THE GLOBAL UNIFIED COMMUNICATION AS A SERVICE (UCaaS) MARKET SIZE IS EXPECTED TO REACH USD 87.20 BILLION BY 2026, GROWING AT A CAGR OF 19.25%.

Unified Communication as a Service Market Size, Share, & Trends Analysis Report By Component (Telephony, Conferencing, and Unified Messaging), By Organization Size (Large Enterprises and Small and Medium Enterprises), By Industry Vertical (Telecom & IT, Healthcare, BFSI, Retail & Consumer Goods, Education, Transportation & Logistics and Travel & Hospitality), By Geography (Europe, APAC, North America, Latin America, Middle East & Africa) Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021–2026

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251 Pages

79 Tables

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5 Regions

18 Countries

23 Companies

4 Market Segment

Unified Communication as a Service Market Report Scope

Report Attribute Details
MARKET SIZE (REVENUE) USD 87.20 BILLION (2026)
CAGR 19.25% (2021-2026)
Base Year 2020
Forecast Year 2021-2026
Market Segments Component (Telephony, Conferencing, and Unified Messaging), Organization Size (Large Enterprises and Small and Medium Enterprises), Industry Vertical (Telecom & IT, Healthcare, BFSI, Retail & Consumer Goods, Education, Transportation & Logistics and Travel & Hospitality)
Geographic Analysis Europe, APAC, North America, Latin America, and Middle East & Africa
Countries Covered UK, Germany, France, Spain, Italy, US, Canada, Brazil, Mexico, Rest of Latin America, Saudi Arabia, UAE, South Africa, China, India, Japan, South Korea, and Australia

GLOBAL UNIFIED COMMUNICATION AS A SERVICE (UCaaS) INDUSTRY OVERVIEW

The global Unified Communication as a Service (UCaaS) size was valued at USD 30.32 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 19.25%  to reach USD 87.20 billion by 2021.

The global UCaaS market is increasingly gaining momentum with the growing complexity in the organizations, increasing competition, rising focus on improving margins by minimizing cost, and increasing employee satisfaction by providing mobility and flexibility. The emerging trends such as artificial intelligence, development of new technologies, rising awareness about cloud and its benefits, maturing business models, and Bring Your Own Device (BYOD) initiatives are projected to support the market growth. The UCaaS finds its application across all industries such as healthcare, telecom & IT, hospitality, healthcare, logistics, and others, and across all job functions. North America and Europe are leading the unified communication as a service market globally. During the COVID-19 period, the number of UCaaS subscribers grew significantly worldwide. In 2020, the number of UCaaS subscribers reached more than 15 million.

Key Highlights

  • The global COVID-19 pandemic has positively affected the unified communication as a service market and provided many growth opportunities to UCaaS vendors worldwide, resulting in a more than 85% increase in UCaaS sales worldwide.
  • High connectivity plays a vital role in cloud-based communication. The increasing penetration of 5G networks in several countries worldwide is expected to boost the adoption of 5G networks across various organizations for better productivity. This is likely to grow the demand for UCaaS in the market.
  • The culture of Bring Your Own Devices (BYOD) is increasingly becoming popular in various organizations that are encouraging enterprises to embrace the unified communication solution. In today’s competitive scenario, organizations are required to be highly flexible and provide mobility to employees to be productive and be ahead of the competitors.
  • The demand for unified communication as a service has increased significantly due to the rise in remote working and distance learning. The companies to work more effectively and efficiently shifted towards cloud-based communication platforms. Moreover, educational institutions and e-learning companies also contributed to the growth of unified communication as a service market.
  • Based on industry vertical, the telecom & IT segment holds the largest Unified Communication as a Service Market share of 23.13%, while BFSI is expected to witness the highest growth rate with a CAGR of 23.46% during the forecast period.
  • The market for a unified communication system is slowly shifting from being concentrated with RingCentral, 8×8, Vonage, enjoying a more significant chunk of the overall share to becoming a fragmented one with several independent vendors barging in.
  • Unified communication companies have considerable opportunities to expand in the Asia Pacific region due to the expansion of manufacturing in China and the growth of small and medium enterprises (SMEs) in developing countries.

Unified Communication as a Service Market Segmentation

This research report includes a detailed segmentation by

  • Category
  • Component
  • Industry Vertical
  • Geography

Segmentation Analysis

  • Telephony holds the highest share of 41.73% in the UCaaS market based on components. This is because of the huge importance attached to connecting with individuals at any time and at any place over call. Cloud-based telephony also helps in saving costs related to on-site PBX systems, which require installation and maintenance services. These reasons are likely to increase demand for telephony cloud services during the forecast period.
  • Large enterprises are dominating the UCaaS market share, holding 61.45%. When it comes to SMEs, traveling for various business purposes frequently gets costly, making video conferencing the best alternative. As a result, although large enterprises dominate the UCaaS sales, their CAGR is lesser than SMEs.
  • The dependence on multiple communication systems remains high in the BFSI sector for increased customer engagement and better support. UCaaS provides everything from audio calling and chatbot messaging to account monitoring. Hence, this is anticipated to boost the demand for UCaaS from the BFSI industry.
  • The retail industry is no longer limited to offline channels as many of the masses prefer online shopping. As a result, there is a need for customer service throughout the day. UCaaS provides an omnichannel initiative and enables the customer support team to handle queries through various mediums. It also facilitates communication within the business. Thus, there will be an increase in demand for cloud-based communication in the retail industry
  • The share of the education industry in the unified communication as a service market has been considerably low but is witnessing continuous growth since the COVID-19 pandemic hit the industry. UCaaS enabled all the students, faculty, and management team to communicate on a single platform easily. It also facilitated sharing of notes, pdfs, and assignments online. This has contributed to the growth of the UCaaS market in the remote learning sector worldwide.

Geographical Analysis

  • In 2020, North America dominated the unified communication as a service market accounting for 31.71% share by revenue in the global market. Highly skilled labor, a high technology-driven population, and many enterprises are the significant elements that have led to such huge demand in the region.
  • Europe accounted for the second-largest share of 27.30% by revenue in 2020 due to the high penetration of the hospitality sector.
  • The primary reason for the growth in demand in the APAC region is the presence of small-scale industries whose focus is to make their business process cost-efficient.

Vendor Analysis

  • The key leading vendors in the global UCaaS market include RingCentral, Mitel, 8×8, LogMeIn, Cisco, Fuze, and more. Microsoft and Zoom lagged in UCaaS solution in 2019 but witnessed a significant growth rate in 2020 and crossed more than a million subscribers.
  • The majority of the prominent UCaaS vendors are concentrated in the United States, while few are in Europe. The competition between vendors exists based on product development, security, services, and pricing. Vendors are using new business models and focusing on developing the portfolio of their establishments to drive growth.
  • Global vendors with wide infrastructure and R&D support are rapidly expanding their footprints in the market. Thus, regional vendors find it increasingly difficult to compete with them regarding reliability, technology, and price. The competitive environment is likely to intensify with increased service extensions, technological innovations, and M&A.
  • The unified communication as a service market is slowly shifting from being concentrated with RingCentral, 8×8, Vonage, enjoying a big chunk of the overall share to becoming fragmented with a lot of small vendors rising.

The global Unified Communication as a Service market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

By Category

  • Large Enterprises
  • Small & Medium Enterprises

By Component

  • Telephony
  • Conferencing
  • Unified Messaging

By Industry Vertical

  • Telecom & IT
  • Healthcare
  • Banking, Financial Services & Insurance
  • Retail & Consumer Goods
  • Education
  • Transportation & Logistics
  • Travel & Hospitality

By Geography

  • Europe
  • APAC
  • North America
  • Latin America
  • Middle East & Africa

Frequently Asked Questions

The unified communication as a service market is projected to grow to USD 87.20 Billion by 2026.
The Increasing penetration of 5G network and SD-WAN, the growing trend towards BYOD (Bring Your Own Device), and advancement in AI-based technology are the latest trends in the market.
UCaaS is used to communicate with the healthcare staff and patients spread over different locations in the healthcare industry. In the BFSI industry, it is used to offer prompt service and a better customer experience to their digital customers.
The global COVID-19 pandemic has positively affected the market, resulting in a more than 85% increase in UCaaS sales worldwide. The IT teams were forced to move from traditional network infrastructures to cloud-based solutions that promote remote working.
In the UCaaS market, the vendors distribute their offerings through Direct channels and Indirect channels.
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