April 20, 2024
Unified Communications Market

The Growing Unified Communications Market Is Driven By High Demand For Enhanced Customer And Employee Experience

Unified communications provides various collaboration tools including video conferencing, instant messaging, screen sharing, and audio conferencing that help organizations foster effective communication between employees and with customers. These capabilities have become crucial for enabling seamless remote work and maintaining business continuity. The rising need among enterprises to streamline interactions through integrated real-time communication solutions is augmenting the adoption of unified communications. With features like presence, click-to-call/video, chat and find me/follow me unified communications solutions offer next generation collaboration experiences across departments and geographies. The global Unified Communications Market is estimated to be valued at US$ 95.8 billion in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023-2033, as highlighted in a new report published by Coherent Market Insights.

Market key Trends:

Rising adoption of cloud-based unified communications: With benefits like flexibility, scalability and low cost of ownership cloud-based unified communications solutions are gaining traction among enterprises. Major communication technology providers have expanded their UC offerings on the cloud to leverage its ubiquitous accessibility and remote deployment capabilities. For instance, in 2021 Microsoft announced general availability of Teams cloud phone system that provides calling functionality over internet without requiring any additional hardware.

Growth of BYOC (bring your own communications) trend: Enterprises are witnessing a shift where employees want to use their own devices and collaborate tools of choice for work instead of relying solely on organization provided tools. This has pushed communication vendors to make their unified communication applications compatible across platforms to accommodate diverse bring your own device (BYOD) policies. For example, Cisco recently introduced Webex calling app to enable browser-based calling from anywhere on any device.

Porter’s Analysis

Threat of new entrants: The unified communications market features high entry barriers due to high costs associated with infrastructure setup and the need for strong technical expertise.

Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of several vendors offering similar unified communication solutions.

Bargaining power of suppliers: A few global players dominate the unified communications market, giving them significant bargaining power over buyers.

Threat of new substitutes: Alternatives such as online collaboration tools pose a minimal threat currently due to limitations in features compared to unified communication solutions.

Competitive rivalry: Intense competition exists among unified communication solution providers to capture more market share through product innovations and partnerships.

Key Takeaways

The global Unified Communications Market Growth is expected to witness high growth. North America dominates the unified communications market currently due to rapid technological advancements and high focus on workforce productivity in the region. The Asia Pacific unified communications market is estimated to register the fastest CAGR owing to growing adoption of cloud-based solutions across industries in emerging countries such as China and India.

Key players operating in the unified communications market are Cisco Systems, Microsoft Corporation, IBM Corporation, Google, and Verizon. Cisco Systems leads the unified communications market with a strong unified communications product portfolio and global network. Microsoft has a significant market presence for unified communications through its Microsoft Teams application and Office 365 products.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it