Unified communications implement the principle of interaction using any means of communication available at hand, regardless of the communication environment currently available to them. For example, from a mobile phone to an IP softphone or instant messaging client.
The key technologies on the basis of which unified communications systems are created are:
- instant messages (chat)
- presence information
- telephony (including IP telephony), VoIP
- audio and video conferencing
- voice and unified mail
- document collaboration
- Call and Speech Recognition Control
- SMS and fax
According to Gartner, the greatest value of unified communications is that it eliminates delays in the business processes of companies caused by ineffective attempts to connect employees with each other.
Unified Communications (Russian Market)
Main article: Unified Communications Unified Communications (Russian market)
2023: Unified Communications Equipment Sales Up 5% to $50.44 Billion
In 2023, sales of unified communications equipment on a global scale reached $50.44 billion. The indicator of the previous year, when expenses in this area were estimated at $48.27 billion, was exceeded by almost 5%. This is stated in the Market Research Future study, the results of which are presented at the end of October 2024.
Analysts note that the development of remote and hybrid models of work has fundamentally changed the approach of companies to organizing the labor process. Businesses around the world are changing their employee engagement strategies, leading to increased demand for integrated communication solutions. The need for video conferencing, IP telephony, and messaging integrated into a single platform drives investment in unified communications technologies. In addition, the ongoing digital transformation in the business sector requires the introduction of modern equipment that not only provides the necessary functions, but also meets the strategic goals of interaction and collaboration.
Another market driver is achievements in artificial intelligence, machine learning and cloud technologies, thanks to which traditional communication systems are transformed into more complex, efficient and scalable platforms. Companies are increasingly looking for state-of-the-art voice communication solutions that integrate with existing IT infrastructure and provide advanced capabilities such as analytics and automated responses. An important role in the development of the industry is played by the desire of enterprises to reduce costs: by combining voice calls, video calls and messaging on the same platform, companies can optimize their operations and abandon the use of products from various suppliers. This consolidation reduces operating costs and simplifies management processes.
The authors of the study identify five key market segments: IP telephony, softphones (software for making telephone or video calls over the Internet), conference phones, VoIP gateways and voice recording solutions. In 2023, IP telephony brought in about $15 billion, and softphones - $10 billion. Revenue from conference phones and VoIP gateways is estimated at $7 billion and $8 billion, respectively. Voice recording solutions brought in $10.44 billion. In 2023, North America became the leader geographically with costs of $22 billion. This is followed by Europe, where expenses amounted to about $12 billion. The Asia-Pacific region closes the top three with an estimate of $10 billion. South America provided approximately $3.5 billion in total sales, the Middle East and Africa - $2 billion.
Local, cloud and hybrid models are distinguished by the type of deployment of solutions. Local systems continue to play an important role, especially among enterprises with strict security protocols, as they provide greater control over data and infrastructure. However, the hybrid deployment type becomes dominant, combining the best of both worlds to meet different business needs. The key players in the industry are:
- Fuze;
- RingCentral;
- CSystems;
- Unify;
- 8x8;
- AlcatelLucent Enterprise;
- Allstream;
- Microsoft;
- Polycom;
- Mitel Networks;
- Nextiva;
- Zoom Video Communications;
- Avaya;
- Cisco Meraki;
- BroadSoft.
Market Research Future analysts believe that in the future, the CAGR in the market under consideration will be 4.5%. Thus, by 2032, costs on a global scale can reach $75 billion.[1]
2022: Market growth of 9.8% to $59.3 billion Leaders
The volume of the global industry of solutions for unified communications and collaboration (UC&C) in 2022 reached $59.3 billion, which is 9.8% more than in the previous year. This is reported in the IDC study, the results of which were presented on March 23, 2023.
Analysts note that companies and organizations around the world continue to invest in UC&C products to improve employee and customer engagement amid the ongoing digital transformation. The demand for UCaaS services is growing - these are unified communications tools, access to which is provided in the format of a cloud service. In particular, in the telephone segment, approximately two-thirds of organizations use at least some cloud UCaaS services. Spending related to network technologies remained stable in 2022, despite inflation, regional conflicts, the current geopolitical situation and macroeconomic difficulties. The key drivers of the market are efficiency, sustainability and performance.
At the end of 2022, the UCaaS cloud sector, which includes Hosted Voice and UC Public Cloud services, brought in $21.2 billion in revenue. This is about 16.6% more than the previous year. The future adoption of UCaaS on a global scale is expected to continue to expand. Collaboration solutions, including video conferencing software and cloud services, accounted for $28.8 billion - plus 9.1% compared to 2021. Revenue from sales of IP phones increased on an annualized basis by 2.5% to almost $2 billion. At the same time, during 2022, the supply of IP phones in unit terms decreased by 6.5%. Shipments of IP phones decreased especially strongly by the end of 2022, when a fall of 20.6% was recorded on an annualized basis. Sales of equipment for video conferencing premises decreased by 3.1% - to $1.8 billion. The demand for devices for meeting rooms increased by 11.5% compared to 2021, reaching $1 billion.
From a regional point of view in North America (USA and Canada), total revenue in the UC&C segment increased by 8.9% - to $28.1 billion. In Europe, the Middle East and Africa (EMEA), sales increased by 7.2% to $16.8 billion. In the Asia-Pacific region (including Japan), the industry is estimated at almost $12.2 billion, which is 14.8% more than in 2021. In Latin America, supplies in 2022 rose by 16.3% and exceeded $2.2 billion.
The largest player in the global market for solutions for unified communications and collaboration in 2022 was Microsoft with revenue of $23 billion, which corresponds to a share of about 38.7%. It is noted that on an annualized basis, sales of the Redmond corporation in this segment rose by 20.9%. Cisco is in second place with $4.4 billion and 7.4% of the world market. At the same time, the company's sales decreased by 6.4% compared to 2021. The Zoom platform closes the top three, showing a result of $4.2 billion - this is 7.2% of the total size of the industry. On an annualized basis, the company was able to increase sales by 6.6%.
UCaaS cloud applications and collaboration tools continue to drive global market growth. The landscape of providers is changing a lot amid the transformation of the industry and increasing pressure to monetize the existing customer base and attract new customers, said Rich Costello, senior product analyst at IDC at UC &[2] |
2020
UCaaS market growth by 41%, to more than 15 million users
Unified Communications as a Service (UCaaS; these include virtual PBXs and UC applications, in which the functions of video conferencing, collaboration, etc.) in 2020 began to grow much faster, which was facilitated by the COVID-19 coronavirus pandemic, which spurred the demand for collaboration tools.
According to analysts at Synergy Research Group, by the end of 2020, there were more than 15 million users of UCaaS solutions in the world, which is 41% more than a year earlier. For comparison: in 2019 and 2018, the growth rate of the customer base in the market under consideration increased by 27% and 29%, respectively. Compared to mid-2018, the audience of UCaaS products doubled by the end of 2020.
Due to the COVID-19 coronavirus, companies of all sizes have begun to digitize faster, which has helped stimulate the active growth of the UCaaS market, "says Jeremy Duke, founder and lead analyst at Synergy Research Group, quoted in a press release. "It's not just short-term growth. Our forecasts show the continued rapid build-up of the user base. UCaaS still accounts for less than 5% of IP-PBX telephony subscribers, which clearly demonstrates long-term growth potential. |
High growth rates of spending on cloud unified communications services were registered in all regions, but in most countries the development of this market by 2020 was just beginning. More than 75% of users of such products are concentrated in the United States. A relatively large customer base is also in Britain, Germany and Canada.
RingCentral remains the largest provider of cloud services for unified communications, but the company's share in 2020 remained practically unchanged at 20%. Analysts attribute RingCentral's dominance to the company's strong positions in several service segments and customer groups. For example, the company ranks first in UCaaS sales for small and medium-sized businesses, and also, together with Fuze, leads in the segment of large corporate clients.
The top three in the market in question are RingCentral, 8x8 and. Mitel Next are and Cisco. Microsoft The study notes that in 2020, the number of users of UCaaS solutions from Microsoft quickly reached 1 million, Zoom and is close to conquering a similar milestone. Microsoft's strong growth and entry into the Zoom market were the main catalysts for the rise in global revenue from the sale of cloud unified communications services. The shares of Microsoft and Zoom at the end of 2020 increased by almost 10 percentage points. Microsoft will bet on working with mid-sized businesses, and Zoom shows good sales in the segment of large customers.
At 8x8, Mitel and Cisco, the customer base grew at double-digit rates, but the shares of companies decreased due to the faster expansion of the business of competitors. The number of customers at Fuze and LogMeIn has increased significantly, which has made a significant contribution to the growth of the entire market.
According to analysts at J'son & Partners Consulting, the volume of the Russian UCaaS market was also on the rise. Thus, the segment of virtual PBX (VATS) services using telephone network numbering in physical terms (the number of subscribers) increased by 13%, and in monetary terms reached 9 billion rubles, an increase of 11% compared to 2019.
Unlike the VATS segment, the transfer of personnel to remote work has become a powerful driver for the formation of the cloud audio/video conferencing services market. From a level below 500 million rubles in 2019, this segment grew to 2.7 billion rubles in 2020 and exceeded the record growth rates of 2017.[3]
Growth of the unified communications market by 24.9%, to $47.2 billion - IDC
Sales of equipment and software, which are intended for the organization of unified communications and collaboration (Unified Communication and Collaboration, UC&C), in 2020 turned out to be $47.2 billion, which is 24.9% more than the previous year. This is evidenced by data from IDC analysts.
The greatest demand in the market under consideration in 2020 came from collaboration solutions, which include video conferencing software and related cloud services. This segment showed an increase of 45%, to $22.1 billion.
In the UCaaS (unified communications as a service) category, there was a 21.2 percent increase in revenue, which in 2020 amounted to $16.4 billion. Sales of IP telephony systems fell by 22.8% (to $1.9 billion), and deliveries of such equipment in physical terms decreased by 22.2%.
IDC also provides data on the market for corporate-class video conferencing systems. At the end of 2020, sales here amounted to $2.6 billion, an increase of 12.4% compared to the value of a year ago.
Researchers call Microsoft the leader in the UC&C market, which in 2020 earned about $16.1 billion from it, which is 46% more than in the previous year. The market share of the software giant turned out to be 34.2% against 10.5% of the following Cisco. Zoom closed the leading three (5.5%).
In the context of the COVID-19 coronavirus pandemic, there was a surge in demand for Zoom services, as a result of which the company's revenue in the UC&C market in 2020 soared by 333.4% and reached $2.6 billion. At Cisco, on the contrary, the indicator decreased - by 4.6% to $5 billion.
The fourth place in sales of equipment and software, which are intended for the organization of unified communications and collaboration, in 2020 took Avaya with a result of $1.2 billion. It is 14.8% more than it was in 2019. The company's share turned out to be 2.6%.
Avaya was followed by RingCentral, which ended the year with 1.9% of the global UC&C market and revenue of $889 million on it. Compared to 2019, these revenues of the company increased by almost a third (+ 32.5%).
According to IDC analysts, the COVID-19 coronavirus pandemic has greatly changed approaches to doing business, as a result of which companies of all sizes began to consider and implement scalable, flexible cloud IT solutions such as UCaaS (unified communications as a service). There has also been a rapid increase in the number of users of video conferencing and collaboration systems.
According to the researchers, the UC&C market will continue to grow due to the interest of organizations in video communication and collaboration technologies, UCaaS, mobile applications and digital transformation projects.
In 2020, COVID-19 forced many companies and organizations to reconsider their plans to use digital technologies and increased interest in solutions such as collaboration, messaging, video conferencing and UCaaS, said IDC analyst Rich Costello. |
North America remains the largest market for equipment and software for unified communications and collaboration. There, in 2020, sales of such products reached $22.9 billion, an increase of 26.1% on an annualized basis. In the Asia-Pacific (excluding Japan), the volume of the market under consideration rose by 28.1%, to $8.4 billion.
In countries, Europe the Middle East and Africa (region) EMEA , annual revenue from the sale of UC&C technologies increased by 20.9% to $14.3 billion. In Latin America, it grew by 27.6%, to $1.6 billion.[4]
Poly Presents EMEA Technology Trends Forecast
On December 14, 2020, Poly, a global communication company providing full communication and cooperation between people, presented a forecast of global technological trends in the communications industry in the EMEA region for 2021. In 2020, technologies became the link in business, they also forced to take a fresh look at the usual formats of work.
Trend# 1. Internationalization moves to remote format
Until recently, it was difficult to imagine international economic activity without business travel. But everything changed during the COVID-19 pandemic with the forced closure of borders not only on the scale of states, but also in regions within one country. In these conditions, there was a boom in the introduction of unified communications (solutions that allow you to combine different communication tasks into one system - chats, telephony, video conferencing, e-mail, collaboration services, etc.), which will continue in 2021. Now business can be conducted from anywhere in the world, remotely. Even those companies that previously had no experience of remote or hybrid work were able to rebuild and wrap this format in their favor. When global business returns to its former rhythm, business travel is unlikely to matter as much as it used to. When concluding international transactions, more and more attention will be paid to the personal and professional qualities of counterparties. As a result, in 2021, humanity will begin to compensate for its carbon footprint.
Trend# 2. Prosumerism changes the culture of consumption
The fine line between the consumer and the requumer will continue to blur. Technologies are deeply integrated into a person's personal and professional life, and therefore manufacturers will further take into account the individual preferences of users regarding the functionality, convenience and aesthetic component of the devices. The trend towards individualization leads to the fact that the role of the consumer in the production of technology is increasing, and the industry is becoming even more progressive.
As a result, unified communications and software will become even easier to use, there will be packages for working from home, taking into account the features of the home interior. This, however, does not mean that the development of secure corporate technologies for general use will take a back seat. Rather, the level of solutions for working from home will approach corporate, and for offices where employees work in groups, the ability to customize technical solutions will become a priority. Manufacturers will teach devices to interact with each other, and for cross-industry compatibility they will develop special software. In a situation where employees move between home and office, the possibility of continuous business and accounting for individual preferences will be put on the same level when making decisions on technology purchases.
Trend# 3. Hybrid work model is becoming the norm
With the onset of the pandemic, staff in many companies use office space in case of emergency. For safety reasons, employers had to allocate employees to different types of jobs, including office and home. Thus, companies around the world have tested an approach focused primarily on labor results and involving equal opportunities for everyone, regardless of their actual place of work. People will be the main asset of any business, and unified communications technologies will help them interact efficiently at any time, even over long distances. 2020 paved the way for a hybrid work format combining work from home and in the office, and in 2021, HR divisions of companies will continue to build a culture based on flexibility in choosing work practices, spaces and culture of work.
Despite global trends, each of them lives differently at the regional level of the country. This is especially true for alternative work models. So, in France, although the number of home offices is increasing, the mass transition is not remote and hybrid formats are expected only in a few years. In Poland, with the development of domestic tourism, home office rentals are becoming popular. In Russia, most enterprises still prefer to use local IT infrastructure, and a complete transition to the cloud in 2021 should not be expected, while the use of unified communications will continue to gain momentum.
2019
Market growth of 17.7% to $38.8 billion - IDC
The global market for Unified Communication and Collaboration (UC&C) solutions in 2019 reached $38.8 billion, an increase of 17.7% compared to 2018. This is reported by IDC analysts, who include hardware, software and cloud services as these solutions. Among specific technologies are mentioned products for video conferencing, services for voice communication and employee interaction.
Sales of unified communications and collaboration solutions in North America climbed 12.1% in monetary terms. In Europe, the Middle East and Africa (EMEA), a 15 percent rise was recorded, in the Asia-Pacific region - 17.9 percent. Demand for UC&C products is growing from companies of all sizes, including large corporations.
Analysts named the following companies as the leaders of the market in question, but listed them only in alphabetical order without specifying shares:
- 8x8;
- ALE;
- Avaya;
- BlueJeans;
- Cisco;
- Google;
- Huawei;
- Logitech;
- Microsoft;
- Mitel;
- NEC;
- Poly;
- RingCentral;
- Slack;
- Unify;
- Vonage;
- Yealink Network Technology;
- Zoom Video Communications.
According to analysts, the demand for technologies for unified communications and collaboration in early 2020 began to grow even more rapidly due to the COVID-19 coronavirus pandemic. It changed the working conditions of employees, operations and supply chains in most organizations, giving a new impetus to rapid systemic changes.
In the new realities, technology, once of secondary importance, has suddenly become critical to business sustainability. Organizations are forced to reconsider the approach and provide a new level of information security, manageability and flexibility of the IT infrastructure, the possibility of productive remote work, digitization of processes for uninterrupted operation. Even the end of the pandemic, the world will not become the same, which will affect the role and priorities of IT, the IDC study says. |
Manufacturers today pay special attention to investments in the creation of UC platforms using artificial intelligence, virtual reality (VR) and the Internet of Things (IoT). According to analysts, these technologies, introduced into products such as comprehensive collaboration platforms, virtual meeting rooms, etc., become the main weapon of manufacturers in the competition.
The largest geographic market for unified communications remains North America. This region is characterized by a high level of digital adoption, as well as a large number of SMB companies and large enterprises that are well aware of the benefits of UC.
The second most sold is Asia Pacific. In recent years, several large local manufacturers have appeared in this market, engaged in the development and testing of UC platforms.
In 2019, services accounted for about 66% of total sales in the global combined communications and collaboration market, while deliveries, software platforms and endpoints continued to decline.
According to the researchers, customization and user acceptance will be key factors through which customers will benefit significantly from UC&C solutions.
All this will further expand the market and increase sales of more expensive offers. The supplier's success depends on whether it can meet customers' need for flexible and reliable solutions tailored to their needs that help them reduce costs and increase productivity, analysts say.[5]
Estimated global spending on cloud unified communications
The volume of the global market for unified communications provided as a service (UCaaS) in 2019 reached $15.8 billion, analysts at ResearchAndMarkets calculated.
They did not specify the dynamics of spending, but said that the market is growing. Its volume is expected to be measured at $24.8 billion by 2024, and the average annual growth rate of the market will be 9.5%.
According to experts, the UCaaS market is growing due to several factors, including an increase in the number of companies in the small and medium-sized businesses segment and the growing demand among them for optimizing business communications. In addition, both small firms and large corporations are increasingly switching to mobile technology and encouraging employees to use their devices to access work resources (Bring Your Own Device, BYOD)
UCaaS analytics services include virtual PBXs and UC applications that implement video conferencing, collaboration technologies, etc.
Vendors receive most of their income from private consumers through the provision of web and video conferencing services and contact centers. At the same time, the corporate segment, although inferior in revenue, is growing much faster.
The main demand for UCaaS solutions falls on the telecommunications and IT sectors. They led in 2019 and will remain in first places in subsequent years, experts say. Demand for UCaaS in telecom is associated with growing budget constraints and the search for cost-effective infrastructure technologies.
Analysts named the following companies as the largest providers of UCaaS solutions:
- RingCentral;
- BT;
- Verizon;
- Orange;
- 8x8;
- Cisco;
- Google;
- Microsoft;
- LogMeIn;
- Mitel;
- DialPad;
- Fuze;
- StarBlue;
- Windstream;
- Alcatel-Lucent Enterprise (ALE);
- NTT Communications;
- Vonage;
- Intrado Corporation;
- Masergy;
- Revation Systems.[6]
2016: Unified communications: Russia will spend the most
According to IDC[7] for December 2012, the unified communications and collaboration market in the region EMEA will grow from $6.9 billion in 2011 to $11.7 billion in 2016. That is, the average annual growth rate of the volume of this market will be 10.9% in the next five years.
In general, the analyst of the research company Isabel Montero (Isabel Montero) gave a restrained forecast for the prospects of this market for the near future. According to her, one should not expect that the recovery of the IT market after the depression that has swept the Eurozone will be rapid. "The business remains discreet in investing in information technology, bringing return on investment (ROI) issues to the fore," she noted.
Among EMEA countries, only Germany will demonstrate double-digit growth in the unified communications and collaboration market in 2012 compared to 2011 - here it will be 10.3%. In France - 9.6%, in the UK - 7.7%.
Among the countries of Central and Eastern Europe, the maximum growth will be in Russia, the Czech Republic and Poland throughout the forecast period. In many ways, this growth will stimulate the widespread replacement of corporate voice communication systems with new generation systems. In the Middle East and Africa, South Africa and Turkey will lead in terms of growth in the volume of this technology market.
2012: How much does the Unified Communications implementation project really cost?
According to Gartner, over the past few years, vendors of integrated communications solutions have significantly expanded the functionality of their platforms, making significant progress in key areas such as mobile tools, video and hybrid options. According to the Gartner Magic Square for 2012, the leaders in this market are Cisco, Microsoft, Avaya (Avaya CIS) and Siemens Enterprise Communications.
Magic Square for Unified Communications
Gartner, August 2012
To challengers, that is, players with confident positions in the market, but for a number of reasons lagging behind the leaders, Gartner includes companies NEC Alcatel-Lucent,,,. The Huawei IBM segment of niche players includes ShoreTel, Aastra Technplogies, Interactive Intelligence, Digium,. In the Toshiba square of visionaries was only one player - Mitel.
Cisco and Microsoft, according to Gartner, are the leading players in the global market for combined communications due to the wide installation base for which they can offer their products. Both vendors have seriously worked on their platforms. Cisco has added Jabber client capabilities, including video, and is now working with promising platforms such as Mac, iPad and Android. Microsoft has expanded Lync's functionality with mobile support and announced the integration of Lync-Skype starting with Lync 2013.
Interestingly, during the Gartner study, vendors were asked to estimate the cost of implementing their systems for 1000 users and 10,000 users. In general, northern and user licenses cost from $250-350 to $350-450 per user. These are estimates of the cost of the full package, including telephony, IM and presentations, conferences.
The cost of equipment, including servers and phones, was on average twice the cost of the license in terms of user. Installation of the solution and professional service cost an average of $75-100 per user. According to the upper bar, thus, the total cost per user can be $750-1000. However, for large projects, the discount amount can reach 40-50%. The service cost for most projects is 12-15% of the original purchase cost.
Notes
- ↑ Enterprise Unified Communications Voice Equipment Market Research Report
- ↑ C. Worldwide UC&C Market Grows Despite Economic and Geopolitical Headwinds in 2022, According to IDC Tracker
- ↑ UCaaS Growth Rate Jumps as Microsoft and Zoom Each Quickly Add a Million Subscribers
- ↑ Worldwide Unified Communications & Collaboration (UC&C) Market Soars in 2020, According to IDC
- ↑ Worldwide Unified Communications & Collaboration Market Revenue Grew 17.7% to $38.8 Billion in 2019, According to IDC
- ↑ Global UCaaS Market Size is Expected to Grow from USD 15.8 Billion in 2019 to USD 24.8 Billion by 2024 - ResearchAndMarkets.com
- ↑ EMEA Unified Communications and Collaboration Market Expected to Reach $11.7 Billion by 2016, Says IDC