We came across an insightful report from the International Data Corporation (IDC) that sheds light on the current trends in the Unified Communications & Collaboration (UC&C) market. According to the IDC Worldwide Quarterly Unified Communications and Collaboration Tracker, the global UC&C market experienced a robust 6.9% year-over-year revenue growth in the second quarter of 2023 (2Q23), reaching $15.9 billion.
For the full year 2023, the forecast indicates an 8.6% year-over-year growth, amounting to an impressive $64.7 billion. This represents a significant upward revision of $500 million from the previous quarter’s forecast. In terms of volume, the UC&C market expanded by 11.4% year over year to 620.7 million units/lines/licences/seats in 2Q23.
Jitesh Gera, the Research Manager for Unified Communications and Collaboration at IDC, highlighted the evolving nature of remote collaboration needs, driven by changing work dynamics and innovation, particularly in the field of artificial intelligence (AI). Public cloud Unified Communications as a Service (UCaaS) solutions integrated with telephony are notably in demand as businesses seek to consolidate employee and customer communication channels.
The report also discusses the challenges faced by the hardware market, which is undergoing a transformation as vendors innovate meeting room equipment to offset declines in IP telephones and enterprise videoconferencing systems.
In parallel, the Communications Platform as a Service (CPaaS) market demonstrated remarkable growth, expanding by 13.2% year over year and 4.6% sequentially to $3.8 billion in 2Q23. This recovery follows a sequential decline in the previous quarter. Notably, messaging continues to dominate the CPaaS market, maintaining a 67% share in 2Q23.
Turning attention to key players in the UC&C market, Microsoft exhibited a substantial 20% year-over-year revenue increase to $6.8 billion in 2Q23, claiming a 42.8% market share. Zoom’s UC&C revenue grew by 2.5% year over year to $1.1 billion, maintaining a 6.8% market share. Cisco faced a 19.3% year-over-year revenue decline in 2Q23, amounting to $951 million, yet it managed a slight increase in market share.
In the CPaaS segment, Twilio led with a 24.1% market share, experiencing a 15.8% year-over-year revenue growth to surpass $913 million in 2Q23. Sinch secured second place with a 15.8% market share and a 0.8% year-over-year revenue increase to $600 million in 2Q23.
This IDC report provides a comprehensive overview of the UC&C and CPaaS markets, offering valuable insights into market size, vendor market share, and forecasts. It is a must-read for industry professionals and enthusiasts alike.
For more details read: https://www.businesswire.com/news/home/20230927592261/en/Worldwide-UCC-Revenues-Grew-6.9-in-Q2-2023-While-the-CPaaS-Market-Grew-13.2-According-to-the-IDC-Unified-Communications-and-Collaboration-Tracker
About IDC
The International Data Corporation (IDC) is a global leader in market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With a team of over 1,300 analysts worldwide, IDC provides expertise on technology, IT benchmarking, sourcing, and industry trends in over 110 countries. For more information about IDC, visit their website https://www.idc.com/
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