Unified Communication as a Service (UCaaS) is a market by which companies are able to pay a third party provider for communication and collaboration services, delivered over an IP Network. These services include telephony, unified messaging, conferencing – basically anything you use to communicate in the workplace.
Market And Market, a global market research firm, recently released a report on the state of the UCaaS market and future potential. The objective of the report was to define, describe, and forecast the UCaaS market on the basis of component, organization size, industry vertical, and region, and also to provide detailed information regarding the major factors influencing the growth of the market.
According to the report, the major drivers of the UCaaS market include low cost of ownership as compared to other communications tools, pay-per-use model of charging the end users, growing trends towards mobility and Bring Your Own Device (BYOD), integration of all communicating services at a single platform, increasing demand by SMBs, and continuous service support.
So what did Markets and Markets learn from the report? A good amount, according to the press release:
Telephony segment is expected to hold the largest market share during the forecast period.
The capability of integrating multiple functions of communication on one platform makes telephony an important tool from the business perspective. Telephony is expected to hold the largest market share owing to its compatibility with automated transmissions of voice, fax, or other information. The increasing demand of VoIP and IP telephony in BFSI, telecom & IT, logistic & transportation, and travel & hospitality industries acts as a major driving factor for the growth of telephony in the UCaaS market.
Consumer goods and retail vertical is expected to dominate the UCaaS market during the forecast period.
The UCaaS market is also segmented into various industry verticals, out of which the adoption of unified communication solutions is expected to be the largest in the consumer goods and retail vertical as it helps retail outlets to streamline the business processes by enabling quick, real-time services and faster transaction closures. Moreover, BFSI, logistic & transportation, and IT & telecom verticals are expected to gain traction during the forecast period.
North America is expected to hold the largest market share in the UCaaS market.
North America is expected to hold the largest market share and dominate the UCaaS market from 2016 to 2021. The main drivers responsible for the growth of UCaaS services in North America are the stable economy, technological advancements, and unified communication infrastructure demands. The UCaaS market in APAC is expected to witness highest the growth in the coming five years due to increasing technological adoption and huge opportunities across industry verticals in APAC countries, especially India and China.
The report also encompasses different strategies, such as mergers & acquisitions, partnerships & collaborations, business expansions, and product developments, adopted by major players to increase their market share. Some of the major service providers include Cisco Systems (U.S.), Computer Science Corporation (U.S.), BT Group (U.K.), 8×8 (U.S.), West Corporation (U.S.), Microsoft Corporation (U.S.), Voss Solutions (U.S.), Verizon Communication (U.S.), Star2star Communications (U.S.), and Polycom (U.S.).
If you’d like to download the full report, you can find it at Markets and Markets website.