Unified Communications Market Overview
The Unified Communications Market size is projected to grow from USD 77.044 Billion in 2024 to USD 182.75 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.40% during the forecast period (2024 - 2032). Additionally, the market size for unified communications was valued at USD 69.16 Billion in 2023.
The increasing need for mobility, easy accessibility of information, and lowering the cost of administrative procedures are the key market drivers enhancing market growth.
Figure 1: Unified Communications Market Size, 2018-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Unified Communications Market Trends
Growing easy availability of information is driving the market growth
The demand for easy availability of information drives Market CAGR for the unified communications market. Unified communication provides flexibility, mobility, and increased productivity. Due to unified communications, organization snow hold online meetings using audio and video conferencing on the touch of a button. Due to a digital workforce, employees can access the resources they need to perform their jobs on any device and at any location. The cloud-based solutions for smooth & quick communication across organizations are expected to enhance the unified communications market growth.
Additionally, increasing need for mobility, with the requirement of lowering the cost of administrative processes. Due to increasing ization, large organizations focus on accessing cross-border markets, demanding collaboration solutions that permit for effective employee communication. Organizations have discovered that without destruction, their employees give remarkable productivity. Video communications, incorporating real-time data, and telephony systems become critical to organizations’ activities in this changing scenario.
Thus, associations use these unified communication solutions to enhance communications and collaborations internally with staff and externally with clients and suppliers. As a result, it is anticipated that demand for unified communications will increase throughout the projection period due to the easy availability of information, flexibility, mobility, and increased productivity. Thus, driving the Unified Communications Market revenue.
Unified Communications Market Segment Insights
Unified Communications Product Type Insights
Based on product type, the Unified Communications Market segmentation, includes on-premise and cloud-based. The on-premise segment dominated the market, accounting for 51% of market revenue. The on-premise segment is a traditional unified communication solution for different organizations. The on-premise unified communications solution do not need good quantity of internet connectivity. However, this unified communication solution is slightly more expensive than other solutions.
The cloud-based unified communication segment is the fastest-growing segment in the forecast period. Increasing demand for remote working facilities in the corporate, growing need for its superior features over the conventional alternatives, increasing saturation of IoT, growing adoption of cloud-based services, and connected devices, rising mobility, and increased productivity of workforce and savings are all the factors supporting to the cloud-based unified communication market growth.
Unified Communications Application Insights
Based on application, the Unified Communications Market segmentation, includes unified messaging, conferencing, video, contact center, telephony, and others. The unified messaging category generated the most income (more than 32.0%) due to the increase in the enterprises’ requirement to be involved in quick communications with peers and gain real-time alerts of the strategies in harsh mission situations. Furthermore, unified messaging supports manage regular fax, text, and voice messages, all providing one single platform that users can connect through telephone or computers. A Unified messaging application greatly benefits mobile users, enabling them to reach clients and co-workers easily.
Video and audio conferencing is projected to be the fastest-growing segment in the coming years. The increasing demand and video conferencing trend are attributed to increase the market growth over the forecast period. Organizations find these applications simple and hassle-free which makes meetings more interactive, efficient, and collaborative.
Figure 2: Unified Communications Market, by Application, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Unified Communication by End User Insights
Based on end users, the unified communication market data, includes healthcare, education, government, BFSI, IT & Telecom, retail, enterprises, and others. The enterprise segment dominated the market, accounted for 46.0% revenue in market growth due to the rising adoption of IT in enterprise business operations to increase the overall organizational performance of an enterprise. Unified Communications provide several services to increase remote workers’ productivity by using available mobile devices.
The government segment will be the fastest-growing segment in the unified communication market in coming years. With the increasing demands from citizens for enhanced communications and to meet budgetary pressures government is increasing the deployment of this technology among governments worldwide. A collaborative approach is accepted to grow engagement and interaction between several government divisions and their stakeholders.
Unified Communications Regional Insights
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American unified communication market area will dominate this market, owing to an increase in the cloud technology, adoption of Bring Your Own Device (BYOD), and increased demand for connected interfaces. In addition, unified communication provides flexible working options will boost market growth in this region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: UNIFIED COMMUNICATIONS MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Unified Communications Market accounts for the second-largest market share due to adoption of bring your own device (BYOD). Further, the German Unified Communications Market held the largest market share, and the UK Unified Communications Market was the fastest-growing market in the European region. The Asia-Pacific Unified Communications Market is expected to grow at the fastest CAGR from 2023 to 2030.
This is due to rising economic growth and adoption of modern technology. Moreover, China’s UC Market held the largest market share, and the Indian Unified Communications Market was the fastest-growing market in the Asia-Pacific region. For instance, At GITEX , Alcatel-Lucent Enterprise and Avaya unveiled the next stage of their strategic collaboration, allowing businesses to innovate without having to take operationally disruptive technology replacement initiatives. Talk and Alcatel-Lucent Enterprise established a distribution partnership in Germany, and Talk quickly took on the role of master dealer under the broker model.
Unified Communications Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Unified Communications Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Unified Communications industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Unified Communications industry to benefit clients and increase the market sector. In recent years, the Unified Communications industry has offered some of the most significant advantages to medicine. Major players in the Unified Communications Market, including Google LLC, NEC, Aastra, IBM Corporation, Siemens Enterprise Communications, Avaya Inc., Verizon, Star2Star, Asnet, Orange, Mitel, Microsoft Corporation, Hewlett-Packard, RingCentral, NTT, Cisco Systems, Connect Solutions, Unify, Huawei, At& T, Alcatel-Lucent S.A., and others, are attempting to increase market demand by investing in research and development operations.
RingCentral,Inc. is an American publicly operated provider of cloud-based communication and collaboration of products and services for trades. Company provides different kinds of cloud-based products such as Ringcentral Office, RingCentral Professional, RingCentral Fax, phone system with PBX Features like multiple extensions, outlook, google docs, call central, drop box and box integration, SMS, web conferencing, drop box and box integration, rule-based call routing answering. In June 2021, Avaya and RingCentral Inc. launched a batch of new abilities for the Avaya Cloud Office by RingCentral Unified Communications as a Service solution with many device-specific improvement that supports easy migration, additional video, and other development features.
Key Companies in the Unified Communications Market include
Unified Communications Industry Developments
As an example, in October 2023, Mitel Network Corporation bought Unify, an Atos partner that gives communication and collaboration services.
The report mentions that in August 2023, Avaya Inc., a supplier of customer experience solutions, signed a cooperative purchasing agreement with Sourcewell, which is a Government Cooperative Purchasing Organization in the North American region. Now, such a contract has allowed customers from the US and Canada to purchase Avaya solutions and services either directly or through authorized partners placed on a cooperative contract.
In the same month, Mitel Network Corporation also updated MiCollab, a collaboration tool conceived to integrate instant messaging, voice and meeting features of its users on one network. The firm has stated that in the next version improvement, users will be allowed to select more than one provider for the meeting which enhances the usability of the software.
For example, in July 2023, Alcatel-Lucent Enterprise deployed Alcatel-Lucent Enterprise Rainbow Hub in the UK, and it integrates both its UC and PBX solutions as a service in the cloud.
For example, in June 2023, together with Sony Group Corporation, Zoom integrated its video communications and collaboration platform into BRAVIA TVs, and Zoom users will be able to use their devices to make and join video meetings with colleagues working in hybrid or remote situations.
In May 2023, NEC Corporation unveiled UNIVERGE BLUE ARCHIVE, which is a data retention tool for their UNIVERGE BLUE CONNECT unified communications application. The offering by NEC is meant to enhance the protection of critical business communications channels, including phone call recordings, chat, short message service (SMS), and voicemail and makes them easy to find via search and retrieval.
As Verizon Communications Inc. waits for clients to join the phone system using call subscriptions, on January 2023, the firm offers a phone application that works with that system. With Verizon Communicator NSA software installed, the company introduced Verizon Mobile allows users of Microsoft Teams applications to use mobile devices when collaborating and making calls.
By October 2022, Cisco Systems, Inc., along with Microhard, announced that they had entered into a partnership. Microsoft and Cisco’s combined emphasis is on enabling the operation of Microsoft Teams software on Cisco Desk and Room Devices Certified for Microsoft Teams.
Unified Communications Market Segmentation
Unified Communications Product Type Outlook
Unified Communications Application Outlook
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Unified Messaging
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Conferencing
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Video
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Contact Center
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Telephony
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Others
Unified Communication End User Outlook
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Healthcare
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Education
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Government
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BFSI
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IT & Telecom
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RETAIL
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Enterprises
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Others
Unified Communications Regional Outlook
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North America
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
Report Attribute/Metric |
Details |
Market Size 2023 |
USD 69.16 Billion |
Market Size 2024 |
USD 77.044 Billion |
Market Size 2032 |
USD 182.75 Billion |
Compound Annual Growth Rate (CAGR) |
11.40% (2024-2032) |
Base Year |
2023 |
Market Forecast Period |
2024-2032 |
Historical Data |
2019- 2022 |
Market Forecast Units |
Value (USD Billion) |
Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
Segments Covered |
Product Type, Application, End-User, and Region |
Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
Countries Covered |
The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
Key Companies Profiled |
Google LLC, NEC, Aastra, IBM Corporation, Siemens Enterprise Communications, Avaya Inc., Verizon, Star2Star, Asnet, Orange, Mitel, Microsoft Corporation, Hewlett-Packard, RingCentral, NTT, Cisco Systems, Connect Solutions, Unify, Huawei, At & T, Alcatel-Lucent S.A. |
Key Market Opportunities |
Increase demand for effective real-time communication solutions |
Key Market Dynamics |
Increasing need for mobility Aim to lower the cost of administrative procedures |
Frequently Asked Questions (FAQ) :
The unified communications market size was valued at USD 69.16 Billion in 2023.
The market is projected to grow at a CAGR of 11.40% during the forecast period, 2024-2032.
North America had the largest share in the market.
The key players in the market are Google LLC, NEC, Aastra, IBM Corporation, Siemens Enterprise Communications, Avaya Inc., Verizon, Star2Star, Asnet, Orange, Mitel, Microsoft Corporation, Hewlett-Packard, RingCentral, NTT, Cisco Systems, Connect Solutions, Unify, Huawei, At & T, Alcatel-Lucent S.A.
The on-premise unified communications category dominated the market in 2022.
The unified messaging had the largest share in the market.