The UCaaS market has been expanding steadily for several years now, and a recent UCaaS market forecast by Research and Markets predicted that the UCaaS market will reach $31 billion in total market worth by 2022.
UCaaS market growth is powered in part by the scalability of UCaaS, which appeals to the growing number of small businesses around the world. Additionally, the growing trends of mobility, Bring-Your-Own-Device, and pay-per-use models are major driving factors in UCaaS market expansion.
However, some segments of the UCaaS market are set to expand faster than others.
APAC and Latin America are the fastest growing UCaaS markets.
The APAC region is predicted to be the most rapidly expanding UCaaS market with market growth of 18.9% by 2022. Most of this growth is attributed to a large number of emerging small businesses in APAC countries—especially China and India—and developing Asian countries with communication infrastructures that are quickly becoming cloud ready.
Latin America won’t experience quite the same growth as APAC, but is still set to expand significantly. Major acquisitions by European and American communications companies have led to widespread improvements in Latin America’s information infrastructure. This means that the market growth in Latin America will be driven primarily by widening potential consumer bases.
North America is still the largest UCaaS market.
Although the North American UCaaS market is only predicted to expand by 9.2% by 2022, it will maintain its place as the largest UCaaS market in the world. Technological improvements and increasing adoption of UCaaS by enterprise-level companies will hold North America’s spot in the global UCaaS market.
Consumer goods and retail verticals are the largest and fastest growing UCaaS market segments.
Consumer goods and retail markets are taking advantage of UCaaS technology to streamline customer service and make faster transaction closures. Some companies in this sector have also embraced UCaaS as a way to improve omnichannel marketing and provide a more seamless buyer experience as they move between brick-and-mortar and ecommerce market spaces.
Flexibility and cost-effectiveness will drive dominant expansion of UCaaS in the consumer goods and retail market verticals.
Telephony is the UCaaS component expected to grow most in usage.
Businesses are looking for ways to consolidate multiple communications functions into a single platform, but rolling other communications functionality into a core telephony component is the most common transition into UCaaS. Among the major UCaaS components (telephony, unified messaging, conferencing, and collaboration), telephony usage will see the most growth.
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