|Study Period:||2018 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The Global Unified Communication as-a-Service Market is expected to reach a CAGR of 25.3%, during the forecast period 2021 - 2026. The Covid-19 pandemic has resulted into large chunk of population working from remote areas, which has further compelled the enterprises to grab several technologies to help their employees seamlessly accelerate productivity. UCaas enables the enterprises to manage unified collaboration amongst its employees, anywhere, at any time, over the cloud.
- In July 2021, Onepath, a provider of managed technology services for small and midsize businesses (SMBs), introduced a unified communications service for companies that have an urgent need to support increasingly decentralized employees. Onepath Cloud PBX is an enterprise-grade, hardware-free service that allows companies to quickly and easily equip staff with the tools they need to engage customers and colleagues while working from home or the office. Simila innovations and initiatives by the solution providers is expected to aid in the growth of the market during the pandemic.
- Unified Communications (UC), since its launch, has emerged as a cost-effective solution for organizations across various industries, such as BFSI, healthcare, and retail, among others. However, the cloud delivery of the unified communications offered by companies, like Mitel Networks Corporation and IBM, is shaping the way organizations manage their communication networks.
- The growing need for an easily maintained network systems that can enable effective communications across multiple end-user industries, including healthcare, retail, and manufacturing, among others, is evident, considering the old/obsolete contact centers.
- The advent of cost-effective cloud-based solutions has seen increased adoption from healthcare providers, who are often categorized to have minimum IT budgets. With the subscription-based United Communication services in place, the healthcare contact centers are establishing their PBX systems and seamlessly addressing multiple customer requests coming in from multiple sites.
- The rapidly increasing adoption of the BYOD trend and other mobility solutions is expected to drive the adoption of UCaaS solutions even further. Bring Your Own Device (BYOD) has emerged as a significant trend in this new era of flexibility and network accessibility for employees working around the globe for various organizations, making the workplace more productive. For instance, According to Cisco, enterprises with a BYOD policy in place saves on average USD 350 per year, per employee.
- Further, the ease of adoption of cloud-based technologies has further boosted the adoption of video conferencing among businesses, which is driving the adoption of cloud services for various business needs. Although many enterprise-level unified communications vendors, like Cisco, have offerings in this space, stand-alone and freemium persistent workspace applications are also still being implemented among businesses.
Scope of the Report
Unified communications-as-a-Service refers to a service model where the provider delivers different telecom or communications applications, software products, and processes generally over the web. The UCaaS market is segmented by various types of components used for UC, size of the organization, and geography.
By type of components, the market studied is segmented into telephony, contact center, unified messaging, a collaboration platform. By organization size, the market studied is segmented into large enterprises and small & medium enterprises. Integrated solutions offered by UCaaS vendors are considered in the scope of the study.
|Small and Medium-sized Enterprises|
|Rest of the World|
Key Market Trends
Manufacturing Sector is Expected to Register a Significant Growth
- The manufacturing sector is the backbone of the economy of every country across the world. Thus, observing efficient time to market, quality control, and avoiding downtime is of vital importance. Companies have realized that effective communication throughout the work floor of factories and industries is one of the ways to achieve these three goals.
- As a result, the manufacturing sector, which was previously limited by their traditional communication systems and legacy infrastructures, is now increasingly adopting UCaaS and is experiencing greater productivity gains as a result. The increasing deployment of cloud solutions, coupled with the rise in usage of VoIP and IP phones, has been a significant driver for the adoption of UCaaS in manufacturing environments.
- Additionally, Government initiatives such as "Made in China 2025", which primarily aim to make China a dominant region in the global high-tech manufacturing sector is influencing other regions to take up initiatives like this which are expected to drive the market even further. This initiative is primarily focused on the manufacturing of electric cars, next-generation IT and telecommunications, new energy vehicles, and advanced robotics and AI and is expected to drive the unified communication-as-a-service in the manufacturing industry even forward.
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Europe is Expected to Occupy Significant Market Share
- There are approximately 319,000 retail businesses in the United Kingdom, with approximately 87% of UK consumers reported having made a purchase of at least one product online in 2018. UK retailers are looking to entice customers to interact with them in-store so that they keep coming back. To do this, they need to provide a convenient and frictionless in-store experience, with the added advantage of knowledgeable sales staff that can explain product offerings and the number-one preference of in-store shoppers, ahead of ambiance, which is propelling the adoption of UCaaS.
- The country has witnessed a potential growth in the retail industry, with major players, like 8x8, a US-based company, which is one of the largest UCaaS providers comprising more than 1 million users, expanded significantly in the European market, after it made two acquisitions of UK-headquartered enterprises.
- The country’s carriers’ efforts to discontinue the integrated services digital network services are driving the carrier and customer migration to Internet protocol connectivity services. This huge shift is driving the adoption of next-generation business communication solutions, such as hosted private branch exchange (PBX) and UCaaS solutions. For instance, companies, such as Node4, announced a new and improved UCaaS platform. This offering is primarily built on a shared architecture, which implies that Node4 customers will benefit from both the customer dedicated platform and a multi-tenant one, allowing smaller organizations to access top-tier collaboration tools, affordably.
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The competitive rivalry in the market between the players is high owing to the presence of some major players like 8x8 inc, Fuze Inc, Verizon, and many more. These companies are able to gain a competitive advantage over the other players due to their ability to bring about innovations by investing heavily in research and developments. The companies entering into strategic partnerships and their mergers and acquisitions have allowed them to occupy a substantial share in the market.
- April 2020 - RingCentral Inc. unveiled its latest video tools Ring Central Video as part of its suite of offerings, which include messaging, video, and phone solutions. One of the features that differentiate RingCentral Video from other similar tools is that it offers a browser-based experience, allowing users to avoid weighty and at-times confusing downloads.
- January 2021- Avaya Inc., announced that Avaya OneCloud CCaaS and OneCloud CPaaS portfolios are now available with Avaya AI Virtual Agent Enhanced, new human-like automation features that significantly improve customer experience and contact center efficiency. The powerful combination of Avaya AI innovation and Google Cloud CCAI is all set to provide a better experience for users by seamlessly blending automated and assisted experiences throughout a customer’s interaction with the contact center.
- September 2020 - Ribbon Communications announced to deliver secure UCaaS to financial services institutions via IBM Cloud for Financial Services. Ribbon’s Kandy Business Solutions would provide financial institutions with a full suite of cloud-based UC services and clients like chat, video, voice, and text, enabling the transition of business communications to the cloud.
Table of Contents
1.1 Study Assumptions & Market Definition
1.2 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitute Products
4.3 Assessment of Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Trends Toward BYOD and Mobility
5.1.2 Increasing Use of Server Message Block (SMB)
5.2 Market Restraints
5.2.1 Increasing Security Concerns for Cloud-based Services
5.2.2 Lack of Awareness Regarding Cloud UC
6. MARKET SEGMENTATION
6.1.2 Contact Center
6.1.3 Unified Messaging
6.1.4 Collaboration Platform
6.2 Organization Size
6.2.1 Large Enterprises
6.2.2 Small and Medium-sized Enterprises
6.3.1 North America
6.3.3 Asia Pacific
6.3.4 Rest of the World
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 RingCentral Inc.
7.1.2 8X8 Inc.
7.1.3 Mitel Networks Corporation
7.1.4 Cisco Systems Inc.
7.1.5 Avaya Inc.
7.1.6 Voss Solutions
7.1.7 NetFortris Inc.
7.1.9 Kurmi Software
7.1.10 Vonage Business Communications
8. VENDOR POSITIONING ANALYSIS
9. INVESTMENT ANALYSIS & MARKET OUTLOOK
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Frequently Asked Questions
What is the study period of this market?
The UCaaS Market market is studied from 2018 - 2026.
What is the growth rate of UCaaS Market?
The UCaaS Market is growing at a CAGR of 25.3% over the next 5 years.
Which region has highest growth rate in UCaaS Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in UCaaS Market?
North America holds highest share in 2020.
Who are the key players in UCaaS Market?
Ring Central Inc., 8X8 Inc., Cisco Systems Inc., Mitel Networks Corporation, Avaya Inc. are the major companies operating in UCaaS Market.