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Unified Communications Market To Show Astonishing CAGR Of 20.5% By 2028, Due To The Use Of Cloud-Based Solutions For Fast And Seamless Communication Across Enterprises | Grand View Research, Inc.

Unified Communications Market To Show Astonishing CAGR Of 20.5% By 2028, Due To The Use Of Cloud-Based Solutions For Fast And Seamless Communication Across Enterprises | Grand View Research, Inc.
Grand View Research, Inc. – Market Research And Consulting.

According to a new report published by Grand View Research, changing workforce dynamics, growing prominence for Unified Communication as a Service (UCaaS), and virtualization of data and devices are factors that are expected to increase the adoption of UC solutions in enterprises.

Unified Communications Industry Overview

The global unified communications market size was valued at USD 78.33 billion in 2020 and is expected to reach USD 344.84 billion by 2028, at a CAGR of 20.5% from 2021 to 2028.

Enterprises have transitioned to Unified Communications (UC) solutions to reduce operating expenses, increase revenues, and strengthen customer relationships. UC enhances the decision-making process by integrating various communication tools into a single platform. Thus, unified communications solutions are typically deployed to foster cross-functional activities and yield positive results.

Gather more insights about the market drivers, restraints, and growth of the Global Unified Communications market

An increase in the mobile workforce coupled with the growing trends of Bring Your Device (BYOD) and hybrid workplace model is expected to positively influence the global market over the next eight years. Smart devices replace the traditional work culture of using desktop computers as a primary means of business communications. Mobile devices support UC, allowing employees to stay connected from anywhere at any time. Thus, employees need not limit themselves to the single desktop workstation but can work from remote places, ensuring high productivity.

U.S. unified communications market size, by product, 2018 - 2028 (USD Billion)

Unified communication is a field that has been evolving for more than a decade. The technology promises an influx of new, integrated communications devices that allow organizations to achieve numerous benefits such as collaboration, streamlining business processes, and lowering business communications’ overall cost. Vendors specializing in UC services emphasize simplifying their solutions, making them easier to purchase, deploy, and manage. There has been an increased focus on using past user experience as a critical tool for developing new solutions and enhancing the existing ones.

Business communications are rapidly evolving and organizations are looking for ways to control cost, manage complexity, and improve productivity. This has resulted in the increasing adoption of UC solutions, mainly delivered in a hosted or cloud-based Unified Communications as a Service (UCaaS) model. Organizations are redefining their business models to achieve agility and flexibility in business and improve overall productivity. In the ever-changing business environment, the integration of real-time telephony systems, data, and video communications becomes an essential part of business activities. Thus, organizations adopt these solutions to improve collaboration and communications internally with remote workers and externally with partners, clients, and suppliers.

Many companies are opting for customized solutions as they enable companies to select specific communication tools that suit their needs using the Bring Your Carrier (BYOC) strategy. With the rising demand for unbundled UC packages, UC vendors are expected to drop the one-size-fits-all approach over the coming years. Clients are expected to choose best-in-class solutions with unified communication platforms or applications integrated with APIs.


Unified Communications Market Segmentation

Based on the Product Insights, the market is segmented into Hosted and On-premise.

  • The hosted UC segment is expected to record the highest CAGR due to lower capital expenditure, operating expenses, and total ownership costs.
  • The on-premise segment dominated the unified communications market in 2020 and accounted for over 50% of the global revenue share.


Based on the Solution Insights, the market is segmented into Instant & Unified Messaging, Audio & Video Conferencing, IP Telephony and Others.

  • The instant and unified messaging segment dominated the market in 2020, accounting for over 34% revenue share.
  • Voice is still the preferred mode of communication among enterprises. However, businesses are also widely demanding video and messaging services to enable more expansive communication. This has increased the demand for audio and video conferencing solutions in enterprises.


Based on the Organization Size Insights, the market is segmented into SMEs and Large Enterprises.

  • Large enterprises accounted for a revenue share of over 79% in 2020. Tech-savvy employees demand an advanced level of communication at work to increase efficiency and productivity.
  • The new subscription-based cloud UC services are highly suitable for SMEs, giving them access to the latest technology with a lower cost of ownership. As a result, cloud-based services such as Office 365, Skype for Business, and hosted CRM solutions are widely deployed in SMEs.


Based on the End-use Insights, the market is segmented into Enterprises, Education, Government, Healthcare and Others.

  • The government sector captured a significant market share, accounting for over 25% of the global revenue in 2020. The government sector is widely deploying video conferencing tools for effective communications between remote offices of different departments.
  • The enterprises sector accounted for the largest revenue share of 49.23% in 2020.


Based on the Regional Insights, the market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa

  • Europe dominated the market for unified communications in 2020 with a revenue share of 35.04% and is estimated to dominate the market over the forecast period.
  • Asia Pacific is expected to exhibit the highest CAGR over the forecast period. The growth can be attributed to the increasing emphasis on collaboration and cost-cutting practices to ensure better resource utilization in the region.


Market Share Insights:

  • October 2019: Avaya Inc. announced a strategic partnership with RingCentral, Inc., a U.S.-based communication and collaboration solutions provider. The partnership was aimed at jointly developing UCaaS programs by leveraging the expertise of both companies.
  • September 2019: Panasonic Corporation launched its first European cloud-based UC services in France and Spain. Before this launch, the company partnered with Blue Face Ltd., an Ireland-based UCaaS solution provider, to develop UC solutions.

Key Companies Profile:

The global market is highly competitive due to the presence of major companies across the regions.

Some of the prominent players operating in the global unified communications market are:

  • Cisco Systems Inc.
  • Avaya, Inc.
  • Alcatel-Lucent
  • IBM Corporation
  • Plantronics Inc.

Order a free sample PDF of the Unified Communications Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research is a full-time market research and consulting company registered in San Francisco, California. The company fully offers market reports, both customized and syndicates, based on intense data analysis. It also offers consulting services to business communities and academic institutions and helps them understand the global and business scenario to a significant extent. The company operates across multitude of domains such as Chemicals, Materials, Food and Beverages, Consumer Goods, Healthcare, and Information Technology to offer consulting services.


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