UCaaS market to reach $24.3 billion by 2026
The global Unified Communications as a Service (UCaaS) market size was valued at $13.8 billion in 2019 and is anticipated to reach $24.3 billion at a CAGR of 8.4% from 2020 to 2026, according to Valuates Reports.
Many businesses use UCaaS as it streamlines communication to enhance business processes and thereby improves revenue. The rising demand for UCaaS and its increasing adoption in small and medium-sized enterprises are factors that contribute greatly to the growth. Furthermore, the cost-efficiency of UCaaS and its pay-per-use characteristics drive the demand as well.
Trends influencing UCaaS market size
The key factors driving the growth of the UCaaS market size include increasing UCaaS demand from large and medium-sized enterprises and the trends towards mobility and BYOD.
Factors such as developments in artificial intelligence, machine learning, and other emerging technologies will generate ample opportunities for the growth of UCaaS market size. AI-powered technologies have allowed organizations to record calls intuitively, encourage effortless transcriptions and intelligently monitor speakers to recognize user needs, and provide relevant services. In addition, service providers have begun providing conversational-AI powered solutions for better machine guidance, data interpretation, and faster processing of information.
Nowadays, several businesses are planning to put forward their own devices (BYOD) services for their employees. This initiative by organizations is expected to, in turn, increase the UCaaS market size.
Rising adoption of the private cloud model to safeguard confidential information by the BFSI sector is expected to increase the UCaaS maker size during the forecast period. In addition, unified communication as a service enables financial firms to exercise scalability that is essential for large-scale implementation, such as account monitoring integration, telephone assistance, chatbot-enabled messaging, and mobile transactions. The introduction of cloud technologies also promotes versatility and reduces total expense and time while improving customer experience.
Increasing tablet and smartphone adoption, combined with the ongoing implementation of 5G technology, is expected to fuel the growth of UCaaS market size during the forecast period. COVID-19 has positively impacted the UCaaS market.
UCaaS market share analysis
Component-based, telephony, and conference segments are expected to hold the largest UCaaS market share during the forecast period. Because of the growing demand from SMEs, vendors around the globe offer telephony and conferencing as the main commodity, as these solutions help them streamline their business communication and improve productivity.
Based on organization types, the large enterprise segment is expected to dominate the UCaaS market size during the forecast period. Major companies around the world are adopting BYOD patterns, and therefore a growing number of mobile employees are being hired, leading to increased demand for UCaaS solutions.
Based on the region, North America is projected to hold the largest UCaaS market share. This dominance is attributed to the growing adoption of technology by North American businesses to increase productivity and the presence of a large number of UCaaS vendors.
The Asia Pacific, on the other hand, is projected to exhibit the fastest CAGR. This is due to increasing smartphone penetration and a large user population. Emerging economies, namely Japan, China, and India, will contribute to market development in this region. But development in this area may be hindered by growing security and data privacy issues.