Unified Communications (UC) Market Size By Application (Education, Enterprise, Healthcare, Government), By Product (Hosted/Unified Communications as a Service (UCaaS), On-Premise), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2016 - 2023
Published Date: January 2017 | 82 Pages | Report ID: GMI402 Report Format: PDF
(UC) Unified Communications Market size was over USD 34.80 billion in 2015 with 13.2% CAGR estimation from 2016 to 2023.
Europe Unified Communications Market size, by application, 2012-2023 (USD Billion)
Considerable growth across the BYOD market across enterprises owing to the significant demand for mobility is anticipated to drive unified communications market size over the forecast timeline. Rising number of devices that employees use to communicate have fuelled the demand for unified communication solutions to allow the flexibility to access multiple interfaces by using any desired device such as smartphones or tablets.
These solutions have become crucial for enterprise and consumer segment. Consumers and employees have become extremely dependent on their mobile devices and expect superior quality, real time notifications and assistance leading to increase in demand for cloud-based UC services. Such services are required to streamline workflow & employee performance and offer enhanced consumer satisfaction.
Increasing trend of UC as a collaborative communication platform is anticipated to drive the unified communications market size. Industry players are increasingly leveraging cloud API providers such as Twilio, and TokBox to add communication functions to their applications and increase the productivity. Organizations are encouraging cross-team collaboration & knowledge sharing leading to increase in adoption unified communications & collaboration solutions. Moreover, demand for one unified platform that allow users to access all the features such as document sharing, instant messaging, document collaboration, and video conferencing, among others that results in increased productivity may contribute to the unified communications market size.
Hosted or cloud based unified communications market share is anticipated to witness significant growth at over 16% CAGR from 2016 to 2023 owing to factors such as low costs, enhanced scalability and increased flexibility. On-premise solutions lack the scalability and agility, thereby witnessing decline in the revenue share. Rising focus on reducing capital outlay for software and hardware and simplify network and telecommunications operations are amongst the major factors boosting the adoption of hosted service.
Moreover, in order to eliminate the difficulties involved in deployment and need to be managed and maintained by in-house IT department, organizations are turning to the outsourcing model, contributing to the UC market size.
Enterprises occupied more than 60% of the unified communications market share in 2015, with a similar trend forecast over the next few years. This can be attributed to the increase in demand for scalability in business operations and flexibility to access the several communication channels to increase the productivity.
Government applications are set to grow at over 14.5% CAGR from 2016 to 2023. Technological advancements and steadily shrinking government budgets are forcing government organizations and agencies to adopt cloud-based technology tools such to improve the overall operational efficiency and productivity. The unified communications market in this sector is driven by lower infrastructure costs, reduced IT burden and integration with existing telephony infrastructure that allow government organizations to improve their communication and collaboration strategies.
U.S. unified communications market share is responsible for high revenue generation in North America. Increasing adoption of advanced IT technologies and innovative communication solutions across industry verticals including enterprise, government, and healthcare to improve business agility, productivity, and competitive positioning are expected to drive the regional growth over the forecast period.
Increasing penetration of mobile devices and 4G LTE is driving the demand for UCaaS market across Asia Pacific. A stringent regulatory scenario may pose a challenge to the regional industry in the coming years.
Competitive Market Share
Key industry players Avaya Inc, Microsoft Corporation, Cisco Systems, and Alcatel-Lucent. Other prominent players include IBM Corporation, NEC Corporation, ShoreTel, Siemens, among others. The UC market is witnessing the trend towards consolidation with several players in the market undergoing mergers and acquisitions such as Esna, Acano, Talko, Unify, Tropo, Glip, and Fuze, among others.
The capability of the technology to bring projection, video, and screen sharing proficiencies into comparatively small rooms and workspaces will positively impact unified communications market share. Companies including Cisco, Polycom, Tely, and Highfive provide services offering easy access to video conferencing, content sharing and screen projection. Moreover, Polycom’s new Centro platform even recommends a redesign of the meeting room.
The global unified communications market size is driven by increase in demand for UCC solutions across the enterprise segment. Vendors in the industry have recognized their customers’ demand for UC solutions and are engaged in offering customized solutions to tailor their services accordingly. Major players including Cisco and Microsoft offer dedicated hosted solutions which deliver the benefits of UC coupled with the added back-up of greater support and maintenance.
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