The latest IDC research report has revealed the business performance of Microsoft, Cisco, Zoom, Avaya and RingCentral in the unified communications & collaboration (UC&C) market during the third quarter of 2020.
The unified communications & collaboration (UC&C) market grew 26.7 percent year over year and 6.6 percent quarter over quarter to $12.2 billion in the third quarter of 2020 (3Q20), according to IDC.
Worldwide UC&C growth was driven by customers across all business size segments with interest especially in cloud-based solutions for voice, video, messaging, and collaboration for driving initiatives such as digital transformation projects and workplaces of the future.
UC Collaboration market (including video conferencing software and cloud services) increased 46.7 percent year over year and 5.3 percent over 2Q20 to reach almost $5.8 billion in revenue, with seats increasing 37.8 percent annually.
Hosted Voice/UC public cloud UCaaS market also did well and grew 23.3 percent year over year and 8.3 percent sequentially in 3Q 2020 to reach almost $4.3 billion in revenue.
In Enterprise Videoconferencing Systems (video endpoints and infrastructure), traditional room-based video systems declined both 2.3 percent year over year and 6.9 percent sequentially, but smaller huddle room video endpoints and video infrastructure equipment both experienced positive growth in the quarter (72.5 percent year over year and 16.8 percent over 2Q20) and (39.6 percent year over year and 21.6 percent quarter over quarter), respectively.
Revenue for IP Phones declined both 32.9 percent compared to 3Q19 and 11 percent sequentially.
“In 2021, we expect the positive growth numbers across these key UC&C segments to continue, albeit at slightly more modest rates,” Rich Costello, senior research analyst, Unified Communications and Collaboration, said.
UC&C Vendor Highlights
Microsoft’s UC&C revenue was almost $4.3 billion, growing 5.9 percent sequentially and 45.3 percent annually in 3Q20, representing a 35.1 percent share of the UC&C market for the quarter.
Cisco’s UC&C revenue in 3Q20 was almost $1.3 billion, up 1.7 percent over 2Q20 but down 3.8 percent year over year with a 10.6 percent share of the UC&C market for the quarter.
Zoom’s UC&C revenue increased 17.1 percent quarter over quarter and 375.1 percent year over year to almost $760 million in 3Q20. Zoom’s global UC&C market share was 6.2 percent for the quarter.
Avaya’s UC&C revenue was up 14.2 percent over 2Q20 and 22.2 percent annually to $331.3 million in 3Q20, capturing a 2.7 percent share of the UC&C market for the quarter.
RingCentral’s UC&C revenue grew 8.1 percent sequentially and 32.7 percent year over year to almost $231 million in the quarter, representing a 1.9 percent share of the UC&C market in 3Q20.