Unified Communication as a Service (UCaaS) Market - Global Industry Analysis, Size, Share, Trends, Analysis, Growth, and Forecast 2017 - 2025

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Unified Communication as a Service (UCaaS) Market - Global Industry Analysis, Size, Share, Trends, Analysis, Growth, and Forecast 2017 - 2025

Status : March, 2020 | Technology & Media | PPT format

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Global Unified Communication as a Service (UCaaS) Market: Snapshot

Unified communication as a service (UCaaS) can be understood as a delivery model on the cloud that offers a wide variety of communication services, including collaboration applications, through a third party. It characterizes an integrated and unified cloud platform through which enterprises gain access to all services they may need. Features that make it stand apart from traditional communication platform is elegance, simplicity, and scope. The drive for UCaaS primarily stemmed from the need to bring scalability and flexibility to core business processes. UCaaS comes with the integrated capability of communications platform as a service (CPaaS) and application programming interfaces (APIs). The vendors include providers that typically sell directly to buyer organization or may include third party providers; 8x8 Inc. and Microsoft offerings of UCaaS fall in the first category while AT&T and Verizon Wireless come under the second one.

The variety of architectures under UCaaS can be grouped into single-tenancy and multi-tenancy. The single tenancy architecture features a software platform customized for the buyer.  Considered as more secure and reliable as disruption in another customer’s data doesn’t affect a specific customer’s data, they are expensive. The onus for upgrades are put on the buyer organization. In contrast to this, in multi-tenancy approach, the software instance resides with provider's data center and is shared. The architecture is more cost-effective with the provider tasked with making regular upgrades. A third approach, called hybrid one, is also possible where unified communications are placed on-premises for security concerns or for the management convenience, while other applications are pushed to the cloud.

Global Unified Communication as a Service (UCaaS) Market: Overview 

Unified Communications as a Service (UCaaS) is a delivery model in which provides deliver a variety of telecom or communications software applications or services over an IP network. UCaaS solutions are a part of the global industry trend towards cloud-based services. They are known for offering benefits such as high levels of availability, flexibility, and scalability for core business tasks. They include online meetings, messaging and presence technology, contact center services, video conferencing, and telephony. They are available as stand-alone services or integrated services in terms of delivery model. 

Global Unified Communication as a Service (UCaaS) Market: Key Trends 

The rapidly rising number of mobile workers worldwide is compelling enterprises to adopt collaboration tools that allow employees to effectively communicate with each other. This, in turn, is providing a fillip to the global (UCaaS). The growing trend of bring-your-own-device (BYOD) and proliferation of mobile devices are also working in favor of the market. On the flip side, the low awareness levels regarding UCaaS solutions and the advantages that these solutions offer are limiting their widespread adoption, especially across SMEs. However, market players are likely to capitalize on untapped, developing regions such as Asia Pacific and the MEA to boost their revenue generation in the coming years. 

Global Unified Communication as a Service (UCaaS) Market: Market Potential 

Players in the global unified communication as a service market are paying high attention towards the launch of technologically advanced products in order to enhance their visibility in the arena, indicating towards a bright future of the market. To put this perspective, Amazon Web Services (AWS) in February 2017, launched a unified communication service called Amazon Chime. With this, the company promises to offer high-quality audio and video meeting solutions that are one-third of the cost of conventional solutions, without any ongoing maintenance or upfront investments. Another case in point is West Unified Communication Services, which in partnership with Dolby Laboratories Inc. has launched InterCall Reservationless-Plus with Dolby Voice in March 2017. This unified communication solution will offer superior sound quality and clarity of Dolby voice through Voice over Internet Protocol (VoIP) networks. 

Global Unified Communication as a Service (UCaaS) Market: Geographical Segmentation 

The key regions analyzed in the report are Asia Pacific, the Middle East and Africa, Europe, North America, and Latin America. North America will be a major revenue contributor during the forecast period. The presence of advanced network infrastructure and a large base of tech-savvy workforce is propelling the growth of the region. The increasing investments in sectors such as consumer goods, transportation and logistics, retail, banking, financial services, and insurance (BFSI) are also likely to boost the demand for UCaaS solutions in the region. 

Asia Pacific is expected to offer promising opportunities during the same period. The growth of the region can be attributed to the growing inclination of large enterprises towards UCaaS solutions. Moreover, the increasing establishment of offices, contact center services, and manufacturing units in emerging economies such as India and China is augmenting the growth of the region. 

Global Unified Communication as a Service (UCaaS) Market: Competitive Landscape 

The leading companies operating in the global UCaaS market are Microsoft Corporation, Cisco Systems Inc., 8×8 Inc., Fuze Inc., and West Corporation. These players are paying high attention to the integration of applications and business processes. The trend of using social media for businesses is on a rise, and combining social media with UCaaS solutions allows efficient customer relationships and strengthens marketing. As a result, players are focusing towards building ecosystems that can make social business integration captivating for enterprises. Other prominent global participants in the market are IBM Corporation, Alcatel-Lucent SA (Nokia Networks), Hewlett-Packard Development Company, Verizon Communications, and Avaya Inc.

The study presents a granular assessment and quantitative evaluation of:

  • Key growth factors and prominent trends
  • Size and share of key segments in overall market
  • Key challenges and winning imperatives
  • Factors shaping competitive landscape
  • Insights into how contours of market will change in coming years
  • Technological advances
  • New avenues and imminent investment pockets
  • Regulatory landscape shaping current and future strategies of companies

The region-wise assessment includes market dynamics in:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The study is prepared with the help of an extensive primary and secondary research. Primary research includes but not limited to interactions, interviews, surveys, and events. Opinions of policy makers and industry experts are carefully integrated into the insights to complement primary research. Volumes of secondary data gleaned through renowned paid sources, annual statements, reputed journals, and government documents offer insights into current dynamics and key evolution trajectories the market is likely to assume. The research employs various industry-wide analytics methods and well-established methodologies to ascertain the attractiveness of key segments. Further, it evaluates the lucrativeness of key regions and factors underlying their maturity. The insights notably include a detailed analysis of forces behind vendor differentiation and offers insight into investment-decision making by prominent players.

The report strives to enlighten businesses and industry stakeholders on multiple facets of the growth dynamic of the market, the key of which include answers to:

  • Which key factors will shape the competitive landscape?
  • Which trends will stimulate research and development activities in different geographies?
  • Which are the lucrative growth areas and what is the size of potential they are likely contribute to the overall market?
  • Which disruptions in market growth are likely to come with the new business models?
  • Which are some of the recent overhauls in policies that may change the course of the market significantly?
  • Which are the geographies that will form sizable sources of new streams to new and established players alike?
  • How are top players likely to realign their strategy to counter the forces of competition?
  • Which key strategies emerging players are likely to focus on to consolidate their position?
  • Which changes in end-user preferences might affect the status quo held by the leading players?
  • Which are some of the game-changing innovations influencing the projected share and revenue of the market and its segments?

Note: Utmost care has invariably been taken to present data and arrive at statistics at all the TMR Research reports. Meanwhile, some recent developments and new industry trends may take time to be included in the reports.

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