UCaaS Market to Surpass $28BBn by 2021- Report

The "Unified Communication as a Service (UCaaS) Market is expected to grow from $17.35 billion in 2016 to $28.69 billion by 2021, at a Compound Annual Growth Rate (CAGR) of 10.6% during the forecast period, according to a report by Marketsandmarkets.

The major drivers of this market include low cost of ownership as compared to other communications tools, pay-per-use model of charging the end users, growing trends towards mobility and Bring Your Own Device (BYOD), integration of all communicating services at a single platform, increasing demand by SMBs, and continuous service support.

Some of the major service providers include Cisco Systems (U.S.), Computer Science Corporation (U.S.), BT Group (U.K.), 8x8 (U.S.), West Corporation (U.S.), Microsoft Corporation (U.S.), Voss Solutions (U.S.), Verizon Communication (U.S.), Star2star Communications (U.S.), and Polycom (U.S.).

Telephony segment is expected to hold the largest market share during the forecast period

The capability of integrating multiple functions of communication on one platform makes telephony an important tool from the business perspective.

Telephony is expected to hold the largest market share owing to its compatibility with automated transmissions of voice, fax, or other information.

The increasing demand of VoIP and IP telephony in BFSI, telecom & IT, logistic & transportation, and travel & hospitality industries acts as a major driving factor for the growth of telephony in the UCaaS market.

Consumer goods and retail vertical is expected to dominate the UCaaS market during the forecast period

The UCaaS market is also segmented into various industry verticals, out of which the adoption of unified communication solutions is expected to be the largest in the consumer goods and retail vertical as it helps retail outlets to streamline the business processes by enabling quick, real-time services and faster transaction closures.

Moreover, BFSI, logistic & transportation, and IT & telecom verticals are expected to gain traction during the forecast period.

North America is expected to hold the largest market share in the UCaaS market

North America is expected to hold the largest market share and dominate the UCaaS market from 2016 to 2021.

The main drivers responsible for the growth of UCaaS services in North America are the stable economy, technological advancements, and unified communication infrastructure demands. The UCaaS market in APAC is expected to witness highest the growth in the coming five years due to increasing technological adoption and huge opportunities across industry verticals in APAC countries, especially India and China.

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