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APAC unified comms and IP telephony market on the incline

The market for Unified Communications as a Service (UCaaS) and hosted IP telephony in Asia Pacific is growing, driven by businesses looking to address security, reliability and provider viability concerns, according to new research from Frost & Sullivan.

According to the analysts, the market in Asia-Pacific keeps growing, driven by increasing consumer awareness and demand for cloud communication services.

A recent analysis by Frost & Sullivan forecasts that the sector will grow at a CAGR of 23% between 2019 and 2025, with revenues reaching $3.5 billion. The total installed base is also predicted to increase by 29% in the same time period.

Frost & Sulivan senior industry analyst, information and communication technology, Yongso Lee says, “Businesses in the APAC region are expected to drive broader UCaaS adoption and cloud migration as they embark on digital transformation projects.

“Digitalisation via UCaaS can evolve the way of work and potentially generate new business opportunities in the digital market.”

Frost & Sullivan finds the market is expected to grow at double-digit rates between 2019 and 2025 in terms of both users and revenues.

Maturing technologies and business models, as well as fully established customer awareness about the benefits of business unified communications, hosted IP telephony, and UCaaS, will help accelerate adoption, thereby helping service providers generate a higher average revenue per user (ARPU), Frost & Sullivan states.

Lee says, “Feature enhancements will help generate a higher ARPU from customers with purchasing power. Nevertheless, a significant portion of service provider revenues will come from low-end basic packages of service bundles, which are most sought after by small and medium-sized businesses.”

According to the analysts, service providers can also leverage the growth opportunities in:

  • Addressing security, reliability, and provider viability concerns
  • Expanding geographical coverage to attract multinational companies
  • Improving user experience with easy-to-use solutions to increase adoption
  • Supporting businesses by offering seamless cloud migration and cloud integration capabilities
  • Offering vertical-specific solutions to improve UCaaS adoption

These findings come from Frost & Sullivans latest research, Analysis of Asia-Pacific Hosted IP Telephony and UCaaS Market, Forecast to 2025.

The report explores the current and future trends of the Asia-Pacific hosted IP telephony and UCaaS services market, and analyses the service providers' market share, provides detailed region-wise revenue and market forecasts through 2025.

Analysis of Asia-Pacific Hosted IP Telephony and UCaaS Market, Forecast to 2025 is a part of Frost & Sullivans Information and Communication Technology Growth Partnership Service program, which helps organisations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

Working in the space for more than five decades, Frost & Sullivan has become known for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, mega trends, new business models and companies to action.

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