Worldwide Unified Communications & Collaboration Market Maintains Positive Growth in Q2 2022, According to IDC Tracker

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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 the International Data Corporation (IDCWorldwide 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.

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Some UC&C market specifics include the following:

  • Hosted Voice/UC Public Cloud (UCaaS) revenue grew 17.0% 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 (i.e., 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 organizations versus fewer short-term reactive decisions in the recent past,» said 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 (U.S. and Canada), UC&C revenue was up 10.1% year over year and 3.6% sequentially to just over $7.0 billion in 2Q 2022.
  • Asia/Pacific (including Japan) revenue was up 16.8% year over year and 4.1% compared to 1Q22 to almost $3.0 billion in the quarter.
  • EMEA revenue growth was up 8.9% year over year but just 1.0% 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 1.0% year over year and 8.6% sequentially, representing an 8.0% 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 $1.0 billion in the quarter, representing a 7.0% 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.

The IDC Worldwide Quarterly Unified Communications and Collaboration Tracker provides total market size and vendor market share data in an easy-to-use Excel Pivot Table format that includes IP Telephony/UC Systems (IP Phones, IP PBX/UC Systems), Enterprise Videoconferencing Systems (Videoconferencing Room Endpoints, Huddle Room Endpoints, Videoconferencing Infrastructure), UC Collaboration, and Managed/Hosted Voice/UCaas (Hosted Voice/Public Cloud UCaaS, Managed Voice/Private Cloud UCaaS). Measurement for the WW UC&C Tracker is provided in vendor revenue and unit/line/license/seat shipments.

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