UCaaS subscriber base predicted to grow by 26% over next five years

UCaaS subscriber base predicted to grow by 26% over next five years

UCaaS 2018 Synergy.jpg

The installed base of unified communications-as-a-service (UCaaS) subscribers is set to grow by an average annual rate of 26% over the next five years, according to figures from Synergy Research Group.

According to SRG’s latest UC report, small and mid-sized business still account for almost 90% of all UCaaS subscribers, but the enterprise segment is seeing the fastest growth.

In 2018, enterprise UCaaS subscriptions grew by 57%, compared with 36% and 23% growth in the mid-market and small business segments respectively.

Fuze is the leading UCaaS service provider in the enterprise sector, while RingCentral leads the mid-markets and Mitel is top in the small business space. RingCentral, Mitel and 8x8 are among the top providers across all three segments, with Cisco (Broadsoft) and Vonage among other notable vendors.

Total UCaaS subscriber numbers are now well over the eight million mark and have doubled since late 2015, with the market split between retail and wholesale business models, according to SRG. Mitel and Cisco are leading in the wholesale segment, while the US continues to dominate the market.

“UCaaS took off in the small and mid-market segments first. We are now seeing UCaaS growth rates in small businesses start to tail off a little, while growth in the mid-market remains strong. But it is in the nascent enterprise segment where UCaaS growth is really booming,” said Jeremy Duke, Synergy Research Group’s founder and Chief Analyst.

“UCaaS penetration of the PBX installed base has barely passed the 10% mark so we project continued strong growth throughout the forecast period. UCaaS growth will be particularly strong in the enterprise market and also in countries beyond the US.”

Gift this article