UC&C markets continue strong growth in SEA: IDC: Page 2 of 2

Breakdown of UC&C markets in South-East Asia
 
IDC forecasts UC&C markets in South-East Asia will worth US$650.6 million by 2018, up from US$433.6 million today. This marked 8.5% of Compound Annual Growth Rate (CAGR), although there are signs of market growth slowing down in traditional on-premise market in the region.
 
"We believe UC&C industry will continue to grow in the region; however different markets will have different needs. Vendors and service providers, especially local providers should consider the needs of local market as well as their ICT budget when comes to future roadmap to offer the UC&C solutions that could cater the needs of different markets," Tan added.

Singapore – Largest revenue, US$56.14 million
 
Such mature market has declined 5.7% YoY due to proliferation of future workplace technology with cloud base, freemium and ‘as-a-service’ offerings.
 
About 62% of enterprises deemed applicable to reduce spending on UC&C/ videoconferencing-related deployments, however perceived applicable to increase used of managed services and move part or parts of on-premises deployment to a hosted or utility-based service.
 
Collaboration apps comprised the highest revenue with 44.1% from total UC&C market, followed by enterprise telephony (36.3%), enterprise videoconferencing solution (7.1%) and contact centre solution (3.9%).
 
Malaysia – Second largest revenue, US$44.4 million
 
Enterprise telephony continues to be the largest revenue contributor (47.9%), followed by collaboration apps (30.8%), contact centre (13.1%) and videoconferencing solution (8%).
 
Despite the market has surged up 23.9% half-over-half (HoH), total UC market for 2013 has bogged down 9% compared to 2012 due to Malaysian 13^th General Election that has plummeted UC&C market in H1 2013 by 14.5% over the same period in 2012.
 
Such drastic downward trajectory has affected 2013 market, causing last year’s market to be less stellar than it was in 2012.
 
Indonesia – Third largest revenue, US$39.9 million
 
Similar to Malaysia, enterprise telephony is the largest revenue contributor (46.8%), followed by collaboration apps (30.4%), videoconferencing solution (13.8%) and contact centre solution (9%). 
 
In terms of HoH comparison, H2 2013 UC&C market has dropped 4.1%. This shortfall was caused by the weakening Rupiah, which has plummeted to over 12,000 per US dollar during its peak (lowest ever since 2009) and has caused both economic curse and windfall for local businesses.
 
Festive seasons such as Hari Raya Aidilfitri has also led to a low IT expenditure in Q3 2013 and spurred across to Q4 2013 with its lethargy exchange rates. 
 
Despite the shortfall, the market has indicated a strong 9% YoY growth compared to H2 2012, notably IP telephony market with a sharp 36% YoY growth, driven by the presidential election that will be held in 2014 along with local elections that will spur the IP telephony market.
 
Philippines – US$38.9 million in revenue
 
UC&C continue to gain impetus in the Philippines where it has sustained its stronghold as top contact centre hub in Asia Pacific. Total UC&C market has accumulated up to US$38.9 million in H2 2013, showing a 24.3% YoY growth, highest among all countries in South-East Asia.
 
The Philippines has also experienced the most severe natural calamity last November with typhoon Haiyan, although the devastation was massive, it was concentrated in the central and eastern provinces where center of BPO in greater Manila was not affected.
 
Enterprise telephony comprised the highest revenue share (40.8%), followed by contact centre solution (28.7%), collaboration apps (23.4%) and videoconferencing solution (7.1%).
 
Thailand – US$32.1 million in revenue
 
Despite political crisis and economic recession in late 2013, Thailand UC&C market grew in terms of revenues, around 13.3% in H2 2013 compared to the same period in 2012 and increased over the H1 2013 by 12.8%.
 
Enterprise telephony continues to be the largest revenue contributor in UC&C space (US$12.9 million), followed by collaboration apps (US$7.7million), contact centre (US$6.9 million) and videoconferencing solution (US$3 million).
 
The political unrest has resulted in delay of many projects delivery, however, there were many deals for UC&C solutions that most key vendors closed in the Q3 2013, which resulted in good market performance and has compensated for the slowdown in demand and shipments in Q4 2013.
 
Vietnam – US$11.1 million in revenue
 
Vietnam’s UC&C market is relatively small, recording US$11.1 million in total in H2 2013, representing 50.5% of total revenues generated throughout the year of 2013.
 
The market has experienced 6% YoY growth compared to H2 2013 with enterprise telephony continues to be the largest revenue contributor in UC&C space (49%), followed by collaboration apps (24.2%), videoconferencing (19.4%) and contact centre solution (7.5%).
 
IDC stated that it is optimistic towards such emerging market as demands on UC&C remain on the high side with 70% of enterprises deemed "not applicable" to reduce spending on UC&C/ videoconferencing-related deployments.
 
This implies that Vietnam would continue to invest on-premise UC&C/ videoconferencing related deployments.
 
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Avaya out to double mid-market business in APAC this year
 
Malaysia’s UC&C market plunges 14.5% in first half of 2013: IDC

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