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The global Unified Communication and Collaboration (UC&C) market size was valued at USD 47.27 billion in 2021. The market is projected to grow from USD 53.54 billion in 2022 to USD 131.58 billion by 2029, exhibiting a CAGR of 13.6% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with unified communication and collaboration experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a moderate growth of 12.8% in 2020 as compared to 2019.
In the scope, we have considered ERP software provided by key players such as Microsoft Corporation, IBM Corporation, and Zoom Video Communication, Inc., among others.
Unified communication and collaboration studies the structured and unstructured database to visualize and offer insights based on hidden patterns, correlation, the market’s changing trends, and others. For instance, in November 2020, IBM Corporation introduced the IBM cloud for telecommunication with more than 35 partners. IBM Cloud for telecommunications is a hybrid cloud infrastructure that is designed to help accelerate business transformation and highly regulated industry. Nokia, Samsung, and Cisco are the partners joining IBM’s ecosystem.
Increasing Implementation of Digital Transformation Tactical amid COVID-19 has Reinforced Unified Communication and Collaboration (UC&C) Market Growth
The COVID-19 pandemic has negatively impacted the global economy as governments worldwide have imposed lockdowns and restrictions. However, the COVID-19 pandemic has pushed businesses worldwide to implement digital technologies based on IT software to streamline their business operations. Numerous small and medium-scale organizations have adopted digital strategies to automate their business operations.
Further, in May 2020, the Chinese government announced the digital transformation plan with funding of USD 1.4 trillion to promote digitalization. The digitalization plan stimulates the adoption of advanced technologies, such as IoT, 5G, AI, cloud computing, and various AI-driven IT software to automate local businesses in China. Such an increase in government funding for digitalization and a surge in the adoption of digital platforms among SMEs and large-scale organizations around the globe have propelled the Unified Communication & Collaboration market growth.
Unified communications and collaboration tools serve as a lifeline for SMEs transitioning to a remote-first workforce. A survey conducted by Ribbon Communication found that companies with less than 100 employees are increasingly prioritizing IT due to the pandemic, and the employment of full-time, on-site IT personnel has increased by 67%. As a result, unified communications and collaboration adoption increased by 41% during the pandemic.
Such a rise in government initiatives for digitalization and implementation of digital technology platforms amid the COVID-19 pandemic has marginally augmented the demand for unified communications and collaboration.
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Remote Working to be the Most Prominent Trend Prevailing in Global Market
Post outbreak of the COVID-19 pandemic, UC&C solution has gained a worldwide demand and is expected to remain strong in the near future due to accelerated work-from-home or remote working trend. This trend has contributed to massive growth in the unified communications and collaboration vendor’s software sales and the number of users amid the COVID-19 crisis. For instance,
According to a 2021 survey by Harvard Business School, 81% of workers no longer want to return to the office in a full-time capacity,
This rapid shift to remote work has driven the need for a digital workplace toolbox such as collaboration, communication tools, and everyday operations. Moreover, these technologies are to be implemented as part of a digital workplace strategy associated with business goals.
For an increasing number of organizations, a platform that provides cloud convergence of employee technologies and customer experience provides the foundation to help collaborative workflows and enable employees to access their communication tools from any location.
All the above statistics contribute to the fact that remote working is expected to be the most prominent trend in the global market.
Increasing Sales of Unified Communications & Collaboration Tools amid COVID-19 to Drive Market Growth
As remote working has been observed to have significant adoption across the globe, it has led to a momentous surge in the number of unified communications and collaboration tools users. Market players, such as Zoom, Microsoft, and Vonage, have reported an upward sales increase of unified communications and collaboration tools. For instance,
Security Concerns and Limited Interoperability with Current Infrastructure may Impede Market Growth
Establishments have dynamically begun to integrate unified communication and collaboration software. However, security concerns, such as denial of service, hacking tools, and unauthorized access, can leave users data and information at risk. It is also difficult to determine the kind and the level of protection of users’ data. Companies still face security concerns and limited interoperability with current infrastructure, restraining the UC&C market growth. For instance, according to Checkpoint survey, around 50% of organizations faced security concerns in 2021.
Increased Video Conferencing during COVID-19 Pandemic will Drive Market Growth
The market is segmented by type into telephony, conferencing, unified messaging, and others (contact center, live streaming).
Among these, the telephony segment held the major market share in 2021. Conferencing is predicted to be the fastest growing segment with the highest CAGR of 16.7% in (2022-2029). Conferencing solution, such as video conferencing, has gained traction from the pandemic due to remote working policies and consumed around 80% of all internet traffic at the end of 2021. Approximately 60,052 companies are using Zoom conferencing software for communication.
Large Enterprises are Deploying ERP Solutions for Resource Planning and Business Extension
Based on organization size, the market is segmented into SME and large enterprise.
Among these, the large enterprise segment held the major market share in 2021, and the SME segment is predicted to be the fastest growing segment in the coming years. Many SMEs are using unified communication and collaboration tools to transition to a remote-first workforce. The number of SMEs employing a full-time, on-site IT person increased from 18% to 29% between April 2019 and November 2020, and IP communication platform adoption increased by 41%. According to a survey, around 24% of SMEs are adopting UC&C tools, and the providers can target the remaining 76% of SMEs.
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Usage of ERP Solutions to Automate Business Operations and Reinforce Financial Transactions to Fuel Market Forward
Based on industry, the market is segmented into IT & telecom, BFSI, healthcare, retail, manufacturing, education, government, and others (utilities, travel & hospitality)
Among these, the healthcare segment is expected to be the fastest growing segment with the highest CAGR in the forecast period (2022-2029). Amid the COVID-19 pandemic, several healthcare clinics and companies adopted automation strategies to help staff stay on the same page as UC&C integrates all communication technologies into the same environment. Unified communications and collaboration tools allow professionals to collaborate more effectively and even collaborate with medical professionals around the world to diagnose problems.
North America Unified Communication and Collaboration (UC&C) Market Size, 2021 (USD Billion)
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Geographically, the market is segmented across five major regions, Europe, North America, Asia Pacific, South America, and the Middle East & Africa.
North America dominated with the highest global unified communications and collaboration market share in 2021, owing to the presence of key players in the region. Key players from North American countries are engaged in partnerships, mergers, and acquisitions with SMEs to strengthen their business and increase the customer base.
Asia Pacific is expected to grow with a notable CAGR during the forecast period. This region's growth is primarily owing to increasing digitization efforts across Asia Pacific, thereby surging demand for UC&C tools. Companies are considering, automating, and optimizing their resources to gain a competitive advantage. The increasing adoption of disruptive technologies, such as artificial intelligence, augmented reality, and the Internet of Things (IoT), is driving cloud adoption across the region. Therefore, cloud-based UC&C will augment the region's Unified Communication and Collaboration market growth.
Additionally, several leading European players are expanding and developing cloud-based and AI-powered UC&C and increasing their investment to remain competitive. For instance, in February 2022, Vodafone Business and RingCentral Inc. partnered to launch “Vodafone Business UC with RingCentral”. Vodafone’s Business unified communication with RingCentral is provided across the U.K., Germany, Hong Kong, Italy, Singapore, Spain, Portugal, and Sweden.
The market growth in the Middle East & Africa and South America is mainly driven by technology adoption and digital transformation. For example, Saudi Arabia’s 2030 Strategy and National Transformation Program (NTP) 2020 prioritizes digital transformation, strengthens the private sector and jobs, and promotes partnerships. This rapidly developing economy is expected to bring unprecedented market opportunities in the near future.
Tactical Purchasing to Explode Market Extension of Chief Players
Leading companies offer UC&C software across all businesses. Key market players are creating new solutions, updating tools and technologies, and expanding their scope to enhance their technological capabilities.
By working together, companies gain expertise and expand their business by reaching a large customer base. Key players are focused on increasing their market share and customer reach through strategic acquisitions. For instance,
In October 2021: Cisco Systems, Inc. partnered with Lumen Technologies to offer Cisco unified communication manager cloud with Lumen solutions. This product integrates Cisco’s most advanced, cloud-based collaboration services with the reliability and speed of Lumen’s fiber network.
An Infographic Representation of Unified Communications and Collaboration (UC&C) Market
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The research report includes prominent areas across the globe to get a better knowledge of the industry. Furthermore, it provides insights into the most recent industry and market trends as well as an analysis of technologies adopted quickly on a global scale. It also emphasizes some of the growth-stimulating restrictions and elements, allowing the reader to obtain a thorough understanding of the industry.
Value (USD billion)
By Type, Organization Size, Industry, and Region
By Organization Size
The market is projected to reach USD 131.58 billion by 2029.
In 2021, the market stood at USD 47.27 billion.
The market is projected to grow at a CAGR of 13.6% in the forecast period (2022-2029).
Telephony type will lead the market.
IBM Corporation, Cisco Systems, Inc., Zoom Video Communication, Inc., and RingCentral, Inc. are the markets top players.
North America is expected to hold the highest market share.
Asia Pacific is expected to grow with the highest CAGR during the forecast period.
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