The Unified Communication-as-a-Service in Retail market was valued at USD 4733.85 million in 2020 and is expected to reach USD 17800.17 million by 2026, at a CAGR of 24.7% over the forecast period 2021 - 2026. Unified Communication (UC) Solutions enables retailers to provide a rich platform for collaboration and smarter way to interact seamlessly, converging physical experiences with virtual, while reducing costs and enabling flexible expansions across the enterprise.
- The lack of awareness of the technology is hindering the growth of the market. In one of the surveys done by Retail Week, it was figured out that more than 69% of retailers were not aware of Unified Communication Solutions and 38% of them said that they did not know the benefits of implementing the same.
- The growing adoption of BYOD and other mobility solutions has been aiding the adoption of UCaaS solutions.
- The growing adoption of IP applications to enhance customer experience and in-store operations are also expected to boost the growth of the market studied.
Key Market Trends
Increasing Small- and Medium-scale Industries to Drive the Market
- The dependency of small and medium-sized businesses (SMBs) on the cloud is proliferating and is expected to increase in the future. UCaaS has emerged as an ideal solution for SMBs, mainly when delivered in a cloud-based model.
- These solutions combine real-time, integrated voice and collaboration capabilities, along with a flexible and scalable delivery model, making them well suited for SMBs. The primary benefit of UCaaS for SMBs is more about reducing costs than having an impact on business.
- These businesses regard to cost savings, increased security, and simplified management as the significant benefits of deploying UCaaS. A recent study by ATT confirmed that two-thirds (67%) of small businesses (with fewer than 100 employees) use VoIP today. SMBs interested in hosted IP telephony and VoIP access service are likely to increase. Also, more than 70% of SMBs are expected to purchase new communication technologies in the next two years.
North America to Hold Major Share
- The region has many brick-and-mortar stores, which are increasingly offering buy online and pickup in store (BOPIS), return in store (BORIS) flexibility. This is driving more calls for return merchandise authorizations, inventory inquiries, and appointments for value-added services, like installations and customizations.
- Moreover, the region has the United States, which has a well-established distribution channel for all forms of retail sales. The retail segment in the country employs around 29 million people and provides more than 42 million jobs. Sales in the sector are expected to increase by 3.4% year-on-year, with e-commerce retail sales expected to grow by 7-10%.
- Further, the retailers in the region are scrambling to meet the expectations and demands of an increasingly digital customer base, asking for better co-operation and communication between the staff to provide seamless services to the customers. The companies in the region are further promoting UCaaS by providing innovative solutions.
- For instance, Amazon USA has released Chime, a cloud-based UCaaS, hosted in Amazon Web Service's cloud. It provides video conferencing service to enterprises and works on both desktop & mobile phones. It was deployed in retailer Brooks Brothers' stores as a pilot project. Other retailers are expected to incorporate Chime in their stores, as the demand for UCaas in retail is expected to rise dramatically.
The unified communications-as-a-service in retail market is moderately competitive. The companies in the market are strategically innovating, collaborating and expanding in providing sustainable solutions in order to withstand the growing competition in the market.
- November 2018: Cisco introduced a cloud phone system, and three new collaboration products at its Partner Summit event in Las Vegas. The offering is centered on the integration of Cisco's BroadSoft business with the rest of the company's collaboration portfolio.
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