Unified Communications as a Service Market Reach USD 118.8 Billion by 2031, Key Factors behind Market’s Hyper Growth
The Unified Communications as a Service (UCaaS) market is experiencing significant growth, driven primarily by the rapid adoption of remote and hybrid work models. According to a new report by Allied Market Research, titled “The Unified Communications as a Service Market Reach USD 118.8 Billion by 2031, Key Factors behind Market’s Hyper Growth,” the global market size for UCaaS was valued at USD 27 billion in 2021 and is projected to reach USD 118.8 billion by 2031, with a CAGR of 16.3% from 2022 to 2031.
Key drivers for this growth include the increasing demand for 5G high-speed networks, the rise in bring your own device (BYOD) and mobility trends, and the migration from legacy systems to cloud-based communication services. The integration of advanced technologies in UCaaS is also expected to create new growth opportunities in the market.
The UCaaS market is segmented by component, delivery model, organization size, industry verticals, and region. Components include telephony, unified messaging conferencing, collaboration platforms, and applications. Delivery models consist of managed services and cloud services, while organization sizes are categorized into large enterprises and small & medium-sized enterprises. Industry verticals covered include media and entertainment, BFSI, IT and telecom, healthcare, automotive, transformation, and others. Regions analyzed include North America, Europe, Asia-Pacific, and LAMEA.
In terms of market share, the conferencing segment held the largest share of the UCaaS market in 2021, with the unified messaging segment projected to witness the fastest CAGR from 2022 to 2031. Hosted/cloud services dominated the deployment model segment, with managed services expected to grow at the fastest CAGR during the forecast period.
North America led the market in 2021, with Asia-Pacific showing the fastest CAGR during the forecast period. Key players in the UCaaS market include Avaya, Inc., BroadSoft, Inc, Cisco Systems, Inc., Microsoft Corporation, NEC Corporation, and others. These players have adopted various strategies such as product launches, collaborations, partnerships, joint ventures, and acquisitions to expand their presence in the UCaaS industry.
The COVID-19 pandemic also played a role in the expansion of the UCaaS market, as the adoption of technologies like machine learning and artificial intelligence increased. The emergence of 5G technology during the pandemic further boosted market growth, as high-speed internet connections became essential for video and audio conferencing.
Overall, the UCaaS market is poised for significant growth, offering opportunities for market players, investors, and new entrants to gain a competitive edge in the industry. Allied Market Research is a leading market research and business consulting firm, offering insights and solutions across various industry verticals to help clients make strategic business decisions and achieve sustainable growth.
