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Widespread Digitalization to Promote Adoption of UCaaS & Hosted IP Telephony in Asia-Pacific: Frost & Sullivan

The hosted IP telephony and UCaaS services market in the Asia-Pacific region 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.

“Businesses in the APAC region are expected to drive broader UCaaS adoption and cloud migration as they embark on digital transformation projects,” said Youngso Lee, Senior Industry Analyst, Information and Communication Technology at Frost & Sullivan. “Digitalization via UCaaS can evolve the way of work and potentially generate new business opportunities in the digital market.”

Frost & Sullivan’s latest research, Analysis of Asia-Pacific Hosted IP Telephony and UCaaS Market, Forecast to 2025, explores the current and future trends of the Asia-Pacific hosted IP telephony and UCaaS services market. It analyzes the service providers’ market share and provides detailed region-wise revenue and market forecasts through 2025.

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).

“Feature enhancements will help generate a higher ARPU from customers with purchasing power,” noted Lee. “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.”

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

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