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The unified communication and collaboration market is estimated to grow by USD 71.06 million at a CAGR of 16.37% between 2022 and 2027. Market expansion relies on various factors, such as the escalating demand for video and voice conferencing solutions, the rising Internet penetration rate, and the growing popularity of WebRTC-enabled devices. These elements collectively shape the trajectory of market growth, reflecting a blend of technological advancements, connectivity trends, and consumer preferences. The increasing demand for video and voice conferencing highlights the importance of remote communication and collaboration tools in modern workplaces. Simultaneously, the expanding Internet penetration signifies broader access to online communication platforms and services. Additionally, the growing demand for WebRTC-enabled devices underscores the shift towards real-time communication capabilities embedded in various devices and applications. Thus, the interplay of these factors delineates the landscape for the anticipated expansion of the market catering to digital communication solutions.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This report extensively covers market segmentation by application (enterprise collaboration, enterprise telephony, and contact center), end-user (enterprise and government), and geography (North America, Europe, APAC, South America, and Middle East and Africa).
The UCC market share growth by the enterprise collaboration segment will be significant during the forecast period. The growth of the wireless collaboration application segment stems from the increased demand for enterprise mobility due to the implementation of the BYOD policy across enterprises of all sizes. The need for mobility and access to e-mails has increased the demand for wireless e-mail server infrastructure. Such factors are expected to drive the growth of the segment in focus which is expected to propel the market growth during the forecast period.
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The enterprise collaboration segment was valued at USD 20.02 million in 2017. SMEs are increasingly leveraging enterprise and consumer technology solutions to support communications and customers. These solutions enhance collaboration among employees, suppliers, and clients. In addition, these technologies are economical, simple to deploy, and powerful. E-mail, unified messaging, calendaring and instant messaging, mobile UC, and voicemail have become more accessible and quicker. Moreover, the companies seek tighter integration of collaborative applications such as e-mail and voicemail/unified messaging. Technavio expects a rise in the integration of specific collaborative applications (e-mail, calendaring, and social media) with business processes in a bid to bring more automation. The popularity of CEBPs has made businesses consider UC and C as a way to improve existing business processes. Thus the above factors will increase the UCC market growth during the forecast period.
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North America is estimated to contribute 33% to the growth of the global UCC market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The growing demand for unified communication and collaboration solutions across colleges and universities in North American countries is another factor that is augmenting the growth of the market in the region. The high adoption of smartphones and connected devices by students is encouraging colleges to digitalize the learning experience, thus fueling the growth of the market in North America. Rising tuition fees are compelling many students to opt for distance learning. This is boosting the demand for unified communication and collaboration in North America, with universities and colleges offering MOOCs and distance education learning options. Moreover, the market in the region is expected to grow during the forecast period on account of rising investments and partnerships among key market players.
In the market, PBX systems and telephony services converge with technology decisions to streamline communication for businesses. As companies seek to optimize IT costs, cost-effective cloud-based solutions emerge as a popular choice, offering scalability and flexibility. Industries like healthcare providers leverage subscription-based unified communication services to enhance healthcare contact centers and improve patient care. Integration of VR and software-based communications fosters business continuity, while cloud services and Voice and Other Collaboration Tools facilitate centralized data services and software wide area networks. In the retail sector, UC&C solutions powered by RFID and proximity technology revolutionize pricing and inventory management, serving as an efficient customer service tool through seamless checkout line experiences and enhanced device recognition. Unified communications technologies leverage PBX (Private Branch Exchange) systems and authentication mechanisms to enhance the shopping and customer service experience across mobile or handheld devices, integrating Virtual Reality (VR) for immersive interactions, while utilizing both public cloud resources and private cloud models for efficient management and scalability of point of sale systems in a cloud model environment. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand for video and voice conferencing is a key factor driving the growth of the market. Voice and video conferencing are crucial for IT infrastructure and businesses to enhance communication and collaboration among employees, partners, and customers. In 2020, more than half of the workers in the knowledge processing outsourcing industry used personal video solutions. UCC is a bundle of platforms that allow P2P connection for voice and video conferencing.
More than 70% of business-to-consumer (B2C) marketers and 90% of business-to-business (B2B) marketers use videos for marketing. A rise in the demand for video and voice conferencing is driving the adoption of UCC, which will continue to drive the growth of the market in focus during the forecast period.
The increasing adoption of the BYOD concept is the primary trend in the global unified communication and collaboration (UCC) market growth. BYOD is a new trend in workplaces, which encourages employees to bring their own devices. Around one-third of the employers in the world provide devices, such as smartphones and tablets, to their staff. More than half of employers worldwide encourage employees to bring their own devices to work. Moreover, new communication technologies such as UCC offer professional standards of interactions and workflow across numerous remote devices.
As BYOD diversifies the pool of devices that are used for communication and collaboration, the ability of UCC platforms to offer high-quality experiences across all devices is increasing in popularity among end-users. UCC solutions ease the burden by adjusting the frame rate and resolution supplied by the device. As UCC and BYOD are compatible with each other and both of these technologies aim at reducing costs and increasing flexibility, the growth of BYOD will drive the growth of the market in focus during the forecast period.
The high implementation costs are a major challenge to the growth of the market. In times of crises such as recession, companies focus on their core competencies to maximize their revenues. Unified Communication (UC) 2.0 solutions are set up to allow companies to gain easy access to their business processes and clients to deliver better client support. However, the implementation of UC 2.0 requires a sizable initial investment. The UC 2.0 system includes costs for the installation and implementation of system components, including telephone devices, telepresence equipment, and Internet connection equipment.
Many organizations have a limited budget for IT infrastructure, and the high cost of UC 2.0 components could necessitate an increase in the allocated budgets. This may prevent companies, especially some SMEs, from implementing these systems. In addition, this may result in unpredictable ROI or breakeven point, which is a challenge for the adoption of UCC services. Thus, limiting the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
8x8 Inc - The company offers unified communication and collaboration such as 8x8 Connect. Also, under this segment, the company provides cloud-based voice, contact center, video, mobile and unified communications for businesses.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
In the dynamic landscape of the market, businesses harness PBX and collaboration stack solutions to optimize IT budgets while embracing subscription-based unified communication services for seamless connectivity. Integration of VR and virtual collaboration tools enhances sales and customer information management, improving user experience and lowering costs. Robust network performance and the adoption of cloud technology bolster retailers' operations, especially with the integration of RFID technology for efficient authentication on mobile devices. Across clothing retailers and online stores, UC&C fosters omnichannel strategies, enriching shopping and customer service experiences through innovative communication tools and the strategic utilization of public and private cloud models for enhanced digital content delivery.
Furthermore, in the rapidly evolving market, PBX systems and subscription-based united communication services empower businesses to enhance connectivity and streamline operations. Integration of VR and advanced communication and collaboration technologies revolutionize the customer experience across mobile devices and computers, optimizing customer, sales, and inventory operations. Robust authentication mechanisms ensure secure interactions, while point-of-sale systems and strategic utilization of public and private cloud models bolster shopping and customer service experiences. From consumer electronics to computers, UC&C solutions continue to reshape the digital landscape, facilitating seamless communication and collaboration across diverse industries.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.37% |
Market growth 2023-2027 |
USD 71.06 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
13.89 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
8x8 Inc., AT & T Inc., Atos SE, Avaya Inc., BT Group Plc, Cisco Systems Inc., GoTo, Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., Intrado Corp., Microsoft Corp., Mitel Networks Corp., NEC Corp., Nippon Telegraph and Telephone Corp., RingCentral Inc., Sangoma Technologies Corp., Telefonaktiebolaget LM Ericsson, Verizon Communications Inc., Vonage Holdings Corp., Zoho Corp. Pvt. Ltd., and Zoom Video Communications Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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