MarketsandMarkets estimates the global Unified Communications as a Service (UCaaS) market size is expected to grow from USD 15.8 billion in 2019 to USD 24.8 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 9.5% during the forecast period. The key factors driving the growth of the UCaaS market include the increasing demand for UCaaS from both large enterprises and SMEs, and growing trends toward mobility and Bring Your Own Device (BYOD).
Moreover, factors such as advancements in artificial intelligence, machine learning, and other emerging technologies, are expected to create ample opportunities for UCaaS vendors.
Based on components, telephony and conferencing segment to contribute the highest market share during the forecast period
The telephony and conferencing segment are the most demanded UCaaS solutions among other components in 2019. However, collaboration platforms and applications segment is estimated to have higher demand during the forecast period due to its inherent benefits, such as security and low dependence on multiple vendors for UCaaS deployment. Vendors across the globe are offering telephony and conferencing as the main product due to an increasing demand among small and medium enterprises (SMEs) as these solutions help them in streamlining their enterprise communication and increase productivity.
Based on organization types, the large enterprises segment to hold a larger market size during the forecast period
The large enterprises across the world are adopting BYOD trends and thus, a large number of mobile workers are being employed leading to a higher demand for UCaaS solutions. The SMEs segment is expected to grow at a higher CAGR during the forecast period. An increasing number of SMEs and their global expansion have increased the demand for UCaaS solutions.
Based on regions, North America to account for the largest market size during the forecast period
The Unified Communications as a Service (UCaaS) market by region covers five major geographic regions: North America, Asia Pacific (APAC), Europe, Middle East and Africa (MEA), and Latin America. North America is expected to account for the largest market size during the forecast period; this can be attributed to the increasing technology adoption among North American enterprises for increasing productivity and the presence of a large number of UCaaS vendors.