The worldwide Unified Communications & Collaboration (UC&C) market grew 11,4% year over year and 2,9% compared to the previous quarter to $14,8-billion in the second quarter of 2022 (2Q22), according to IDC’s Worldwide Quarterly Unified Communications and Collaboration Tracker.
It’s expected that worldwide UC&C growth will continue to be driven by customers across all business size segments (small, midsize, and large) with interest especially in videoconferencing, collaboration, and UCaaS (UC as a Service) technologies. UC&C solutions underpin many of today’s hybrid/flexible work scenarios and digital transformation initiatives.
Some UC&C market specifics include the following:
• Hosted Voice/UC Public Cloud (UCaaS) revenue grew 17% year over year and 4,3% sequentially to almost $5,2-billion in 2Q22.
• UC Collaboration (including video conferencing software and cloud services) increased 10,2% annually and 1,3% sequentially to $7,2-billion in revenue in the quarter.
• IP Phone revenue increased 7,9% year over year and 13,9% quarter over quarter to $525-million in 2Q22.
• IP Phone shipments increased 2,8% year over year and 11,6% compared to 1Q22 to 4,5-million units shipped in the quarter.
• Enterprise Videoconferencing Room Endpoints (ie. large video room endpoints) revenue increased 15,6% annually and 27,4% sequentially to more than $525,6-million in the quarter.
• Videoconferencing Huddle Room Endpoints revenue increased 24,7% year over year and 22,4% quarter over quarter to $263-million in 2Q22.
“We’re seeing more strategic buying decisions by organisations versus fewer short-term reactive decisions in the recent past,” says Rich Costello, senior research analyst, Unified Communications and Collaboration at IDC. “While the overall market remains a growth story, providers are starting to see some sales cycles return to the pre-covid pace.”
The UC&C market saw the following overall positive results in 2Q22 from a regional perspective:
• In North America (US and Canada), UC&C revenue was up 10,1% year over year and 3,6% sequentially to just over $7-billion in 2Q 2022.
• Asia/Pacific (including Japan) revenue was up 16,8% year over year and 4,1% compared to 1Q22 to almost $3-billion in the quarter.
• EMEA revenue growth was up 8,9% year over year, but just 1% sequentially to $4,2-billion in the quarter.
• Latin America revenue increased 20,9% year over year and 3,8% sequentially to $551,5-million in 2Q22.
UC&C Vendor Highlights
• Microsoft’s total worldwide UC&C revenue was $5,7-billion in 2Q22, up 22,7% year over year and 4,9% sequentially, representing a 38,3% share of the worldwide UC&C market for the quarter.
• Cisco’s total worldwide UC&C revenue was almost $1,2-billion, up 1% year over year and 8,6% sequentially, representing an 8% share of the worldwide UC&C market in 2Q22.
• Zoom’s total worldwide UC&C revenue increased 7,2% annually and 2,1% sequentially to more than $1-billion in the quarter, representing a 7% share of the worldwide UC&C market for 2Q22.
• RingCentral’s total worldwide UC&C revenue grew 29,8% year over year and 5,1% quarter over quarter to $424-million, representing a 2,9% share of the worldwide UC&C market for 2Q 2022.
