The unified communications market enables improved collaboration and productivity for businesses through integration of various communication tools and channels on a single platform or device. It allows users to communicate through multiple channels like voice, video calls, instant messaging, and conference calls. The market offers solutions to improve employee and customer engagement while reducing costs through streamlining of communication processes.
The Global Unified Communications Market is estimated to be valued at US$ 97.08 Mn in 2024 and is expected to exhibit a CAGR of 4.9% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the unified communications market are Kansai Paint Co., Ltd., Axalta Coating Systems, Kyoei Vietnam Co., ltd, Nippon Paint Holdings Ltd., PPG Industries, Inc., B.L Downey, Dornauer-Grillitsch GmbH, KAPCO Manufacturing Inc., BASF Coatings Gmbh, and DuPont de Nemours, Inc. The growing adoption of cloud-based unified communications solutions across various industries is fueling market growth. The rising popularity of bring your own device concept is also contributing to the increasing demand. Major players are focusing on expanding their global presence through partnerships and mergers & acquisitions to tap the rising opportunities.
The Unified Communications Market Demand is witnessing significant growth driven by increasing adoption of cloud-based UC solutions across various industry verticals. The benefits of simplified communication, higher productivity and cost savings are encouraging more businesses to migrate to cloud-based UC platforms. There is also rising demand from small and medium enterprises for cost-effective and scalable communication solutions.
The increasing popularity of the bring your own device concept is boosting demand in the unified communications market. Many organizations are allowing employees to use their personal devices for work to improve flexibility and mobility. This is prompting vendors to develop solutions that enable a seamless unified experience across multiple personal and office devices.
Major players in the unified communications market are focusing on global expansion through partnerships and mergers & acquisitions. This is helping them expand their geographic footprint and solution portfolio. For instance, in 2022 Kansai Paint partnered with Kyoei Vietnam to strengthen their presence in the lucrative Vietnam market. Such strategies are helping key players tap into new growth opportunities.
Market Key Trends
One of the key trends gaining traction in the Unified Communications Market is the shift towards artificial intelligence (AI)-driven solutions. Leading vendors are incorporating AI capabilities like machine learning, predictive analytics and natural language processing to develop intelligent UC platforms. This is allowing solutions to offer personalized experiences, predict user behavior and optimize communication workflows. For instance, PPG Industries has developed AI-powered solutions that can detect emotions, filter relevant content and automatically route calls and messages. Such innovative offerings are expected to accelerate the adoption of unified communications in the coming years.
Porter’s Analysis
Threat of new entrants: The established players in the unified communications market have strong brand recognition and financial strength. New entrants may find it difficult to acquire significant market share and gain customers’ trust.
Bargaining power of buyers: Buyers have moderate bargaining power. They can choose from various unified communications solutions available in the market. However, switching to new providers involves costs associated with changing infrastructure and retraining employees.
Bargaining power of suppliers: A few large vendors dominate the unified communications market. They have significant control over pricing and supply. However, the threat of forward integration by buyers and emergence of new suppliers keeps their bargaining power in check.
Threat of new substitutes: Alternatives like traditional phone systems or separate tools for telephony, video conferencing etc. pose minimal threat. Unified communications integrates multiple modes of communication and brings synergies that are difficult to replicate.
Competitive rivalry: The unified communications market sees intense competition among major players. They focus on adding new features, simplifying user experience and enhancing security to gain an edge.
Geographical regions
North America accounts for the largest share of the unified communications market, both in terms of value and volume. Large enterprises in sectors like IT and BFSI have adopted unified communications solutions on a large scale in this region.
The Asia Pacific region is expected to witness the fastest growth during the forecast period. Countries like China, India and Australia are showing increased spend on communication technologies. Growing business operations and expanding industrial infrastructure will drive the adoption of unified communications solutions in Asia Pacific.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.