The size of the Unified Communications & Collaboration (UC&C) market in 2024 was $69.2 billion, registering growth of 7.8 percent.
Demand for digital communication and collaboration tools amid workplace transformation has fuelled the growth in the UC&C market in 2024.
The UC&C market is entering a period of moderated growth, with IDC forecasting a compound annual growth rate (CAGR) of 3.9 percent from 2025 to 2029, reaching $85.4 billion.
The fastest-growing, albeit smallest, segment is integrated Unified Communications and Customer Engagement (UC-CE), which addresses the communication needs of teams that interact frequently with customers but don’t require full-scale contact center solutions. This emerging category is expected to surge at a 33 percent CAGR, nearly doubling to reach $2 billion by 2029.
Artificial intelligence is reshaping the UC&C landscape, with new capabilities increasingly embedded in employee and customer engagement solutions. Yet, this innovation-driven momentum is being tempered by declines in legacy technologies such as IP phones, on-premises PBX systems, private cloud UCaaS, and traditional videoconferencing infrastructure. This dual trend reflects a market pivoting toward cloud-native, intelligent communication models while phasing out older technologies.
In the Communications Platform as a Service (CPaaS) segment, revenues grew 7.7 percent to $16.7 billion in 2024, driven by rising demand for programmable, API-based communication services. AI-enabled use cases, particularly in customer engagement and automation, are expected to sustain momentum, with the market projected to grow at a 9.3 percent CAGR to $25.9 billion by 2029.
Microsoft strengthened its dominance in UC&C, growing 14 percent to $31.5 billion and expanding its market share to 45.6 percent.
In contrast, Zoom saw flat growth at 1 percent, while Cisco experienced a 4.6 percent revenue decline, both losing market share.
In the CPaaS space, Twilio grew 11 percent to exceed $4 billion in revenue, maintaining its lead with a 24 percent share, while Sinch held second place despite slowing growth.
