A new report from Global Insights, Inc. reveals that the unified communications and collaboration (UCC) market will nearly double by 2024, up to $57 billion in value from $27 billion in 2016. This growth will be most predominant in North America where there is greater service availability than other parts of the world. UCC technology — integrating real-time communications platforms like telephony, presence, instant messaging, video conferencing, SMS, email and fax — has become increasingly popular as it significantly streamlines key communications functions while also reducing costs. It’s improving efficiency, productivity, mobility and customer satisfaction in a single, flexible communication infrastructure.
Growth by Platform
A large share of the UCC market growth is expected to fall in the telephony category due to its extensive usage for real-time communications with both internal and external stakeholders. Conferencing platforms, however, are on track for the fastest growth in this timeline as businesses move into multinational markets and need to collaborate across varying geographic locations.
Growth by Application
The report shows that IT & telecom will dominate the UCC market by 2024 with a market share of over 33%, and that a growing number of SMBs in the IT industry are adopting the technology to reduce IT infrastructure spend. The banking, financial services and insurance markets, on the other hand, will grow at the fastest rate, primarily because of the information-based nature of the services provided by financial institutions. UCC applications also help these businesses to reduce latency in terms of decision making related to critical customer-facing business processes like mortgage applications.
Growth by Deployment Model
While on-premise UCC was most popular in 2016, cloud-based applications are on the rise as cloud networks continue to grow. It’s expected that the hybrid model deployment of UCC will increase at a 16% CAGR (compound annual growth rate) between 2017 and 2024 as businesses rely on both cloud-based communication functions and maintaining critical data on-premise (frequently due to security and confidentiality concerns).
What Does This Mean for Businesses?
The projected growth in the UCC market demonstrates how the technology is transforming businesses of all sizes. With the upward trend, you can expect to see more strategic partnerships among providers as the market consolidates. This will further diversify solution offerings and expand UCC service availability into more geographic regions around the world.