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COVID-19 Softens Growth Rates, Creates New Use Cases
21-May-2020
Europe
Market Research
K471-01-00-00-00
TE03943-EU-MR_24414
This study provides an in-depth analysis of the European hosted IP telephony and UCaaS market, including a forecast of installed users, average prices and provider revenue until 2026. The study discusses the impact of the COVID-19 epidemic and the resulting economic hardship on services adoption and provider growth strategies. Furthermore, this study provides market share and competitor analyses, as well as highlights important regional and country trends. Finally, the study identifies key growth opportunities for providers delivering hosted IP telephony, UCaaS and other cloud services in European markets.
UCaaS user and revenue growth will be slower than originally projected in 2020 and 2021 due to the economic downturn caused by the COVID-19 pandemic and the ensuing workforce reduction and business closures. Market growth will remain strong throughout the rest of the forecast period driven by ISDN services decommissioning, growing awareness of cloud services benefits, expanding variety of service offerings tailored for different types of customers, and the need for business agility in an increasingly global economy and accelerating pace of change in all aspects of life due to rapid technology development.
There exist considerable growth opportunities for service providers operating in the European markets. Hosted IP telephony and UCaaS providers can enhance their existing solutions with new features and capabilities, launch new offerings, expand into new customer segments or new geographic markets, develop more creative service bundles or integrate their communications and collaboration solutions with third-party software and services to address new and unique use cases. However, economic recession, workforce reduction and an overall tough economic climate due to the COVID-19 epidemic and the related social measures will cause churn in the installed base and a delay in new projects. Furthermore, businesses with heightened security and compliance requirements or complex customization and integration needs will continue to choose premises-based solutions as they offer superior performance on these criteria.
In the near term, traction by country and sub-region will be determined by the degree to which each country has been impacted by the COVID-19 epidemic. All European markets will continue to grow in terms of both installed users and revenue; however, net new adds in 2020 and 2021 will be fewer than those in 2019 despite earlier projections for consistent new user growth throughout the forecast period.
This study provides technology developers, service providers, resellers and other market participants with important information to navigate the tough economic climate in the short term and identify key growth opportunities in the long term.
Author: Elka Popova
Executive Dashboard
Key Questions this Study will Answer
Market Definitions
Scope and Market Definitions
Scope and Market Definitions (continued)
Scope and Market Definitions (continued)
Scope and Market Definitions (continued)
Scope and Market Definitions (continued)
Scope and Market Definitions (continued)
Scope and Market Definitions (continued)
The Strategic Imperative 8™
The Strategic Imperative 8™ (continued)
Strategic Imperatives for Hosted IP Telephony and UCaaS Providers
Key Growth Metrics
Growth Environment and Market Trends
Growth Environment and Market Trends (continued)
Growth Environment and Market Trends (continued)
Growth Drivers for the Hosted IP Telephony and UCaaS Market
Growth Restraints for the Hosted IP Telephony and UCaaS Market
Forecast Assumptions—Total Hosted IP Telephony and UCaaS Market
Forecast Assumptions—Total Hosted IP Telephony and UCaaS Market (continued)
Installed Users and Revenue Forecast—Total Hosted IP Telephony and UCaaS Market
Net New User Forecast—Total Hosted IP Telephony and UCaaS Market
Installed Users Forecast by Region—Total Hosted IP Telephony and UCaaS Market
Installed Users and Revenue Forecast Analysis—Total Hosted IP Telephony and UCaaS Market
Installed Users and Revenue Forecast Analysis—Total Hosted IP Telephony and UCaaS Market (continued)
Installed Users and Revenue Forecast Analysis—Total Hosted IP Telephony and UCaaS Market (continued)
Pricing Trends and Forecast—Total Hosted IP Telephony and UCaaS Market
Pricing Trends and Forecast Analysis—Total Hosted IP Telephony and UCaaS Market
Pricing Trends and Forecast Analysis—Total Hosted IP Telephony and UCaaS Market (continued)
Pricing Trends and Forecast Analysis—Total Hosted IP Telephony and UCaaS Market (continued)
Pricing Trends and Forecast Analysis—Total Hosted IP Telephony and UCaaS Market (continued)
Pricing Trends and Forecast Analysis—Total Hosted IP Telephony and UCaaS Market (continued)
Demand Analysis
Demand Analysis Discussion
User Penetration by Region
Demand Analysis—Penetration by Region
Percent Installed Users by Customer Size
Demand Analysis—Penetration by Customer Size
Desktop and Mobile Soft Clients and Native Mobile Dialer Penetration of Installed Users
Demand Analysis—Soft Clients, Meetings and Chat
Service Provider Market Share Analysis by Installed Users—Total Hosted IP Telephony and UCaaS Market
Service Provider Market Share Analysis by Installed Users—Total Hosted IP Telephony and UCaaS Market (continued)
Competitive Dynamics
Cloud Provider Selection Criteria
Platform Vendor Market Share Analysis by Installed Users—Total Hosted IP Telephony and UCaaS Market
Growth Opportunities
Opportunity 1: Contact Center
Contact Center
Opportunity 2: Mobile-first UCaaS
Mobile-first UCaaS
Opportunity 3: Advanced Collaboration
Advanced Collaboration
Opportunity 4: International Expansion
International Expansion
Opportunity 5: Flexible Packaging and Pricing
Flexible Packaging and Pricing
Opportunity 6: The “New” UC
The “New” UC
The Last Word
Providers Included in “Other”
Platforms Included in “Other”
About the Growth Pipeline Engine™
Opportunity Universe Process
Identifying Your Company’s Growth Zone
Your Next Steps
Why Frost, Why Now?
Legal Disclaimer
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| Deliverable Type | Market Research |
|---|---|
| No Index | No |
| Podcast | No |
| Predecessor | K277-01-00-00-00 |
| Author | Elka Popova |
| Industries | Telecom |
| WIP Number | K471-01-00-00-00 |
| Is Prebook | No |
| GPS Codes | 9535-C3,9705-C1,9610,9656 |
Growth Opportunities in the European Hosted IP Telephony and UCaaS Market, Forecast to 2026
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