Worldwide revenues in the unified communications collaboration (UC&C) market grew 7.9% year-on-year to $15.2 billion in the fourth quarter of 2022, according to IDC, and were up 9.8% to $59.3 billion for the full year.
► Revenues rose 7.9% in Q4 2022 and 9.8% for full year
► Cloud-based services driving growth
Cloud-based services are driving growth. Roughly two thirds of organisations are using at least some cloud based UCaaS and adoption is expected to continue. Key findings included:
- Hosted Voice/UC Public Cloud (UCaaS) grew 16.2% year-on-year to $5.6 billion and 16.6% to $21.2 billion for the full year.
- UC Collaboration (including video conferencing software and cloud services) increased 5.9% YoY to $7.3 billion in 4Q22 and 9.1% to $28.8 billion for the entire year.
- IP Phones revenue declined 8.3% YoY but increased 2.5% to almost $2.0 billion in 2022.
- Videoconferencing Room Endpoints declined 2.2% in Q4 YoY and revenue declined 3.1% to $1.8 billion for the year.
- Huddle Room Endpoints increased 19.5% year-on year to almost $287 million in 4Q22. For the full year 2022, revenue increased 11.5% to $1.0 billion.
From a regional perspective, the IDC Worldwide UC&C Tracker reported that the EMEA region saw total revenue grow 5.5% year over year in 4Q22 to $4.3 billion. For the full year 2022, total revenue was up 7.2% to $16.8 billion.
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