reduce capital expenses. In addition, uptick in customer engagements, and seamless service & support, are amongst the vital factors propelling the adoption of UCaaS amongst SMEs.
  • This study underlines that large enterprises are swiftly embracing UCaaS platforms to help them curb enterprise conferencing, and mobile and voice calling expenses, thus, enhancing efficiency, collaboration, and productivity.

UNIFIED COMMUNICATION AS A SERVICE (UCAAS) MARKET TAXONOMY

The global unified communication as a service market is segmented in detail to cover every aspect of the market, and present a complete market intelligence approach to the readers.

Solution

  • UCaaS Platforms/Suites
  • Standalone Solutions
    • Cloud-based Web, Audio, & Video Conferencing
    • Hosted IP Telephony/VoIP
    • Collaboration Platforms & Enterprise Types  
    • Unified Messaging

Enterprise Type

  • Small & Medium Enterprises
  • Large Enterprises

Vertical

  • BFSI
  • IT & Telecom
  • Healthcare
  • Retail & CPG
  • Travel & Hospitality
  • Transportation & Logistics
  • Military & Defence
  • Others

Region

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia Pacific
  • Middle East & Africa

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