The unified communication-as-a-service in energy market is anticipated to register a CAGR of 10% over the forecast period (2021 - 2026). Companies are investing in improved communications versatility using cloud-based Unified Communications as a Service of third-party vendors that don't require extra human resources. A growing number of organisations in the energy sector are migrating to UCaaS, also known as hosted PBX, instead of investing time and energy into maintaining an on-premise PBX.
- The UCaaS technology is helping vendors leverage features than what traditional VoIP and SIP services offer. This technology helps increase availability and scalability while enhancing collaboration. UCaaS solutions are designed to allowing enterprises to focus on the growth of their business rather than the maintenance of it.
- The factors primarily drivinf the market growth are quickly developing industry infrastructure, increased product commercialisation, and growing demands of the Unified Communication-as-a-Service in Energy as industry players realise that it can significantly contribute in international revenue generation.
Key Market Trends
Proliferation of Cloud Based Ecosystem to Drive the Market Growth
- The companies are increasingly making essential files and data accessible through cloud, which in turn has led to the proliferation of the BYOD trend. The energy companies are also following suit, and given the globalised nature of their business, remote access of data becomes an important feature for this industry. With the increasing cuts on Oil prices by OPEC and falling revenues, enterprises are searching for ways that cut down on expenses and has the potential to generate internal revenues.
- Encouraging employees to use their own devices is an efficient way of adding capacity to your IT infrastructure. BYOD enables employees to work away from the office while still being able to access the system over the internet by accessing data and files they need. For example, Team Sites, which comes with Office 365, allows employees to improve collaboration while in different locations, editing documents simultaneously and taking part in online conferences.
- A new report from iPass, a commercial Wi-Fi network service provider, indicates that 70 per cent of mobile workers adapt their companies' bring your own device (BYOD) policies. For some, BYOD is a must. This trend will also get increasingly reflected in the energy industry, as the lines between office and private spaces get blurred.
North America to Remain the Largest Market
- North America region will lead the global UCaaS market during the forecast period as well as remain the major revenue contributor, on account of the emergence of huge tech-savvy employees and improved infrastructure in the region. The demand in UCaaS is expected to surge in the coming years owing to growth in investment by enterprises in this region.
- The US has one of the fastest growing energy markets in the world with many of the major companies of the world headquartered their. These companies are cash rich and tech savvy and hence will lead to the adoption of any new technology in the unified communications segment.
- The US Energy Information Administration Data released in June 2019 states that U.S. crude oil production reached a record 11.0 million barrels per day in 2018 and is expected to increase by 1.4 million barrels per day in 2019 and by almost 0.9 million barrels per day in 2020, with 2020 production averaging at around 13.3 million barrels per day.
The unified communication as-a-service in energy market is a consolidated market with a few players dominating the market. The major players include West Corporation, Microsoft Corporation, Cisco Systems, Inc., Verizon Enterprise Solutions, LLC, Polycom Inc., Google LLC, among others. While innovation remains the prime factor for market domination in this industry, few major players have been acquiring smaller players to strengthen particular portfolios and plug any gaps in their strategies. Some of the recent developments are as follows:-
- February 2018 - Cisco announced the acquisition of BroadSoft. BroadSoft will accelerate Cisco's cloud strategy and collaboration portfolio by bringing in industry's leading cloud calling and contact centre solutions to Cisco's market-dominant calling, meetings, messaging, customer care, hardware endpoints and services portfolio.
- January 2018 - Polycom announced the acquisition of San Jose-based Obihai Technology boosting its VOIP portfolio. Obihai's products include the Obi200, 202 and 212 voice adapters that enable users to connect to VoIP services from Google Voice.
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