Unified Communication and Collaboration Market - Forecasts from 2023 to 2028

The unified communication and collaboration market is projected to grow at a CAGR of 20.85% to reach US$205.478 billion in 2028 from US$54.571 billion in 2021.

The compilation of various software and technological applications that integrate workplace communication with live and sequential cooperative capabilities are referred to as unified communication and collaboration (UC&C) solutions. They unify numerous techniques utilized in individual units of UC&C services and solutions to promote accessibility through one platform to enhance efficiency and connectivity. Integrating collaboration and communication features into a single accessible platform facilitates teamwork, increases accessibility and flexibility, enhances user experience, and aids in improving responsiveness.

UC&C solutions aid organizations in streamlining their communication and collaboration processes by integrating various communication channels, such as voice, video, and messaging, into a single platform enabling employees to communicate more effectively and reducing the time spent switching between different tools. The growing need for technologies that will allow seamless communication and collaboration across departments and geographies are driving the demand for UC&C solutions. In addition, integrating AI and automation technologies into UC&C solutions to improve their functionality, such as employing chatbots to automate customer service inquiries and using AI-powered analytics to provide insights into communication patterns and behaviors, are further promoting the market's growth.

Market Drivers

Advancements in 5G network and wireless technology

The evolution of wireless technology and the rise in internet penetration worldwide are encouraging the usage of UC&C software and applications as they enable users to access faster and enhanced communications systems by increasing worldwide connectivity. The Wireless Infrastructure Association estimated that the expenditure incurred on mobile and wireless networks by the US amounted to US$46 billion in 2022, out of which US$11.9 billion was specifically spent to introduce new wireless network coverage and capacity in the US. In addition, the development of 5G infrastructure driven by its rising consumption among consumers and growth in internet penetration is driving the demand for UC&C solutions as they facilitate uninterrupted communication through UC&C systems. The number of connections to 5G networks by consumers in the US has increased by approximately 20% annually since its initial commercial launch in late 2018 to reach 922 million connections by the end of the third quarter of 2022, as per the data released by the 5G Americas organization.

The growing demand for remote work practices

The rise of remote work is growing the demand for tools that enable remote collaboration, such as UC&C solutions that provide a unified platform for employees to communicate and collaborate from any location or device by utilizing efficient internet and wireless technology. The American Community Survey conducted by US Census Bureau in 2021 estimated that the rate of employees preferring to choose remote work culture increased to 27.6 million people in 2021 from its previous value of 2019. In addition, a study conducted by Stanford University discovered that employee productivity levels enhanced by more than 22% when they performed their work from remote areas. Furthermore, implementing a remote work practice due to the covid-19 pandemic is stimulating companies such as Amazon Web Services, Google, Spotify, and Dell Technologies to develop hybrid and long-term remote work models. Therefore, the changes in corporate work demographics are generating demand for highly efficient tools to facilitate convenient collaborations and communications among different departments in an organization. This is a significant factor expected to stimulate the growth of the UC&C market over the forecast period.

The technical restraints associated with unified communication and collaboration system could limit the market's growth.

Any technical disturbances, such as poor network connectivity, low bandwidth, and hardware failures, can disrupt communication and collaboration, leading to communication breakdowns and lost productivity. In addition, the integration complications associated with merging the UC&C system with various enterprise applications, such as CRM, ERP, and HR systems, with providing a seamless experience pose a threat to companies' extensive adoption of UC&C. Further, the inefficiencies existing in current UC&C products are also restraining market growth. For instance, a report generated by Integrated Research Ltd., a company manufacturing computer management software including UC&C products, revealed that approximately 25% of the experts working in the IT sector reported that several redundant UC&C duties consume one occupied day per week, leading to unproductive work time management among employees.

By service, the UCaaS segment is expected to hold a prominent share of the unified communication and collaboration market.

UCaaS solutions refer to unified communications as a service that has the potential to support six functions related to communication. These solutions are generating a high demand owing to the several benefits they offer to consumer companies. For example, UCaaS solutions are highly scalable, and organizations can easily add or remove users based on their needs. In addition, they can be integrated with other business applications, such as CRM or ERP systems, to provide a seamless experience that allows organizations to streamline their communication and collaboration processes and improve overall efficiency. Hence, the rising demand for UCaaS applications is expected to witness its share increase in the UC&C market over the forecast period.

Market Developments:

In November 2021, Tata Communications, a leading communication network company in India, introduced a new UCaaS software platform, GlobalRapide, to provide enhanced collaboration experiences among employees of its client companies.

In February 2021, Masergy, a software platform enabled with cloud services, introduced Cisco Webex features to its UCaaS solution due to its collaboration with Cisco company to enhance the performance and connectivity of its solution.

North America will retain a prominent share of the unified communication and collaboration market in the forecast period.

The extensive application of UC&C solutions across different industries, including retail, education, BFSI, healthcare, and government departments in North American countries such as the US, and the rising investment in the development of UC&C solutions by leading companies in the IT sector, such as Google and IBM are contributing to the expansion of UC&C market in the region. A survey conducted by Netscout Company revealed that 75% of the US and Canadian businesses with over $1 billion in annual revenue increased their usage of UC&C products in 2022.

Market Segmentation:

By Service

• UCaaS
• CPaaS
• Managed UC Services
• Audio, Web, and Video Conferencing Services
• VoIP Access and SIP Trunking

By Deployment

• Cloud
• On-premise

By Industry Vertical

• Retail
• BFSI
• Education
• Healthcare
• Government
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Other
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Taiwan
• Others