The worldwide unified communications and collaboration (UC&C) market is forecast to reach $69.1 billion in revenue in 2024, an increase of 7.5% compared to 2023, according to a new report from International Data Corporation (IDC). Between 2023 and 2028, the market is expected to see a compound annual growth rate (CAGR) of 5.7% and be worth $85 billion by 2028.
► 89% of market claimed by UC collaboration and UCaaS
► UC collaboration to see CAGR of 7.6%
IDC said that the market has matured due to significant investments that were made in recent years to address the changed work environment and noted that AI is now bringing a fresh wave of new and differentiated capabilities that are likely to attract further investment as businesses vie for enhanced employee productivity and better customer engagement.
Two key segments – UC collaboration (meeting software without voice telephony subscriptions) and unified communications as a service (UCaaS) (meeting software including voice telephony subscriptions) – accounted for most of the worldwide market revenue (89% in 2023).
These categories are expected to claim an even higher share while hardware segments (IP telephony and enterprise videoconferencing systems) will see negative growth over the forecast period, said IDC. The UC collaboration segment is forecast to outpace the overall market with a five-year CAGR of 7.6%.
Microsoft continued to lead the worldwide UC&C market with a 44.7% market share by revenue in Q1 2024. Zoom and Cisco claimed 6.4% and 5.5%, respectively.
