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The unified communication and collaboration market is estimated to grow at a CAGR of 16.37% between 2022 and 2027. The size of the market is forecast to increase by USD 71.06 million. The growth of the market depends on several factors, including the growing demand for video and voice conferencing, the increasing Internet penetration, and the growing demand for WebRTC-enabled devices.
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). 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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Technavio categorizes the global unified communication and collaboration (UCC) market as a part of the global data processing and outsourced services market within the global IT services market. The parent global IT services market covers companies offering IT consulting and system integration services, application services, electronic data processing services, business process outsourcing services, infrastructure services, and Internet services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The growing demand for video and voice conferencing is notably driving the market growth, although factors such as the high implementation costs may impede the market growth. 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.
Key Unified Communication And Collaboration Market Driver
The growing demand for video and voice conferencing is a key factor driving the growth of the global unified communication and collaboration (UCC) 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.
Significant Unified Communication And Collaboration Market Trend
The increasing adoption of 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 thitsopularity 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.
Major Unified Communication And Collaboration Market Challenge
The high implementation costs are a major challenge to the growth of the global unified communication and collaboration (UCC) 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 in order 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.
Key Unified Communication And Collaboration Market Customer Landscape
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 Unified Communication and Collaboration Market Customer Landscape
Vendors 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.com - 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 vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
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 and continue to grow by 2021. 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 unified communication and collaboration 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.
The outbreak of COVID-19 in 2020 propelled the growth of the market in North America. Owing to the vaccination drive in 2021, rising investments and partnerships among key market players, for instance, Avaya Inc. and RingCentral Inc., introduced a unified communication offering called Avaya Cloud Office by RingCentral, which is expected to propel the growth of the regional UCC market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Unified Communication And Collaboration 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 Vendors, Market Positioning of Vendors, 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 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 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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