Unified Communications and Collaboration (UCC) Market Size worth $60bn by 2026
Published Date: January 29, 2020 Authors: Ankita Bhutani, Preeti Wadhwani
Unified Communications and Collaboration (UCC) Market size is set to reach USD 60 billion by 2026, according to a new research report by Global Market Insights, Inc.
UCC market growth is supported by the increasing emphasis of enterprises on leveraging UCC as a service to control and reduce IT spending. Upgrading traditional communications network and infrastructure is becoming highly challenging in a rapidly evolving business environment due to issues of high costs and business discontinuity. To address these concerns, enterprises are leveraging cloud capabilities to extend and manage communication resources in a cost-effective manner. UCaaS shifts the enterprise’s cost of designing communication solutions to the service provider and helps enterprises in reducing operating costs by using shared data centers instead of procuring dedicated servers.
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Surging demand of multi-user connectivity is driving the market growth of conferencing solutions
The conferencing solutions segment held a UCC market share of over 15% in 2019 and is set to witness a growth rate of 10% CAGR over the forecast period. Enterprises are increasingly adopting conferencing solutions for connecting multiple users dispersed across various geographical locations, enabling users to communicate with each other on the same call. It is estimated that over 60% of the enterprises invests in video conferencing tools to reduce travel-related costs, with savings up to 25% on travelling expenses.
In conferencing solutions, the web conferencing segment contributed over 25% of the market share and is set to exhibit a growth rate of nearly 15% from 2020 to 2026. Web conferencing provides real-time and point-to-point communication coupled with multitasking communication from sender to receiver. The advantages of web conferencing are increased productivity, improved customer services, and desktop sharing. With the continuously rising uptake of conferencing tools for enhancing real-time business communications, the market is expected to exhibit a sharp increase over the forecast timeline.
Browse key industry insights spread across 300 pages with 439 market data tables and 29 figures & charts from the report, “Unified Communications & Collaboration (UCC) Market Size By Platform (Telephony [IP Phones, IP Private Branch Exchange (PBX)], Collaboration [Mobile, Social Network, Video Platform], Unified Messaging [Voicemail, Email, Fax], Conferencing [Audio, Video, Web], Services & Tools), By Deployment Model (On-premise, Cloud/Unified Communications as a Service (UcaaS), Hybrid), By Application (IT & Telecom, BFSI, Public Sector, Retail, Healthcare, Education), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Increasing uptake of on-premise solutions for better data control and security
The on-premise segment held the majority of the market with over 55% share in 2019 and is expected to witness a growth rate of nearly 5% over the forecast timeline due to the increased sense of security and better data control offered by these tools. On-premise UCC tools ensure that enterprises have accessibility to equipment anytime for troubleshooting when managing disaster recovery. In addition, enterprises retain full control over the software and hardware deployed in unified communication. The on-premise UCC solutions are rapidly being adopted for differentiation when additional custom features or applications are required to be integrated with existing systems, augmenting market growth.
Furthermore, on-premise implementations ensure that all communication data is segregated from various entities, significantly reducing the risk of unwanted data leaks or cyberattacks. For enterprises dealing with critical situations, such as healthcare organizations and security enterprises, the failure of communications infrastructure due to cloud downtimes can cause severe negative impacts. The resilience and reliability of communications network offered by on-premise UCC solutions are expected to augment their market share as these solutions ensure that enterprises have a complete control over all hardware and software components of the unified communication system.
Increasing uptake of UCC solutions for medical emergency response by the healthcare industry
The healthcare sector accounted for nearly 5% of unified communications and collaboration market in 2019 and will witness a growth rate of over 7% CAGR from 2020 to 2026, with the adoption of data annotation tools and increasing investments in machine learning and AI. The dynamic nature of the healthcare industry experiences critical conditions and sudden emergencies, which need to be dealt quickly and with seamless sharing of information. UCC technologies can assist healthcare teams in quick interconnection with various medical experts spread across diverse geographical locations for handling medical emergencies. The market is also reaping the benefits of unified communication systems to offer home healthcare by using mobile or computer devices to demonstrate wound healing or first aid treatment to patients before arriving to hospitals.
Increasing adoption of cloud-based unified communications driving the market growth in APAC
The APAC UCC market that accounted for nearly 25% of the market in 2019 is expected to exhibit a growth of over 10% CAGR between 2020 and 2026 due to the rising demand for streamlining enterprise communication infrastructure, increasing adoption of cloud-based UCC solutions, and favorable government initiatives for modernizing ICT infrastructure in the region. Developed ICT markets, such as Japan, Australia, and South Korea, are witnessing increasing rollouts of different delivery models for unified communication services. Furthermore, the shifting focus of telecom operators in the region on leveraging existing infrastructure and technological expertise to move beyond legacy voice and data services will augment market growth.
Unified communications and collaboration market players are laying emphasis on forging strategic alliances and improving their research capabilities to offer new solutions and provide enhanced post-sales experience, strengthening their market position and gaining a competitive edge. The demand for UC infrastructure and managed services is rapidly growing, prompting the market players to differentiate their product offerings from the existing products and services. For instance, in April 2019, LogMeIn, Inc., a connectivity services provider, launched GoToConnect, which offers users to easily switch between various communication methods via web browsers.
Some of the key players operating in the UCC market include 8x8 Inc, Alcatel Lucent Enterprise (Nokia Networks), Avaya Inc. (Avaya Holdings Corporation), BT Group, Cisco Systems Inc., Genesys (Permira), Huawei Technologies Co., Ltd., IBM Corporation, Microsoft Corporation, Mitel Networks Corporation, NEC Corporation, Nextiva (UnitedWeb), Orange Business Services (Orange), RingCentral Inc., Star2Star Communications, Verizon Communications, Vonage (Vonage Holdings Corp.), Unify (Atos SE), and West Corporation.
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