Communication Software Market Size
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 11.44 Billion |
| Market Size (2030) | USD 23.45 Billion |
| CAGR (2025 - 2030) | 15.44% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Communication Software Market Analysis
The Communication Software Market size is estimated at USD 11.44 billion in 2025, and is expected to reach USD 23.45 billion by 2030, at a CAGR of 15.44% during the forecast period (2025-2030).
Communication software establishes a network that simplifies device identification and management. This streamlining enables more effective information exchange among departments and employees.
- By leveraging communication software, businesses maximize the potential of their technology and workforce. With smoother communication and fewer technical hurdles, employees can concentrate on their tasks, boosting overall productivity.
- As organizations pursue digital transformation to boost efficiency and engage customers, communication software emerges as a driving factor. It facilitates both internal and external communication, supporting innovation and adaptability. Governmental investments in digital initiatives further fuel this trend. For instance, the European Union has earmarked nearly EUR 150 billion (USD 158.89 billion) for digital technologies from 2021 to 2027.
- With the rise of smartphones and mobile devices, there's a growing appetite for mobile communication solutions. Users increasingly demand software that supports effective on-the-go communication and collaboration. According to GSMA, global smartphone penetration reached an estimated 69 percent in 2023, marking an increase from 2022, based on 6.7 billion subscriptions in a global population of approximately 7.4 billion.
- Integrating artificial intelligence (AI) and automation into communication software revolutionizes user experiences. Features like chatbots, intelligent routing, and automated meeting scheduling enhance efficiency and reducing users' load.
- The COVID-19 pandemic has transformed work dynamics, prominently steering them towards remote and hybrid models. This shift has amplified the demand for communication tools essential for seamless collaboration among dispersed teams. Consequently, post-pandemic investments in video conferencing, instant messaging, and project management software have witnessed a significant growth. According to the Office for National Statistics (UK), in October 2024, around 13 percent of the British workforce worked remotely, while an additional 28 percent balanced remote work with on-site commitments.
- Despite the advantages, the communication software market grapples with security apprehensions. Cyber threats, including data breaches and phishing attacks, pose significant risks, especially when targeting communication platforms. Such vulnerabilities can expose to risk sensitive information, making organizations wary of adoption. Given the increasing reliance on digital communication in today's workplaces, safeguarding sensitive data and conversations from unauthorized access is paramount.
Communication Software Market Trends
IT and Telecom End User Segment is Expected to Hold Significant Market Share
- The IT and Telecom sectors are pivotal in propelling the growth of the communication software market. These sectors, encompassing IT firms and Telecom providers, increasingly demand advanced communication solutions. This surge in demand is primarily attributed to digital transformation, the rise of remote work, and the search for more efficient communication systems.
- The IT and Telecom landscape is being significantly reshaped by the shift towards Unified Communications (UC). UC solutions integrate various communication services such as voice, video conferencing, instant messaging, and email into a unified platform. This integration boosts collaboration and streamlines operations, enabling employees to communicate seamlessly, regardless of their location or device.
- 5G networks are driving the uptake of communication software in the IT and Telecom sectors. With its enhanced speeds, lower latency, and increased capacity, 5G enables businesses to utilize sophisticated communication tools. These encompass high-definition video conferencing, real-time collaboration platforms, and cloud applications demanding significant bandwidth. According to Ericsson, by the end of 2024, 55 percent of the global population will have access to 5G, with projections rising to 84 percent by 2029.
- With 5G enhancing the reliability and performance of communication software, there's a noticeable uptick in the adoption of video conferencing platforms, VoIP services, and real-time collaboration tools. Telecom providers are keen on integrating communication software that harnesses 5G's full potential, ensuring organizations can fully leverage its high-speed benefits.
- Cloud computing has transformed the communication landscape, bringing flexibility, scalability, and cost savings. As a result, IT and Telecom firms are turning to cloud-based communication software for everything from internal collaboration to customer service and partner interactions. This surge in cloud adoption is a primary driving factor for the booming communication software market. According to Flexera Software, in 2024, 73 percent of enterprises reported deploying a hybrid cloud. Further, this shift to hybrid solutions comes at the cost of solely relying on private or public clouds.
- The IT and Telecom sectors are poised for significant expansion in the communication software market, driven by the adoption of cloud technology, the rollout of 5G, and an increasing demand for unified communication tools.
North America is Expected to Hold Significant Market Share
- North America emerges as a dominant force in the global communication software arena, driven by rapid digital transformations in businesses, a notable proliferation in cloud technology adoption, and a growing demand for real-time collaboration tools.
- In North America, businesses increasingly migrate from traditional on-premise systems to cloud-based communication software. This shift is primarily attributed to the cloud's advantages, including cost efficiency, scalability, and the convenience of accessing communication tools from any location. According to Flexera Software, in late 2023, 65 percent of respondents from the Americas stated as heavy users of cloud services.
- With the ongoing rollout of 5G networks, communication software in North America is witnessing enhanced capabilities. According to GSMA, By 2030, North America is projected to lead the globe with a 5G adoption rate of 90 percent. The benefits of faster speeds, reduced latency, and increased bandwidth are evident, facilitating high-quality video conferencing, real-time collaboration, and uninterrupted communication, even in remote areas.
- Organizations in the region are making strategic partnership driving the market growth. In June 2024, HoduSoft, one of the leading providers of advanced communication solutions, has teamed up with Speechmatics, a prominent player in speech-to-text technology. The collaboration focuses on integrating speech analytics into HoduSoft's flagship offering, the HoduCC Omnichannel CX Suite. This enhancement empowers businesses to couple voice data, boosting operational efficiency and elevating customer satisfaction.
- The North American communication software market is undergoing a rapid evolution, driven by several key factors. These include a rising demand for cloud-based solutions, the rise of remote and hybrid work models, and the integration of advanced technologies such as AI, 5G, and omnichannel communication. According to SWZD, In North American and European organizations, the leading information technology trend, either already implemented or to be implemented, is gigabit Wi-Fi networking, adopted by 67 percent. IT automation technology at 65 percent, followed by IoT at 57 percent, and 5G technology at 53 percent. As businesses continue their digital transformation journeys, the role of communication software in collaboration, customer engagement, and operational efficiency is becoming increasingly central. Further, the market is poised for innovations, particularly in areas like security, AI, and automation. Additionally, there's a pronounced and sustained shift towards cloud-based platforms, catering to organizations of all sizes.
Communication Software Industry Overview
The communication software market is highly fragmented, with global and local or regional companies and specialized players operating across various segments. While several large multinational companies dominate specific high-value segments, numerous regional and niche players contribute to the overall competition, making the market highly diverse. This fragmentation is driven by the demand for the communication software market across a wide range of industry verticals, allowing both large and small companies to coexist and thrive in the market.
Leading companies in the communication software market include Microsoft Corporation, Zoom, Cisco Systems, Inc., Salesforce, Inc., and Zoho Corporation Pvt. Ltd. These companies have established strong brand recognition and extensive global operations, enabling them to command significant market share. Their strengths lie in innovation, broad product portfolios, and strong distribution networks. These leaders often engage in strategic acquisitions and partnerships to maintain their competitive edge and expand their market reach.
In the emerging communication software market, vendors are channeling significant investments into research and development (R&D). Their goal is to enhance the efficiency and practicality of communication software market harvesting technologies. As the market is still in its infancy, this emphasis on innovation is vital for vendors aiming to secure a competitive advantage.
Communication Software Market Leaders
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Microsoft Corporation
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Zoom
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Cisco Systems, Inc.
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Salesforce, Inc.
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Zoho Corporation Pvt. Ltd.
- *Disclaimer: Major Players sorted in no particular order
Communication Software Market News
- September 2024: DTC, a company in wireless IP mesh technology, audio surveillance, and communication software services, announced its new distribution partnership with Stirling Global Pty Ltd. Stirling Global, a veteran-owned entity, specializes in expert advice, training, and tactical asset management in security, intelligence, and communications. Through this partnership, Stirling Global will introduce DTC Mesh, Codan HF, Spectronic, and Corp Ten brands to its clientele throughout Australia and New Zealand.
- April 2024: Ecosmob Technologies Pvt. Ltd., a frontrunner in custom communication software, has announced a strategic alliance with SignalWire Inc. In this collaboration, Ecosmob will take on the pivotal role of integrator. Together, they aim to set a landmark in reshaping real-time communication technologies for diverse industries globally.
Communication Software Industry Segmentation
Communication software facilitates remote system access and enables the exchange of files and messages be it text, audio, or video across various computers or users. This encompasses terminal emulators, file transfer applications, chat and instant messaging tools, and similar functionalities embedded within MUDs.
The study tracks the revenue accrued through the sale of the communication software solutions by various players across the globe. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.
Communication software market is segmented by deployment model (on-Premise, cloud), by enterprise size (large enterprises, small and medium enterprises), by type (email software, instant messaging software, social networking software, video conferencing software, voice over internet protocol software), by industry vertical (BFSI, manufacturing, retail, healthcare, IT and telecom, others), by geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The report offers market forecasts and size in value (USD) for all the above segments.
| By Deployment Model | On-Premise |
| Cloud | |
| By Enterprise Size | Large Enterprises |
| Small and Medium Enterprises | |
| By Type | Email Software |
| Instant Messaging Software | |
| Social Networking Software | |
| Video Conferencing Software | |
| Voice over Internet Protocol Software | |
| By Industry Vertical | BFSI |
| Manufacturing | |
| Retail | |
| Healthcare | |
| IT and Telecom | |
| Others | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
| On-Premise |
| Cloud |
| Large Enterprises |
| Small and Medium Enterprises |
| Email Software |
| Instant Messaging Software |
| Social Networking Software |
| Video Conferencing Software |
| Voice over Internet Protocol Software |
| BFSI |
| Manufacturing |
| Retail |
| Healthcare |
| IT and Telecom |
| Others |
| North America |
| Europe |
| Asia |
| Australia and New Zealand |
| Latin America |
| Middle East and Africa |
Communication Software Market Research FAQs
How big is the Communication Software Market?
The Communication Software Market size is expected to reach USD 11.44 billion in 2025 and grow at a CAGR of 15.44% to reach USD 23.45 billion by 2030.
What is the current Communication Software Market size?
In 2025, the Communication Software Market size is expected to reach USD 11.44 billion.
Who are the key players in Communication Software Market?
Microsoft Corporation, Zoom, Cisco Systems, Inc., Salesforce, Inc. and Zoho Corporation Pvt. Ltd. are the major companies operating in the Communication Software Market.
Which is the fastest growing region in Communication Software Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Communication Software Market?
In 2025, the North America accounts for the largest market share in Communication Software Market.
What years does this Communication Software Market cover, and what was the market size in 2024?
In 2024, the Communication Software Market size was estimated at USD 9.67 billion. The report covers the Communication Software Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Communication Software Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Communication Software Industry Report
Statistics for the 2025 Communication Software market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Communication Software analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
