UCaaS Market to Hit $70bn in 2028

Asia Pacific region expected to see the strongest growth

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UCaaS market to hit $70bn by 2028
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Published: September 2, 2021

Tom Wright

Managing Editor

The global unified communications as a service (UCaaS) market is set to be worth nearly $70bn by 2028, according to research from Fortune Business Insights.

The growth will come from a base of $29bn in 2021, the research firm said, representing a compound annual growth rate (CAGR) of 13.4 percent between this year and 2028.

Fortune said that the increased size of the market is being driven by the digital transformation and the surge in cloud adoption and migration.

The pandemic, has, of course, played a huge role in driving businesses towards collaboration tools – often as part of a unified offering. The expected prominence of hybrid working and distributed workforces will also contribute to the rise in UCaaS.

Other trends include the merging of unified comms solutions with CPaaS and CCaaS into integrated offerings, with Fortune said will drive UCaaS adoption.

Fortune also said that the rise in programmable communications has stimulated the market.

It added that APIs are giving developers the ability to build applications around communications to help streamline business comms and complex business processes.

Geographically, the North American market holds the major share of the global market at the moment. Europe is expected to see “moderate” growth over the forecast period to 2028, driven by the education and healthcare industries, in particular, Fortune said.

However, it is the Asia Pacific region that is expected to see the highest CAGR over the next seven years, owing to increased demand for internet-based communication services and the boom in cloud services.

Most players in the UCaaS space have experienced a boom over the course of the pandemic. Zoom, which has embraced UCaaS with the launch of Zoom Phone, recently reported its first $1bn quarter.

Microsoft, meanwhile, recently announced that Teams has 250 million monthly active users, with Teams Phone hitting 80 million.

 

 

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