Unified Communications Featured Article

Latin American UC, Collaboration Solutions Market Will Earn $1.83B in 2019

November 14, 2013

Over one billion devices are predicted to be connected to the Internet in Latin America by 2015, according to a new study – as the Unified Communications, Collaboration Solutions Market is poised for significant growth.

Given the totals, Frost & Sullivan said the need for systems to support voice, data and video traffic is “burgeoning.” And the Latin American Unified Communications (UC) and Collaboration Solutions market, according to the firm, earned $1.01 billion in 2012 and will earn $1.83 billion in 2019. It was also predicted that growth in the market will “peak” at 10.1 percent between 2017 and 2018.

There will also be an increase in small and medium-sized businesses (SMBs) and more awareness by end users on the benefits of UC and collaboration solutions. That will lead to more business opportunities in Latin America.

The study adds demand for on-premises UC will still be there, even though cloud-based UC providers will offer competition.

In addition, employees want to see different methods of communication – such as voice, data and video – at workplaces, the study continues. This is leading enterprises to adopt advanced UC and collaboration solutions. That means more employee productivity, too.

"Market participants are moving away from niche segments to offer a wider array of UC and collaboration solutions, thereby expanding the potential of the Latin American market," Francisco Rizzo, an analyst at Frost & Sullivan, said in a statement from the firm. "Defining licensing options based on end-user types – whether deskbound or mobile – too has created greater value for companies and fuelled market revenues."

The study also noted the lack of infrastructure with high bandwidth requirements accompanying the increasing number of Internet users in Latin America, Frost & Sullivan said.

“Although service providers are developing efficient, less bandwidth-intensive solutions to counter this challenge, these are only as good as the public network they run on,” the firm stated.

Some changes are needed. "Vendors in the Latin American market must provide competitively-priced, enterprise-grade solutions tailored for the SMB space to encourage uptake among companies with tight budgets," Rizzo added. "Promoting cloud-based models that require less hardware will aid market expansion."

In contrast, when it comes to the telecom market globally, Infonetics Research predicts the hosted VoIP (Voice over Internet Protocol) and UC market to total $10 billion by 2016.

“Such unmet demand creates a strong opportunity for Service Providers who provide a comprehensive Unified Communications solution.  Service providers need to pick up the pace of their UC services deployment beyond voice and become the single source solution for businesses of all sizes, including SMBs,” according to a post from the BroadSoft UC-One blog.

Edited by Alisen Downey