Worldwide Unified Communications & Collaboration Market Maintains Positive Growth in Q2 2022, According to IDC Tracker

Worldwide UC&C revenues grew 11.4% annually and 2.9% sequentially in the second quarter

The worldwide Unified Communications & Collaboration (UC&C) market grew 11.4% year over year and 2.9% compared to the previous quarter to $14.8 billion in the second quarter of 2022 (2Q22), according to the International Data Corporation (IDC) Worldwide Quarterly Unified Communications and Collaboration Tracker. It's expected that worldwide UC&C growth will continue to be driven by customers across all business size segments (small, midsize, and large) with interest especially in videoconferencing, collaboration, and UCaaS (UC as a Service) technologies. UC&C solutions underpin many of today's hybrid/flexible work scenarios and digital transformation initiatives.

Some UC&C market specifics include the following:

• Hosted Voice/UC Public Cloud (UCaaS) revenue grew 17.0% year over year and 4.3% sequentially to almost $5.2 billion in 2Q22.
• UC Collaboration (including video conferencing software and cloud services) increased 10.2% annually and 1.3% sequentially to $7.2 billion in revenue in the quarter.
• IP Phone revenue increased 7.9% year over year and 13.9% quarter over quarter to $525 million in 2Q22.
• IP Phone shipments increased 2.8% year over year and 11.6% compared to 1Q22 to 4.5 million units shipped in the quarter.
• Enterprise Videoconferencing Room Endpoints (i.e., large video room endpoints) revenue increased 15.6% annually and 27.4% sequentially to more than $525.6 million in the quarter.
• Videoconferencing Huddle Room Endpoints revenue increased 24.7% year over year and 22.4% quarter over quarter to $263 million in 2Q22.

"We're seeing more strategic buying decisions by organizations versus fewer short-term reactive decisions in the recent past," said Rich Costello, senior research analyst, Unified Communications and Collaboration at IDC. "While the overall market remains a growth story, providers are starting to see some sales cycles return to the pre-covid pace."

The UC&C market saw the following overall positive results in 2Q22 from a regional perspective:

• In North America (U.S. and Canada), UC&C revenue was up 10.1% year over year and 3.6% sequentially to just over $7.0 billion in 2Q 2022.
• Asia/Pacific (including Japan) revenue was up 16.8% year over year and 4.1% compared to 1Q22 to almost $3.0 billion in the quarter.
• EMEA revenue growth was up 8.9% year over year but just 1.0% sequentially to $4.2 billion in the quarter.
• Latin America revenue increased 20.9% year over year and 3.8% sequentially to $551.5 million in 2Q22.

UC&C Vendor Highlights

• Microsoft's total worldwide UC&C revenue was $5.7 billion in 2Q22, up 22.7% year over year and 4.9% sequentially, representing a 38.3% share of the worldwide UC&C market for the quarter.
• Cisco's total worldwide UC&C revenue was almost $1.2 billion, up 1.0% year over year and 8.6% sequentially, representing an 8.0% share of the worldwide UC&C market in 2Q22.
• Zoom's total worldwide UC&C revenue increased 7.2% annually and 2.1% sequentially to more than $1.0 billion in the quarter, representing a 7.0% share of the worldwide UC&C market for 2Q22.
• RingCentral's total worldwide UC&C revenue grew 29.8% year over year and 5.1% quarter over quarter to $424 million, representing a 2.9% share of the worldwide UC&C market for 2Q 2022.

The IDC Worldwide Quarterly Unified Communications and Collaboration Tracker provides total market size and vendor market share data in an easy-to-use Excel Pivot Table format that includes IP Telephony/UC Systems (IP Phones, IP PBX/UC Systems), Enterprise Videoconferencing Systems (Videoconferencing Room Endpoints, Huddle Room Endpoints, Videoconferencing Infrastructure), UC Collaboration, and Managed/Hosted Voice/UCaas (Hosted Voice/Public Cloud UCaaS, Managed Voice/Private Cloud UCaaS). Measurement for the WW UC&C Tracker is provided in vendor revenue and unit/line/license/seat shipments.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools.

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The worldwide Unified Communications & Collaboration market grew 11.4% year over year to $14.8 billion in Q2 2022, according to the IDC Worldwide Quarterly Unified Communications and Collaboration Tracker.