|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 record a CAGR of 25.65% during the forecast period 2022-2027. The COVID-19 pandemic has resulted in a large chunk of the population working from remote areas, which has further compelled enterprises to implement several technologies to help their employees seamlessly accelerate productivity.
· UCaaS enables enterprises to manage unified collaboration among employees, anywhere, anytime, 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 with 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. Similar innovations and initiatives by solution providers are expected to aid in the market’s growth during the pandemic.
· Unified Communications (UC), since its launch, has emerged as a cost-effective solution for organizations across various sectors, such as BFSI, healthcare, and retail, among others. However, the cloud delivery of unified communications offered by companies like Mitel Networks Corporation and IBM is shaping how organizations manage their communication networks. The growing need for easily maintained network systems that can enable effective communications across multiple end-user sectors, including healthcare, retail, and manufacturing, is evident, considering the old/obsolete contact centers.
· The advent of cost-effective cloud-based solutions has increased adoption from healthcare providers, who often have minimum IT budgets. With the subscription-based United Communication services in place, healthcare contact centers are establishing their PBX systems and seamlessly addressing multiple customer requests 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 save, on average, USD 350 per year per employee.
· However, due to its simplicity, the old UC system is preferred by most enterprises. Large organizations are hesitant to employ UCC services since it is difficult for them to distinguish between standard hosted and managed UCC platforms. The move from traditional PBX communication to UCC will necessitate a faster adoption of the capabilities by the entire workforce to utilize the features thoroughly. As a result, pressure is placed on a company's IT department, which may disrupt the timeframe. It is challenging to persuade enterprises of the value of UC solutions in terms of cost savings and ease of implementation. APAC and MEA, for example, are cost-effective potential markets.
Scope of the Report
The unified communication-as-a-service (UCaaS) market is segmented by size of the enterprise (small and medium enterprises and large enterprises), end-user vertical (BFSI, retail, healthcare, government and public sector, it and telecom, other end-user verticals), and geography (North America, Middle-East and Africa, Asia-Pacific).
Unified communications-as-a-Service (UcaaS) refers to a service model where the provider delivers different telecom or communications applications, software products, and processes, generally over the web. The unified communication system unifies or integrates all communication methods a business uses into a single platform or multiple communication tools.
|By Size of Enterprise|
|Small and Medium Enterprises|
|By End-user Vertical|
|Government and Public Sector|
|IT and Telecom|
|Other End-user Verticals|
Key Market Trends
Healthcare Segment Expected to Register High Market Growth
· UCaaS in healthcare has proven to be a delivery model wherein various communication and collaboration services and applications are outsourced to a third-party provider and delivered over a network across the healthcare sector. UCaaS technologies include presence technology and video conferencing, enterprise messaging, and telephony.
· The advent of cost-effective cloud-based solutions has seen increased adoption from healthcare providers, which often have minimum IT budgets. With the subscription-based United Communication services in place, healthcare contact centers are establishing their PBX systems and seamlessly addressing multiple customer requests from multiple sites.
· Cloud-based Unified Communication as a Service (UCaaS) is a digital change for fortifying business assignments. UCaaS in healthcare is a model of conveyance wherein a diversity of partnerships and communication applications and administrations are moved to an outsider supplier and conveyed over a network across the healthcare sector.
· Cloud adoption among the sector, including moving EHR systems and other enterprise applications, which traditionally ran on client-server architectures, also provides scope for UC companies offering their services over the cloud on a subscription basis. Most cloud communication providers across the region offer high‐end cloud-based security for each customer, eliminating the barriers, thereby making the healthcare sector an addressable market for UCaaS. For instance, 8x8, a prominent UCaaS vendor, offers UC solutions, which enable healthcare organizations to meet third-party-verified compliance with HIPAA, PCI-DSS 3.1, FISMA/FIPS 140-2, and Safe Harbor regulations.
· Health Insurance Portability and Accountability Act (HIPAA) regulations alone add a whole new level of complexity to designing and securing a communications platform. Major cloud communication providers supply high‐end cloud-based security for each client to secure patient information and help IT meet stringent compliance requirements. UCaaS is coupled with organizational mobility and provides several advantages, like real-time communications, to instantly locate and connect caregivers, enable faster connections and effective call routing, regardless of location, enabling healthcare organizations to establish rules and reduce distractions from across ER rooms to surgeries.
· The increasing deployment of artificial intelligence has greatly aided organizations in catering to the digital transformation goal. AI-powered tools have allowed organizations to intuitively record calls, facilitate effortless transcriptions, and intelligently track speakers to understand users' needs and offer relevant services.
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North America Expected to Hold a Significant Market Share
· The US’ supremacy in the market studied may be ascribed to the recent surge in mobility and explosion of 5G connection due to the consumerization of IT, which has aided enterprises in adopting IP telephony and UCaaS to allow remote employees to simulate in-office work experiences.
· In the US, end-user verticals, such as retail, banking and finance, healthcare, information technology, and telecommunications, seek a more direct and seamless experience for all of their communications—audio, video, and chat—no matter where they are. To fulfill this need, enterprises are looking for a unified deployment and management solution from a single vendor they can rely on to handle their UCC requirements. They'll be able to integrate remote connectivity tools on a single UCaaS platform with the advent of 5G.
· The US is one of the foremost innovators and investors in the 5G market, with investments increasing for 5G deployment. The telecom sector in the country accounts for a significant portion of the global consumption of 5G technology. Additionally, telecom operators, such as Verizon, AT&T, and T-Mobile, have signed billion-dollar deals with network equipment vendors, such as Huawei, Samsung, Ericsson, Nokia, and ZTE, to build their 5G network infrastructure in the country. For instance, in April 2021, Verizon Communications Inc., one of the major telecommunications firms in the US, announced that it would begin offering 5G internet to businesses in 21 locations across the country that month, expanding its reach beyond Houston, Chicago, and Los Angeles.
· For new consumers in places, including Las Vegas, Detroit, Atlanta, and San Francisco, Verizon provides a 10-year price lock, no data limitations, and rates ranging from 100 Mbps to 400 Mbps. The company's primary goal is to expand its 5G corporate internet presence across the country, bringing its entire array of services, including video-collaboration capabilities and edge computing, to the country.
· Moreover, with the growing demand for cloud-based communication services, various enterprises in the country are entering the market via partnerships and alliances. For example, in 2021, NEC Corporation of America (NEC), a leading provider and integrator of communications, advanced IT, and networking solutions, announced that the initial term of its exclusive global partnership with Intermedia Cloud Communications, a leading provider of Contact Center as a Service (CCaaS) and Unified Communications as a Service (UCaaS) applications to businesses and their partners, has been extended from five to ten years.
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The competitive rivalry between market players is high owing to the presence of some major players like 8x8 Inc., Mitel Networks, Verizon, and many others. These companies are able to gain a competitive advantage due to their ability to bring about innovations by investing heavily in research and development activities. Strategic partnerships and their mergers and acquisitions have allowed these companies to occupy a substantial share in the market.
· In August 2021, 8x8 Inc. announced the first financially-backed, platform-wide 99.999% global uptime SLA across an integrated cloud UCaaS and CCaaS solution, setting a new industry benchmark for cloud communications reliability. 8x8 XCaaS (eXperience Communications as a Service), built on the resilient, secure, and compliant 8x8 eXperience Communications Platform, now offers an enhanced uptime guarantee for organizations requiring the highest levels of reliability across distributed offices and workforce.
· In July 2021, Nextiva's UCaaS technology was combined with Five9's CCaaS technology and offered as a single solution to customers globally. This cooperation with Five9 could enable Nextiva to work strategically with its clients and help them reinvent their customer experience and develop their business while making their communication tech stack easier to maintain.
· In December 2021, 8x8 Inc. announced that 8x8 XCaaS (eXperience Communications as a Service) is an integrated cloud contact center and phone solution to support multinational enterprises with operations in the Philippines. Leveraging patented 8x8 Global Reach technology, this expansion eliminates the cost complexity in managing third-party gateways and extends and enhances the range of capabilities available to multinational organizations with global contact center operations, locations, and employees based in the Philippines.
· In August 2021, Light Networks, a Cisco Systems partner providing Unified Communications as a Service (UCaaS), network/telecom solutions, and Contact Center as a Service, was bought by Anexinet, funded by private equity company Mill Point (CCaaS). Following Anexinet's purchase of SereneIT in Atlanta, the acquisition of Light Networks could highlight Anexinet's quick development trajectory and dedication to best-of-breed, creative solutions for its clients.
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 Industry Stakeholder Analysis
4.3 Market Drivers
4.3.1 Emergence of Pay-as-you-go Model Driving Demand over Legacy UC Solutions
4.3.2 Changing Workforce Dynamics Leading to the Emergence of New Forms of Enterprise Collaboration
4.4 Market Challenges
4.4.1 Low Readiness to Move to Modern Unified Communications
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Consumers
4.5.3 Threat of New Entrants
4.5.4 Intensity of Competitive Rivalry
4.5.5 Threat of Substitute Products
4.6 Assessment of the Impact of COVID-19 on the Market
4.7 Key Business Models in the UC Industry
5. TECHNOLOGY OVERVIEW
6. MARKET SEGMENTATION
6.1 By Size of Enterprise
6.1.1 Small and Medium Enterprises
6.1.2 Large Enterprises
6.2 By End-user Vertical
6.2.4 Government and Public Sector
6.2.5 IT and Telecom
6.2.6 Other End-user Verticals
6.3 By Geography
6.3.1 North America
6.3.2 Middle-East and Africa
22.214.171.124 Australia and New Zealand
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Vodafone Group PLC
7.1.2 Telia Company AB
7.1.3 KPN NV
7.1.4 BT Group PLC
7.1.5 Verizon Communications Inc.
7.1.6 8X8 Inc.
7.1.7 Mitel Networks Corporation
7.1.8 Gamma Communication PLC
7.1.10 Soluno (Destiny NV)
7.1.11 Cisco Systems
7.1.12 VADS Berhad
7.1.13 Singapore Telecommunications Limited
7.1.14 PLDT Enterprise
7.1.15 NTT Communication Corporation
7.1.16 Telstra Corporation Limited
7.1.17 PCCW Global
7.1.18 Maxis Communications
8. KEY RECOMMENDATIONS
8.1 Key Strategic Recommendations
8.2 Analyst's View on Regional Demand and Positioning
8.3 Analysis of Most Adopted Strategies
9. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Unified Communication-as-a-Service (UCaaS) Market market is studied from 2020 - 2027.
What is the growth rate of Unified Communication-as-a-Service (UCaaS) Market?
The Unified Communication-as-a-Service (UCaaS) Market is growing at a CAGR of 25.65% over the next 5 years.
Which region has highest growth rate in Unified Communication-as-a-Service (UCaaS) Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Unified Communication-as-a-Service (UCaaS) Market?
North America holds highest share in 2021.
Who are the key players in Unified Communication-as-a-Service (UCaaS) Market?
8X8 Inc., Cisco Systems Inc., Mitel Networks Corporation, Gamma Communication PLC, NTT Communication Corporation are the major companies operating in Unified Communication-as-a-Service (UCaaS) Market.