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Hosted IP telephony & UCaas market in Europe will grow to US$ 15B by 2025

The market size of the European UCaaS market is estimated to be USD 4.48 Billion in 2018 and is expected to record CAGR growth rate of 11.2% and is expected to reach a market size of USD 9.42 Billion in 2025.

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Definition / Scope

UCaaS is a single-user interface to access all unified communications capabilities through desktop, web, and mobile phone applications with features that support instant messaging, VoIP, and presence management.

The demand for UC is growing due to its advance technology and increasing cost of other communication tools. UCaaS solutions offers low cost of ownership as compared to on-premise solutions. As UCaaS vendors rent the capacity and functionality rather than purchasing technologies, the UC expenditure transforms capital expense to operational expense. It allows faster deployment of improved application performance and 24*7 application access. It helps businesses achieve rapid return on investment and productivity.

The combination of telephony and business application is unified communication and its capability of integrating diver’s function of communication at one platform creates telephony important part of this market. Another reason behind the largest market share of the telephony is its compatibility of automated transmission of voice, fax, or other information between distant parties. Telephony is the most used unified communication over cloud and is expected to remain the same in coming years. Telephony for UCaaS is an integration of IP telephone and VoIP.

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Market Overview

  • USD 4.48 Billion – The estimated market size of the European Unified Communication as a Service market in 2018
  • 11.2% - The CAGR growth rate of the European Unified Communication as a Service market in the forecast period 2018 to 2025
  • USD 9.42 Billion – The expected market size of the European Unified Communication as a Service market in 2025
  • USD 2.50 Billion – The estimated market size of the European Hosted IP Telephony market in 2018
  • 23.3% - The CAGR growth rate of the European UCaaS Telephony market in the forecast period 2018 to 2025
  • USD 5.27 Billion – The expected market size of the European UCaaS Telephony market in 2025
  • USD 1.67 Billion – The estimated market size of the European UCaaS collaboration application market revenue in 2018
  • 26.5% - The CAGR growth rate of the European UCaaS collaboration application market from 2018 to 2025
  • USD 3.5 Billion – The expected market size of the European UCaaS Collaboration application market revenue in 2025.
  • USD 311.8 Million – The estimated market size of the European UCaaS contact center market revenue in 2018
  • 22.2% - The CAGR growth rate of the European UCaaS contact center market from 2018 to 2025
  • USD 655.63 Million – The expected market size of the European UCaaS contact center market revenue in 2025
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Key Metrics

Metrics Value Explanation
Base Year 2018 Researched through internet


Market Risks

Minimal Data Center Security

The vendors that offer UCaaS must have their own data-center facilities. They must secure their customers with services such as secured entry, 24/7 staffing and remote backups for disaster recovery. Not all vendors offer strictly controlled data center facilities with multiple power sources and remote backups. Some vendors choose to cut-costs by compromising the quality and thereby creating business risks. This may cause serious business losses with issues occurring for business continuity if they experience equipment failure or natural disaster. In other cases UCaaS vendors are simply reselling services that are hosted in a third-party data center, which may or may not offer adequate security.

Poor Response to Demand

Enterprises encounter fluctuations in voice call volume and demand for data services. The business can encounter massive spike in inbound customer service calls anytime now that require hiring temporary customer service representative. Regardless of whether the same demand is encountered the UCaaS provider must scale to meet demands is important. The best way to find that the vendor can scale to the needs is by inquiring the vendor whether they possess their own instance of the UCaaS platform that they use. Vendor with their own instance of Broadsoft, MetaSwitch, ShoreTel are better in providing scalable solutions on demand.

Inadequate Data Encryption

In treating voice calls as a form of data there is security and cost-savings advantages., especially with fiber-optic internet connectivity. All of the organizations data that comes from the UCaaS vendor must be encrypted. It must be ensured that the encryption must be performed in-transit and when data is at rest.

Public Internet Connectivity

Many UCaaS Service Providers promise that they offer all the services but they miss out on one of the key services, data connectivity. To unlock the benefits of UCaaS a Service Provider who offers CloudConnect via a dedicated circuit is crucial.

Top Market Opportunities

Content-sharing Facility

As conferencing services have become basic communication tool within the enterprise environment. users are demanding a simple user experience and content-sharing facility(in case of web conferencing) with high definition audio and video quality and the capability to connect from multiple devices. These customer demands remain as an opportunity before OEMs and service providers to have customer acqusitions.

Cloud Services Model gaining traction

The hosted or cloud services model of unified communication has proved to be disruptive and a blessing for both the large enterprises and SMBs. The factors supporting the growth of the Cloud Service Model includes scalability, reduced TCO, minimal CAPEX and flexibility.

Freemium Model

Availability of feature-rich, inexpensive cloud collaboration solutions comprising team messaging as well as real-time communications functionality; providers must leverage options like a "freemium" model to attract businesses that are not yet ready to move their entire UCC to the cloud.

Enterprise demand for custom-tailored solutions and communications

The need for integration with other business software to directly influence key business processes, and gain more tangible business benefits from communications investments. In response, technology developers and service providers are providing flexible application program interfaces (APIs), software development kits (SDKs), and communication PaaS (CPaaS) environments.

"API economy" wave

Service providers seeking to ride the "API economy" wave by enabling integration with popular third-party software, including productivity suites, customer relationship management (CRM), helpdesk, and vertical apps, in order to improve UCaaS stickiness and customer satisfaction.

Market Drivers

Proliferation of Smart Phones and BYOD Trend

The growth in sales of mobile phones has increased the adoption of unified communication among end users. According to “Ericsson Mobility Report” published in 2015, the number of smartphone users is expected to reach 6.1 billion by 2020. In addition, 90% of the population is supposed to have access to high-speed internet and 80% of the new smartphone users are expected to be from Europe. Further, another analysis from Statista states that Europe is expected to have around 1,242 million smartphones by 2020. Moreover, increased adoption for bring your own device (BYOD) among enterprise from all industry verticals is expected to drive the demand for unified communication during the period 2018 to 2025.

Increased Demand for Cloud Based Solutions

Rise in adoption of cloud-based technology along with usage of social media platforms drives the growth of the market. At present, cloud technology is adopted widely amongst all the businesses, which provide enterprises affordable communication solutions. Cloud computing allows the model to function from anywhere and anytime. In addition, the implementation of cloud enables organizations to combine supplementary infrastructure technologies such as software-defined perimeters to create robust and highly secure platforms. Hence, the rise in the adoption of the cloud-based solutions drives the growth of the Unified Communication Market.

Penetration of Internet of Things

The growth in demand for low cost data storage, backup, and data protection augments the growth of the IoT market among end users that include small and medium enterprises (SMEs) and large enterprises. Moreover, end user organizations shift toward cloud computing technologies and deployment of cloud-based IoT software and platform is on an increase. Further, according to 11th annual Visual Networking Index by Cisco the number of machine-to-machine connections is expected to reach 12.2 billion by 2020. Further, IoT is anticipated to account for nearly half of the connected devices by 2020. In addition, Cisco predicts the Internet of Everything market to be $19 trillion opportunity by 2024‐2025.

The “instant” factor and the reduction of turnaround time

Using Unified Communications a person in a remote location can contact another geographically separated person instantly through their preferred mode of communication be it Instant Messaging, Telephony or Video conferencing. And Unified Communication can significantly reduce downtime that’s implicit in any interaction. Consider this: according to an AT&T study, more than 70 percent of business calls are placed on hold for an average of 45 to 60 seconds each. The average executive spends 17 minutes each day on hold, and some 80 percent of phone calls end up in voice mail. UC curbs the wastage of time by letting users reach the right person at the right time through their preferred mode of contact. This goes way beyond slashing hold times or staying clear of voice mail. It means organising information faster and getting that information to the right person in a usable format when the recipient needs it most.

The Consumerization of IT

Due to the consumerization of IT, Unified Communication is gaining popularity in the consumer market then spreading to business and government organizations largely driven by employees are using Unified Communication technologies at home and then introducing them in the workplace.

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Market Restraints

Complexity in Implementing Unified Communication

The number one pain point involved in the implementation of Unified Communication is the complexity. The amount of technology and human interactions involved is typically 10 times greater than a normal phone conference. There is a need to understand the technology, hardware, software and configuration which includes the translation between proprietary protocols. More importantly there is a need to understand how users will utilize the solution, how the physical environment, and in many cases language, culture and time zones will affect the use case. The human factor is sadly very often overlooked or underestimated. Reliable support for the communication part of the setup is also important.

Drawbacks of on-premise based solutions

Despite its growing popularity, on-premise solutions have limitations such as restricted storage capacity, expensive hardware and software, and manual updating for new functionality and features. Moreover, cumulative adoption of software-based unified solutions is capturing the revenue share of their hardware-based UC equivalents, as demand is shifting toward independent software vendors.

Lack of Tangible ROI

More Tangible ROI can be achieved only using “least-cost-routing” options that UC platforms enable for calls from mobile phones. The other options such as telephony or video-conferencing which usually comes with a higher price tag does hinder the tangible ROI.

Customer concerns over the reliability and security of cloud communications

Security and reliability of cloud computing services remain among the dominant concerns inhibiting their pervasive adaptation. The distributed and the multi-tenancy nature of the cloud computing paradigm can be considered as the root causes for their increased risks and vulnerabilities. Resource sharing and virtualization can also be mentioned as additional main factors contributing to or augmenting cross-site scripting and other cloud vulnerabilities. Cloud are also exposed to the risks and liabilities faced by other networked systems. Poorly designed APIs that may cause security problems or distributed denial of services attacks are the examples of this category

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Industry Challenges

Quick response or attention to increasing demand

The biggest unified communication challenges seem to be with the IT staff remembering there are voice applications running on the LAN and being routed to the internet. Changes to the LAN, your IP address or the ISP can all cause these features to quit working. But a little pre-planning and advance notice when changes are scheduled to be made can prevent these issues and not cause down time for the business.

Shortage of Skilled labor

As Unified Communications is an emerging and new technology, up-skilling employees with the advanced technologies on VOIP protocols and on the implementation technologies of Unified Communication is redundant.thereby creating shortage of skilled labor in the domain.

No On-Demand Account Management

Provisioning access control over UCaaS is much simpler than alternative business communication tools. It must be ensured that access management capabilities are offered for the on-site IT administrator both mobile and remote management so the accounts can be added and removed off-site. Common capabilities needed includes the ability to add extensions, change user information, manage user PINs, disable or enable international calling and cloud network access.

Technology Trends

Instant Messaging

The rise of instant messaging is a great example of how technology has changed the workplace. More urgent and less permanent than an email, instant messaging is the preferred method of communication when employees simply need a quick answer so they can get on with their work. It’s also a preferred method of communication among Millennials. If the email inbox is clogged with to-do items, instant messaging can be a great way to communicate without the clutter.

Screen Sharing

Screen sharing capabilities are a great way to support technology communication in the workplace. With screen sharing, employees can share what they've found with the whole team with a simple invitation. It's possible to solve issues and clarify ideas in a few minutes and then get back to work. This is where the collaboration productivity multiplier effect kicks in. Now, instead of just being more effective as a single employee, those you shared your screen with know a new, time-saving shortcut as well.

Video Integration

Informal meetings are becoming more common and people are beginning to understand how much more effective they can be. A short meeting where actual work gets done is also good for morale. UCaaS can use the previously mentioned tools plus video to allow more productive meetings to happen in less time. You can see who is in their office, send them all an instant message telling them to join a web conference, and suddenly everyone is face to face talking and instant messaging their ideas. All of these participants could be in the same building but they could also be working from home, working in another state or working from the airport.

Regulatory Trends

Regulation in UK

The Digital Economy Act 2017 is an act of the Parliament of the United Kingdom. It is substantially different from, and shorter than, the Digital Economy Act 2010, whose provisions largely ended up not being passed into law. The act addresses policy issues related to electronic communications infrastructure and services, and updates the conditions for and sentencing of criminal copyright infringement.

Investments by UK Government

The UK has set-up Catapult centres for digital technologies and the role of Digital Catapult is making UK industries more productive and competitive by supporting them to take up advanced digital technologies, such as AI, 5G and augmented and virtual reality. Businesses working with the Digital Catapult grow their employment numbers by over 15%, which is 3 times higher than seen in the wider economy.

The UK Government has recently made a investment of £215 million for investment is in the Digital, Medicines Discovery, Future Cities and Transport Systems Catapult centres. It builds on the announcement made in August of nearly £1 billion for the Catapult network and fully funds all centres for the next 5 years. The Catapult network is managed by Innovate UK, part of UK Research and Innovation.

Regulation in Germany

Germany’s economic and innovation policy focuses on digital infrastructure, digital economy, digital workplaces, innovative public administration, digital environments in society, education, research, science, culture and media, security, protection and confidence for society and business, and European and international dimension of the Digital Agenda.

Policy objectives include the digitization of the German economy and the expansion of the German broadband network across the country. Challenges include the impact of the EU Digital Single Market, the General Data Protection Regulation (GDPR), the E-privacy Regulation on U.S. ICT companies, and the latest cybersecurity policy developments.

Investments by Germany Government

The Government of Germany is planning to invest 3 Billion Euros on Artificial Intelligence and other digital technologies by 2025.

Regulation in France

Law on confidence in the digital economy

This is a wide-ranging piece of legislation, affecting Internet Service Providers (ISPs), other xSPs, and also fixed and mobile telecommunications operators, as well as public bodies such as municipalities and groups of municipalities interested in developing telecommunications infrastructure and services within the geographical area that falls under their responsibility.

The law addresses, amongst others, the following Internet-related topics:

• Limited responsibility of hosting providers for hosted content • Caching of content by ISPs • eCommerce, online advertising, telemarketing, contracts • Cryptography, digital certification and digital signatures • Cybercrime

Investments by France Government

The French National Research Agency (ANR) is a public administrative institution under the authority of the French Ministry of Higher Education, Research and Innovation. The agency funds project-based research carried out by public operators cooperating with each other or with private companies. The French Government has invested 15 Billion Euros on training people on Digital Technologies.

Market Size and Forecast

UK Hosted IP Telephony and UCaaS Market Size

  • USD 1.12 Billion – The estimated market size of the UK Unified Communication as a Service market in 2018
  • USD 626.2 Million – The estimated market size of the UK UCaaS Telephony market in 2018
  • USD 415.85 Million - The estimated market size of the UK UCaaS collaboration application market revenue in 2018
  • USD 77.9 Million – The estimated market size of the UK UCaaS Contact center market revenue in 2018

Germany Hosted IP Telephony and UCaaS Market Size

  • USD 806.4 Million - The estimated market size of the German Unified Communication as a Service market in 2018
  • USD 450.85 Million – The estimated market size of the German UCaaS Telephony market in 2018
  • USD 299.41 Million - The estimated market size of the German UCaaS collaboration application market revenue in 2018
  • USD 56.45 Million – The estimated market size of the German UCaaS Contact center market revenue in 2018

France Hosted IP Telephony and UCaaS Market Size

  • USD 672 Million - The estimated market size of the France Unified Communication as a Service market in 2018
  • USD 375.71 Million – The estimated market size of the France UCaaS Telephony market in 2018
  • USD 249.51 Million - The estimated market size of the France UCaaS collaboration application market revenue in 2018
  • USD 46.77 Million – The estimated market size of the France UCaaS Contact center market revenue in 2018
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Market Outlook

UK Hosted IP Telephony and UCaaS Market Outlook

  • 11.4% - The CAGR growth rate of the UK Unified Communication as a Service market in the forecast period 2018 to 2025
  • USD 2.33 Billion – The expected market size of the UK Unified Communication as a Service market in 2025
  • 23.1% - The CAGR growth rate of the UK UCaaS Telephony market in the forecast period 2018 to 2025
  • USD 1.30 Billion - The expected market size of the UK UCaaS Telephony market in 2025
  • 26.2% - The CAGR growth rate of the UK UCaaS collaboration application market from 2018 to 2025
  • USD 865.13 Million - The expected market size of the UK UCaaS Collaboration application market revenue in 2025
  • 22.2% - The CAGR growth rate of the UK UCaaS Contact center application market from 2018 to 2025
  • USD 163.1 Million – The expected market size of the UK UCaaS Contact center market revenue in 2025


Germany Hosted IP Telephony and UCaaS Market Outlook

  • 11.6% - The CAGR growth rate of the German Unified Communication as a Service market in the forecast period 2018 to 2025
  • USD 1.7 Billion – The expected market size of the German Unified Communication as a Service market in 2025
  • 23.6% - The CAGR growth rate of the German UCaaS Telephony market in the forecast period 2018 to 2025
  • USD 950.47 Million - The expected market size of the German UCaaS Telephony market in 2025
  • 26.5% - The CAGR growth rate of the German UCaaS collaboration application market from 2018 to 2025
  • USD 631.21 Million - The expected market size of the German UCaaS Collaboration application market revenue in 2025
  • 22.4% - The CAGR growth rate of the German UCaaS Contact center application market from 2018 to 2025
  • USD 118.32 Million – The expected market size of the German UCaaS Contact center market revenue in 2025

France Hosted IP Telephony and UCaaS Market Outlook

  • 11.8% - The CAGR growth rate of the France Unified Communication as a Service market in the forecast period 2018 to 2025
  • USD 1.41 Billion – The expected market size of the France Unified Communication as a Service market in 2025
  • 23.5% - The CAGR growth rate of the France UCaaS Telephony market in the forecast period 2018 to 2025
  • USD 788.31 Million - The expected market size of the France UCaaS Telephony market in 2025
  • 26.5% - The CAGR growth rate of the France UCaaS collaboration application market from 2018 to 2025
  • USD 523.53 Million - The expected market size of the France UCaaS Collaboration application market revenue in 2025
  • 22.4% - The CAGR growth rate of the France UCaaS Contact center application market from 2018 to 2025
  • USD 98.14 Million – The expected market size of the France UCaaS Contact center market revenue in 2025

Technology Roadmap

BYOD and Mobility

The users no longer power up a corporate laptop to read a email, check status of an order via instant messaging or hold an important video conference with a key client. With more organizations embracing Bring Your Own Device (BYOD) programs the mobile employees are using mobile unified communications applications on their personally-owned devices to get their jobs done.

Virtualization

Virtualization is gaining ground in the unified communications market, no matter the size of the enterprise customer. Whether as a large scale deployment in an enterprise data center or as a turn-key appliance, unified communications virtualization is the next logical step for customers and vendors alike.

SIP Trunking

Unified Communication is made possible by the use of Session Initiation Protocol (SIP) technologies such as SIP trunk which carry real-time communication (Voice, Video and Instant Messaging) over IP networks. SIP trunk typically helps boost employee productivity and collaboration while reducing operational costs.

Distribution Chain Analysis

The Deployment model adopted in the implementation of Unified Communication is plug and play where the applications are offered through VOIP Protocols such as Session Initiation Protocol (SIP) technologies which includes SIP trunk. The payment mode is fixed tariff for the services offered at a per-user basis.

The Various Services offered for UCaaS includes

Unified Communication Services are collaboration and contact center solutions enhancing user productivity and help deliver exceptional customer experience. Unified Communications – Services includes the following

  1. Managed Services involves the monitoring and management of Unified Communications applications on a real-time basis and also involves identifying and fixing real-time issues in the Unified Communications medium.
  2. Professional Services is the offering of IT, technology and Professional consulting with Unified Communication
  3. Hosted Services are Unified Communication services offered through a third-party or hosted service provide via mediums like cloud computing, mobility, telephony and VOIP
  4. Integration refers to the Integrations embedded within an Unified Communications applications such as Instant Messaging, Conferencing, Telephony and Mobility
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Competitive Landscape

  • Most European markets remain less fragmented than the US market. Many national telecom carriers hold leading positions in their domestic hosted IP telephony and UCaaS markets. However, competition is intensifying in most European countries due to the influx of market participants responding to rising demand for next-generation cloud communications solutions.
  • To better compete in a growing and gradually maturing space, service providers are enhancing their UCaaS solutions and broader portfolios, as well as engaging in mergers and acquisitions (M&A) often involving international (primarily US-based) service providers looking for access to European channels and customers. M&A activity is also sometimes driven by the need to enhance overall service provider market positions, expand geographic footprints or gain technological synergies.
  • Price pressures will help boost adoption, but will restrain revenue growth rates. Despite price declines providers will continue to experience double-digit revenue growth rates over the next seven years.Other factors that will negatively affect market growth rates include the following:
  • Players provide extensive UCaaS to offer consistent end-use experience. Lately, companies have been focused on providing cloud-based UC solutions owing to growing transition toward multi-model interaction with video, voice, and messaging. For instance, Cisco Systems Inc. provides Cisco Hosted Collaboration Solution (HCS) that helps enterprises deploy UC in their businesses.
  • Companies are engaging in collaborations and acquisitions to maintain their market presence. For instance, in April 2016, NEC Corporation and Hewlett Packard Enterprise entered into a collaboration to develop solutions jointly, thereby capturing new opportunities in key geographies. This alliance has enabled companies to quickly accelerate adoption of mobile-first networking to improve workplace productivity.
  • In January 2016, Microsoft Corporation acquired technology assets of Event Zero for UC commander solutions. This acquisition has allowed Microsoft Corporation to enhance and expand built-in management tools for Skype for Business.

Competitive Factors

Reliability and Availability

  • Unified Communications is revolutionizing the way we communicate, it must be reliable in order to deliver the utmost in user productivity. If Unified communication is expected to play a major role in increasing user productivity it has to be reliable, dependable and consistent in its delivery. This is no easy task. When UC is down, productivity is down, and users and enterprise customers are dissatisfied. The unreliable delivery of UC services will damage the reputation of UC. It will be harder to regain the user's confidence to return to the UC functions than it was to convince the user to try UC in the first place.
  • Technology vendors and providers often throw around the term five nines (99.999%) availability when discussing their products or services, and the unified communications (UC) market is no different. The term is used so often that the average technologist doesn't think twice about it. First of all, five nines does NOT refer to reliability. It refers to availability. Availability is the probability that a device or service will be working when you go to use it.Thus the Service Provider offering higher reliability and availability are set to dominate the market.

Scalability

The Unified Communications Applications and Services requires to answer the rising demands during peak hours. Enterprises encounter fluctuations in voice call volume and demand for data services. The business can encounter massive spike in inbound customer service calls anytime now. Regardless of whether the same demand is encountered the UC provider must scale to meet demands is important. The Service Providers that offer scalable solutions are the front-runners in the Sector.

Lowest Total cost of Ownership

The Service Providers that focus on reduction of tangible costs and enable correct choice between long distance network vendors are set to rule the market.

Key Market Players

Telia Company AB (formerly TeliaSonera) is a Swedish dominant telephone company and mobile network operator present in Sweden, Finland, Norway, Denmark, Lithuania, Latvia and Estonia. The company has operations in other countries in Northern and Eastern Europe, and in Central Asia and South Asia, with a total of 182.1 million mobile customers (Q1, 2013). It is headquartered in Stockholm .

T-Mobile is the brand name used by the mobile communications subsidiaries of the German telecommunications company Deutsche Telekom AG. The brand is active in Austria (under the subsidiary T-Mobile Austria), the Czech Republic (T-Mobile Czech Republic),the Slovak Republic (Slovak Telekom), the Netherlands (T-Mobile Netherlands), Poland (T-Mobile Polska), and the United States (T-Mobile US), Serbia (T-Mobile SRB).

BT Group plc is a British multinational telecommunications holding company headquartered in London, United Kingdom. It has operations in around 180 countries and is the largest provider of fixed-line, broadband and mobile services in the UK, and also provides subscription television and IT services.

Deutsche Telekom AG is a German telecommunications company headquartered in Bonn and by revenue the largest telecommunications provider in Europe. Deutsche Telekom was formed in 1996, as the former state-owned monopoly Deutsche Bundespost was privatised. The company operates several subsidiaries worldwide, including the mobile communications brand T-Mobile.

VEON (formerly VimpelCom Ltd.) is a multinational telecommunication services company headquartered in Amsterdam, Netherlands. It predominantly operates services in the regions of Asia, Africa and Europe. It is the eleventh largest mobile network operator in the world by number of subscribers. with 214 million customers, More than half of the company's revenue comes from Russia.

Orange Business Services, the business services arm of Orange S.A., is a global integrator of communications products and services for multinational corporations. It offers integrated communications products and services to global enterprises in cloud computing, unified communications, collaboration, Big Data, Internet of things and Artificial Intelligence, which manage and integrate the complexity of international communications and software applications.

Bezeq is an Israeli telecommunications company. Bezeq and its subsidiaries offer a range of telecom services, including fixed-line, mobile telephony, high-speed Internet, transmission, and pay TV (via Yes).

Elisa Oyj is a Finnish telecommunications company founded in 1882. It was called HPY HTF until July 2000. The mobile operations of Elisa were previously known as Radiolinja. Elisa is a telecommunications, ICT and online service company operating mainly in Finland and Estonia. Elisa has over 6.2 million consumer, corporate and public administration organisation subscriptions.

Verizon Communications Inc. is an American multinational telecommunicationsconglomerate and a corporate component of the Dow Jones Industrial Average. In 2015, Verizon expanded its business into content ownership by acquiring AOL, and two years later it acquired Yahoo! AOL and Yahoo were amalgamated into a new division named Oath Inc. (currently known as Verizon Media)

Vodafone Group plc is a British multinational telecommunications conglomerate, with headquarters in London and Newbury, Berkshire. It predominantly operates services in the regions of Asia, Africa, Europe, and Oceania. Among mobile operator groups globally, Vodafone ranked 4th (behind China Mobile, Bharti Airtel and Vodafone Idea) in the number of mobile customers (313 million) as of 2018

Telenor ASA is a Norwegian multinational telecommunications company headquartered at Fornebu in Bærum, close to Oslo. It is one of the world's largest mobile telecommunications companies with operations worldwide, focus in Scandinavia, Eastern Europe and Asia. It has extensive broadband and TV distribution operations in four Nordic countries, and a 10-year-old research and business line for Machine-to-Machine technology. Telenor owns networks in 13 countries, and has operations in 29 countries (including their 14.6% ownership of Veon)

Strategic Conclusion

The market size of the European UCaaS market is estimated to be USD 4.48 Billion in 2018 and is expected to record CAGR growth rate of 11.2% and is expected to reach a market size of USD 9.42 Billion in 2025. Whereas the market size of the European Hosted IP Telephony market is estimated to be USD 2.50 Billion in 2018 and is expected to grow rapidly at a CAGR of 23.3% to reach a market size of USD 5.27 Billion in 2025

The major challenges pricking the growth of the European Hosted IP Telephony and UCaaS market includes Quick response or attention to increasing demand, Shortage of Skilled labor

The growth of the market is restrained by factors such as Complexity in Implementing Unified Communication, Drawbacks of on-premise based solutions, Lack of Tangible ROI, Customer concerns over the reliability and security of cloud communications

The growth of the European Hosted IP Telephony and UCaaS market is augmented by driving factors such as Proliferation of Smart Phones and BYOD Trend, Increased Demand for Cloud Based Solutions, Penetration of Internet of Things, The “instant” factor and the reduction of turnaround time, The Consumerization of IT.

Further Reading

Appendix

  • USD – US Dollar
  • OEM - Original Equipment Manufacturer
  • SMB - Small and Medium Business
  • TCO - Total Cost of Ownership
  • ROI - Return on Investment
  • CAGR – Compounded Annual Growth Rate
  • BYOD – Bring Your Own Device
  • CAPEX - Capital Expenditure
  • IOT - Internet of Things


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