Unified communications market to expand to USD $187.6 billion by 2031

According to new research by Transparency Market Research, the global unified communications market is projected to grow significantly in the next decade. The market, valued at USD $48.1 billion in 2021, is expected to reach USD $187.6 billion by 2031, reflecting a compound annual growth rate (CAGR) of 13.2% from 2022 to 2031. This growth underscores the increasing demand for integrated communication solutions across various sectors.

Many companies currently using traditional communication equipment are anticipated to transition to unified communication systems to enhance knowledge sharing and productivity. Cloud-based unified communication (UCaaS) provides the flexibility for employees to communicate from any location and at any time. This capability enables collaboration through any internet-connected device, boosting work efficiency. Providers in this market are focusing on acquisitions to integrate advanced solutions into their existing systems and expand their regional reach and customer base.

The demand for remote collaboration is a primary driver of this market's growth, with a notable rise in UCaaS usage globally. Both small and medium-sized enterprises (SMEs) and large organisations contribute to the increasing market demand. The work-from-anywhere (WFA) trend has grown markedly post-pandemic, further fuelling the need for comprehensive, unified communication systems.

Digital transformation also plays a crucial role in the market's expansion. Companies are increasingly adopting digital transformation strategies to enhance customer experiences and compete more effectively, escalating the need for modern IT infrastructure. Businesses are shifting towards UCaaS to support their distributed workforces. This service amalgamates various communication tools, such as messaging, email, video conferencing, and VoIP, into a single platform, streamlining remote collaboration.

Unified communications aim to integrate different enterprise communication tools into a cohesive interface to improve user experience and productivity. These systems amalgamate various communication channels, such as content sharing, messaging, video and voicemail, into a single platform. This integration supports synchronous and asynchronous communication, making it easier for users to access solutions without being tied to a particular device.

Among the key players in the unified communications market are Alphabet, Cisco Systems, Microsoft Corporation, NEC Corporation, and Zoom Video Communications. These companies have been actively pursuing partnerships and acquisitions to expand their offerings and market share. For example, in July 2023, Tata Tele Business Services launched the Smartflo UCaaS solution, integrated with Microsoft Teams, to enable public switched telephone network (PSTN) calls from various devices through the corporate network.

The market is segmented by type, deployment, organisation size, and vertical. The types include telephony, conferencing, unified messaging, and others. Deployment options are divided into on-premise and cloud. Organisations are classified as SMEs or large enterprises. Vertically, it targets sectors such as academia and public institutions, banking, financial services and insurance (BFSI), healthcare, IT and telecom, manufacturing, retail and e-commerce, among others.

In recent developments, Cisco Systems partnered with cybersecurity company Journey AI to enhance customer experience and security. Meanwhile, RingCentral has obtained regulatory approvals to offer compliant cloud phone services in India. Unisys, an IT service firm, also strengthened its market position by acquiring unified communications app security and management firm Unify Square for USD $152.5 million in June 2021.