UCaaS In Retail Market Size
|Study Period||2018 - 2028|
|Market Size (2023)||USD 12.02 Billion|
|Market Size (2028)||USD 31.88 Billion|
|CAGR (2023 - 2028)||21.54 %|
|Fastest Growing Market||North America|
|Largest Market||North America|
*Disclaimer: Major Players sorted in no particular order
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UCaaS In Retail Market Analysis
The UCaaS In Retail Market size is estimated at USD 12.02 billion in 2023, and is expected to reach USD 31.88 billion by 2028, growing at a CAGR of 21.54% during the forecast period (2023-2028).
- Unified communication (UC) solutions enable retailers to provide a rich platform for collaboration and a smarter way to interact seamlessly, converging physical experiences with virtual ones while reducing costs and enabling flexible expansions across the enterprise.
- A fragmented communications structure can make it difficult for retailers to reach their business goals and maintain a strong brand presence. Unified Communications-as-a-Service (UCaaS) ensures that retail employees collaborate internally and coordinate more efficient and profitable interactions with the public and potential customers.
- By incorporating voice, messaging, and video and mobile technology, retailers can create an improved experience for both team members and customers. This collaboration secures a more unified message that allows for on-the-go operations, increased brand clarity, and enhanced productivity.
- The growing adoption of BYOD and other mobility solutions has been aiding the adoption of UCaaS solutions. Moreover, the growing adoption of IP applications to enhance customer experience and in-store operations is also expected to boost the growth of the market studied.
- The need for more awareness of the technology is hindering the growth of the market. In one of the surveys done by Retail Week, it was figured out that more than 69% of retailers were not aware of Unified Communication Solutions, and 38% of them said that they needed to learn the benefits of implementing the same.
- Since the start of the pandemic, many retailers have relied on remote or hybrid workers to perform service and support tasks after witnessing a multitude of benefits. UCaaS has made it possible for these businesses to operate with more support agents, whether reps are local or off-site, allowing for a much-needed coordinated approach and more constructive communication.
UCaaS In Retail Market Trends
Increasing Small- and Medium-scale Industries to Drive the Market
- The dependency of small and medium-sized businesses (SMBs) on the cloud is proliferating and is expected to increase in the future. UCaaS has emerged as an ideal solution for SMBs, mainly when delivered in a cloud-based model.
- These solutions combine real-time, integrated voice and collaboration capabilities, along with a flexible and scalable delivery model, making them well suited for SMBs. The primary benefit of UCaaS for SMBs is more about reducing costs than having an impact on business.
- However, compared to large companies, SMBs still need to catch up in their adoption of UCaaS. One key reason many SMBs haven’t transitioned to UCaaS is a reliance on their office productivity suite—Google Workplace or Microsoft 365, for instance—for their communications and collaboration needs.
- With unified communication solutions, SMBs are able to integrate multiple software into a single platform, making it possible for them to reduce expenses and increase overall efficiency. Applications across business functions can converge into a single effective platform for text, voice, and video communications, available from anywhere, using any device.
- Moreover, many SMBs are required to spend a significant amount of time and money conforming to their local government's governance and compliance obligations, whether regarding regulations or company policy. However, when these businesses employ unified communication solutions, it becomes the solution provider's job to meet these legal standards, freeing up corporate resources for more useful tasks.
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North America to Hold Major Share
- The region has many brick-and-mortar stores, which are increasingly offering buy online and pickup in-store (BOPIS), return in-store (BORIS) flexibility. This is driving more calls for return merchandise authorizations, inventory inquiries, and appointments for value-added services, like installations and customizations.
- The strong retail sector in the region provides significant growth opportunities to the market. For instance, retail is the largest private-sector employer in the United States, contributing USD 3.9 trillion to the annual GDP (as per NRF).
- Moreover, as per the National Retail Federation (NRF), retail sales are expected to grow between 4% and 6% in 2023. In total, NRF forecasts that retail sales will reach between USD 5.13 trillion and USD 5.23 trillion in 2023. With UCaaS becoming an essential business model in the retail sector, such growth trends create a favorable scenario for the market.
- Further, the retailers in the region are scrambling to meet the expectations and demands of an increasingly digital customer base, asking for better cooperation and communication between the staff to provide seamless services to the customers. The companies in the region are further promoting UCaaS by providing innovative solutions.
- For instance, Amazon USA has released Chime, a cloud-based UCaaS hosted in Amazon Web Service’s cloud. It provides video conferencing service to enterprises and works on both desktop & mobile phones. It was deployed in retailer Brooks Brothers’ stores as a pilot project. Other retailers are expected to incorporate Chime in their stores, as the demand for UCaas in retail is expected to rise dramatically.
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UCaaS In Retail Industry Overview
The unified communications-as-a-service (UCaaS) market in the retail sector demonstrates a moderate level of competitiveness. Companies within this market are actively engaged in strategic innovation, collaborative efforts, and expansion endeavors to offer sustainable solutions that can effectively contend with the intensifying competition.
In February 2023, RingCentral made a significant announcement regarding its extended strategic partnership with Avaya. Under this agreement, Avaya Cloud Office by RingCentral (ACO) continues to serve as Avaya's exclusive multi-tenanted UCaaS solution for its customers. This extension of their multi-year partnership involves minimum seat commitments and an improved incentive structure aimed at expediting the migration of customers to the ACO platform.
In March 2022, 8x8 introduced an important enhancement to its offerings by unveiling 8x8 Conversation IQ. This extension of their services brings formal contact center capabilities, including quality management and speech analytics, to all users of the 8x8 cloud communications platform.
UCaaS In Retail Market Leaders
Verizon Communications Inc.
Mitel Networks Corporation
*Disclaimer: Major Players sorted in no particular order
UCaaS In Retail Market News
- October 2022: Cisco unveiled a host of innovative features and capabilities for the newly transformed Webex Customer Experience (CX) portfolio. This development marks a significant milestone in the realm of collaboration technology, merging cloud contact center and cloud communications functionalities into a seamlessly integrated platform. This integration has the potential to revolutionize customer journeys, promising enhanced experiences and improved efficiency for businesses.
- February 2022: Vodafone and RingCentral introduced 'Vodafone Business UC with RingCentral,' a cutting-edge cloud communications platform designed to empower organizations with a wide array of options, greater flexibility, and enhanced simplicity in facilitating workforce collaboration and supporting remote working. This collaboration holds the promise of transforming the way teams communicate and collaborate, ultimately leading to increased productivity and streamlined operations.
UCaaS In RetailMarket Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Growing Adoption of IP applications to Enhance Customer Experience and In-store Operations
4.3.2 The Increased Demand for Mobility and BYOD
4.3.3 Demand from Small- and Medium-sized Businesses
4.4 Market Restraints
4.4.1 Integration Existing System To Cloud Due To Limited To Store Infrastructures
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5. TECHNOLOGY SNAPSHOT
6. MARKET SEGMENTATION
6.1.1 North America
220.127.116.11 United States
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
126.96.36.199 Rest of Asia-Pacific
6.1.4 Rest of World
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 RingCentral Inc.
7.1.2 8X8 Inc.
7.1.3 Verizon Communications Inc.
7.1.4 Mitel Networks Corporation
7.1.5 Comcast Corporation
7.1.6 Vonage Holdins Inc.
7.1.7 West Corporation
7.1.8 Star2Star Communications LLC
7.1.9 DXC Technology Company
7.1.10 Tieto Oyj
7.1.11 IBM Corporation
7.1.12 Alcatel-Lucent USA Inc.
7.1.13 Cisco Systems Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
UCaaS In RetailMarket Research FAQs
How big is the UCaaS In Retail Market?
The UCaaS In Retail Market size is expected to reach USD 12.02 billion in 2023 and grow at a CAGR of 21.54% to reach USD 31.88 billion by 2028.
What is the current UCaaS In Retail Market size?
In 2023, the UCaaS In Retail Market size is expected to reach USD 12.02 billion.
Who are the key players in UCaaS In Retail Market?
RingCentral Inc., 8X8 Inc., Verizon Communications Inc., Mitel Networks Corporation and Comcast Corporation are the major companies operating in the UCaaS In Retail Market.
Which is the fastest growing region in UCaaS In Retail Market?
North America is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in UCaaS In Retail Market?
In 2023, the North America accounts for the largest market share in UCaaS In Retail Market.
UCaaS In RetailIndustry Report
Statistics for the 2023 UCaaS In Retail market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UCaaS In Retail analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.