Analysis of the European UCaaS Market - Forecast to 2029: Market Growth Returns to Normal as UCaaS Proves its Merits Amid Recent Macro Disruptions

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Feb 19, 2024, 18:30 ET

DUBLIN, Feb. 19, 2024 /PRNewswire/ -- The "Analysis of the European UCaaS Market - Forecast to 2029" report has been added to ResearchAndMarkets.com's offering.

The European market remains highly fragmented with the top 20 providers holding a combined 38.3% of installed seats at the end of 2022. Providers in the Others category combined to own 24.3% of installed UCaaS seats. The top five providers combined for approximately 37.4% share of installed users.

Macro-economic and socio-political trends have considerably impacted the European UCaaS market since early 2020. The COVID-19 pandemic-related lockdowns triggered a massive shift to remote and hybrid work, disrupted supply chains and business models in many industries, and highlighted the need for digital transformation.

Many economies are now affected by the Russo-Ukrainian war that has further disrupted fuel and food supply chains and has contributed to inflation, increased consumer and business anxiety, and a pervasive economic slowdown. With conditions further impacted by increased unrest in the Middle East, European providers have experienced longer sales cycles, reduced deal sizes, and an overall increased caution in technology investment decision making.

UCaaS has shine in turbulent times. The services have provided the flexibility customer organisations need to navigate quickly evolving customer preferecnes, work styles and business models. European UCaaS installed base and revenue growth both increased in 2022 as organisations adjusted to new realities following disruptive conditions in 2020 and 2021 due to the COVID-19 pandemic.

Both metrics are expected to continue stable low double-digit growth trajectories through much of the forecast period. Growth rates and trajectories will vary across sub-regions. This is driven by the differing GDP recovery rates, divergent current penetration levels, the distinctive market propensity to adopt hosted IP telephony and UCaaS services, as well as economic and political exposure to the war in Ukraine and the Middle East.

Competitive pressures and inflationary conditions combined to help stablise prices in 2022. Price declines were more tangible with lower-end service bundles. However, the addition of new features helped providers maintain relative price stability for more full-feature seats.

Key growth factors in the past have included network ownership, brand recognition, channel relationships and commitment to hosted IP telephony and UCaaS services. Amid shifting macro conditions providers with cloud-native solutions and a compelling web-based or mobile user experience have faired well in comparison to providers that require new circuits and/or hardware installations to deploy their services.

Mergers and acquisitions (M&A) have been reshaping the European competitive landscape in recent years. M&As and partnerships, among other factors, will lead to changes in provider business models. Many providers will emerge from these with more diversified portfolios and go-to-market strategies leveraging both direct sales and a variety of partner resale models.

Strategic Imperatives

Why is it Increasingly Difficult to Grow?
The Strategic Imperative
The Impact of the Top 3 Strategic Imperatives on the European UCaaS Industry
Growth Opportunities Fuel the Growth Pipeline Engine

Growth Opportunity Universe

Growth Opportunity 1: Mobile-first UCaaS
Growth Opportunity 2: AI Infusion
Growth Opportunity 3: Cloud-connected Calling Enablement
Growth Opportunity 4: CPaaS and the API Economy
Growth Opportunity 5: Contact Centre
Growth Opportunity 6: Vertical and Frontliner Strategies

Growth Opportunity Analysis

Scope of Analysis
Scope and Market Definitions
Key Competitors
Key Growth Metrics
Distribution Channels
Growth Drivers
Future Remote Work Plans
UCC Solution Investment Drivers
Cloud or Mobile PBX Services Investments Among Current Users
Growth Restraints
Macro Conditions' Impact on Investments
Forecast Assumptions
PBX/Cloud or Mobile PBX Investments for Remote Desk Workers
PSTN Calling Plan Investments for Remote Desk Workers
PBX/Cloud or Mobile PBX Investments for In-Office Desk Workers
PSTN Calling Plan Investments for In-Office Desk Workers
Mobility is Essential, But Not Critical for All Customers Yet
Importance of Soft Phones
Importance of a Native Mobile Dialer with a Business Phone Number
Desktop Business Calling App (Desktop Soft Phone) Adoption
Mobile Business Calling App (Mobile Soft Phone) Adoption
Installed Users and Revenue Forecast - Total UCaaS Market
Net New User Forecast - Total UCaaS Market
Installed Users Forecast by Sub-Region - Total UCaaS Market
Installed Users and Revenue Forecast Analysis - Total UCaaS Market
Pricing Trends and Forecast - Total UCaaS Market
Pricing Trends and Forecast Analysis - Total UCaaS Market
Competitive Environment
Service Provider Market Share Analysis by Installed Users - Total UCaaS Market
Competitive Dynamics
Platform Vendor Market Share Analysis by Installed Users - Europe UCaaS Market
Current Cloud or Mobile PBX/UCaaS Solutions/Providers
Future Cloud or Mobile PBX/UCaaS Solution Providers
Importance of a Fully Integrated UCaaS Solution

For more information about this report visit https://www.researchandmarkets.com/r/r91qi

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