The global unified communication as a service (UCaaS) market size is projected to reach USD 36.45 billion by 2026. The market is set to gain impetus from the increasing adoption of server message block (SMB) and bring your own device (BYOD) services in organizations. Fortune Business Insights™ published this information in a recent study, titled, “Unified Communication as a Service (UCaaS) Market Size, Share & Industry Analysis, By Component (Telephony, Unified Messaging, Collaboration Platforms, Conferencing, and 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, and Others) and Regional Forecast, 2019-2026.” The study further mentions that the market was worth USD 16.73 billion in 2018. However, it is set to exhibit a CAGR of 10.5% during the forecast period from 2019 to 2026.
Availability of Advanced Customer Services to Boost Market Growth
The small and medium-sized enterprises (SMEs) are the primary beneficiaries of UCaaS. They are implementing these services frequently to help SMEs in simplifying training and hiring process, minimizing travel time, and reducing capital costs. They can also maintain their leading positions in the market by using UCaaS. Moreover, a rise in customer interactions, persistent service support, and usability are some of the most crucial factors fueling the adoption of UCaaS amongst these enterprises. Apart from that, advanced consumer services and increasing investments in improving IT infrastructure are anticipated to drive the UCaaS market growth in the coming years.
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Key Segments of Unified Communication as a Service (UCaaS) Market
- By component: The unified communication as a service market is divided into reporting and analytics, telephony, conferencing, collaboration platforms, and unified messaging. The telephony segment is expected to generate the highest UCaaS market revenue during the forthcoming years. It is attributable to the rising adoption of UCaaS telephony for transforming the conventional method of enterprise communication. Also, these solutions would help companies in establishing real-time enterprise communication to connect with external and internal stakeholders. The collaboration platforms segment is anticipated to grow at a rapid rate. UCaaS in these platforms would help the companies in enhancing their communication channels. Besides, they offer a wide range of applications, namely, HD voice & video, easy and simple administration, and video conferencing and web. The unified messaging segment had generated a UCaaS market share of 24.0%, while the reporting and analytics segment had acquired a share of 6.3% in 2018.
- By organization site: The market is bifurcated into large enterprises and SMEs. The large enterprises segment is projected to grow steadily as more and more companies are adopting UCaaS platforms to help them in reducing mobile and voice calling and enterprise conferencing expenses. It also aids them in improving collaboration, efficiency, and productivity. Additionally, the solutions enable teams to make improvements and evaluate the project templates, presentations, spreadsheets, and documents so that everyone would be able to remain on the same page. The increasing utilization of SMEs, on the other hand, is expected to propel the growth of the market.
- By end user: The market is fragmented into public sector and utilities, banking, financial services, and insurance (BFSI), travel and transportation, consumer goods and retail, IT and telecommunications, healthcare, and others. The consumer goods and retail segment would grow considerably backed by the rising adoption of UCaaS technologies as they provide the retailers with a rich platform to interact and collaborate with consumers smartly. It also cuts off the costs and helps the company to grow smoothly. They also help retailers in upgrading the consumer experience, expanding capabilities for improved internal communications, and prioritizing higher-level business initiatives. The travel and transportation segment would also grow steadily on account of the ability of UCaaS to decrease the cost of communication and refine operations.
- By region: The market is grouped into Latin America, Europe, the Middle East and Africa, North America, and Asia Pacific. Out of these, North America had generated USD 6.68 billion UCaaS market revenue in 2018 and is anticipated to reach USD 13.34 billion by the end of 2026. The region is set to remain dominant in the coming years owing to the surging spending on IT infrastructure, ongoing technological developments, and stable economic growth. In addition to these factors, increasing implementation of BYOD and mobility services by industry giants are the UCaaS market trends that would augment growth in this region. Asia Pacific, on the other hand, is set to experience the fastest CAGR owing to the rising availability of smartphones and large consumer population.
Key Players Aim to Gain Competitive Edge Through Strategic Collaborations
The market consists of numerous small, medium, and big companies. They are either collaborating with other organizations or are launching innovative products to increase their consumer bases and gain more market share.
Fortune Business Insights™ lists out a few of the most reputed companies present in the unified communication as a service market. They are as follows:
- Avaya, Inc.
- Telefonaktiebolaget LM Ericsson
- Cisco Systems, Inc.
- Huawei Technologies Co. Ltd.
- Microsoft Corporation
- Google LLC
- Polycom, Inc.
- IBM Corporation
- Verizon Communications, Inc.
- ALE International
- Other key market players
Avaya Holdings Teams Up with RingCentral to Transform the Cloud
- October 2019: Avaya Holdings Corp., a leader in solutions to simplify and enhance collaboration and communications, based in California, declared that it is partnering up with RingCentral, Inc., a provider of enterprise cloud communications, headquartered in Belmont. This collaboration would help Avaya to unveil its Avaya Cloud Office by RingCentral, the latest UCaaS solution.
The unified communication as a service (UCaaS) market can be segmented in the following manner:
Value (USD billion)
- Unified Messaging
- Collaboration Platforms
- Reporting and Analytics
By Organization Size
- Banking, Financial Services, and Insurance(BFSI)
- IT and Telecommunications
- Consumer Goods and Retail
- Travel and Transportation
- Public Sector and Utilities
- 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)