IP Telephony & UCaaS Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 98.13 Billion |
| Market Size (2029) | USD 99.36 Billion |
| CAGR (2024 - 2029) | 0.25 % |
| Fastest Growing Market | North America |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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IP Telephony & UCaaS Market Analysis
The Global IP Telephony & Ucaas Market size is estimated at USD 98.13 billion in 2024, and is expected to reach USD 99.36 billion by 2029, growing at a CAGR of 0.25% during the forecast period (2024-2029).
As 2020 marked the whole year of pandemic and economic slowdown, the IP telephony market cumulative revenue contribution by vendors declined. The sharp decline in sales volume for IP phones coupled with a hiccup in initial quarters to provide seamless hosted VoIP service due to unprecedented pandemic affected the market negatively. While cloud-based UCaaS demand increased as employees resorted to remote work and used online mediums for official interactions.
- Unified communications-as-a-service (UCaaS) refers to a service model where the provider delivers different telecom or communications applications, software products, and processes generally over the web. Moreover, IP telephony refers to any phone system that uses an internet connection to send and receive voice data.
- Recently, IP technology has used a variety of protocols to exchange voice, fax, and other forms over the public switched telephone network. The internet protocol became the transport for all data communication. The business telephone system is now able to deliver much more to enterprises. The IP technology has provided a complete communication package over a single network.
- Unified communications provide a more manageable cost structure and a lower acquisition cost. While IP telephony and hardware phones may be required or desired, many businesses get started using a softphone or smartphone app that can replicate the functions of a desktop telephone. However, the pay-as-you-go subscription model is in trend across UCaaS and IP telephony solutions as it provides the best cost structure to customers.
- As UC spending increases, the buying power within the organization rises. Traditionally, IT departments were handing the UC budgets, but the cloud has enabled lines of business to also invest in UC apps.
- The modern workplace is digitizing and shifting. Employees expect more openness, improved collaboration, better technology, and higher flexibility in a workplace. As the workforce continues to become more distributed, with many employees going remote and others working from traditional offices, organizations need the right tools to keep their dispersed workforce always connected.
IP Telephony & UCaaS Market Trends
The BFSI Segment is Expected to Drive the Market Growth
- Unified Communications as a Service (UCaaS) emerged as a cost-effective solution for the BFSI sector. Banks and financial sectors primarily invest in UCaaS to better understand customer communications across all channels to attain the scalability required for large-scale implementation.
- UCaaS services help increase availability and scalability while enhancing collaboration. UCaaS solutions allow enterprises to focus on the growth of their business rather than their maintenance. Businesses need not pay for UC software with features that they will never use, thereby saving money. UCaaS services broadly incorporate interactive voice response (IVR), video conferencing, live chat, e-mails, unified messaging, VoIP services, and other client management capabilities.
- Moreover, BFSI companies require extensive collaboration across a range of departments. For this, wealth and finance managers need to speak to analysts while customer support staff collaborate across time zones. This effective collaboration requires software solutions that eliminate friction.
- For instance, UCaaS allows diverse teams to coordinate and collaborate seamlessly. However, UCaaS operates in the cloud, and team members can access information on any device at any location. Call center supervisors can monitor progress on a smartphone in real-time. Financial research analysts can analyze data without ever being in the same room. UCaaS helps financial services companies get the most out of their human capital.
- Enterprises are searching for ways that cut down on expenses and have the potential to generate internal revenues. Making essential files and data accessible through the cloud was a feasible solution, which led to the proliferation of the BYOD (Bring Your Own Device) trend. Banks and financial institutions are quickly following suit, and given the globalized nature of their business, remote access to data becomes an essential feature for this industry.
North America is Expected to Register the Fastest Growth
- The country's supremacy may be ascribed to the recent surge in mobility and explosion of 5G connection due to the consumerization of IT, which has aided enterprises in adopting IP telephony and UCaaS to allow remote employees to simulate in-office work experiences.
- In the US, end-users such as retail, banking and finance, healthcare, information technology, and telecommunications seek a more direct and seamless experience for all oftheir communications-audio, video, and chat-no matter where they are. To fulfill this need, enterprises are looking for a unified deployment and management solution from a single vendor they can rely on to handle their UCC requirements. They'll be able to integrate remote connectivity tools on a single UCaaS platform with the advent of 5G.
- 5G will be advantageous to consumers, but it will also be beneficial and precious to enterprises that rely on Unified Communications. The internet's speed will alter as a result of 5G. The current average pace of 1GB per second will be increased to approximately 20GB per second. The VoIP industry will develop as bandwidth capacity and speed rise. The combination of 5G and VoIP will provide consumers with the equivalent of a fiber-optic broadband connection.
- This will ensure that VoIP can be used on a massive scale. Companies with worldwide operations will benefit from VoIP combined with 5G since communication costs would be reduced.
- As a result of the rise of 5G and edge networking, vendors could expect exciting changes in the real-time communication market. UCaaS provides a place for endless creative services and a collection of managed services tools that may help suppliers maximize revenue generation in the near years due to improved security, simpler provisioning, and a set of managed services tools.
- The United States is one of the foremost innovators and investors in the 5G market due to increasing investment for 5G deployment. The telecom industry in the country accounts for a significant portion of the global consumption of 5G technology.
IP Telephony & UCaaS Industry Overview
The IP Telephony & Ucaas market is highly competitive. The market has gained a competitive edge in recent years. Additionally, the players are being taken to gain a competitive edge in this fast-growing market.
- February 2022- Vodafone and Ring Central jointly launch Vodafone Business UC with Ring Central, a unified cloud communications platform, in the UK. In Initial, Vodafone Business and Ring Central has introduced new services to customers in the United Kingdom and Vodafone Business' multinational customers in Europe in 2021. More countries will follow, including Spain, Germany, and Italy, with the platform tailored to local delivery in each.
IP Telephony & UCaaS Market Leaders
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Vodafone Group PLC
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Telia Company AB
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Telefónica SA
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KPN
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BT
*Disclaimer: Major Players sorted in no particular order
IP Telephony & UCaaS Market News
- December - 2021, MCM Telecom in Mexico announced a regional collaboration with Telia Carrier. Customers in Querétaro will benefit from Telia Carrier's number one ranked global backbone, AS1299, and local availability of high-speed IP Transit, Cloud Connect, DDOS Mitigation, Ethernet, and IP connect services for operators, content providers, and enterprises alike.
- October - 2021, KPN has made investments to strengthen its operations. KPN selected Oracle Fusion Cloud Applications for finance, supply chain management, and human resources to streamline the company's business operations. Oracle's cloud platform will enable KPN to optimize financial planning and forecasting, modernize its HR processes, improve employee experience, and consolidate and streamline procurement and supply chain management.
IP Telephony & UCaaS Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definitions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Porters Five Force Analysis
- 4.2.1 Threat of New Entrants
- 4.2.2 Bargaining Power of Consumers
- 4.2.3 Bargaining Power of Suppliers
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Stakeholders Analysis
- 4.4 Assessment of the Impact of COVID -19 on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Emergence of pay-as-you-go model Driving Demand Over Lagacy UC Solution
- 5.1.2 Changing Workforce Dynamics Leading to the Emergence of New Forms of enterprise Collaboration
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5.2 Market Challenges
- 5.2.1 Low Readiness to Move to Modern Unified Communication
- 5.2.2 Poor Voice Quality in IP Telephony Systems
6. MARKET SEGMENTATION
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6.1 By Size of Enterprise
- 6.1.1 Small and Medium Enterprises (Up to 500 Employees)
- 6.1.2 Large Enterprises (More than 500 Employees)
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6.2 By Application
- 6.2.1 BFSI
- 6.2.2 Retail
- 6.2.3 Healthcare
- 6.2.4 Government and Public Sector
- 6.2.5 IT and Telecom
- 6.2.6 Other End-user Verticals
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6.3 Geography
- 6.3.1 North America
- 6.3.2 Europe
- 6.3.3 Asia-Pacific
- 6.3.4 Latin America
- 6.3.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 Vodafone
- 7.1.2 Telia Company
- 7.1.3 Telefónica
- 7.1.4 KPN
- 7.1.5 BT
- 7.1.6 Orange Business Solutions
- 7.1.7 Verizon Communications Inc.
- 7.1.8 8X8 Inc.
- 7.1.9 Mitel Networks Corporation
- 7.1.10 Gamma Telecom
- 7.1.11 Nextiva
- 7.1.12 Soluno
- 7.1.13 Cisco Systems
- 7.1.14 VADS Berhad
- 7.1.15 Singapore Telecommunications Limited
- 7.1.16 PLDT Enterprise
- 7.1.17 NTT Communication Corporation
- 7.1.18 Telstra Corporation Limited
- 7.1.19 PCCW Global
- 7.1.20 Maxis Communications
- *List Not Exhaustive
8. INVESTMENTS ANALYSIS
9. FUTURE TRENDS
** Subject To AvailablityIP Telephony & UCaaS Industry Segmentation
Hosted IP voice refers to the model where enterprise customers typically purchase or lease the IP-based handsets and/or mobile devices as well as access/connectivity(broadband, private lines, etc.) and the hosted telephony provider assumes responsibility for managing and monitoring all voice traffic. Unified communications-as-a-Service (UcaaS) refers to a service model where the provider delivers different telecom or communications applications, software products, and processes, generally over the web. The unified communication system unifies or integrates all communication methods used by a business into a single platform or multiple communication tools.
Global IP Telephony & Ucaas Market is Segmented by Size of Enterprise Small and Medium Business up to 500 employees, Large Enterprises more than 500 employees, by End User Vertical BFSI, Retail, Healthcare, Government & Public Sector, IT & Telecom, and Geography.The market sizes and forecasts are provided in terms of value in USD billion for all the above segments.
| By Size of Enterprise | Small and Medium Enterprises (Up to 500 Employees) |
| Large Enterprises (More than 500 Employees) | |
| By Application | BFSI |
| Retail | |
| Healthcare | |
| Government and Public Sector | |
| IT and Telecom | |
| Other End-user Verticals | |
| Geography | North America |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East and Africa |
IP Telephony & UCaaS Market Research FAQs
How big is the Global IP Telephony & Ucaas Market?
The Global IP Telephony & Ucaas Market size is expected to reach USD 98.13 billion in 2024 and grow at a CAGR of 0.25% to reach USD 99.36 billion by 2029.
What is the current Global IP Telephony & Ucaas Market size?
In 2024, the Global IP Telephony & Ucaas Market size is expected to reach USD 98.13 billion.
Who are the key players in Global IP Telephony & Ucaas Market?
Vodafone Group PLC , Telia Company AB, Telefónica SA, KPN and BT are the major companies operating in the Global IP Telephony & Ucaas Market.
Which is the fastest growing region in Global IP Telephony & Ucaas Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Global IP Telephony & Ucaas Market?
In 2024, the Asia-Pacific accounts for the largest market share in Global IP Telephony & Ucaas Market.
What years does this Global IP Telephony & Ucaas Market cover, and what was the market size in 2023?
In 2023, the Global IP Telephony & Ucaas Market size was estimated at USD 97.89 billion. The report covers the Global IP Telephony & Ucaas Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Global IP Telephony & Ucaas Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
IP Telephony & UCaaS Industry Report
Statistics for the 2024 IP Telephony & UCaaS market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. IP Telephony & UCaaS analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
