The global unified communication as a service (UCaaS) market size stood at USD 16.73 billion in 2018 and is projected to reach USD 36.45 billion by 2026, exhibiting a CAGR of 10.5% during the forecast period.

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Unified communication as a service (UCaaS) is a cloud delivery model that offers a wide range of communication and collaboration applications. UCaaS platforms help businesses to optimize business processing and increase productivity by smoothening communications between teams. They also include messaging tools, web and video conferencing tools, data sharing, desktop sharing, and other communication services.

Unified communication as a service industry is helping businesses by providing numerous benefits such as reduced costs, advanced functionality, more flexibility, superior reliability, streamlined processes, enhanced collaboration, communications continuity, and enhanced security. These benefits will positively help organizations throughout their operations, as well as spur innovation.

Many UCaaS vendors are offering contact center capabilities, including auto-attendant, interactive voice response, call routing, and customer relationship management integrations which will further boost global unified communication as a services market in the forecast period. In addition to this, increasing penetration of communications platform as a service (CPaaS) capabilities and application programming interfaces (APIs) will further contribute to the global UCaaS market growth.

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The surge in the adoption of bring your own device (BYOD) and server message block (SMB) across the organizations is driving the market. Besides this, the increasing adoption of cloud-based technologies is set to augment the UCaaS market growth. For example, a rise in the rate of cloud deployment has opened a wide range of applications for healthcare providers to adopt unified communication as a service technologies. Moreover, increasing penetration of mobile phones and significant investments by telecom players for improving communication network infrastructure are expected to boost the UCaaS market growth during the forecast period. Besides, rising digitization and emerging trend of workplace transformation are expected to contribute to the UCaaS market growth.

MARKET DRIVERS

“Increasing Implementation of UCaaS in SMEs to Augment Market Growth”

Small and medium-sized enterprises (SMEs) are the primary beneficiaries of cloud-based unified communications as a service. Increasing implementation of UCaaS is helping the SMEs to reduce capital costs, minimize travel time, and simplify hiring and training processes.

SMEs are thus, shifting towards UCaaS as it helps them to maintain their dominant position in the market. Additionally, an increase in usability, continuous service support, and customer interactions are some of the major factors driving the adoption of UCaaS among these enterprises. Furthermore, owing to substantial investments in improving IT infrastructure and advanced customer services, SMEs are expected to inflate unified communication as a service market growth.

“Adoption of Mobility and BYOD Services to Boost Market Growth”

Organizations these days are implementing bring your own devices (BYOD) services for their employees which would further help them in cost-cutting, increasing productivity, improving collaboration, and developing stronger lines of communication between the employees. BYOD provides employees with the ability to access the corporate network via their own devices and connect to personal devices, including laptops, notebooks, PCs, and smartphones into the network of the organization.

Many businesses are leveraging the benefits of mobility solutions to keep workers connected with the customers, partners, and colleagues. It aids in maintaining business continuity and in enhancing customer satisfaction with faster response and service. In addition to this, the rising proliferation of smart-phones, tablets, and continuously developing 5G infrastructure will boost the UCaaS market growth during the forecast period.

SEGMENTATION

By Component Analysis

“Telephony Segment to Grow Considerably Fueled by Need to Establish Real-time Communication”

Based on component, the market is classified into telephony, unified messaging, collaboration platforms, conferencing, reporting and analytics, and others.

The telephony segment is estimated to generate the highest UCaaS market revenue during the forecast period. The rapid adoption of UCaaS telephony is likely to transform the traditional ways of enterprise communication. Owing to extensive adoption of UCaaS telephony solutions, enterprises can establish real-time enterprise communication to connect with the internal as well as external stakeholders.

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The collaboration platforms segment is estimated to be the fastest-growing segment in the market during the forecast period. UCaaS solutions provide a wide range of collaboration platforms that will help organizations to enhance communications. These platforms would also offer a wide range of applications such as video conferencing and web, easy and simple administration, and HD voice & video with colleagues and partners.

By Organization Size Analysis

“Large Enterprise Segment to Account for the Highest Share Due to Increasing Demand for UCaaS”

Based on organization size, the market is bifurcated into SMEs and large enterprises.

Large enterprises are implementing unified communication as a service platform as these are helping them in reducing enterprise conferencing, mobile and voice calling expenses while improving productivity, efficiency, and collaboration. In addition to this, these solutions allow teams to review and make improvements in documents, spreadsheets, presentations, and project templates so that everyone is kept on the same page and are up-to-date.

The adoption of UCaaS solutions in SMEs is likely to propel the market growth. Implementation of these solutions help SMEs to enhance scalability, increase mobility, expand the talent pool, and future-proof communication tech.

By End User Analysis

“Consumer Goods and Retail Segment to Exhibit Steady Growth Stoked by Rising Demand for Better Consumer Experience”

By end-user, the UCaaS market is segmented into banking, financial services, and insurance (BFSI), IT and telecommunications, consumer goods and retail, healthcare, travel and transportation, public sector and utilities, and others.

UCaaS technologies enable retailers to provide a rich platform for collaboration and smarter ways of interaction, by reducing cost and allowing the company to grow flexibly. UCaaS helps retailers in improving the customer experience, prioritizing higher-level business initiatives, quickly realizing bottom-line cost savings, fueling business growth, and expanding capabilities for improved internal communications. These UCaaS market trends are anticipated to boost growth of this segment.

The travel and transportation sector is set to exhibit the fastest growth in terms of UCaaS usage in the forecast period. It is likely to occur because of its ability to improve operations and reduce the cost of communications.

UCaaS enables transport and logistics companies to enhance their customer experience. By ensuring closer control and coordination across the entire logistics supply chain, it is possible to keep consumers updated.

REGIONAL ANALYSIS

The unified communication as a service market has been analyzed across five major regions, namely, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.

North America Unified Communication as a Service (UCaaS) Market Size, 2018 (USD Billion)

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North America emerged as a dominant region in the UCaaS market. In 2018, the region generated USD 6.68 billion UCaaS market revenue and is expected to reach up to USD 13.34 billion by 2026. The market in this region would be powered by stable economic growth, technological developments, and increasing spending on IT infrastructure. Small and medium-sized businesses in this region are embracing UCaaS solutions. In addition to this, rising integration of mobility and bring your own device (BYOD) services have accelerated the market growth. Besides, the introduction of new technologies, such as 5G is expected to drive the market in the region.

Asia Pacific unified communication as a service market is projected to exhibit the fastest CAGR during the forecast period. Developing economies such as India, China, and Japan would contribute to the maximum UCaaS market share. Large consumer population and increasing availability of smartphones will lead to market growth in this region. However, rising concerns about data privacy and security issues may hinder growth.

INDUSTRY KEY PLAYERS

“Key Players to Strengthen their Position Through Persistent Investments And Developments”

AT&T UCaaS solutions provide easy-to-use, high-quality voice, and collaboration features. This technology includes voice and basic call processing, as well as support for traditional analog phones. AT&T’s collaborative tool provides features such as chat, conferencing, web meetings, file sharing, and employee availability, toll-free numbers, call recording, and eFax that can support unlimited users and up to 200 HD video participants.

Polycom’s UCaaS tool is a revolutionary solution that provides an excellent experience with faster time to revenue (ROI), enable broader services portfolio, reduce risk, offer carrier-class features, and future-proof scalability. This solution will provide organizations with rich content networking tools and business-grade voice and video to allow companies to bring about new ideas to life while easily integrating it with everyday workflows. It offers the power of online collaboration.

LIST OF KEY COMPANIES COVERED:



Cisco Systems, Inc.



Microsoft Corporation



IBM Corporation



Google LLC



Huawei Technologies Co. Ltd.



AT&T



Avaya Inc.



Verizon Communications Inc.



ALE International



Polycom Inc.



Genesys



Telefonaktiebolaget LM Ericsson



NICE



REPORT COVERAGE

The report offers an elaborative analysis of the UCaaS market dynamics and competitive landscape. Various key insights provided in the report are macro and microeconomic factors, SWOT analysis, Porter’s five forces analysis, and key unified communication as a service (UCaaS) industry trends, competitive landscape, and company profiles inclusive of recent industry developments such as mergers & acquisitions.

An Infographic Representation of Unified Communication as a Service (UCaaS) Market View Full Infographic View Full Infographic

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Report Scope & Segmentation









ATTRIBUTE





DETAILS









Study Period





2015-2026









Base Year





2018









Forecast Period





2019-2026









Historical Period





2015-2017









Unit





Value (USD Billion)









Segmentation





By Component



Telephony



Unified Messaging



Collaboration Platforms



Conferencing



Reporting and Analytics











By Organization Size



SMEs



Large Enterprises











By End-User



Banking, Financial Services, and Insurance(BFSI)



IT and Telecommunications



Consumer Goods and Retail



Healthcare



Travel and Transportation



Public Sector and Utilities



Others











By Region



North America (U.S. and Canada)



Europe (U.K., Germany, France, Italy, Spain, and Rest of Europe)



Asia Pacific (China, Japan, India, Southeast Asia, and Rest of Asia Pacific)



Middle East & Africa (South Africa, GCC and Rest of the Middle East & Africa)



Latin America (Brazil, Mexico, Argentina, and Rest of Latin America)











INDUSTRY DEVELOPMENT: