A study by ResearchAndMarkets provides in-depth analysis of trends, growth factors, and growth opportunities in the European UCaaS market.
UCaaS vendors will seek untapped opportunities among new customer segments including SOHOs and micro-businesses, front-line workers, medium and large enterprises. International suppliers will enter European markets and European suppliers will seek to expand internationally, creating new levels of competition.
COVID-19 has wreaked havoc in Europe and around the world
It has significantly affected supply chains and business models, GDP growth rates, travel, employment and technology investments.
In 2020, the European Union (27 countries) experienced a drop in GDP of 5.9%; the euro zone’s GDP (19 countries) fell by 6.3%; Spain and Italy were among the hardest hit with GDP drops of 10.8% and 8.9%, respectively.
Data shows that for 68% of European companies, COVID-19 either accelerated or had no impact on investments in digital technologies. However, many companies are delaying purchasing decisions and solution deployment due to persistent economic challenges and the need to streamline technology strategies due to drastic changes in working styles.
Businesses and individuals limiting travel and working from home to avoid contagion have been the key to the growth of some applications, such as software clients, video conferencing, and team messaging. Cloud calling services haven’t received the same boost as a temporary solution to ensuring teams and workflows stay productive. However, it is likely that a greater awareness of the agility and functionality that cloud communication services can offer bodes well for future growth.
European UCaaS market grows during pandemic
Truly economical and agile UCaaS solutions – from packaging and pricing to sourcing and management – have grown during the pandemic to support remote work and distributed workforce. SMBs and small remote / temporary teams have adopted plug-and-play solutions through digital channels or paired with connectivity services.
UCaaS bundled with mobile services, such as those common in the Nordic countries, or included as part of larger productivity and collaboration suites, such as Microsoft 365, saw faster adoption throughout the turbulent months of 2020 and 2021.
As various trends triggered by the pandemic offset each other, growth in UCaaS users will be slightly lower than expected in 2021 due to the late impact of the recession on the telecommunications industry. Most likely, we will return to a stronger growth path sometime in 2022, as companies embrace UCaaS for its compelling agility advantages and reduced CAPEX requirements.
UCaaS technology developers and vendors will continue to innovate at a rapid pace and deliver new features and services, as well as leverage new business models to increase the appeal of UCaaS to customers. a wider audience of customers and drive adoption. Agile development, cloud architectures, containerization, micro-services, mobile and video solutions will represent key catalysts for accelerated innovation and more profitable supplier operations.