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Unified Communications (UC) Market Trends, 2025 | Industry Report

Unified Communications Market Analysis Report By Product, By Application, By Organization Size, By Solution, By Region And Segment Forecasts From 2019 To 2025

Report ID: MN17618450  |  Published: October 2020  |  No of Pages: 126
Format: Electronic (PDF)  |  Industry: Telecommunications & Networks  |  Publisher: Grand View Research

Industry Insights

The global unified communications (UC) market size was accounted for USD 56.33 billion in 2018 and projected to grow with a CAGR of 16.8% over the forecast period, from 2019 to 2025. UC solutions provide real-time access to services such as conferencing, phone communications, data sharing, and messaging from several devices to enterprise employees, thereby improve streamlining business processes. Integration of several technologies such as artificial intelligence with unified communication solutions has positively impacted organizations to achieve their digitalization goal.

Integration of machine learning and AI technologies in the communication sector has enhanced team collaboration and enables machine-to-human interaction. AI technology is constantly changing enterprise workflow structure. AI is replacing voice calls with virtual assistants and bots. For example, in 2018, Cisco Systems, Inc. has announced a plan for expanding its UC solutions folio by integrating AI technology into the UC platform.

U.S. unified communications market

The growing adoption of the Internet of Things (IoT) has allowed the enterprise to integrate their data and devices with IoT tools which have led to an autonomous work environment. For example, sensors used in organization’s meeting rooms can track the number of employees, the system used, and duration of meetings. This insight helps organizations to evaluate room spend.

Large enterprises are rapidly adopting Unified Communication-as-a-Service (UCaaS) that combines various communication channels like chat, e-mail, text, and voice, thereby offering multiple solutions. UCaaS bundles proved cost-effective solution than a single UC solution. This factor has influenced organizations to opt for bundled services. The growing need to reduce operational costs and eliminate the purchase of a standalone system is expected to propel the unified communications market growth.

Product Insights

By product, the market is segmented into on-premise and hosted. In 2018, the on-premise segment led the market wherein the demand for on-premise solutions is projected to decrease over the forecast period owing to the high initial investment. In addition, this solution requires the additional cost of training employees for efficient management and operation of UC software solutions.

In 2018, the hosted UC segment held a market share of more than 45% in terms of revenue. An increase in the number of organizations across the globe has witnessed the high adoption of cloud-based solutions to manage telephony services efficiently from different locations.

Moreover, cloud-based UC enables users to access real-time applications and better team collaboration. Thus, the rising need for monitoring and managing UC solutions from a centralized dashboard is projected to boost segment growth. Industry players like Cisco Systems Inc. and Avaya Inc. are offering cloud-based unified communication solutions and delivered for private, hybrid, and public models. These factors are expected to propel the demand for hosted solutions in the next few years.

Application Insights

By application, the UC market is segmented into government, enterprises, education, healthcare, and others. In 2018, the enterprise's segment dominated the market and accounted for over 50% market share. The growing adoption of UC in enterprises to offer communication tools, collaboration portals, and web conferencing is expected to drive the segment growth. In recent years, enterprises are adopting advanced technologies for business operations rather than document-focused work styles. Companies are using network convergence, UC for realizing a digital workplace, and Internet Protocol (IP) telephony.

In 2018, the healthcare segment held more than a 12% market share due to the increasing need for physicians to access data from any location and to improve `patient safety. UC enables medical professionals to provide consultation services through video conferencing and collaborate with their teams.

Organization Size Insights

Based on the organization size, the market is segmented into small and medium enterprises (SMEs) and large enterprises. In 2018, SMEs accounted for a market share of around 20%. In SMEs, the deployment of unified communication solutions is expected to increase during the forecast period. Due to a low budget for deploying bundled UC solutions across SMEs, they are adopting cloud-based UC solutions for the short term to validate and test the benefits of its product type. This solution also enables SMEs to hire resources from different locations where employees can take advantage of Bring Your Own Device (BYOD).

The adoption of UC solutions helps organizations in improving business processes, developing new workflow patterns, reducing human latency times, and increasing collaboration through virtual teams. Moreover, for the deployment of UC, SMEs prefer voice-over managed/unmanaged IP PBX or voice-over broadband while large enterprises prefer Private Branch Exchange (IP PBX).

Solution Industry Insights

By solution, the unified communication market is segmented into audio & video conferencing, instant & unified messaging, IP telephony, and others. In 2018, the instant & unified messaging segment held the largest market share of more than 35% in terms of revenue. This solution allows organizations to access fax, e-mail messaging, and voice mail solutions in a single bundle. In addition, users can access this solution from mobile devices, telephones, and computers. An integration of bundled unified communication solutions allows organizations to deploy UC at affordable costs which are expected to drive the market growth.

Global unified communications market

In enterprises, the growing need for visual communications is expected to propel the demand for video conferencing solutions in organizations. Video conferencing enhanced teamwork as well as business relationships across enterprises by communicating live with colleagues from remote locations. The conferencing software has proven real-time communication that allows people to integrate and communicate seamlessly with existing IT infrastructure. The AI-enabled conferencing solution is expected to drive the market growth, as it has the advantage to assign tasks automatically to employees as well as send a notification to meeting members.

Regional Insights

In 2018, North America dominated the global UC market owing to the high adoption of advanced technologies in countries such as the U.S., and Canada. In addition, the presence of a large number of market players and the growing trend of BYOD solutions are other key factors expected to drive the regional market growth over the forecast period.

The Asia Pacific market is projected to witness significant growth during the forecast period due to the growing trend of mobilization among organizations. In addition, increasing focus on reducing operational costs is also anticipated to surge the market growth in the Asia Pacific. Furthermore, sectors including business process outsourcing (BPO), government, banking, and financial services (BFS), hospitality, telecom, and logistics are adopting unified communication solutions to enable efficient communication and collaboration.

COVID-19 Impact Analysis

The market has a positive impact due to the outbreak of COVID-19 as the majority of people are working from home. This solution allowing enterprises to attend voice and video conferencing, messaging from a remote location,s and access real-time data. They can use screen sharing capability to share a presentation. Instant messaging allows for questions to be asked or comments to be made during a video call without interrupting the speaker, and is incredibly efficient when hosting a large meeting. This aspect of unified communications can also be used for file sharing. Thus, several benefits associated with the UC platform cannot affect the business operations due to the COVID-19 outbreak.

Unified Communications Market Share Insights

The key players included in this market are Microsoft Corporation; Avaya Inc.; IBM Corporation; Cisco Systems, Inc.; NEC Corporation; Plantronics Inc.; ShoreTelInc; Unify GmbH & Co. KG; and Verizon Communications Inc. Due to rising demand for the flexible workplace, these market players are offering several cloud-based unified communication services such as Instant Messaging (IM), data management, and video conferencing that helps employees in accessing and sharing information from remote locations. Companies are primarily offering cloud-based UC solutions to support live interaction through voice and video conferencing. This solution records the events for others to review later and deploy across different time zones for improving the efficiency of team members who are located at remote locations.

Report Scope

Attribute

Details

The base year for estimation

2018

Actual/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Market revenue in USD Billion and CAGR from 2019 to 2025

Regional scope

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

Country scope

U.S., Canada, Mexico, U.K., Germany, China, India, Japan, South Korea, Australia, New Zealand, and Brazil

Report coverage

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

15% free customization scope (equivalent to five analyst working days)

If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization


Segments Covered in the Report
 

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Million Insights has segmented the global unified communications market report based on product, solution, organization size, application, and region:

• Product Outlook (Revenue, USD Billion, 2014 - 2025)
    • Hosted
    • On-premise

• Application Outlook (Revenue, USD Billion, 2014 - 2025)
    • Enterprises
    • Education
    • Government
    • Healthcare
    • Others

• Organization Size Outlook (Revenue, USD Billion, 2014 - 2025)
    • SMEs
    • Large Enterprises

• Solution Outlook (Revenue, USD Billion, 2014 - 2025)
    • Instant and Unified Messaging
    • Audio & Video Conferencing
    • IP Telephony
    • Others

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)
    • North America
        • U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • U.K.
    • the Asia Pacific
        • China
        • India
        • Japan
        • South Korea
        • Australia
        • New Zealand
    • South America
        • Brazil
    • MEA

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