New research by ReportLinker reflects the potential of the unified communication space as it anticipates the UCaaS market to be worth $381.2bn by 2030.
The UCaaS (Unified Communications as a Service) market in 2022 has an estimated value of $91.7 billion, which implies the CAGR (compound annual growth rate) to be 19.5% from 2022 to 2030.
The public cloud segment is projected to reach $309.9 billion by 2030 with a 20.5% CAGR in the lead-up. Private cloud, hampered by post-pandemic recovery, has an adjusted 15.7% CAGR over this eight-year period.
ReportLinker provided its assessment of the current state of the markets:
“Year 2023 is expected to be a tough year for most markets, investors and consumers.
“Nevertheless, there is always opportunity for businesses and their leaders who can chart a path forward with resilience and adaptability.”
According to the report, the global economy is at a critical stage with numerous crises and challenges running in tandem.
The result of Russia’s war on Ukraine remains unknown and is a key factor contributing to the financial instability felt around the world.
Fuel and food inflation is forecast to remain a continuing issue throughout the year. Retail inflation is also believed to negatively impact consumer spending.
As governments attempt to tackle inflation by increasing interest rates, new jobs are expected to slow economic growth.
Inflation fears and lower-than-usual demand is reducing capital expenditure as companies become cautious with their investments.
The combination of slow growth and high inflation is setting up developed markets for a recession.
China is also impacting the world economy as worries about new Covid outbreaks and an unclear post-pandemic strategy threaten the global supply chain.
On top of this, ReportLinker cites the uncertain financial markets, trade tensions, strict regulations, and climate change targets add another layer of complexity.
Regional UCaaS Market Forecasts
The U.S. UCaaS market is estimated at $27.4 billion in 2022. China’s unified communications market size is projected to reach $65.3 billion by 2030 with a CAGR of 18.8% from 2022 to 2030.
Japan and Canada are both forecast to grow by 16.9% and 15.5% respectively between 2022 and 2030.
Within Europe, Germany’s CAGR is expected to be 11.6% over the same period.
ReportLinker based its findings on a total of 117 unified communications companies, including Microsoft, BT, Cisco, Avaya, 8×8, Mitel, RingCentral, Vonage, and other big names in the world of UC.
Last year, a report by Fortune predicted the UCaaS market would reach $70 billion by 2028 with growth driven by digital transformation and the surge in cloud adoption and migration.
More recently, Market Research Future forecast the unified communications market will be worth $365.2 billion by 2030, which is more in line with ReportLinker’s latest assessment. In its forecast, Market Research Future stated that the Internet of Things (IoT) is the biggest growth driver in unified communications.
In spite of the complex and chaotic global economic forces, these predictions paint a relatively rosy picture of unified communications going forward.
