Latin American unified communications market to touch $1.83 billion in 2019: Frost & Sullivan

The Latin American unified communications and collaboration solutions market is expected to grow to $1.83 billion in 2019 from $1.01 billion in 2012, said Frost & Sullivan.

The Frost & Sullivan report also predicted that unified communications and collaboration solutions market is expected to achieve growth of 10.1 percent between 2017 and 2018.

The main growth driver is the rapid growth in devices connected to the Internet. Recent reports suggested that more than 1 billion devices will be connected to the Internet in Latin America by 2015.

Growth of small and medium enterprises (SMEs) and larger end-user awareness about the benefits of unified communications (UC) and collaboration will also fuel demand. There will still be demand for on-premises UC despite increasing competition from vendors based in the cloud.
Video conferencing
With the increased use of personal smart devices, employees of organizations began to demand multiple media (voice / data / video) also in their working environment, leading enterprises to adopt advanced solutions for UC and collaboration. Besides giving employees the tools they want, the productivity gains from the deployment of these solutions become a justification attractive investment for companies.

“The UC providers are moving away from niche segments to provide a wider range of UC solutions and collaboration, which expands the potential market in Latin America,” said ICT Research Analyst at Frost & Sullivan, Francisco Rizzo. “By offering flexible licensing options based on the type of use – landline or mobile – also helps create value for companies and fosters market revenues.”
UC challenges

However, the lack of infrastructure to meet the bandwidth requirements of the growing base of Internet users in Latin America negatively impacts the quality and confidence in UC solutions. Though service providers are developing more efficient solutions that require less bandwidth to tackle this challenge, they are only as good as the public network in which they are executed.

The research report says the availability of alternatives is free, which makes for service providers to penetrate the SME segment, highly sensitive to prices. The high taxes on imported products also restrict market development in the region.

Frost & Sullivan suggests that providers in the Latin American market need to provide enterprise level solutions at competitive prices and tailored to SMEs to encourage membership among companies with limited budgets. They can also promote cloud-based models that require less hardware will assist in expanding the market.

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