Unified Communication as a Service (UCaaS) Market - Global Outlook & Forecast 2021-2026

Unified Communication as a Service (UCaaS) Market - Global Outlook & Forecast 2021-2026

In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this Global Unified Communication as a Service Market Report

The unified communication as a service market is expected to reach USD 87.20 Billion by 2026, growing at a CAGR of 19.25%.

The global UCaaS market is increasingly gaining momentum with the growing complexity in the organizations, increasing competition, rising focus on improving margins by minimizing cost and increasing employee satisfaction by providing mobility and flexibility. The emerging trends such as artificial intelligence, development of new technologies, rising awareness about cloud and its benefits, maturing business models, and Bring Your Own Device (BYOD) initiatives are projected to support the market growth. The UCaaS finds its application across all industries such as healthcare, telecom & IT, hospitality, healthcare, logistics, and others, and across all job functions. North America and Europe are leading the unified communication as a service market globally. During the COVID-19 period, the number of UCaaS subscribers grew significantly worldwide. In 2020, the number of UCaaS subscribers reached more than 15 million.

The following factors are likely to contribute to the growth of the Unified Communication as a service market during the forecast period:

  • Increasing penetration of 5G network and SD-WAN: Lack of proper connectivity infrastructure in several countries prevents organizations from adopting cloud-based communications.
  • Growing trend towards BYOD (Bring Your Own Device): The enterprises across countries are increasingly focusing on productivity and providing employees complete mobility to work at their convenience.
  • Advancement in AI-based technology: Artificial Intelligence integration with UCaaS provides various benefits to businesses in terms of automation, minimizing manual work, and enhancing the productivity of organizations.
Key Highlights
  • The global COVID-19 pandemic has positively affected the unified communication as a service market and provided many growth opportunities to UCaaS vendors worldwide, resulting in a more than 85% increase in UCaaS sales worldwide.
  • High connectivity plays a vital role in cloud-based communication. The increasing penetration of 5G networks in several countries worldwide is expected to boost the adoption of 5G networks across various organizations for better productivity. This is likely to grow the demand for UCaaS in the market.
  • The culture of Bring Your Own Devices (BYOD) is increasingly becoming popular in various organizations that are encouraging enterprises to embrace the unified communication solution. In today’s competitive scenario, organizations are required to be highly flexible and provide mobility to employees to be productive and be ahead of the competitors.
Segmentation Analysis
  • Telephony holds the highest share of 41.73% in the UCaaS market based on components. This is because of the huge importance attached to connecting with individuals at any time and at any place over call. Cloud-based telephony also helps in saving costs related to on-site PBX systems, which require installation and maintenance services. These reasons are likely to increase demand for telephony cloud services during the forecast period.
  • Large enterprises are dominating the UCaaS market share, holding 61.45%. When it comes to SMEs, traveling for various business purposes frequently gets costly, making video conferencing the best alternative.
  • The dependence on multiple communication systems remains high in the BFSI sector for increased customer engagement and better support.
  • The retail industry is no longer limited to offline channels as many of the masses prefer online shopping. As a result, there is a need for customer service throughout the day. UCaaS provides an omnichannel initiative and enables the customer support team to handle queries through various mediums.
By Category
  • Large Enterprises
  • Small & Medium Enterprises
By Component
  • Telephony
  • Conferencing
  • Unified Messaging
By Industry Vertical
  • Telecom & IT
  • Healthcare
  • Banking, Financial Services & Insurance
  • Retail & Consumer Goods
  • Education
  • Transportation & Logistics
  • Travel & Hospitality
Geographical Analysis
  • In 2020, North America dominated the unified communication as a service market accounting for 31.71% share by revenue in the global market. Highly skilled labor, a high technology-driven population, and many enterprises are the significant elements that have led to such huge demand in the region.
  • Europe accounted for the second-largest share of 27.30% by revenue in 2020 due to the high penetration of the hospitality sector.
  • The primary reason for the growth in demand in the APAC region is the presence of small-scale industries whose focus is to make their business process cost-efficient.
By Geography
  • Europe
  • APAC
  • North America
  • Latin America
  • Middle East & Africa
Vendor Analysis
  • The key leading vendors in the global UCaaS market include RingCentral, Mitel, 8×8, LogMeIn, Cisco, Fuze, and more. Microsoft and Zoom lagged in UCaaS solution in 2019 but witnessed a significant growth rate in 2020 and crossed more than a million subscribers.
  • The majority of the prominent UCaaS vendors are concentrated in the United States, while few are in Europe. The competition between vendors exists based on product development, security, services, and pricing. Vendors are using new business models and focusing on developing the portfolio of their establishments to drive growth.
Prominent Vendors
  • 8×8
  • Cisco
  • Google
  • LogMeIn
  • Microsoft
  • Mitel
  • RingCentral
  • Vonage
Other Prominent Vendors
  • Alcatel Lucent Enterprise
  • Cloud Connect
  • Dialpad
  • Digerati Technologies
  • Fuze
  • Intrado
  • Masergy
  • Nextiva
  • NTT Communications
  • Orange SA
  • Revation Systems
  • Starblue
  • Verizon
  • Windstream
  • Zoom
KEY QUESTIONS ANSWERED:

1. How big is the unified communication as a service (UcaaS) Market?

2. What are the market opportunities and latest trends in unified communication as a service market?

3. What is the usage of unified communication as a service in different industries?

4. What is the impact of COVID-19 in the unified communication as a service market?

5. What are the various vendor distribution channels for unified communication as a service?


1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.1.1 Inclusions
4.1.2 Exclusions
4.1.3 Market Estimation Caveats
4.2 Base Year
4.3 Scope of The Study
4.4 Market Segments
4.4.1 Market Segmentation by Component
4.4.2 Market Segmentation by Organization Size
4.4.3 Market Segmentation by Industry Vertical
4.4.4 Market Segmentation by Geography
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Market at a Glance
7 Introduction
7.1 Overview
7.1.1 UCaaS v/s On-Premises Unified Communication (UC)
7.2 Functioning of UCaaS
7.3 UCaaS Architectures
7.3.1 Single-Tenancy Model
7.3.2 Multi-Tenancy Model
7.3.3 Hybrid Model
7.4 UCaaS in Various Departments
7.4.1 Marketing
7.4.2 Production
7.4.3 Sales
7.4.4 Customer Service
7.6 Impact Of COVID-19
8 Market Opportunities & Trends
8.1 Increasing Penetration Of 5G Network & SD-Wan
8.2 Growing Trend of Bring Your Own Device (BYOD)
8.3 Advances in AI-Based Technologies
9 Market Growth Enablers
9.1 Usage Across Industries
9.2 Lower Total Cost of Ownership (TCO)
9.3 Remote Working and Distance Learning
10 Market Restraints
10.1 Vulnerable to Security Concern
10.2 Susceptible to Several Barriers
11 Market Landscape
11.1 Market Overview
11.2 Distribution Channel Analysis
11.3 Demand Insights
11.4 Market Size & Forecast
11.5 Five Forces Analysis
11.5.1 Threat of New Entrants
11.5.2 Bargaining Power of Suppliers
11.5.3 Bargaining Power of Buyers
11.5.4 Threat of Substitutes
11.5.5 Competitive Rivalry
12 Use Cases
12.1 Case Study 1
12.1.1 UCaaS solutions from RingCentral helps Insurance Client Offer the Best Customer Service & High Employee Satisfaction
12.2 Case Study 2
12.2.1 Education Industry client deploy Mitel UCaaS to save cost on in-house equipment
12.3 Case Study 3
12.3.1 A Retail Client Deployed RingCentral UCaaS to Transform Its IT Infrastructure to Cloud, Provide Flexibility to Employees, and Save Costs
13 Component
13.1 Market Snapshot & Growth Engine
13.2 Market Overview
13.3 Telephony
13.3.1 Market Overview
13.3.2 Market Size & Forecast
13.3.3 Market by Geography
13.4 Conferencing
13.4.1 Market Overview
13.4.2 Market Size & Forecast
13.4.3 Market by Geography
13.5 Unified Messaging
13.5.1 Market Overview
13.5.2 Market Size & Forecast
13.5.3 Market by Geography
14 Organization Size
14.1 Market Snapshot & Growth Engine
14.2 Market Overview
14.3 Large Enterprises
14.3.1 Market Overview
14.3.2 Market Size & Forecast
14.3.3 Market by Geography
14.4 Small and Medium Enterprises
14.4.1 Market Overview
14.4.2 Market Size & Forecast
14.4.3 Market by Geography
15 Industry Vertical
15.1 Market Snapshot & Growth Engine
15.2 Market Overview
15.3 Telecom & IT
15.3.1 Market Overview
15.3.2 Market Size & Forecast
15.3.3 Market by Geography
15.4 Healthcare
15.4.1 Market Overview
15.4.2 Market Size & Forecast
15.4.3 Market by Geography
15.5 Banking, Financial Services & Insurance
15.5.1 Market Overview
15.5.2 Market Size & Forecast
15.5.3 Market by Geography
15.6 Retail and Consumer Goods
15.6.1 Market Overview
15.6.2 Market Size & Forecast
15.6.3 Market by Geography
15.7 Education
15.7.1 Market Overview
15.7.2 Market Size & Forecast
15.7.3 Market by Geography
15.8 Transportation & Logistics
15.8.1 Market Overview
15.8.2 Market Size & Forecast
15.8.3 Market by Geography
15.9 Travel and Hospitality
15.9.1 Market Overview
15.9.2 Market Size & Forecast
15.9.3 Market by Geography
15.10 Other Industry Vertical
15.10.1 Market Overview
15.10.2 Public Sector
15.10.3 Media & Entertainment
15.10.4 Manufacturing
15.10.5 Market Size & Forecast
15.10.6 Market by Geography
16 Geography
16.1 Market Snapshot & Growth Engine
16.2 Geographic Overview
17 North America
17.1 Market Overview
17.2 Market Size & Forecast
17.3 Component
17.3.1 Market Size & Forecast
17.4 Organization Size
17.4.1 Market Size & Forecast
17.5 Industry Vertical
17.5.1 Market Size & Forecast
17.6 Key Countries
17.6.1 US: Market Size & Forecast
17.6.2 Canada: Market Size & Forecast
18 Europe
18.1 Market Overview
18.2 Market Size & Forecast
18.3 Component
18.3.1 Market Size & Forecast
18.4 Organization Size
18.4.1 Market Size & Forecast
18.5 Industry Vertical
18.5.1 Market Size & Forecast
18.6 Key Countries
18.6.1 UK: Market Size & Forecast
18.6.2 Germany: Market Size & Forecast
18.6.3 France: Market Size & Forecast
18.6.4 Spain: Market Size & Forecast
18.6.5 Italy: Market Size & Forecast
19 APAC
19.1 Market Overview
19.2 Market Size & Forecast
19.3 Component
19.3.1 Market Size & Forecast
19.4 Organization Size
19.4.1 Market Size & Forecast
19.5 Industry Vertical
19.5.1 Market Size & Forecast
19.6 Key Countries
19.6.1 China: Market Size & Forecast
19.6.2 India: Market Size & Forecast
19.6.3 Japan: Market Size & Forecast
19.6.4 Australia: Market Size & Forecast
19.6.5 South Korea: Market Size & Forecast
20 Middle East and Africa
20.1 Market Overview
20.2 Market Size & Forecast
20.3 Component
20.3.1 Market Size & Forecast
20.4 Organization Size
20.4.1 Market Size & Forecast
20.5 Industry Vertical
20.5.1 Market Size & Forecast
20.6 Key Countries
20.6.1 Saudi Arabia: Market Size & Forecast
20.6.2 UAE: Market Size & Forecast
20.6.3 South Africa: Market Size & Forecast
21 Latin America
21.1 Market Overview
21.2 Market Size & Forecast
21.3 Component
21.3.1 Market Size & Forecast
21.4 Organization Size
21.4.1 Market Size & Forecast
21.5 Industry Vertical
21.5.1 Market Size & Forecast
21.6 Key Countries
21.6.1 Brazil: Market Size & Forecast
21.6.2 Mexico: Market Size & Forecast
21.6.3 Rest of Latin America: Market Size & Forecast
22 Competitive Landscape
22.1 Competition Overview
23 Key Company Profiles
23.1 8×8
23.1.1 Business Overview
23.1.2 Product Offerings
23.1.3 Key Strategies
23.1.4 Key Strengths
23.1.5 Key Opportunities
23.2 Cisco
23.2.1 Business Overview
23.2.2 Product Offerings
23.2.3 Key Strategies
23.2.4 Key Strengths
23.2.5 Key Opportunities
23.3 Google
23.3.1 Business Overview
23.3.2 Product Offerings
23.3.3 Key Strategies
23.3.4 Key Strengths
23.3.5 Key Opportunities
23.4 Logmein
23.4.1 Business Overview
23.4.2 Product Offerings
23.4.3 Key Strategies
23.4.4 Key Strengths
23.4.5 Key Opportunities
23.5 Microsoft
23.5.1 Business Overview
23.5.2 Product Offerings
23.5.3 Key Strategies
23.5.4 Key Strengths
23.5.5 Key Opportunities
23.6 Mitel
23.6.1 Business Overview
23.6.2 Product Offerings
23.6.3 Key Strategies
23.6.4 Key Strengths
23.6.5 Key Opportunities
23.7 Ringcentral
23.7.1 Business Overview
23.7.2 Product Offerings
23.7.3 Key Strategies
23.7.4 Key Strengths
23.7.5 Key Opportunities
23.8 Vonage
23.8.1 Business Overview
23.8.2 Product Offerings
23.8.3 Key Strategies
23.8.4 Key Strengths
23.8.5 Key Opportunities
24 Other Prominent Vendors
24.1 Alcatel Lucent Enterprise
24.1.1 Business Overview
24.1.2 Product Offerings
24.2 Cloud Connect Communications
24.2.1 Business Overview
24.2.2 Product Offerings
24.3 Dialpad
24.3.1 Business Overview
24.3.2 Product Offerings
24.4 Digerati Technologies
24.4.1 Business Overview
24.4.2 Product Offerings
24.5 Fuze
24.5.1 Business Overview
24.5.2 Product Offerings
24.6 Intrado
24.6.1 Business Overview
24.6.2 Product Offerings
24.7 Masergy
24.7.1 Business Overview
24.7.2 Product Offerings
24.8 Nextiva
24.8.1 Business Overview
24.8.2 Product Offerings
24.9 NTT Communications
24.9.1 Business Overview
24.9.2 Product Offerings
24.10 Orange SA
24.10.1 Business Overview
24.10.2 Product Offerings
24.11 Revation Systems
24.11.1 Business Overview
24.11.2 Product Offerings
24.12 Starblue
24.12.1 Business Overview
24.12.2 Product Offerings
24.13 Verizon
24.13.1 Business Overview
24.13.2 Product Offerings
24.14 Windstream
24.14.1 Business Overview
24.14.2 Product Offerings
24.15 Zoom
24.15.1 Business Overview
24.15.2 Product Offerings
25 New Developments
25.1 Mergers, Acquisitions and Partnerships
25.2 New Product Launches
26 Report Summary
26.1 Key Takeaways
26.2 Strategic Recommendations
27 Quantitative Summary
27.1 Geography
27.1.1 Market Size & Forecast (Value)
27.1.2 Market Size & Forecast (% Revenue)
27.2 North America
27.2.1 Component: Market Size and Forecast
27.2.2 Organization Size: Market Size & Forecast
27.2.3 Industry Vertical: Market Size & Forecast
27.3 Europe
27.3.1 Component: Market Size and Forecast
27.3.2 Organization Size: Market Size & Forecast
27.3.3 Industry Vertical: Market Size & Forecast
27.4 APAC
27.4.1 Component: Market Size and Forecast
27.4.2 Organization Size: Market Size & Forecast
27.4.3 Industry Vertical: Market Size & Forecast
27.5 Middle East & Africa
27.5.1 Component: Market Size and Forecast
27.5.2 Organization Size: Market Size & Forecast
27.5.3 Industry Vertical: Market Size & Forecast
27.6 Latin America
27.6.1 Component: Market Size and Forecast
27.6.2 Organization Size: Market Size & Forecast
27.6.3 Industry Vertical: Market Size & Forecast
27.7 Component
27.7.1 Market Size and Forecast
27.8 Organization Size
27.8.1 Market Size & Forecast
27.9 Industry Vertical
27.9.1 Market Size & Forecast
28 Appendix
28.1 Abbreviations

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