Worldwide UC&C Revenues Grew 7.8% YoY in 2024; CPaaS Market Close Behind at 7.7%.- IDC

In 2024, the worldwide Unified Communications & Collaboration (UC&C) market revenues grew 7.8% year over year to $69.2 billion, according to the International Data Corporation's (IDC) Worldwide Quarterly Unified Communications and Collaboration Tracker. Further, the worldwide UC&C market is forecast to grow at a compounded annual growth rate (CAGR) of approximately 3.9% during 2025-2029 to reach cumulative revenues of $85.4 billion.

Integrated unified communications (UC) and customer engagement (CE) solutions represent the fastest-growing yet smallest segment in the global UC&C market. These solutions offer essential customer communications features and cater to organizations that need frequent customer interactions across functional teams but do not require a full-service contact center. This integrated UC-CE segment is a relatively recent market development and is expected to grow at a 33% CAGR from 2025 to 2029, reaching nearly $2 billion by 2029.

"The worldwide UC&C market is undergoing a massive transformation with new AI capabilities being released every quarter," said Denise Lund, Research VP, Worldwide Telecom and Unified Communications and Collaboration at IDC. "Businesses are recognizing the value of AI in UC Employee Engagement and UC Customer Engagement solutions. However, the AI-driven growth anticipated in the coming years will be counterbalanced by declines in IP Phones, IP PBX/UC Systems, private cloud UCaaS, and videoconferencing infrastructure segments."

Meanwhile, worldwide revenues in the Communications Platform as a Service (CPaaS) market grew 7.7% YoY to $16.7 billion in 2024. "The worldwide CPaaS market is growing steadily as the demand for API-powered customized communications use cases continues to rise, particularly to leverage AI-driven capabilities," said Courtney Munroe, research vice president, Worldwide Telecommunications Research at IDC. During 2025-2029, CPaaS revenues are expected to grow at a 9.3% CAGR to $25.9 billion.

To learn more, visit: www.idc.com