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Unified Communications Market Analysis By Product, By Application And Segment Forecasts To 2024

Unified Communications Market Analysis By Product, By Application And Segment Forecasts To 2024

  • August 2016
  • 82 pages
  • ID: 4144354
  • Format: PDF
  • By Grand View Research


Table of Contents

The global unified communications market size is expected to reach USD 143.49 billion by 2024, according to a new report by Grand View Research, Inc. The substantial growth prospects of the unified communications market can be attributed to the rapid international expansion of organizations and an increasing need for real-time and efficient communication systems that enhance the inter-organizational exchange of information.

Favorable government and institutional initiatives worldwide supporting the introduction of UC deployment across various industry sectors are expected to positively impact the market over the forecast period.

Organizations across various industry verticals are adopting various tools and strategies in order to optimize processes, decrease operational costs, improve efficiency and increase productivity. Unified communication solutions enable real-time communications within as well as outside of the organization thereby enabling the elimination of delays and speeding up of business processes.

However, high initial costs for such solutions and interoperability issues are presumed to challenge the industry growth over the next eight years. In the U.S., ambiguous VoIP related regulations by the FCC may affect the industry dynamics in the coming years.

Further key findings from the report suggest:

On-premise UC solutions accounted for nearly 60% of the overall market share in 2015 owing to the ease of customization and control they offer. Moreover, such solutions bring in a sense of security within the organization as critical business infrastructure resides in-house curtailing on security concerns. However, such systems require adequate maintenance and well-trained IT staff, thereby adding to their operational expenses.

Hosted unified communications systems provide enhanced flexibility compared to their on-premise counterparts. Such systems enable streamlined access to company data for the employees at a reduced infrastructure cost and are a good fit for geographically distributed organizations. The segment accounted for near 40% of the overall UC market revenue share in 2015 and is projected to overtake on-premise systems over the forecast period.

Enterprise end-use applications dominated the overall UC system industry in 2015. They accounted for nearly 50% of the overall market owing to the surge in adoption of such solutions in SMEs across various industry verticals. Governments from the countries such as the U.S., Canada, UK, Japan and New Zealand are investing in the adoption of such solutions across its institutions along with schools, colleges, and universities. The government end-use segment is expected to witness a substantial growth growing at a CAGR of nearly 20% over the forecast period.

The unified communications market in Asia Pacific region accounted for over 25% of the overall market share in 2015 and is expected to witness substantial growth over the next eight years. Developing economies such India and China from the region are expected to offer extensive growth avenues for the regional industry growth, owing to increasing industrialization and modernization of business processes eventually leading to surge in the adoption of such UC solutions.

Key market participants include Alcatel-Lucent S.A, Avaya Inc., Cisco Systems Inc., and Microsoft Corporation. Leading vendors are emphasizing on simple yet customized business communication offerings targeting small and medium business organizations. Moreover, service providers worldwide are offering innovative and dynamic communications and collaborating tools giving them an advantage over their competitors.

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