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

The U.S. Unified Communication & Collaboration (UC&C) market size was valued at USD 21.27 billion in 2022. The market is projected to grow from USD 24.71 billion in 2023 to USD 71.51 billion by 2030, exhibiting a CAGR of 16.4% during the forecast period.

Unified Communication & Collaboration offers innovative options to enhance the business management and customer engagement through real-time communication. The rise in digital transformation across industries has surged the adoption of tools that help in communicate and collaborate better. Also, post-pandemic, remote working environments across businesses fueled the demand for solutions such as video conferencing, instant messages, telephony, live streaming, and more. Similarly, continuous research and innovations in communication and collaboration are set to bolster the market share.

• In February 2023, Microsoft Corporation announced the integration of its newly developed OpenAI with the Microsoft Teams to offer capabilities such as personalize versions, create meeting notes, access to quick overview, and more.

COVID-19 IMPACT

Significant Changes in Employee Behavior amid Pandemic to Fuel UC&C Demand

The COVID-19 has severely impacted the daily life of people across the globe. To boost the sales and to connect with customers during the challenging days of COVID-19, the need for advanced communications solutions increased. The companies across the U.S. significantly implemented UC&C solution to engage customers and to understand their changing purchasing behavior. Similarly, to ensure trust and to manage the deliveries, businesses implemented unified communication platforms.

LATEST TRENDS

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Integration of Artificial Intelligence with UC&C to Boost Market Share

Artificial Intelligence (AI) to impact unified communications systems significantly with quick process and efficient decision making capabilities. It is capable in offering real-time communication and collaboration in the virtual workplace. As the U.S. businesses are highly competitive, the AI-powered UC&C solution is expected to offer unparalleled customer services. In the future, the technologies together is expected to showcase promising communication along with crucial employee and customer collaborations. This is expected to boost the U.S. Unified Communication & Collaboration market growth. 

DRIVING FACTORS

Rise in Hybrid Work is expected to Drive the UC&C Market Growth

As industries across the globe got hit by COVID-19 pandemic, the adoption of remote work culture grew significantly in the U.S. to ensure business continuity. According to the Zippia remote work statistics, as of 2022, 26% of the U.S. employees work remotely and 16% of companies have adopted full remote work environment. Thus, the demand for advanced communication and collaboration solutions has gained traction. The increasing hybrid work to drive the market growth.

RESTRAINING FACTORS

Prominent Errors by Employees to Impact Market Growth

The high risk of security breach caused by employee error is expected to hamper the market growth. With multiple employee access to same platform, single error can introduce security threat. To lower such cases, it is essential for employers to arrange unified communication security training in advanced.

SEGMENTATION

By Type Analysis

Rise in Remote Work Culture to Surge Demand for Telephony

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

Telephony to gain maximum segment share as a result of introduction of advanced and efficient telecommunication technologies. Similarly, unified messaging to showcase steady growth rate during the forecast period.

Conferencing is expected to gain a rapid growth rate during the forecast period. An increase in employees working from remote locations is driving the demand for conferencing solutions across industries.

By Deployment Analysis

Growing Demand for Advanced Communication Solutions to Boost Cloud Segment Share

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

Cloud to gain dominant segment share during the forecast period owing to the increasing demand for all-in-one cloud communication solutions across businesses. Enterprises with multiple functionality requirements are adopting cloud-based UC&C solutions.

Hosted to showcase slow growth during the forecast period due to lesser cost of investments, small businesses are implementing hosted unified communication and collaboration solutions.

By Organization Size Analysis

Growing Business Competition to Fuel Small & Medium Enterprises Growth Rate

Based on organization size, the market is segmented into SME and large enterprise.

Large enterprises in the country are highly investing in advanced communication solutions, and thus likely to boost the Unified Communication & Collaboration (UC&C) market share.

The SME segment gained a dominant business share. As per the U.S. Small Business Administration 2019, 99.9% of U.S. businesses are made-up by SMEs. Thus, with the increase in competition, SMEs are significantly investing in US&C solutions.

By Industry Analysis

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Customer Centric Strategies to Boost BFSI Revenue Growth

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

IT & telecom and BFSI segments to gain largest market share during the forecast period. Personalization and enhancement in client experience is expected to fuel the UC&C demand in service industries.

Healthcare to gain highest CAGR during the forecast period, owing to rise in focus on customer services and engagement.

KEY INDUSTRY PLAYERS

Business Expansion Strategies to Boost Market Position of Key Players

UC&C players of the U.S. are dominantly investing in expanding its business and offering through various strategies. The top players are focused on acquiring leading providers to enhance the product offering section and to build strong customer base. Similarly, strategic partnership and collaboration is expected to strengthen the players’ market position. For instance,

• In February 2023, RingCentral, Inc. announced strategic partnership with Amazon Web Services, Inc. to enhance customer and employee communication capabilities of the businesses globally. AWS will provide its customer RingCentral MVP and Contact Center solutions to support RingCentral in business expansion.

List of the Key Companies Profiled:

• Mitel Networks Corp. (U.S.)


• Nextiva (U.S.)


• GoToConnect (U.S.)


• Dialpad (U.S.)


• Simpplr (U.S.)


• Microland Ltd. (U.S.)


• LogMeIn (U.S.)


• 3CX (U.S.)


• AT&T Inc. (U.S.)


• Lumen Technologies (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2023: Mitel Networks Corp. announced undergoing negotiations to acquire Unify of Atos to boost its global presence and revenue. The proposed transaction to help the company, Mitel, in offering advanced UC&C solution catering to the global businesses.


• February 2023: GoToConnect launched GoTo Customer Engagement to combine all the customer communication tools within a unified box. Customers can gain additional digital channels to expand customer communication ability with this new product launch.


• July 2022: Nextiva introduced new feature in its software by integrating customer communication and team collaboration through single platform. This new feature offers boost in customer engagement along with employee satisfaction.  


• October 2021: Lumen Technologies announced partnership with Cisco Systems Inc. to expand its communication and collaboration solutions with higher security and reliability.

REPORT COVERAGE

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