Market Insight

RESEARCH NOTE - Business Cloud VoIP and Unified Communications Seats to Top 70 Million in 2020

September 22, 2016

Diane Myers Diane Myers Senior Research Director, VoIP, UC, and IMS

Want to learn more?
Have an expert contact you.

Following is information and insight from IHS Markit about our 2016 Business Cloud VoIP and UC Services Annual Market Report

Bottom Line

  • Worldwide cloud private branch exchange (PBX) and unified communications (UC) revenue totaled $4.7 billion in the first half of
    2016 (H1 2016), growing 12 percent from a year ago (H1 2015)
  • Hosted voice over IP (VoIP) and UC seats, meanwhile, increased 22 percent year-over-year in H1 2016, to 38 million seats
  • By 2020, hosted VoIP and UC seats are forecast to reach 74 million
  • All regions are growing, but North America comprises 43 percent of seats

Our Analysis

Hosted PBX and UC service is a growth market that has moved well beyond the early stages. Growth in this space is a reflection of the increased adoption of cloud services by businesses and a broader availability of solutions from a wide variety of providers, including PBX and UC vendors.

Global cloud PBX and UC revenue is on track to notch double-digit year-over-year growth for the full-year 2016, but it continues to lag behind seat growth due to pricing compression.

While the bulk of deployments have been on the telephony side, an increasing number of providers are adding UC features to their service mix and demand is on the rise from businesses seeking more than just a PBX replacement service. We look for providers to layer on additional functionality to maintain price points and create stickiness.

Looking ahead to 2020, continued strong worldwide growth is forecast for the hosted VoIP and UC market, with revenue reaching $13 billion and seats totaling 74 million. Hosted VoIP services have hit their stride owing to broad adoption among small, medium and large enterprises. In particular, large enterprise activity has escalated over the last several years as more companies in this segment choose providers.

Consolidation in the market continues, especially in North America. Key themes behind the acquisitions are greater scalability, infrastructure maximization and cost savings. In the first half of 2016, over eight deals closed, and we expect the deal machine to continue.

Report Synopsis

The IHS Markit business cloud VoIP and UC services report provides worldwide and regional market size, forecasts through 2020, analysis and trends for hosted VoIP and UC revenue and seats. The report includes a Hosted PBX/UC Tracker highlighting deployments by region.

For information about purchasing this report, contact the sales department at IHS Markit in the Americas at (844) 301-7334 or AmericasLeads@ihsmarkit.com; in Europe, Middle East and Africa (EMEA) at +44 1344 328 300 or technology_emea@ihsmarkit.com; or Asia-Pacific (APAC) at +604 291 3600 or technology_APAC@ihsmarkit.com.

Geography
Global
Research by Market
Enterprise & IT Mobile & Telecom
Share facebook Twitter Google Plus Linked In Add This Contact Us