The UCaaS Market Will Reach $85.7 Billion By 2031, Driven By Remote Work

According to new research from Future Market Insights, the global Unified Communications as a Service (UCaaS) market is expected to have a compound annual growth rate (CAGR) of 14.5% through 2031.

Global market revenue was around $19.6 billion in 2020 and it is projected to reach $85.7 billion by 2031, thanks to accelerating demand for UCaaS solutions.

Unified Communications as a Service offers resilient cloud-based solutions that can be deployed faster and at lower cost than an on-premises solution.

Demand For UCaaS Continues To Grow

Data recently released by Future Market Insights on the demand outlook for UCaaS, indicated a year-on-year growth of 12.8% in 2022. Among various industry verticals, the BFSI (banking, financial and insurance products and services) sector has an outstanding participation among all sectors. However, the IT and telecom segment will grow at a CAGR of 18.1% over the next eight years. Also, due to the increasing demand for UCaaS by SMBs it can be attributed to the proliferation of mobility trends and “Bring Your Own Device” (BYOD).

The demand for UCaaS is estimated to increase by 14.5% between 2022 and 2031 compared to 10.7% recorded during 2016 and 2020. Growth opportunities for the Unified Communications market have been created by the implementation of solutions hosted by companies to reduce costs and improve productivity. Furthermore, the advantages of UCaaS over unified communication in terms of ROI, business continuity, speed and flexibility are the factors that increase the popularity of these solutions.

Since its inception, Unified Communications (UC) has emerged as a cost-effective solution for various industries, including healthcare, retail, and the BFSI sector, among others. For business leaders and IT experts, today’s communications are already in the cloud. With the rise of 100% remote workforces, virtual teams need to be fully integrated, so they can connect and collaborate with all the tools they need to get their work done.

Demand For Cloud Solutions Is Increasing

UCaaS is known to take center stage as each passing year has seen a significant increase in the adoption of cloud solutions and services. Demand for UCaaS is increasing as businesses around the world seek more Unified Communications capabilities to ensure benefits such as cost reduction, scalability, and productivity of cloud communications.

In recent years, the continued digitization of workspaces has increased the demand for remote solutions, creating even more opportunities for the implementation of UCaaS solutions. On top of that, the growing demand for mobile devices, apps, and a variety of collaboration tools is enabling employees to connect across geographies, platforms, and devices. This is further transforming IT consumption trends and increasing adoption of Cloud Computing and UCaaS solutions.

Increased Adoption Of Integrated UCaaS Platforms Due To Remote Work

With more and more employees choosing to work from home, video conferencing, web conferencing, collaborative meetings, mobile telephony, and VoIP phone systems have become some of the most sought after tools.

The rapid shift of customers to cloud communication is creating a demand for enhanced user productivity and flexibility, as well as opportunities for advanced communication and collaboration tools.

The US Will Dominate The Global UCaaS Market

North America is expected to dominate the global UCaaS market during the forecast period, accounting for nearly 83% of the share through 2031. Additionally, UCaaS demand in the United States is anticipated to offer a more lucrative opportunity for revenue generation income in the next eight years. Likewise, the presence of several key players in the US and the proliferation of trends such as Work from Home (WFH) and “Bring Your Own Device” (BYOD) are some of the key factors that will foster the adoption of UCaaS solutions in the country.