Unified Communication Market Report 2031 by Segments, Geography, Dynamics, Recent Developments, and Strategic Insights

The unified communication market size is projected to reach US$ 197.43 billion by 2031 from US$ 66.27 billion in 2023. The market is expected to register a CAGR of 14.6% in 2023–2031. The growing demand for UCaaS and the increasing demand for cloud-based solutions are likely to remain key to unified communication market trends.

Unified Communication Market Analysis

The unified communications market has witnessed significant growth over the past few years, primarily fuelled by the rising demand for remote collaboration among distributed workforce across different verticals. The objective of this is to unify and simplify business communication, boost the team's efficiency and collaboration, and provide a better customer experience. It offers several benefits, such as improved productivity, support for effective communication between a mobile and remote workforce, and lower capital investments required for administration and maintenance, among other benefits. Its Inherent nature is to integrate a wide range of applications onto a common, singular platform. While it makes for a powerful solution, the effectiveness of the same is dependent on the vendor's ability to provide unified networking among the elements. Some vendors natively offer most of these elements, while others depend on external partners for pre-integrated solutions to provide a seamless experience. With new applications being developed on a regular basis, interoperability becomes an ongoing challenge. While the presence of several unified communication vendors allows for a highly competitive nature of the market, better harmony is required among such vendors to meet the needs of their customers efficiently. Since all forms of interoperability are not equal, end users evaluate their vendors critically to ensure that their solutions can integrate seamlessly into the user's existing network environment.

Unified Communication Market Overview

Unified communications describe the different forms of interaction and collaboration between communication tools. By unifying web conferencing, SMS, phone calls, and email, among others, team members can share and access data and work together in real-time over an internet connection. Irrespective of the size of the business, the right solution can take business processes to the next level. It improves collaboration, boosts productivity, increases mobility and enhances the user experience. A unified communications environment is usually supported by one or multiple back-end management systems, or unified communication platforms, that ease the integration among services and also the front-end clients, providing access. This has transformed in the past few years from mostly supporting on-site collaboration through in-room conferencing to allowing collaboration among remote workforces with audio and video conferencing and others.

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Unified Communication Market: Strategic Insights

Unified Communication Market

• Market Size 2023
  US$ 66.27 Billion
• Market Size 2031
  US$ 197.43 Billion

Market Dynamics

GROWTH DRIVERS

• Rise in demand for UCaaS

FUTURE TRENDS

• Rising adoption of unified communication by SMEs

OPPORTUNITIES

• Integration with AI-technology

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Type

• Telephony
• Conferencing
• Unified Messaging

Deployment

• On-Premise and Cloud

Organization Size

• SMEs and Large Enterprises

Vertical

• Academic & Public Institutions
• BFSI
• Healthcare
• IT & Telecom
• Manufacturing
• Retail & e-Commerce

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Unified Communication Market Drivers and Opportunities

Rise in demand for UCaaS

Presently, unified communications support hybrid in-office and at-home workforces, which is a trend strongly adopted during the COVID-19 pandemic. To support such distributed workforces, enterprises are shifting to unified communications as a service (UCaaS)_ It is part of the broader migration to the cloud that all businesses are managing. UCaaS allows for remote collaboration, which is a big requirement for such a distributed workforce. Instead of using communication apps, often supported by different vendors, on a standalone basis, UCaaS combines all these services and also integrates applications such as messaging, email, video conferencing, and VolP. It is also beneficial for the in-house information technology (IT) team since one vendor is responsible for the entire deployment. Further, most remotely working employees generally work in multiple settings and utilize different devices with different endpoints. In addition, employees are prone to routinely shifting modes for their day or a particular session. They may be shifting from desktop to smartphone, instant messaging to voice over internet protocol (VolP) or from one-to-one email to video conferencing for a team meeting. It can provide a consistent user experience over such various devices.

Additionally, UCaaS is subscription-based and hence is an operational expenditure (OPEX), as opposed to capital expenditure (CAPEX) incurred for managing disparate systems in-house. Numerous macroeconomic factors across the globe created a severely adverse environment for businesses. The pandemic caused severe disturbances, which led to huge losses for various industry verticals. Political turmoil in Europe, the Middle East, and South America has been negatively affecting different industry verticals in different ways. Severe economic downturns in several countries have resulted in decreased consumer spending on discretionary goods. Thus, most industry verticals have endured losses due to such a decrease in consumption. Such factors have compelled enterprises to adopt different measures to remain competitive through a reduction in capital expenditure. Thus, being an OPEX, UCaaS is registering strong demand from both SMEs and large enterprises. Such advantages and trends are strongly boosting the demand for a unified communications market globally.

Rising adoption of unified communication by SMEs

Worldwide, constant practices are implemented to support SMEs. Several initiatives, schemes, and financial aid are provided for SMEs to encourage them to stand firm in the global market.  For example, The World Bank Group offers tools that small- and medium-sized enterprises (SMEs) can use to improve their access to finance and markets, as well as unlock new sources of capital such as SME Lines of Credit, Partial Credit Guarantee Schemes, Early-Stage Innovation Finance, IDA Private Sector Window, and others. Such support boosts the SME's capability to adopt cost-effective digital solutions to run their business more efficiently and digitally. This factor leads to the adoption of a unified communication solution. A unified communications solution is a cost-effective tool that any small business can adopt. In addition, cloud-driven solutions enable SMEs to cut costs and even boost productivity.

Unified Communication Market Report Segmentation Analysis

Key segments that contributed to the derivation of the unified communication market analysis are type, deployment, organization size, and vertical.

• By type, the market is segmented into telephony, conferencing, unified messaging, and others. The unified messaging segment held the largest market share in 2023.
• Based on the deployment, the market is segmented into on-premise and cloud. The cloud segment is expected to grow with the highest CAGR.
• Based on the organization size, the market is segmented into SMEs and large enterprises. The SMEs segment is expected to grow with the highest CAGR.
• By vertical, the market is segmented into academic & public institutions, BFSI, healthcare, IT & telecom, manufacturing, retail & e-commerce, and others. The IT & telecom segment held the largest market share in 2023.

Unified Communication Market Share Analysis by Geography

The geographic scope of the unified communication market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.

North America holds a substantial share of the unified communications market The region has a high penetration of 5G networks and has a higher acceptance of advanced technology. Additionally, the region is a pioneer in the development and deployment of such technologies. Additionally, the US and Canada have been witnessing a significant rise in digital transformation amongst enterprises across various verticals. E-commerce is one such vertical that has witnessed a significant surge in the past few years.

Unified Communication Market Market Report Scope

Unified Communication Market News and Recent Developments

The Unified Communication Marketis evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market:

• In April 2023, Italy today became the latest market to launch Vodafone Business Unified Communications (UC) with RingCentral – a cloud-based solution allowing customers to combine messaging, video meetings, file sharing and virtual phone systems via a single user interface accessible on any internet-enabled device. Vodafone began rolling out its unified communications solution in 2022 in partnership with RingCentral, initially in the UK and Germany, with further markets planned to follow the latest roll-out in Italy.   (Source: Vodafone, Press Release, 2023)
• In January 2021, Atos SE (CAC40: ATO) and RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, video meetings, and contact center solutions, announced the first release of Unify Office (UO) in the US. A Unified Communications-as-a-Service (UCaaS), UO enables businesses to communicate and collaborate with ease using industry-leading voice, video, and team messaging capabilities from anywhere and on any device via a single enterprise solution. (Source: RingCentral, Inc, Press Release, 2021)

Unified Communication Market Report Coverage and Deliverables

The “Unified Communication Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles