RingCentral, 8x8, LogMeIn Named Among Major Players in Exploding UCaaS Market

The unified communications-as-a-service (UCaaS) opportunity for partners will continue accelerating in the coming years, with the global market reaching nearly $25 billion by 2024.

That’s according to a new report by MarketsandMarkets, which expects a compound annual growth rate (CAGR) of 9.5%. The market was valued at $15.8 billion last year.

Among the major providers are RingCentral, 8×8, LogMeIn, Mitel, Cisco, Vonage, Fuze, Microsoft, Google, Verizon, Windstream, Masergy and Alcatel-Lucent Enterprise, says the report.

Key factors driving market growth include increasing demand for UCaaS from both large enterprises and SMEs, and growing trends toward mobility and bring your own device (BYOD). Based on components, the collaboration platforms and applications segment is expected to grow at the highest CAGR through 2024.

The presence of legacy unified communication (UC) systems has made it easy for enterprises to move to cloud telephony without many budget investments, according to the report. Additionally, employees globally prefer voice as a main form of communication compared to messaging and video conferencing. This has led telephony to have the largest market share compared to other components.

However, due to the rising need for security and the need to remove dependency on multiple vendors, enterprises are deploying collaborations platforms to have a single solution for all their UC needs, prompting growth in the collaboration platforms and applications segment.

North America is estimated to dominate global UCaaS due to the presence of a large number of vendors, and high adoption of BYOD and enterprise mobility trends across the region. However, APAC is estimated to grow at the highest CAGR through 2024.