UC Collaboration market to top $45bn in 2019
Driven by a number of high-growth hosted and cloud collaboration segments, new figures from Synergy Research Group show that the collaboration market will grow by 9% in 2019 reaching $45 billion.
TeamWork Apps will be the highest growth market, up by almost 60% in 2019, while communications platform-as-a-service (CPaaS) and video-as-a-service (VaaS) will each grow by approximately 30%, with unified communications-as-a-service (UCaaS) and contact centre-as-a-service (CCaaS) being the next highest growth markets.
In total, hosted and cloud collaboration markets will grow by 19% in 2019 while revenue from on premise products will fall by 3%.
“Collaboration continues to be a somewhat fragmented market with many disruptive and high-growth companies targeting specific technology areas,” said Jeremy Duke, founder and chief analyst of Synergy Research Group. “That being said, the overall trend is quite clear in that traditional on premise sales are shrinking and being replaced by cloud-based communication services. There is now wide adoption of these new emerging cloud services and our forecasts show that they will continue to grow strongly over the next five years.”
Vendor revenues from collaboration for the quarter are at an all-time high and is predicted to continually grow over the next five years. In terms of market share, Cisco remains the lead in the total collaboration market and over the last quarter, it moved further ahead of Microsoft, which is second place. Following behind the two leaders, the other rapidly growing vendors include Slack, twilo, BroadCloud (Cisco), Zoom, Fuze, Dropbox, RingCentral and LogMein (Jive). Slack’s growth is particularly noteworthy, as it has more than doubled in size year-on-year.
The total global revenues for Q3 from collaboration were just under $11 billion, this includes both on premise products as well as hosted/cloud communications and applications. Q4 revenues are on target to being significantly higher. Hosted/cloud solutions revenues account for 64% of the total, and on premise products make up 36% - a big change from twelve quarters ago when the market was evenly split between the two.
Regionally, North America still makes up just over half of the total market while, Europe, Middle East and Africa make up just under a third.