Unified Communications Market Size, Share & Trends Report

Unified Communications Market Size, Share & Trends Analysis Report By Product (On-premise, Cloud-based/Hosted), By Application (Enterprises, Education, Government, Healthcare), And Segment Forecasts, 2018 - 2024

  • Published Date: May, 2018
  • Base Year for Estimate: 2015
  • Report ID: 978-1-68038-164-1
  • Format: Electronic (PDF)
  • Historical Data: 2012 - 2014
  • Number of Pages: 92

Industry Insights

The global unified communications market size was estimated at USD 41.52 billion in 2016 and is projected to exhibit a CAGR of 16.8% over the forecast period. Rising trend of Bring Your Own Device (BYOD) in organizations has significantly contributed to market growth.

U.S. UC market

Need to consolidate all business communication modes such as messaging, email, and telephone into a single cohesive system is providing an impetus to industry growth. Moreover, use of soaring number of devices and applications along with demand for high-volume messaging, call sharing, video, and meeting capabilities have significantly contributed to industry advancement.

Rise in penetration of mobile Internet is expected to trigger the adoption of UC services. Other factors significantly contributing to market growth include availability of low-cost handsets, decreased voice calling rates, and emergence of new messaging apps. Moreover, emergence of 5G technology is expected to provide opportunities to enterprises for integrating Voice over Internet Protocol (VoIP) in their businesses. Furthermore, VoIP and UC vendors are integrating their services with enterprise software such as Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) to improve their cross-channel platform to boost sales and drive business growth.

In addition, high demand for real-time communication has encouraged vendors to offer Web Real Time-Communication (WebRTC) solutions, facilitating enhanced video streaming. Various benefits such as pay as per need, cost-effectiveness, and reduction in travel and communication cost is a result of implementation of Unified Communication as a Service (UCaaS) into businesses. It overcomes challenges of synchronous processes of geographically dispersed units.

Furthermore, UC services are gaining prominence in various industries owing to their flexible infrastructure. For instance, in the healthcare sector, need for clinical teams to quickly access data from multiple locations to improve patient safety and enhance operational performance has led to widespread adoption of these services.

Integration of voice, data, and location awareness can be a crucial strategy for healthcare professionals in situations where speed is required for processing patient information and effective decision-making. Patients suffering from multiple chronic conditions are treated by different specialists, for whom UC solutions offer better coordination and collaboration. The highly collaborative nature of modern-day healthcare is highly conducive to deploying mobile UC.

Product Insights

The hosted UC segment captured a revenue share of over 41.0% in 2016. Growing adoption across various end-use industries is expected to drive segment growth. Reduced hardware costs and requirement of less capital expenditure have encouraged enterprises to opt for hosted services rather than on-premise services. Whereas, large enterprises adopting on-premise solutions require high costs and investments in hardware, rack space, and power and cooling solutions.

On-premise solutions have been reporting significant growth in the recent past. Businesses are deploying on-premise solutions to gain instant access to their data and systems, enabling enhanced data security and privacy. Moreover, this communication model allows companies to have dedicated IT staff for support, maintenance, and custom disaster recovery procedures.

Despite its growing popularity, on-premise solutions have limitations such as restricted storage capacity, expensive hardware and software, and manual updating for new functionality and features. Moreover, cumulative adoption of software-based unified solutions is capturing the revenue share of their hardware-based UC equivalents, as demand is shifting toward independent software vendors.

Application Insights

The enterprises application segment is presumed to prevail over the forecast period, accounting for a revenue share of over 54.0% in the unified communications market in 2016. Increasing application of UCaaS among enterprises for integrating several communication applications into one universal entity is anticipated to drive industry growth over the coming years. Moreover, increasing adoption of IT and communication services in improving business processes to offer advantages such as collaboration and mobility is presumed to fuel demand over the forecast period.

Global UC market

This technology is further leveraged among enterprises and government sectors to ensure enhanced communication between distantly-located and topologically-dispersed institutions and departments. Deployment of such technology in government processes is expected to strengthen their connection with major stakeholders, including customers, partners, and employees.

UCaaS is witnessing high demand from small and medium businesses (SMBs) and large enterprises owing to increasing adoption of cloud computing, which in turn is expected to fuel industry growth in the enterprise application. Furthermore, mobile usage, coupled with rising adoption of BYOD in organizational settings, is expected to positively impact the market.

Furthermore, there exists a growing need for common communication channels between a wide range of institutions located at far off places. Implementation of these services in education application provides a single communication channel to various institutions distantly located from each other. Moreover, its implementation improves the overall communication efficiency by establishing a common channel for different communication requirements; in order improve the overall performance.

Government is another promising sector aiding to the industry growth. The sector relies on UC solutions to improve their operational efficiency and productivity. The UC helps the government in reducing IT burdens, improves their communication and collaboration strategies, and handles citizen’s requests efficiently.

Regional Insights

North America dominated the global market in 2016. The regional market was valued at over USD 12 billion in 2016. High adoption rates of advanced technologies in U.S. are presumed to drive the regional market over the forecast period. Presence of several key players, coupled with high popularity of BYOD solutions, is further contributing to market growth. The North America and European markets are characterized by presence of advanced communication infrastructure.

Europe is envisioned to emerge as the leading regional market by the end of the forecast period, surpassing North America. Rapid adoption of UCaaS application by enterprises to offer enhanced technologies such as VoIP, Long-Term Evolution (LTE), and WebRTC is expected to drive regional growth. Furthermore, telecom operators in the region are providing services to consolidate enterprise Local Area Network (LAN) with Internet Protocol (IP) networks to boost hassle-free VoIP and IP-based functions along with network security.

Asia Pacific is expected to be a promising region due to increasing trend toward mobilization of enterprises. Presence of large customer base and growing investments to boost high-speed data networks in economies such as China and India have led to favorable demand for unified communication systems.

Unified Communications Market Share Insights

Key players in the industry include Microsoft Corporation; Alcatel-Lucent S.A.; Avaya Inc.; and Cisco Systems, Inc. Players provide extensive UC solutions to offer consistent end-use experience. Lately, companies have been focused on providing cloud-based UC solutions owing to growing transition toward multi-model interaction with video, voice, and messaging. For instance, Cisco Systems Inc. provides Cisco Hosted Collaboration Solution (HCS) that helps enterprises deploy UC in their businesses.

Companies are engaging in collaborations and acquisitions to maintain their market presence. For instance, in April 2016, NEC Corporation and Hewlett Packard Enterprise entered into a collaboration to develop solutions jointly, thereby capturing new opportunities in key geographies. This alliance has enabled companies to quickly accelerate adoption of mobile-first networking to improve workplace productivity.

In January 2016, Microsoft Corporation acquired technology assets of Event Zero for UC commander solutions. This acquisition has allowed Microsoft Corporation to enhance and expand built-in management tools for Skype for Business.

Report Scope

Attribute

Details

Base year for estimation

2015

Actual/Historical data

2012 - 2014

Forecast period

2016 - 2024

Market representation

Market revenue in USD Billion, CAGR from 2016 to 2024

Regional scope

North America, Europe, Asia Pacific, South America, and MEA

Country scope

U.S., Canada, Mexico, Germany, U.K., China, India, Japan, Brazil

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2012 to 2024. For the purpose of this study, Grand View Research has segmented the global unified communications market report based on product, application, and region:

  • Product Outlook (Revenue, USD Billion, 2012 - 2024)

    • Cloud-based/Hosted

    • On-premise

  • Application Outlook (Revenue, USD Billion, 2012 - 2024)

    • Enterprises

    • Education

    • Government

    • Healthcare

    • Others

  • Regional Outlook (Revenue, USD Million, 2012 - 2024)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • South America

      • Brazil

    • MEA

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