Leaders in Unified Communications & Collaboration (UC&C) market

The latest IDC report revealed the share of Microsoft, Cisco, Zoom, Avaya and RingCentral in the Unified Communications & Collaboration (UC&C) market in 2020.
Video conferencingMicrosoft’s UC&C revenue was $4.4 billion in Q4, up 3.5 percent sequentially and 41.9 percent year over year in 4Q20. For the full year 2020, Microsoft revenue was $16.1 billion, up 46.0 percent, representing a 34.2 percent share of the worldwide UC&C market.

Cisco’s UC&C revenue in 4Q20 was nearly $1.3 billion, down 2.3 percent compared to 3Q20 and down 5.8 percent year over year. For the full year 2020, Cisco revenue was declined 4.6 percent to almost $5.0 billion, representing a 10.5 percent share of the worldwide UC&C market.

Zoom’s UC&C revenue increased 13.6 percent sequentially and 377.6 percent year over year to almost $863 million in 4Q20. For the full year 2020, Zoom’s revenue grew 333.4 percent to $2.6 billion, representing a 5.5 percent share of the worldwide UC&C market.

Avaya’s UC&C revenue was up 6.7 percent quarter over quarter and 25.3 percent year over year to $353.5 million in 4Q20. For the full year 2020, revenue was up 14.8 percent to over $1.2 billion, representing a 2.6 percent share of the worldwide UC&C market.

RingCentral’s UC&C revenue grew 9.3 percent compared to 3Q20 and 31.3 percent annually to $252 million in 4Q20. For the full year 2020, revenue was up 32.5 percent to $899 million, representing a 1.9 percent share of the worldwide UC&C market.

The Unified Communications & Collaboration (UC&C) market grew 29.2 percent year over year and 7.1 percent quarter over quarter to $13.1 billion in the fourth quarter of 2020 (4Q20), according to IDC.

Revenue growth was 24.9 percent for the full year 2020 to $47.2 billion.

In 2021 and beyond, IDC expects UC&C growth will be driven by customers across all business size segments (small, midsize, and large) with interest especially in video, collaboration, UCaaS, mobile applications, and digital transformation (DX) projects.

Hosted Voice/UC Public Cloud (UCaaS) grew 26.1 percent year over year and 6.8 percent sequentially in 4Q20 to nearly $4.6 billion in revenue. For the full year 2020, public cloud UCaaS revenue increased 21.2 percent to $16.4 billion.

UC Collaboration (including video conferencing software and cloud services) increased 48.0 percent year over year and 5.1 percent sequentially to reach almost $6.2 billion in revenue in 4Q20. For the full year 2020, UC Collaboration revenue increased 45.0 percent to $22.1 billion.

Revenue for IP Phones declined 20.4 percent year over year but grew 20.3 percent sequentially in 4Q20. For the full year 2020, IP Phones revenue declined 22.8 percent to $1.9 billion. Shipments of IP Phones declined 23.1 percent year over year but increased 14.7 percent sequentially. For the full year 2020, shipments of IP Phones were down 22.2 percent.

Enterprise Videoconferencing Systems (i.e., videoconference room endpoints) increased 26.1 percent year over year and 36.5 percent sequentially to more than $827 million in 4Q20. For the full year 2020, revenue increased 12.4 percent to almost $2.6 billion.