The global market for unified communications and collaboration continues to expand, reaching an estimated $70 billion by the end of 2024. This 7.5% growth compared to the previous year, according to IDC’s report, underscores the increasing importance and adoption of these technologies in the global business environment.
Definition and Market Segments
The IDC report defines the unified communications and collaboration market as a set of integrated solutions that range from advanced telephony and messaging to audio and video conferencing. This sector, which has rapidly evolved with the incorporation of artificial intelligence (AI), is driven by the need for solutions that optimize productivity and facilitate seamless communication in corporate environments.
In 2023, the segments of UC collaboration software (subscription-less phone and voice meetings) and Unified Communications as a Service (UcaaS) accounted for 89% of market revenues. This proportion is expected to increase, given the stagnation and possible decline in revenues from hardware.
Impact of Artificial Intelligence
A key factor in the market’s expansion is the incorporation of artificial intelligence. AI-enabled solutions, which enhance productivity through features such as automated meeting transcription, summary creation, note-taking, and live coaching for employees, are gaining traction. Jitesh Gera, IDC’s research manager of unified communications and collaboration, highlights that AI has been a primary focus area since early 2023, especially with the launch of Microsoft’s Copilot.
Gera explains that many companies are advancing towards more advanced AI capabilities, such as real-time assistance and content automation, which is transforming the way customer interactions are handled and productivity is improved. However, additional AI functionalities are still in an early stage of integration and monetization, hindering an accurate assessment of their impact on productivity and business collaboration.
Market Trends and Vendor Positioning
Microsoft continues to dominate the market with a revenue share of 44.7% in the first quarter of 2024. Zoom and Cisco follow in second and third place with shares of 6.4% and 5.5%, respectively. Companies like Slack, Microsoft, Google Meet, Unify, and Avaya also feature in the report, reflecting the sector’s diversity and competitiveness.
IDC forecasts a significant increase in cloud-based deployments, replacing on-premises solutions as data security and integrity improve. The integration of unified communications solutions with contact center platforms will be a growing trend, aiming to simplify technological stacks and reduce administrative burden through single providers offering unified UC, CC, and CPaaS capabilities.
In summary, the unified communications and collaboration market continues to evolve rapidly, driven by the integration of artificial intelligence and the growing adoption of cloud-based solutions. With an estimated 7.5% growth for 2024 and projections to surpass $85 billion by 2028, the sector is on an upward trajectory that promises to transform how businesses manage communication and collaboration.