Global Unified Communication as a Service Market Analysis and Insights
The global Unified Communication as a Service (UCaaS) market estimated at US$81.3 billion in the year 2022 is now projected to grow at a CAGR of 22.80% and reach US$278.9 billion by 2028.
Businesses are being forced to embrace a hybrid business strategy by the COVID-19 epidemic. To ensure effective collaboration, businesses notably consolidate various communication elements and facilitate cross-functioning. Employers are using UCaaS solutions due to the rise in remote employment.
The 5G high-speed data network deployment encourages the market’s expansion throughout the forecast period. Video and audio conferencing, meetings, and collaboration may all be considerably improved thanks to the fast, low-latency communication made possible by 5G networks. The adoption of UCaaS solutions, platforms, and services is particularly encouraged by the cloud-specific network function virtualization (NFV) and multi-access edge computing (MEC) capabilities offered by 5G technology for scalable and self-healing networks. Over the forecast period, the market is also anticipated to increase due to the application features and user interfaces that can be tailored to suit specific needs and potentially improve workplace cooperation.
Vendors nowadays can offer Web RTC solutions, enabling quicker video streaming and group chats on client devices due to the rise in real-time communication demand. Companies strive to find UCaaS solutions that enhance the experience of users seated at their desks and those working remotely. Advances in the communications industry in machine learning (ML) and artificial intelligence (AI) have driven the UCaaS market. New features like intelligent chatbots and predictive intelligence are made possible by machine learning and AI techniques. Because of AI, corporate workflow arrangements are always changing.
Unified Communication as a Service Market Regional Insights
The North American UCaaS market remains highly fragmented despite ongoing mergers and acquisitions. New product launches by a variety of technology developers, as well as increasing popularity of wholesale services and private-label UCaaS offerings are likely to perpetuate market fragmentation in the foreseeable future. United States contributed around 78% of the total North American UCaaS market. It is estimated to have a market value of US$21.3 billion in the year 2022. Among the other noteworthy geographic markets are Canada and Mexico, each forecast to grow at 20.56% and 18.14% respectively over the 2022-2028 period.
Asia-Pacific dairy alternatives market is anticipated to witness an upsurge owing to the rising popularity of internet-based communication services amongst the regional SMEs. Use of UCaaS and cloud technologies like voice and video conferencing and VoIP unified communications are amongst the regional UCaaS market trends. China is expected to dominate the Asia-Pacific market and reach a market size of US$47.69 billion by 2028.
Latin America will not experience quite the same growth as APAC, but is still set to expand significantly. Major acquisitions by European and American communications companies have led to widespread improvements in Latin America’s information infrastructure. This means that the market growth in Latin America will be driven primarily by widening potential consumer bases.
Within Europe, France, Germany, and the U.K. are the key countries responsible for the significant growth of the regional market. Germany is projected to grow at a CAGR of 20.88% over the forecast period.
Meanwhile, the Middle East & Africa is expected to show limited growth due to the strong presence of under-developed countries in Africa who are still struggling to meet technology standards. However, any growth that the region experiences is expected to come from developing Middle Eastern nations such as Qatar, U.A.E, and Oman due to a similar growth pattern as the Asia Pacific.
Key players
Key players profiled in the report include 8×8 Inc.; AT&T, Inc.; Avaya Inc.; BT Group plc; Centile Telecom Applications; Cisco Systems Inc.; DXC Technology Co., ; Fuze; IBM Corp.; Informatica Inc., Microsoft Corp.; Mitel Networks Corporation; NTT Communications; Orange Business Services; RingCentral Inc.; Verizon Enterprise Solutions; Vonage; West Corporation and Zoom Video Communications, Inc. among others.
Competitive Landscape
Microsoft and Zoom continue to grow their share of the UCaaS market. As the UCaaS subscriber base grew 20% in 2022, both Microsoft and Zoom grew by 40%. They both now have market shares of around 10%, compared to 2019 when Microsoft was only a minor player and Zoom first launched a service.
March 21, 2023 – Telecommunications service provider, Route Mobile, has been selected by Bangladesh’s second-largest mobile network operator, Robi Axiata, for the deployment of its unified communications as a service (UCaaS) solution.
March 21, 2023 – Fusion Connect, a global Managed Communication Service Provider (MCSP), has announced the availability of new Microsoft Teams Calling Service features. These enhanced capabilities are intended to turn Microsoft Teams into a full business phone system, improving collaboration and productivity for mid-market and corporate businesses in the United States and throughout the world.
Unified Communication as a Service (UCaaS) Market Scope
- By Component
- Solution
- IP telephony
- Instant messaging (IM)
- Unified messaging (UM)
- Conferencing
- Collaboration tools
- Others
- Services
- Professional services
- Managed services
- Solution
- By Deployment Model
- On-premises
- Cloud based
- Hybrid
- By Service Model
- UC Software as a Service (SaaS)
- UC Platform as a Service (PaaS)
- UC Infrastructure as a Service (IaaS)
- By Industry Vertical
- IT & Telecommunication
- Banking, financial services and insurance (BFSI)
- Healthcare
- Retail and FMCG
- Manufacturing
- Government & public
- Education
- Others
- By End User
- Small Enterprises
- Medium Enterprises
- Large enterprises
- By Region
- North America
- South America
- Europe
- Asia Pacific
- Middle East and Africa
| Report Attribute | Details |
| No. of Pages | 285 |
| Published | March-2023 |
| Forecast Period | 2022-2028 |
| Estimated Market Size in 2022 | US$81.3 billion |
| Forecasted Market Size by 2028 | US$278.9 billion |
| CAGR | 22.80% |
| Regions Covered | North America, South America, Europe, Asia Pacific, Middle East and Africa |
| Companies Mentioned | 8×8 Inc.; AT&T, Inc.; Avaya Inc.; BT Group plc; Centile Telecom Applications; Cisco Systems Inc.; DXC Technology Co., ; Fuze; IBM Corp.; Informatica Inc., Microsoft Corp.; Mitel Networks Corporation; NTT Communications; Orange Business Services; RingCentral Inc.; Verizon Enterprise Solutions; Vonage; West Corporation and Zoom Video Communications, Inc. among others. |
The research report provides a comprehensive review of market trends (Technology, Product and Application analysis), market growth drivers, PEST Analysis (Political, Economic, Social and Technological Analysis) Market growth inhibitors, and strategic industry activities and SWOT Analysis of key players in the market. The report provides market estimates and forecast for geographic markets such as the North America (United States, Canada, Mexico and Rest of North America), South America (Brazil, Argentina Chile Colombia Peru Venezuela Ecuador and Rest of South America), Europe (Germany, France, U.K., Russia, Italy, Spain, Sweden, Netherlands, Poland, Austria, Belgium, Finland, Norway, Switzerland, Denmark, Czech Republic, Portugal and Rest of Europe), Asia-Pacific (China, Japan, South Korea, Taiwan, India, Australia, Indonesia, Philippines, Malaysia and Rest of Asia-Pacific), Middle East (Iran, Turkey, Kuwait, UAE, Israel, Oman, Bahrain, Saudi Arabia, Qatar, Egypt and Rest of Middle East) & Africa.
Research Methodology
