IDC: Worldwide Spending on Artificial Intelligence to Reach $632 Billion in 2028

The worldwide unified communications and collaboration (UC&C) market is forecast to reach $69.1 billion in revenue in 2024, an increase of 7.5% compared to 2023, according to a new report from International Data Corporation (IDC). During the 2023-2028 forecast period, the UC&C market is expected to witness a slightly lower compound annual growth rate (CAGR) of 5.7% to reach $85 billion by 2028.

“The UC&C market has matured after significant investments were made in the past few years by businesses to address the changed work environment,” said Jitesh Gera, research manager, Unified Communications and Collaboration at IDC. “In addition, the crowded UC&C market has led many solutions toward commoditization. However, AI is now changing the game altogether, bringing a fresh wave of new and differentiated capabilities that are likely to draw more investments in the coming years as businesses vie for enhanced employee productivity and better customer engagement.”

Looking across the key technology segments of the UC&C market, the two software segments — UC collaboration (meeting software without voice telephony subscriptions) and unified communications as a service (UCaaS) (meeting software including voice telephony subscriptions) — accounted for most of the worldwide market revenue (89% in 2023). Their share is expected to rise further as growth in the hardware segments (IP telephony and enterprise videoconferencing systems) turns negative over the forecast period. Meanwhile, the UC collaboration segment is forecast to outpace the overall market with a five-year CAGR of 7.6%.

Microsoft continued to lead the worldwide UC&C market with a 44.7% market share by revenue in Q1 2024. Zoom and Cisco followed distantly with a 6.4% and 5.5% market share respectively. 

Among the drivers of UC&C adoption is the continued introduction of artificial intelligence (AI) capabilities into UC&C solutions, such as AI-enabled videoconferencing and telephony solutions. IDC also expects cloud-based UC&C deployments will increase over time, replacing on-premises deployments as security and data integrity continue to improve. And the integration of UC solutions with contact center platforms will continue as buyers look to simplify their technology stacks and reduce their administrative load to work with single unified providers of UC, CC, and CPaaS capabilities.

Channel Impact^®
The data measure the ongoing migration of communications systems – an area in which channel partners can add substantial value.