UCaaS Size & Spending Forecast: 1H25 Update

The Workplace Collaboration MetriCast 2025 study for calling and collaboration platforms shows the continued movement from on-premises infrastructure to UCaaS, defined as multitenant, cloud-based UC and telephony services. UCaaS provides businesses with more flexibility and access to the latest features and capabilities. Businesses have a few choices for their phone architecture and, given that the migration to UCaaS is rarely a 100% cutover on day one, some companies utilize more than one platform type. In our study, 32.7% of respondents indicated utilizing multiple phone system types, including UCaaS. Today, 58.6% of businesses are utilizing just UCaaS. This report provides in-depth details on UCaaS spending, market share and forecast, and vendor selection, along with segmentation by size and global region. Highlights of the study include the following:

• The global market size for UCaaS was $21.7 billion in 2024, up 6.5% year-over-year (YoY). Metrigy forecasts the market to grow at a 4.1% CAGR from 2024 to 2029, reaching $26.5 billion by 2029. Today a little less than half of telephony seats worldwide are still on customer-owned platforms, either managed by the company or in a dedicated hosted environment, representing significant migration potential for UCaaS. The forecast has not changed since the beginning of the year. There are several global and regional UCaaS providers with varying levels of capabilities. Based on 1H2025 UCaaS seats, Microsoft remains the global market share leader (21.7%), followed by Cisco (15.1%), Zoom (8.8%), and RingCentral (6.4%). For 1H2025 worldwide seats grew 4.0% to 114.0 million over year-end 2024. While there were no shifts in leadership, Zoom and European-provider Gamma had the largest seat growth in the first half of the year. Other leading providers include 3CX, 8x8, AstraQom, BlueIP, Comcast, Dialpad, Evolve IP, Fusion Connect, Gamma, Google, GoTo, Intermedia, KDDI, Lumen, Nextiva, Sangoma, SK Telekom, Tele2, Verizon, Vonage, Wildex, Windstream, and others.
• 31.6% of businesses use the same vendor for contact center and UC, whether they have dedicated platforms or buy as a service (UCaaS/CCaaS). The biggest value businesses find in using the same vendor is facilitating chats among agents and other employees to resolve customer issues.
• Among those using UCaaS, 41.4% have no plans to replace their primary provider. Cost is the number one reason for looking to make a change, followed by a lack of AI features and more integrations.
• We track the percentage of each provider’s customers that plan to stay with that provider, as well as the percentage that are evaluating or planning a switch to a new provider. Microsoft, Cisco, Google, and Zoom are the top providers under evaluation for businesses looking to make a change.