Wednesday, March 31, 2021

Unified Communications Market Reaches $47 Billion, IDC Says

The global unified communications and collaboration market grew 29.2 percent year over year and 7.1 percent quarter over quarter to $13.1 billion in the fourth quarter of 2020, according to IDC. Revenue growth was also up 24.9 percent for the full year 2020 to $47.2 billion, IDC notes. 


For the full year 2020, public cloud UCaaS revenue increased 21.2 percent to $16.4 billion.


Collaboration (including video conferencing software and cloud services) revenue increased 45 percent annually to reach $22.1 billion. In fact, for a market historically driven by business voice products (phone systems), revenue now is driven by conferencing. 


source: GM Insights 


Sales of IP phones declined 20.4 percent year over year, to about $1.9 billion, IDC reports. 

Enterprise videoconferencing systems (such as video conference room endpoints) increased 12.4 percent to almost $2.6 billion.


The unified communications market always is difficult to explain, as it is a mix of many services and products, ranging from business phones to hosted communications services to enterprise hardware and software to access services such as SIP trunks. 


For example, revenue booked by Microsoft, Cisco, Zoom, Avaya and RingCentral totaled about $26 billion for the year. Those five firms represent 55 percent of total UCC revenues for the year, IDC figures suggest. 


Relatively little UCC market revenue is earned by connectivity service providers.


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