UCaaS market to reach US$85.7 billion by 2031, driven by remote working
The global Unified Communication as a Service (UCaaS) market is expected to create phenomenal growth opportunities by exhibiting a CAGR of around 14.5% between 2021 and 2031, according to new research from Future Market Insights.
The global market revenue was around US$19.6 billion in 2020 and the overall market is predicted to reach US$85.7 billion by 2031.
The demand for UCaaS solutions will accelerate with the top five providers holding around 36.5% of the total market in 2020. Unified Communications as a Service delivers on that vision with resilient, cloud-based solutions that can be deployed more quickly — and for less — than an on-premises solution.
According to the newly released data on the UCaas demand outlook, it indicated 12.8% year-on-year growth in 2021. Among several industrial verticals, the prominent share is held by the BFSI sector among all the sectors. However, the IT & telecom segment will grow at 18.1% CAGR through the assessment period. Due to the surging demand for UCaaS from several large as well as small and medium enterprises (SMEs) can be attributed to the proliferation of mobility and Bring Your Own Device (BYOD) trends.
The UCaaS demand is estimated to rise at 14.5% CAGR between 2021 and 2031 in comparison to the 10.7% CAGR registered during 2016-2020. Growth opportunities for the UCaaS market have been created by the implementation of hosted solutions by enterprises to reduce costs and improve productivity. Furthermore, the advantages of UCaaS over Unified Communication in terms of ROI, business continuity, speed, and flexibility are the factors increasing the popularity of UCaaS solutions.
Since its inception, unified communications (UC), has emerged as a cost-effective solution for various industries, such as healthcare, retail & CPG, and BFSI among others. For savvy IT and business leaders, present-day communications are already in the cloud. With the rise of 100% remote workforces, virtual teams need to be totally integrated, so they can connect and collaborate with all the tools necessary to do their jobs.
UCaaS is known to steal centre stage as a significant increase in the adoption of cloud solutions and services has been witnessed with each passing year. The demand for UCaaS is rising as businesses around the globe are looking to have more unified communications capabilities to ensure their ability to get work done and to acknowledge the cost and productivity benefits of cloud communications.
Over the past few years, the continuous digitising of workspaces has increased the demand for remote solutions, which is further creating opportunities for the implementation of UCaaS solutions. In addition to that, the rising demand for mobile devices, applications, and a variety of collaboration tools is enabling employees to connect across geographies, platforms, and devices. This further is transforming IT consumption trends and increasing the adoption of cloud computing and UCaaS solutions.
Over the recent years, a significant surge has been witnessed in the adoption of integrated UCaaS platforms owing to the current remote working mandates. Thus, the demand for UCaaS is estimated to grow around 10.3% to 12.8% Y-o-Y from 2019 to 2021.
Since more and more employees are opting for work from home, video conferencing, web conferencing, collaborative meetings, mobile telephony, and VoIP phone systems have become some of the most sought-after tools.
Intense competition and growing customer expectations have been witnessed in the global Unified Communication as a Service (UCaaS) Market, which is expected to present some compelling solutions to innovate and improve customer engagement. The accelerated shift by customers to cloud communication is creating a demand for enhanced user productivity and flexibility and is creating opportunities for advanced communications and collaboration tools.
North America is expected to dominate the global UCaaS market over the projection period. The U.S. is anticipated to account for around 83% of the North American share through 2031. The UCaaS demand in the U.S. is projected to offer the most lucrative opportunity for revenue generation over the forecast period. The presence of various key players in the U.S. and the proliferation of trends such as Work from Home (WFH) and Bring-Your-Own-Device (BYOD) are some of the key factors encouraging the adoption of UCaaS solutions in the country.