Unified communication as a service Market Research Report Information By Component (Telephony, Unified Messaging, Collaboration Platforms, Conferencing, and Reporting & Analytics), By Delivery Model (Managed Services, and Hosted/ Cloud Services), By Organization Size (Large Enterprises, and SME’s), By Vertical (BFSI, IT and Telecommunications, IT-enabled Services (ITeS), Education, Retail and Consumer Goods), and Region (North America, Europe, Asia-Pacific, and the Rest of the World)—Forecast till 2030

Unified Communication as a Service Market Overview

The unified communication as a service market is projected to grow USD 72.4 billion at a CAGR of 12.60% from 2022 to 2030. The substantial 4G connectivity network and ongoing investments in the early commercialization of 5G networks are expected to have a significant impact on the adoption of modern enterprise communication solutions. Thanks to these built-in functionalities, developers may now concentrate on the most important aspects of the software. The sector is anticipated to grow exponentially as a result of the growing significance of API-driven programmable communication capabilities.

The implementation of distributed workforce and remote work approaches has become possible thanks to the rising popularity of smart mobile devices and advancements in collaboration tools. Organizations are putting (BYOD) strategies into place across all of their functional areas. This method has helped businesses by increasing production, improving internal communication, and cutting costs.

Innovation in communication technology, which has allowed for the integration of collaboration tools like real-time video conferencing, email, instant messaging, and desktop sharing, is one of the major drivers of industry growth. Businesses can streamline employee-customer engagement procedures with the help of unified communication solutions, making communication services for personnel scattered over the world simply available. The unified communication as a service market size is expected to reach approximately USD Significant Valuebillion by 2030. The adoption of contemporary enterprise communication solutions is anticipated to be significantly influenced by the extensive 4G connectivity network and continued investments in the early commercialization of 5G networks. 

Latest Industry News of Unified Communication as a Service Market:

April 2023:

The cloud-based solution Vodafone Business Unified Communications (UC) with RingCentral, which enables users to combine messaging, video meetings, file sharing, and virtual phone systems via a single user interface accessible on any internet-enabled device, was today launched in Italy as the latest market. In 2022, Vodafone and RingCentral together launched the rollout of their unified communications system, starting in the UK and Germany. Additional markets are expected to follow the most recent rollout in Italy. Along with cloud hosting, security goods, and software defined wide area networks (SD-WAN), Vodafone Business now offers a new spectrum of digital "beyond connectivity" services.

April 2023:

Launched in April 2023, Tata Communications GlobalRapide 2.0 is a fully integrated managed solution for UCaaS platform migration, automation, and end-to-end management. Unified Communications as a Service (UCaaS) migration, end-to-end management, and automation are all integrated managed services provided by Tata Communications GlobalRapide 2.0. Tata Communications GlobalRapide 2.0 has developed into a multi-layer voice service solution that includes UCaaS platforms and a completely integrated managed services portfolio. 

COVID-19 Impact Analysis

Since the COVID-19 epidemic began, businesses worldwide have switched to remote working platforms to safeguard employee safety and stop the spread of COVID. There has been a significant need for cutting-edge online communication and collaboration platforms due to people starting to work from home. Governments worldwide have started promoting digital learning techniques to prepare for the pandemic emergency. The industry company is dedicated to providing top-notch digital learning experiences through a variety of UCaaS platforms, including Zoom and others. Zoom Video Communications, Inc. assisted over 100,000 K–12 schools in June 2020 by providing them with access to their unified communication service platform throughout the crisis.

Unified Communication as a Service Market Dynamics

Business apps are equipped with voice, messaging, programmable video, and other services to automate communication. Developers may now concentrate on the most crucial elements of the program thanks to these built-in functionalities. As a result of the growing significance of API-driven programmable communication capabilities, the industry is projected to experience exponential growth. For example, key providers like Avaya, Inc. and IntelePeer Cloud Communications are concentrating on creating cutting-edge API-based programmable solutions to simplify business communication and intricate business processes.

Market Drivers

• 
  

  An increase in the utilizing remote work methods and distributed workforces.

  
  

The growing popularity of smart mobile devices and improvements in collaboration tools have made it possible to implement distributed workforce and remote work techniques. Organizations across their business areas are also implementing a (BYOD) strategy. Organizations has benefit from this strategy by seeing an increase in production, enhanced internal communication, and reduced expenditures. For instance, 85% of businesses, according to Bitglass research, currently allow employees and partners to use BYOD (bring your own device) environments. Key firms would benefit from new market opportunities to diversify their product offers.

Market Restraints:

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  Concerns about data security and potential legal problems

  
  

Ideally, UCaaS vendors should use their own tightly regulated data centers to provide security for enterprises' data. However, only a few unified communications service providers have their own data centers. Concerns around regulatory concerns and data security breaches may result from this. The absence of various power sources and remote backups could further impact regulations governing corporate risk and compliance. Additionally, a significant security issue that prevents the broad deployment of unified communication services is the resale of services hosted in a third-party data center.

Market Opportunities: 

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  Integration of programmable capabilities with unified collaboration

  
  

Tools Emerging Players in the TrendKey market are using various strategies to give end users efficient tools for communication and cooperation and subscription plans based on usage and user. As a result, the portfolio of unified communication as a service gains new features, services, and functionalities. Major providers have also begun integrating programmable collaboration and communication tools into their current UCaaS systems. Providers would be able to address particular requests from industries, including the government, healthcare, and business, using these strategies.

Segment Overview

By Component Insights

Based on components, the unified communication as a service market segmentation is telephony, unified messaging, collaboration platforms, conferencing, and reporting & analytics. The unified communication as a service market growth was prominently high under the telephony category in 2021. The need for cloud (IP) telephony is growing due to the evolution of the enterprise communication infrastructure. Businesses that switched from traditional PBX telephone systems to voice-over-internet protocol (VoIP) solutions have enlarged the market. However, extended wear is anticipated to be the fastest-growing as it is used more frequently.

By Delivery Model Insights

Based on the delivery model, the unified communication as a service market segmentation has managed services and hosted/ cloud services. In 2021, hosted/ cloud services accounted for the largest market share of the market. The segment is growing due to cutting-edge cloud services like cloud-based conferencing and Cloud Telephony Service loud telephony. However, the managed services category is anticipated to increase fastest during the projection period. Customizations, numerous functionalities, dashboards, analytics, portals, and other features are all part of managed services.

By Organization Size Insights

The market is divided among large enterprises and SMEs based on organization size. The SME category dominated the market for unified communication as a service in 2021. According to IDC, small and medium-sized businesses have concentrated their overall IT spending by 4.9% and 2.7%, respectively. It is anticipated that this change in IT spending has cause SMEs to gradually move away from traditional programs and toward cloud-based unified communication as a service. The large enterprise category is anticipated to witness significant growth over the forecast period. Most large businesses have embraced strategies like remote working, BYOD (bring your own device), and working from home.

By Vertical Insights

By vertical, the market has been divided into (BFSI, IT-enabled services (ITeS), IT and telecommunications, education, retail and consumer goods. In 2021 the IT and telecommunications category had a major market share. The growth can be attributed to businesses' digital transformation, which led to a surge in the adoption of unified communication services hosted in the cloud. However, the retail and consumer goods category fuel the market because unified communication services have been adopted to improve customer experience.

Global Unified communication as a service Market Share, by region, 2021 (%)Unified communication as a service Market Overview, by Region Outlook

By region, the unified communication as a service market has been divided into Europe, North America, Asia-Pacific, and the Rest of the World. North America accounted for the major market share. Asia-Pacific will exhibit the highest CAGR during the forecast period.

North America

North America dominated the market share in 2021. Because advanced commercial communication services have been adopted in this location, end-use businesses already have a voice, email, video and audio conferencing, and other services in their daily operations. Telepresence technologies and other trends are being adopted, fueling the market's expansion. 

Asia-Pacific

Asia-Pacific accounted for the second-largest market share in 2021. The area is expanding technologically due to the increased use of 4G and 5G technology and the development of various international corporations operating in the region, which increases the demand for UCaaS. Additionally, due to the ongoing digitization and an expanding mobile workforce. 

Unified communication as a service Market Competitive Landscape

Key businesses are largely concentrating on concluding strategic agreements and partnerships to expand their product and service portfolios for unified communication as a service. In addition, spending on tailored product and service launches is assisting major corporations in improving their market positions. Some important organizations have expanded their alliances with cloud service providers to improve performance. For instance, in December 2022, Access4 announced the acquisition of Novum Networks, a provider of BroadWorks with its headquarters in Perth. Access4 offers unified communication as a service.

• IBM Corporation


• BT Group


• Microsoft Corporation


• Cisco Systems Inc.


• 8x8 Inc.


• Verizon Communications Inc.


• Fuze Inc.


• Voss Solutions


• Avanade Inc.


• Polycom Inc.


• ATOS SE


• West Corporation

Scope of the Unified communication as a service Market Report Segmentation

By Component Outlook

• Telephony


• Unified Messaging


• Collaboration Platforms


• Conferencing


• Reporting & Analytics

By Delivery Model Outlook

• Managed Services


• Hosted/ Cloud Services

By Organization Size Outlook

• Large Enterprises


• SME’s

 By Vertical Outlook

• BFSI


• IT and Telecommunications


• IT-enabled Services (ITeS)


• Education


• Retail and Consumer Goods

By Region Outlook

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  North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• 
  Europe
  
  
  
  • UK
  
  
  • Germany
  
  
  • France
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • Australia and New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  Rest of the World
  
  
  
  • South America
  
  
  • Middle East
  
  
  • Africa
  
  
  
  

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

• Unified communication as a service Market Forecast & Size:

To identify and estimate the market size for the unified communication as a service market report segmented by component, delivery mode, organisation size and vertical by value (in US dollars). Also, to understand the consumption/ demand created by consumers in the unified communication as a service market forecast between 2022 and 2030

• Market Landscape and Trends:

To identify and infer the drivers, restraints, opportunities, and challenges in the unified communication as a service market growth

• Market Influencing Factors:

To find out the factors which are affecting the unified communication as a service market size among consumers

• Impact of COVID-19:

To identify and understand the various factors involved in the market affected by the pandemic

• Company Profiling:

To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company in the past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Intended Audience

• Unified communication as a service producer


• Raw material suppliers


• Retailers, wholesalers, and distributors


• Governments, associations, and industrial bodies


• Pharma companies