The global unified communications-as-a-service (UCaaS) market has doubled in the last two years to reach more than 15 million subscribers.
According to analyst firm Synergy, the worldwide UCaaS subscribers growth rate jumped to 41 per cent in 2020, up from 27 per cent in 2019.
While RingCentral has held its market leader position with 20 per cent share, the rise of Microsoft and Zoom has driven the overall increased growth rate of UCaaS solutions, the latter two collectively gaining ten percentage points during 2020.
According to Synergy, Zoom’s and Microsoft’s market shares were almost negligible in 2019, but in 2020 the Microsoft subscriber base quickly grew to more than a million, while Zoom is about to achieve the same number.
Other UCaaS vendors, like 8x8, Mitel and Cisco, all saw strong double-digit subscriber growth in the year, Synergy claimed, but each lost market share as their increase in scale lagged overall market growth.
Meanwhile, the likes of Fuze and LogMeIn increased user share broadly in line with the overall market. RingCentral continues to dominate all segments from SMB through to large enterprise, while Microsoft’s strength is primarily in the mid-market. On the other hand, Zoom has carved out a share for itself within large enterprises.
However, the global market continues to be dominated by the US which accounts for over three-quarters of all UCaaS subscribers.
“Due to COVID-19, companies of all sizes have accelerated their digitalisation efforts which has helped to drive more aggressive growth in UCaaS,” said Jeremy Duke, Synergy Research Group’s founder and chief analyst.
“This is not just a short-term boost and our forecasts show continued rapid expansion in the subscriber base. UCaaS still accounts for less than 5 per cent of on-premise or hosted PBX subscribers, clearly demonstrating the long-term growth potential.”