Unified communications as a service (UCaaS) could be a bright spot in the business market according to a UCaaS forecast from Future Market Insights. Researchers expect the market to grow at a compound annual rate (CAGR) of 14.5% between 2021 and 2031.
In comparison, the UCaaS market saw year-on-year growth of just 12.8% in 2021. And between 2016 and 2020, it grew at a CAGR of 10.7%.
Global market revenue, which was around $19.6 billion in 2020, is expected to grow to $85.7 billion by 2031, with the market dominated by the top five providers. Those providers will hold more than a third (36.5%) of the total market.
Hosted solutions are helping drive market growth, researchers said. The hosted solutions help enterprises to reduce costs and improve productivity.
Bank financial services are the strongest market for UCaaS, according to the report. However, the IT and telecom segment is expected to grow at an 18.1% compound annual rate through the assessment period.
Cost savings have been evident in several industries, including healthcare, retail, consumer packaged goods and bank financial services.
Over the past few years, the continuous digitizing of workspaces has increased the demand for remote solutions, which is further creating opportunities for UCaaS solutions, according to the report. Additionally, the rising demand for mobile devices, applications, and a variety of collaboration tools is driving growth in the market.
North America is expected to dominate the global UCaaS market over the projection period, according to the UCaaS forecast. The U.S. is anticipated to account for around 83% of the North American share through 2031.
“The presence of various key players in the U.S. and the proliferation of trends such as Work from Home (WFH) and Bring-Your-Own-Device (BYOD) are some of the key factors encouraging the adoption of UCaaS solutions in the country,” Future Market Insights noted in a press release.
One provider that seems particularly keen on the UCaaS opportunity is Windstream, which sees it as a key driver of enterprise revenues, along with SD-WAN.