Worldwide revenues in the Unified Communications & Collaboration (UC&C) market grew 7.9 percent year-over-year and 2.1 percent sequentially to $15.2 billion in the fourth quarter of 2022.
Worldwide Unified Communications & Collaboration revenue grew 9.8 percent to $59.3 billion in 2022, research report from IDC said.
UC&C Vendor Highlights
Main vendors in the Unified Communications & Collaboration (UC&C) market are Microsoft (38.7 percent), Cisco (7.2 percent), and Zoom (7.1 percent) in 2022.
Microsoft’s UC&C revenue rose 3.9 percent sequentially and 18.4 percent year-over-year to $6.1 billion in 4Q22. For the full year 2022, Microsoft’s UC&C revenue rose 20.9 percent over 2021 to $23.0 billion and representing a 38.7 percent share of the UC&C market.
Cisco’s UC&C revenue was $984 million in 4Q22, down 12.3 percent compared to 3Q22 and down 8.5 percent year over year. For the full year 2022, Cisco UC&C revenue declined 6.4 percent to $4.2 billion, representing a 7.4 percent share of the worldwide UC&C market.
Zoom’s total worldwide UC&C revenue increased 1.2 percent sequentially and 3.4 percent year-over-year to almost $1.1 billion in 4Q22. For the full year 2022, Zoom’s UC&C revenue grew 6.6 percent to $4.2 billion, representing a 7.1 percent share of the worldwide UC&C market.
UC&C trends
Businesses have been investing in UC collaboration and UCaaS solutions to improve employee and customer interactions while supporting cost-effective business agility and digital transformation (DX) initiatives.
When it comes to telephony communications solutions in use today, roughly two thirds of organizations are using at least some cloud based UCaaS as part of their primary approach, and UCaaS adoption is expected to continue.
Network-related spending remained resilient in 2022 despite inflation, regional conflicts, lingering channel issues, etc. Speed, network resiliency, and productivity continue to be seen as key drivers of the market.
UC&C technology segments
Hosted Voice/UC Public Cloud (UCaaS) revenue grew 16.2 percent year-over-year and 4.4 percent sequentially in 4Q22 to $5.6 billion. For the full year 2022, public cloud UCaaS revenue increased 16.6 percent to $21.2 billion.
UC Collaboration (including video conferencing software and cloud services) increased 5.9 percent year-over-year and 0.3 percent quarter-over-quarter to $7.3 billion in revenue in 4Q22. For the full year 2022, UC Collaboration revenue increased 9.1 percent to $28.8 billion.
IP Phones revenue declined 8.3 percent year-over-year and fell 14.3 percent sequentially in 4Q22. For the full year 2022, IP Phones revenue increased 2.5 percent to almost $2 billion. IP Phone shipments fell 20.6 percent year-over-year in Q4 and 14.2 percent quarter-over-quarter. For the full year, IP Phone shipments were down 6.5 percent.
Videoconferencing Room Endpoints declined 2.2 percent year-over-year and rose 13.7 percent sequentially to $471 million in 4Q22. For the full year 2022, revenue declined 3.1 percent to $1.8 billion.
Huddle Room Endpoints increased 19.5 percent year-over-year and 18.1 percent sequentially to almost $287 million in 4Q22. For the full year 2022, revenue increased 11.5 percent to $1.0 billion.
In North America (U.S. and Canada), total UC&C revenue declined 1.7 percent compared to the previous quarter but increased 7.1 percent year-over-year in 4Q22 to $7.1 billion. For the full year 2022, total revenue was up 8.9 percent to $28.1 billion.
In Europe, the Middle East, and Africa (EMEA), UC&C revenue grew 4.2 percent sequentially and 5.5 percent year-over-year in 4Q22 to $4.3 billion. For the full year 2022, total revenue was up 7.2 percent to $16.8 billion.
In Asia Pacific (including Japan), UC&C revenue grew 7.4 percent sequentially and 12.4 percent year-over-year to about $3.3 billion in 4Q22. For the full year 2022, total UC&C revenue rose 14.8 percent to almost $12.2 billion.
In Latin America, UC&C revenue increased 5.0 percent compared to 3Q22 and 12.9 percent year-over-year in 4Q22 to more than $580 million. For the full year 2022, total revenue was up 16.3 percent to over $2.2 billion.
