Virtual PBX Featured Article

UCaaS Market to Top $161B by 2031

September 07, 2022

A new study from Transparency Market Research has found that the Unified Communication-as-a-Service (UCaaS) Market will grow from $44.88= billion in 2021 to $161.67 billion by 2031. This represents a CAGR of 15.3% during the forecast period (2022-2031).

The growth is driven by several factors, including lower total cost of ownership compared to traditional communications systems The affordability of UCaaS solutions making them a viable value proposition for both SMBs and enterprises.

Ever since the 2020 pandemic shutdowns, businesses have shifted to a more digital landscape. With more hybrid work arrangements and remote workers, businesses need communications solutions that will enable productive working conditions, regardless of location, increasing demand for UcaaS solutions.

Another factor driving the growth of the UCaaS market is connectivity – specifically, the rise in affordable smartphones and availability of reliable Internet services across the globe. These devices are capable of accessing UC features via software, allowing users to connect from anywhere and improve overall efficiency and collaboration with team members.

Advantages for the workplace come from tools such as file sharing and, of course a variety of communications channels, including voice, video, messaging, and email.

The global UCaaS market is also being pushed by the growing relevance of API-based programmable communication capabilities. These allow enterprises to integrate their UCaaS solution with other business applications and processes, thereby increasing workforce efficiency and productivity and increasing the ROI on UcaaS solutions.

While UcaaS benefits businesses in every industry, specific segment that stand improve greatly from an operational perspective with UCaaS include public service, law enforcement and government institutions. The hospitality industry will also benefit from significant cost savings with UCaaS solutions to enhance worker productivity and cooperation. In reality, any business with frontline or deskless workers have an opportunity to increase their communications effectiveness and service levels.

In North America, which is expected to see the greatest increase, the rise in telepresence system usage, BYOD, and use of business conferencing and unified messaging offerings are all driving market growth.

The UCaaS market has been poised to dominate the market, and the pandemic pushed companies into making decisions they may have been pushing off previously. Now, the benefits are evident and for those who have not yet made the move to UcaaS, it’s only a question of when, not if.

Edited by Erik Linask


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