1. Increased Enterprise Mobility will Boost Deployment of Unified Communication as a Service (UCaaS) Solutions

Rising Demand for UCaaS Solutions in Large Enterprises Acts as Growth Booster
Recent studies have shown a significant rise in the number of mobile workers across the globe. “Growing
liberalization around the world has compelled large enterprises to enter cross-border markets, thereby driving
the need for collaboration tools to allow employees of a company to effectively communicate with each
other,” the author of the study comments. UCaaS solutions support this very need and as a result, the market
for the same has been receiving a major boost. “The impact of this driver will be high during the forecast
period with businesses likely to expand operations to developing regions such as the MEA and Asia Pacific,”
the analyst predicts.
The growth of the BYOD trend, multiple benefits offered by UCaaS solutions, and surging penetration of
mobile devices are also responsible for the future expansion of the UCaaS market.
In contrast, the lack of awareness regarding UCaaS solutions and the benefits they offer threatens to hamper
the adoption rate of UCaaS by SMEs. However, this impediment is projected to have a minimal impact on
the UCaaS market in the long term.
Significant Growth in Store for UCaaS Market by Revenue and Volume
The opportunity in the global UCaaS market was pegged at US$8.23 bn in 2015 and is projected to be worth
US$79.3 bn by 2024. The market is likely to expand at a remarkable CAGR of 29.4% during the forecast
period. By deployment, hosted UCaaS accounted for a larger share in terms of both revenue and volume.
Revenue-wise the segment is anticipated to witness a 33.1% CAGR from 2016 to 2024 to reach US$69.9 bn
by 2024. Volume-wise, the hosted UCaaS segment is expected to register a 32.0% CAGR. Within the hosted
UCaaS segment, UC SaaS emerged as the leading segment by revenue in 2015, with UC PaaS as the most
rapidly expanding sub-segment.
By service, the global UCaaS market was led by telephony services while contact center services are likely
to register the fastest growth by revenue during the forecast period. On the basis of end users, large enterprises
form the key revenue generators in 2015. Small and medium enterprises (SMEs), on the other hand, are
projected to develop at the highest pace from 2016 to 2024. Based on delivery model, although stand-alone
services held the larger share in terms of revenue in 2015, integrated services are likely to emerge as the
leading as well as fastest growing segment by 2024. Geographically, North America is the leading revenue
generator while Asia Pacific is forecast to exhibit the highest growth by 2024.
This review is based on the findings of a TMR report titled “Unified Communication as a Service (UCaaS)
Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”