Unified Communication & Collaboration (UC&C) Market Size, Share & COVID-19 Impact Analysis, By Type (Telephony, Conferencing, Unified Messaging, and Others), By Deployment (Hosted and Cloud), By Organization Size (Small & Medium Size Enterprise and Large Enterprise), By Industry (IT and Telecom, BFSI, Healthcare, Retail, Manufacturing, Education, Government, and Others), and Regional Forecasts, 2023-2030

The Unified Communication & Collaboration (UC&C) market size was valued at USD 60.73 billion in 2022. The market is projected to grow from USD 71.26 billion in 2023 to USD 222.61 billion by 2030, exhibiting a CAGR of 17.7%. North America dominated the global market with a share of 46.91% in 2022.

Unified Communication & Collaboration studies the structured and unstructured database to visualize and offer insights based on hidden patterns, correlation, the market’s changing trends, and others. For instance, in November 2020, IBM Corporation introduced the IBM cloud for telecommunication with more than 35 partners. IBM Cloud for telecommunications is a hybrid cloud infrastructure that is designed to help accelerate business transformation and highly regulated industry. Nokia, Samsung, and Cisco are the partners joining IBM’s ecosystem.

COVID-19 IMPACT

Increasing Implementation of Digital Transformation Tactical Reinforced Market Growth

The COVID-19 pandemic has negatively impacted the global economy as governments worldwide have imposed lockdowns and restrictions. However, the COVID-19 pandemic has pushed businesses worldwide to implement digital technologies based on IT software to streamline their business operations. Numerous small & medium-scale organizations have adopted digital strategies to automate their business operations.

Further, in May 2020, the Chinese government announced the digital transformation plan with funding of USD 1.4 trillion to promote digitalization. The digitalization plan stimulates the adoption of advanced technologies, such as IoT, 5G, AI, cloud computing, and various AI-driven IT software, to automate local businesses in China. Such an increase in government funding for digitalization and a surge in adoption of digital platforms among SMEs and large-scale organizations around the globe have propelled the Unified Communication & Collaboration market growth.

Unified communications & collaboration tools serve as a lifeline for SMEs transitioning to a remote-first workforce. A survey conducted by Ribbon Communication found that companies with less than 100 employees are increasingly prioritizing IT due to the pandemic, and the employment of full-time, on-site IT personnel has increased by 67%. As a result, unified communications & collaboration adoption increased by 41% during the pandemic.

Such a rise in government initiatives for digitalization and implementation of digital technology platforms amid the COVID-19 pandemic has marginally augmented the demand for unified communications & collaboration.

LATEST TRENDS

Remote Working to be the Most Prominent Trend Prevailing in the Global Market

Post outbreak of the COVID-19, UC&C solution has gained a worldwide demand and is expected to remain strong in the near future due to accelerated work-from-home or remote working trend. This trend has contributed to massive growth in the unified communications & collaboration vendor’s software sales and the number of users amid the COVID-19 crisis. For instance, according to a 2021 survey by Harvard Business School, 81% of workers no longer want to return to the office in a full-time capacity,

This rapid shift to remote work has driven the need for a digital workplace toolbox such as collaboration, communication tools, and everyday operations. Moreover, these technologies are to be implemented as part of a digital workplace strategy associated with business goals.

For increasing number of organizations, a platform that provides cloud convergence of employee technologies and customer experience provides the foundation to help collaborative workflows and enable employees to access their communication tools from any location.

All the above statistics contribute to the fact that remote working is expected to be the most prominent trend in the global market.

DRIVING FACTORS

Increasing Sales of Unified Communications & Collaboration Tools amid COVID-19 to Drive Market Growth

As remote working has been observed to have significant adoption across the globe, it has led to a momentous surge in the number of unified communications and collaboration tools users. Market players, such as Zoom, Microsoft, and Vonage, have reported an upward sales increase of unified communications and collaboration tools. For instance,

• In the second quarter of 2020, Microsoft’s global UC&C revenue increased by 19.5% to USD 4 billion.


• Cisco’s unified communications and collaboration business increased by 11.7% to USD 1.3 billion in 2021.


• Avaya’s UC&C increased by 6.6% and RingCentral’s global UC&C revenue grew 5.1% sequentially and 33.7% year over year.

Thus, changes in customers’ and employees’ day-to-day activities amid the pandemic are expected to drive the unified communication & collaboration market growth.

RESTRAINING FACTORS

Security Concerns and Limited Interoperability with Current Infrastructure to Impede Market Growth

Establishments have dynamically begun to integrate Unified Communication & Collaboration software. However, security concerns, such as denial of service, hacking tools, and unauthorized access, can leave users data and information at risk. It is also difficult to determine the kind and the level of protection of users’ data. Companies still face security concerns and limited interoperability with current infrastructure, restraining the market growth. For instance, according to Checkpoint survey, around 50% of organizations faced security concerns in 2021.

SEGMENTATION

By Type Analysis

Increased Video Conferencing during COVID-19 Pandemic will Drive Market Growth

The market is segmented by type into telephony, conferencing, unified messaging, and others (contact center, live streaming).

Among these, the telephony segment held the largest market share in 2021. Conferencing is predicted to be the fastest growing segment with the highest CAGR of 16.7% in 2023-2030. Conferencing solution, such as video conferencing, has gained traction from the pandemic due to remote working policies and consumed around 80% of all internet traffic at the end of 2021. Approximately 60,052 companies are using Zoom conferencing software for communication.

By Deployment Analysis

Increasing Investment to Boost Cloud-based UC&C Solution Demand 

Based on deployment, the market is segmented into hosted and cloud.

Cloud to gain dominant share along with rapid CAGR during the forecast period. Overall cloud spending by the industries across the globe is expected to fuel cloud-based UC&C solutions. As stated by IDC in its unified communication and collaboration for financial services report of 2022, 60% of enterprises are investing in cloud-based UC&C implementation.

Hosted segment is expected to showcase steady growth owing to secured and easy access to data.

By Organization Size Analysis

Large Enterprises are Deploying ERP Solutions for Resource Planning and Business Extension 

Based on organization size, the market is segmented into SMEs and large enterprises.

Among these, the large enterprises segment held the major market share in 2021, and the SMEs segment is predicted to be the fastest growing segment in the coming years. Many SMEs are using Unified Communication & Collaboration tools to transition to a remote-first workforce. The number of SMEs employing a full-time, on-site IT person increased from 18% to 29% between April 2019 and November 2020, and IP communication platform adoption increased by 41%. According to a survey, around 24% of SMEs are adopting UC&C tools, and the providers can target the remaining 76% of SMEs.

By Industry Analysis

Rise in Automate Business Operations and Reinforce Financial Transactions to Fuel Market Forward 

Based on industry, the market is segmented into IT & telecom, BFSI, healthcare, retail, manufacturing, education, government, and others.

BFSI and IT & telecom segments to gain maximum share during the forecast period. The growing demand and focus toward customer services is expected to boost the market growth. Similarly, the rise in industries’ remote work culture will fuel the market share.

Among these, the healthcare segment is expected to be the fastest growing segment with the highest CAGR in the forecast period. Amid the COVID-19 pandemic, several healthcare clinics and companies adopted automation strategies to help staff stay on the same page as UC&C integrates all communication technologies into the same environment. Unified Communication & Collaboration tools allow professionals to collaborate more effectively and even collaborate with medical professionals around the world to diagnose problems.

REGIONAL INSIGHTS 

Geographically, the market is segmented across five major regions, North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America dominated with the highest global Unified Communication & Collaboration market share in 2022, owing to the dominant presence of key players in the region. Key players from North American countries are engaged in partnerships, mergers, and acquisitions with SMEs to strengthen their business and increase the customer base.

• In June 2021, Unisys acquired Unify Square to optimize the collaboration experience using unified communication as a service. The acquisition assisted users in enhancing Unisys’s digital workspace services business to drive revenue growth and improve its probability and cash flow.

Asia Pacific is expected to grow with a notable CAGR during the forecast period. This region's growth is primarily owing to increasing digitization efforts across Asia Pacific, thereby surging demand for UC&C tools. Companies are considering, automating, and optimizing their resources to gain a competitive advantage. The increasing adoption of disruptive technologies, such as artificial intelligence, augmented reality, and the Internet of Things (IoT), is driving cloud adoption across the region. Therefore, cloud-based UC&C will augment the region's market growth.

Additionally, several leading European players are expanding and developing cloud-based and AI-powered UC&C and increasing their investments to remain competitive. For instance, in February 2022, Vodafone Business and RingCentral Inc. partnered to launch “Vodafone Business UC with RingCentral”. Vodafone’s Business unified communication with RingCentral is provided across the U.K., Germany, Hong Kong, Italy, Singapore, Spain, Portugal, and Sweden.

The market growth in the Middle East & Africa and South America is mainly driven by technology adoption and digital transformation. For example, Saudi Arabia’s 2030 Strategy and National Transformation Program (NTP) 2020 prioritizes digital transformation, strengthens the private sector and jobs, and promotes partnerships. This rapidly developing economy is expected to bring unprecedented market opportunities for Unified Communication & Collaboration solutions in the near future.

KEY INDUSTRY PLAYERS

Focus on Customer Expansion to Boost Market Share of Key Players

Leading companies offer Unified Communication & Collaboration software across all businesses. Key market players are creating new solutions, updating tools and technologies, and expanding their scope to enhance their technological capabilities.

By working together, companies gain expertise and expand their business by reaching a large customer base. Key players are focused on increasing their market share and customer reach through strategic acquisitions. For instance,

In October 2021, Cisco Systems, Inc. partnered with Lumen Technologies to offer Cisco unified communication manager cloud with Lumen solutions. This product integrates Cisco’s most advanced, cloud-based collaboration services with the reliability and speed of Lumen’s fiber network.

List of Key Companies Profiled:

• Microsoft Corporation (U.S.)


• IBM Corporation (U.S.)


• Cisco Systems, Inc. (U.S.)


• Zoom Video Communications, Inc. (U.S.)


• 8x8, Inc. (U.S.)


• RingCentral, Inc. (U.S.)


• Verizon Communication, Inc. (U.S.)


• Avaya, Inc. (U.S.)


• Vonage Holdings Corp. (U.S.)


• Google LLC (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2023: Zoho Corporation launched UC&C platform, namely Trident, to boost digital adoption across businesses. It has integrated Zoho Cliq and Zoho Meeting apps to enhance communication capabilities.


• July 2022: Microsoft Teams launched newly released added features in its communication channels. Some of the features Microsoft Teams have included are connection with external stakeholders and dynamic caller ID for call agents.


• April 2022: Zoom announced launched a modern digital canvas named, Zoom Whiteboard, offering a unified solution for connection and collaboration throughout its platform. Zoom Whiteboard offers the abilities of the platform for the hybrid workforce, such Zoom Events, unified communications, Zoom Contact Center, as Zoom Developer Platform, Zoom Developer Platform, and Zoom IQ for Sales.


• April 2022: 8X8, Inc. announced collaboration with Genesys for integrating unified communication through 8x8 Work and Genesys Cloud CX. By combining contact centers and UC, the companies are aiming to offer employee and customer satisfaction.


• May 2021: Verizon and Ringcentral, Inc. together announced collaboration to offer cloud-based enterprise communication solution. This solution team messaging, integrates video meetings, and a cloud-based telephony tools for businesses. The solution is included in Verizon’s Unified Communication & Collaboration portfolio.

REPORT COVERAGE

The research report includes prominent areas across the globe to get a better knowledge of the market. Furthermore, it provides insights into the most recent industry and market trends as well as an analysis of technologies adopted quickly on a global scale. It also emphasizes some of the growth-stimulating restrictions and elements, allowing the reader to obtain a thorough understanding of the industry.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2030
Base Year	2022
Estimated Year	2023
Forecast Period	2023-2030
Historical Period	2019-2021
Growth Rate	CAGR of 17.7% from 2023 to 2030
Unit	Value (USD billion)
Segmentation	By Type, Deployment, Organization Size, Industry, and Region
By Type	Telephony Conferencing Unified Messaging Others (Contact Centers, Live Streaming)
By Deployment	Hosted Cloud
By Organization Size	Small & Medium Size Enterprise Large Enterprise
By Industry	IT & Telecom BFSI Healthcare Retail Manufacturing Education Government Others (Utilities, Travel & Hospitality)
By Region	North America (By Type, Deployment, Organization Size, Industry, and Country) U.S. Canada Mexico South America (By Type, Deployment, Organization Size, Industry, and Country) Brazil Argentina Rest of South America Europe (By Type, Deployment, Organization Size, Industry, and Country) U.K. Germany France Italy Spain Russia Benelux Nordics Rest of Europe Middle East & Africa (By Type, Deployment, Organization Size, Industry, and Country) Turkey Israel GCC North Africa South Africa Rest of the Middle East & Africa Asia Pacific (By Type, Deployment, Organization Size, Industry, and Country) China India Japan Southeast Asia ASEAN Oceania Rest of Asia Pacific