Unified Communication as a Service (UCaaS) Market: Snapshot
Unified Communication as a Service (UCaaS) is an emerging technology that has rapidly garnered a lot of attention from developer communities and enterprises. The global UCaaS market is poised to witness a significant rise in demand for UCaaS solutions from enterprises and businesses keen on increasing the efficiency of existing processes. A number of these enterprises are now switching from traditional business processes to communications-enabled business processes.
The value of the global UCaaS market was pegged at US$8.23 bn in 2015 and is projected to expand at an impressive CAGR of 29.4% from 2016 to 2024 to reach US$79.3 bn by the end of the forecast period.
Market for Integrated UCaaS to Gain Precedence over Stand-alone Services by 2024
By deployment model, hosted UCaaS solutions led the market in 2015 and the segment is expected to retain its lead through 2024. This is mainly owing to the rising adoption of Internet Protocol (IP) telephony across the world. The low total cost of ownership (TCO) and major advancements in cloud communication platforms are also supporting the adoption of hosted UCaaS solutions across various industry verticals.
Based on service, telephony services emerged as the key contributor in the UCaaS market. The segment is expected to continue its lead through 2024 thanks to the growing adoption of hosted telephony as a part of enterprise UCaaS solutions.
By delivery model, stand-alone services led the UCaaS market in 2015. However, by 2024, the revenue generated by the integrated services segment is expected to surpass that by stand-alone services. The rising demand for integrated services across various businesses is likely to bring about this shift.
Asia Pacific to Present Several Opportunities for UCaaS Providers
Geographically, North America headed the global UCaaS market in 2015 and the region is expected to continue to be the leading revenue generator throughout the forecast period. This growth can be attributed to the presence of a massive tech-savvy workforce and advanced network infrastructure in the region. The demand for UCaaS is likely to increase in the coming years as vendors invest in sectors such as banking, financial services, and insurance (BFSI), consumer goods, retail, transportation and logistics, and telecom. This is likely to open up new offerings for UCaaS.
Asia Pacific is forecast to be the most rapidly growing market for UCaaS owing to the rising inclination of large companies toward UCaaS solutions. The region also presents immense opportunities for the establishment of contact center services due to a growing population proficient in the English language. Asia Pacific is a lucrative option for various businesses due to the availability of a comparatively cheaper workforce and rapid growth in emerging economies such as India and China. Campaigns such as ‘Make in India’ have led to the establishment of offices and manufacturing units in India, which is anticipated to further the need for UCaaS to stay connected with the headquarters situated at a different location. Moreover, the introduction of new mobile phones and tablets is going to increase the demand for unified communication in this region.
Cisco Systems, Inc., Avaya, Inc., IBM Corporation, Microsoft Corporation, Alcatel-Lucent SA (Nokia Networks), Unify, Inc. (Atos SE), Hewlett-Packard Development Company, L.P., Polycom, Inc., Fuze Inc., 8x8, Inc., West Corporation, Verizon Communications, and Avanade Inc. are some of the key players offering UCaaS solutions.
Unified Communication as a Service (UCaaS) is an emerging technology that is attracting the interest of enterprises and developer communities. UCaaS is a pre-integrated, permanently updated, standardized, and ready-to-go service, which results in enhanced productivity as it accelerates decision-making and business processes while lowering costs.
The research study titled “Unified Communication as a Service (UCaaS) Market [By Deployment Model (Managed, Hosted); By Services (Telephony Services, Contact Center Services, UC Application Services, Collaboration Services); By End-users (Large Enterprises, Small and Medium Enterprises (SMEs), Public Sector, Others); By Delivery Model (Stand-alone Services, Integrated Services); By Geography (North America, Europe, Asia Pacific, Rest of World (RoW)] – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2016 – 2024” provides strategic analysis of the global UCaaS market along with the market growth (size in US$ Bn*) forecast for the period from 2016 to 2024. The report includes an in-depth analysis of the market drivers, restraints, opportunities, and industry trends. It also highlights the significant growth opportunities for UCaaS in the next few years.
The report provides an extensive assessment of stakeholder strategies, and the winning imperatives in the UCaaS market. Furthermore, the report also analyzes the current and future UCaaS market potential. The report segregates the UCaaS market based on deployment model, services, delivery model, and end-users across different geographies, which include North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW).
The report segments the global UCaaS market, on the basis of deployment model, into managed deployment model and hosted deployment model. The hosted UCaaS model is further split into hosted UC Software as a Service (SaaS) model, hosted UC Platform as a Service (PaaS) model, and hosted UC Infrastructure as a Service (IaaS) model. Furthermore, the global UCaaS market is segmented into various types of services such as telephony services, contact center services, UC application services, and collaboration services. By types of delivery models, the global UCaaS market is segmented into stand-alone services delivery model and integrated (products with services) services delivery model. The global UCaaS market is also segmented on the basis of end-users into large enterprises, small and medium enterprises (SMEs), the public sector, and other end-users (hospitality, retail, logistics, and transportation, etc.).
The competitive positioning of key UCaaS vendors market included in the report provides a detailed understanding of the competitive landscape in the market. The market position of the companies is identified based on factors such as product/service portfolio mix, geographic presence, tenure (active in market since) and their recent key developments. The competitive strategies implemented by leading UCaaS vendors on a global scale are also provided within the report. The report also contains SWOT analysis of the UCaaS vendors profiled in the study.
The study analyzes the global UCaaS market, and provides revenue estimates in terms of US$ Bn for 2012 - 2015 and the market forecasts for the period from 2016 to 2024. The market forecasts are based on the analysis of existing dynamics, and their future impact. The market estimates have been analyzed by taking into account the impact of various economic, political, technological, social, and legal and the existing market dynamics influencing market growth.
The UCaaS market is moderately fragmented in nature. Cisco Systems, Inc., Avaya, Inc., IBM Corporation, Microsoft Corporation, Alcatel-Lucent SA (Nokia Networks), Unify, Inc. (Atos SE), Hewlett-Packard Development Company, L.P., Polycom, Inc., Fuze Inc., 8x8, Inc., West Corporation, Verizon Communications and Avanade Inc. are few key players offering UCaaS solutions.
The global Unified Communication as a Service (UCaaS) market has been segmented as below:
Global Unified Communication as a Service (UCaaS) Market, By Deployment Model
Global Hosted Unified Communication as a Service (UCaaS) Market, By Deployment Type
- UC Software as a Service (SaaS)
- UC Platform as a Service (PaaS)
- UC Infrastructure as a Service (IaaS)
Global Unified Communication as a Service (UCaaS) Market, By Services
- Telephony Services
- Contact Center Services
- UC Application Services
- Collaboration Services
Global Unified Communication as a Service (UCaaS) Market, By End-users
- Large Enterprise
- Small and Medium Enterprises (SMEs)
- Public Sector
Global Unified Communication as a Service (UCaaS) Market, By Delivery Model
- Stand-alone Services
- Integrated Services
Global Unified Communication as a Service (UCaaS) Market, By Geography
- North America
- Asia Pacific
- Rest of the World (RoW)