The use of UCaaS solutions is becoming increasingly popular among organizations, and the growing market is estimated to reach up to $24.3 billion by 2016 – claims a recent study.
The widespread use of Unified Communications-As-A-Service (UCaaS) indicates the trend of a new era of enterprise communications. In 2019, the UCaaS market was valued at $13.8 billion. In the latest study by Valuates Reports, it is projected to grow to $24.3 billion at a CAGR of 8.4% – from 2020 to 2026.
Lately, many organizations are utilizing UCaaS as it streamlines business communication – to augment operations and, ultimately, revenue. The growing demand for UCaaS and its deployment is more seen in small and medium-sized companies. Moreover, the cost-efficiency and pay-per-use features are driving the need for UCaaS services.
Factors Influencing the Market Size
With time, more businesses have or are planning to implement BYOD services for their workforce. Consequently, the primary trend driving the expansion of the UCaaS is the risk of personal devices and security concerns on personal networks- amid the pandemic – simply put; security for enterprise mobility is a crucial factor. Again, progress in artificial intelligence (AI), machine learning (ML), and other advanced technologies are also significantly generating abundant opportunities for this growth.
The AI-powered technologies have enabled businesses to record calls intuitively and encourage easy transcriptions. Besides, intelligent monitor speakers help to recognize user needs and offer relevant services. Mobility and networking service providers have started putting forward conversational solutions backed by AI for enhanced data interpretation, faster data processing, and machine guidance.
The increasing adoption of the private cloud model by the BFSI sector to secure confidential data is most likely to boost the UCaaS market size for the mentioned period. Furthermore, it allows financial organizations to exercise scalability, which is crucial in large-scale implementation. This is valid for account monitoring integration, chatbot-enabled messaging, telephone assistance, as well as mobile transactions. The execution of cloud technologies also supports versatility and reduces total expense, time while advancing the customer experience.
Analysis of the Market Share
In terms of regions, North America is forecasted to hold the largest share of the UCaaS market. This supremacy is attributed to the rising adoption of technology by enterprises to increase efficiency and productivity. It also indicates the presence of a vast number of UCaaS vendors out there.
In addition, the Asia-Pacific market is expected to exhibit the fastest CAGR – due to rising smartphone penetration by a large user population. Emerging economies – precisely, Japan, China, and India are estimated to contribute to the most market development in the region. However, growth may be slowed down due to growing data privacy and security issues.