Current State of the UCaaS Market

Current State of the UCaaS Market

We often hear the phrase “the new normal.” If you ask ten people what it is, you’re going to get varied responses. If you ask ten people in the telecommunications industry, almost all are going to respond with “UCaaS.” UCaaS is the new normal, and there’s tremendous opportunity for growth beyond our ability to comprehend; it’s why everyone in the industry has worked diligently and risen to the moment, delivering services to organizations far and wide.

As more and more organizations adopt UCaaS as an affordable and flexible means of accommodating their communication needs, it enables them to forgo costly upgrades to onsite equipment or deal with maintenance headaches. According to a Frost & Sullivan report, the cloud will become the preferred technology consumption model by 2024 in the North American Enterprise Communications market. Demand for cloud communications continues to accelerate rapidly. There’s been a surge in collaboration for service providers, tech developers, and others to launch feature-rich and secure telephony UCaaS offerings. 

According to the Pew Research Center, 59 percent of U.S. workers said their jobs can be done from home, with 83 percent of workers surveyed saying they worked from home before the pandemic. The same research shows that most workers choose to work from home rather than doing it out of necessity, highlighting the need for Unified Communication as a Service (UCaaS). Organizations that fail to adopt cloud technology are facing challenges finding and retaining top-tier talent. 

According to Grand View Research, the global UCaaS market was valued at $38.74 billion in 2020, and it’s expected to grow at a CAGR of 23.6 percent from 2021 to 2028. While cloud migration has ramped up in the past few years, a staggering 61 percent of businesses haven’t taken advantage of its benefits. These organizations are still operating on antiquated, premise-based systems and haven’t realized the need for a modern business communication platform.

The pandemic was devastating for many businesses, but it has helped the UCaaS sector find footing as organizations seek new ways to support their remote or hybrid workforce. The cloud is the future and everyone will be affected by it. The move was already in the works for many but was accelerated by the global shutdowns. The cloud is the only way to move forward and support real-time communications. 

As the transition happened at an uncomfortable pace for some companies, they realized the cloud was passing every test. UCaaS was helping their remote teams across various settings. Cloud business communication technology supported this group of workers without any issues and improved workflow. The result? UCaaS wasn’t a band-aid on the wound – it’s not a temporary solution. UCaaS is now the standard for collaboration in remote and hybrid work models, and a total migration to unified communications is why these figures will continue to soar in the future.

The stakes are higher than ever when it comes to businesses upgrading to modern communication platforms. Valued employees might seek opportunities elsewhere, or interviewees may not give companies the nod if they don’t offer some form of remote or hybrid work option. To remain competitive in any industry, businesses must consider migrating their communications to the cloud, which is a great sign for the UCaaS industry moving forward.