Unified Communication As A Service Market Size, Share & Trends Report

Unified Communication As A Service Market Size, Share & Trends Analysis Report By Deployment (Public Cloud, Private Cloud), By Industry Vertical (IT & Telecom, Healthcare), By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Mar, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68038-155-9
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 154

Report Overview

The global unified communication as a service market size was valued at USD 38.74 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 23.6% from 2021 to 2028. The outbreak of COVID-19 is compelling enterprises to adopt a hybrid business model. As a result, enterprises are particularly consolidating multiple communication features and enabling cross-functioning to ensure efficient collaboration. The growing number of employees working from home is also prompting companies to implement UCaaS (Unified Communication as a Service) solutions. Companies are also adopting UCaaS platforms and tools as the outbreak of the COVID-19 pandemic prompts them to reevaluate their operational costs and protect their margins amid dwindling revenues.

U.S. UCaaS market size, by deployment, 2017 - 2028 (USD Billion)

The latest technologies such as Artificial Intelligence (AI) are playing a vital role in helping organizations in achieving their digital transformation goals. AI-enabled solutions can help organizations in effortless transcriptions, intelligently tracking speakers, intuitively recording calls, understanding users’ needs, and offering relevant services. AI-enabled UCaaS solutions can also help in sentiment analysis. As such, AI-enabled UCaaS solutions can typically leverage data mining techniques to analyze discussions, reviews, and comments, direct mentions related to brands, products, and services, and help enterprises in strategizing accordingly.

The adoption of video conferencing and video communication practices gained significant traction in 2020. The trend was particularly highlighted by the rapid adoption of video conferencing and communication services offered by Microsoft Corporation; Cisco Systems, Inc.; and Zoom Video Communications, Inc.; among other vendors. For instance, Zoom Video Communications, Inc. registered a growth of 88% in 2020, thereby illustrating the growing preference for video conferencing solutions among enterprises. Video conferencing enables users to foster healthy interpersonal relationships and facilitates more efficient decision-making during meetings and conferences.

The continued rollout of high-speed 5G data networks bodes well for the growth of the market over the forecast period. The high-speed, low-latency connectivity enabled by 5G networks can significantly enhance video and audio conferencing and meetings and strengthen collaboration. The cloud-specific network function virtualization (NFV) and multi-access edge computing (MEC) capabilities offered by 5G technology for scalable and self-healing networks are particularly encouraging the adoption of UCaaS solutions, platforms, and services. The customizable user interfaces and application functions, which can potentially enhance workplace collaboration, are also expected to contribute to the growth of the market over the forecast period.

Deployment Insights

The public cloud segment accounted for the largest revenue share of over 73.0% in 2020. Public cloud technology helps in reducing lead times in testing and deploying new products. Public cloud-based deployment models offer the opportunity to deploy scalable, subscription-based UC platforms. As a result, organizations of all sizes can conveniently shift from legacy communication practices and platforms to more advanced and efficient public cloud UCaaS solutions. The growing preference among companies for a flexible environment that can potentially aid in deploying changes more efficiently is also prompting organizations to opt for public cloud-based platforms.

The private cloud deployment model is expected to offer significant growth opportunities for the market over the forecast period. Private clouds offer a greater degree of customization and enable companies to subscribe to services according to their needs and specifications. Deploying private cloud-based UCaaS solutions also benefits enterprises in the form of 24/7 support services, contracted capabilities, and service-level agreements, and guarantees more secure and personalized experiences. Several companies such as Kandy Communications, LLC offer UCaaS services to their clients and enable them to transform legacy communication applications into a private cloud deployment model.

Industry Vertical Insights

The IT and telecom segment dominated the market with a revenue share of 19.9% in 2020. The strong emphasis of several IT and telecom companies to roll out more efficient collaboration among their globally-distributed teams is driving the need to deploy UCaaS solutions. Incumbents of the IT and telecom industry often have to work with high-profile clients, such as government departments and federal organizations, which calls for secure and efficient exchange of information. The growing need for data security and privacy protection is driving the adoption of UCaaS solutions by IT and telecom companies.

Global UCaaS market share, by industry vertical, 2020 (%)

The healthcare industry gained a significant revenue share in 2020 as patients remain keen on striking efficient communication with healthcare officials and caregivers to obtain better care. As a result, doctors and healthcare providers also remain keen on accessing critical patient data from various sources in real-time to optimize healthcare experience and improve operational efficiency. The growing adoption of UCaaS solutions by healthcare systems, including the National Health Service (NHS), is also encouraging other regional healthcare establishments to deploy the technology at the organizational level. Regulations such as the Health Insurance Portability and Accountability Act of 1996 (HIPAA) are particularly prompting healthcare organizations to deploy private cloud UCaaS solutions to ensure adequate data security and privacy protection.

Regional Insights

North America dominated the global market in 2020 with a revenue share of over 31.0%. Given that the U.S. has been among the worst-affected countries by the outbreak of the COVID-19 pandemic, government bodies, healthcare providers, and offline and online distribution channels in the U.S. are looking forward to efficient communication and collaboration to ensure adequate care and diagnosis. This is driving the adoption of UCaaS solutions in the U.S.

Asia Pacific is expected to witness substantial growth over the forecast period owing to the continued digitization and the growing mobile workforce in the region. An aggressive rollout of high-speed internet at affordable tariffs and rapid smartphone proliferation in the region are particularly allowing people to work remotely and subsequently encouraging enterprises to opt for UCaaS solutions. Furthermore, the presence of a significant AI-development hub in several Asian countries, including Singapore, has led to the rise of several startups that offer AI-related services to clients across the globe. This is typically driving the adoption of UCaaS solutions and platforms in the region and is expected to contribute to the growth of the market over the forecast period.

Key Companies & Market Share Insights

Incumbents of the UCaaS market are diversifying their service offerings and ensuring a better user experience as part of the efforts to strengthen their market share. For instance, in December 2020, 8x8, Inc. announced new features to its Open Communications Platform, which helps organizations in optimizing employee productivity and accelerating digital workplace initiatives via a microservices architecture. Similarly, in April 2020, Verizon acquired Blue Jeans Network, Inc. to combine its UCaaS offerings with Blue Jeans Network, Inc.’s meeting platform and provide better services to users. Integration of AI capabilities with UCaaS technology has been one of the significant trends being followed by several companies, such as Microsoft Corporation and Verizon, to improve their respective service offerings.

Service providers are putting a strong emphasis on innovation and new product launches to open new revenue generation channels. They have also started offering a Communication Platform as a Service (CPaaS) to their customers, thereby helping companies in connecting people with services, processes, and applications. For instance, ALE International offers products related to UCaaS and CPaaS to customers looking for more efficient communication and collaboration among employees, people outside the company, and other clients. This is allowing end users to subscribe to services according to their changing needs and requirements. Some prominent players in the global unified communication as a service (UCaaS) market include:

  • 8x8 Inc.

  • Amazon.com, Inc.

  • Avaya Inc.

  • CenturyLink, Inc.

  • Cisco Systems, Inc.

  • Fuze, Inc.

Unified Communication As A Service Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 47.64 billion

Revenue forecast in 2028

USD 210.07 billion

Growth Rate

CAGR of 23.6% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Report coverage

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

Segments covered

Deployment, industry vertical, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

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

Key companies profiled

8x8 Inc.; Amazon.com, Inc.; Avaya Inc.; CenturyLink, Inc.; Cisco Systems, Inc.; Fuze, Inc.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global unified communication as a service (UCaaS) market report based on deployment, industry vertical, and region:

  • Deployment Outlook (Revenue, USD Billion, 2017 - 2028)

    • Public Cloud

    • Private Cloud

  • Industry Vertical Outlook (Revenue, USD Billion, 2017 - 2028)

    • Automotive

    • Education

    • Healthcare

    • BFSI

    • Hospitality

    • Real Estate

    • Legal

    • IT & Telecom

    • Others

  • Regional Outlook (Revenue, USD Billion, 2017 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • MEA

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