Unified Communication as a Service (UCaaS) is emerging as a leading network standard, fueled by the rise of the cloud business model. This model offers an affordable, scalable, and easily deployable unified collaboration communication solution, making it increasingly popular among large enterprises in 2025.

In 2025, the UCaaS market will experience deeper AI integration to improve communication, a move toward mobile-first platforms that prioritize smartphones and tablets, increased adoption of Web Real-Time Communication (WebRTC) for browser-based, real-time communication, and softphones for cost-effective, software-based calling, alongside a growing emphasis on security and compliance measures.

AI-powered capabilities, including virtual assistants that assist users by performing tasks and providing information, automated chatbots that simulate human conversation and respond to queries, and predictive intelligence that analyzes data to anticipate future trends and behaviors, further enhance communication efficiency and improve remote work experience.

The introduction of 5G networks has further transformed video and audio conferencing, meetings, and collaboration by enabling fast, low-latency communication. In 2025, advancements like 5G network slicing, which creates virtualized, dedicated network segments for specific applications, have improved video call quality by ensuring optimized performance even during network congestion.

The Department of Telecommunications has also launched the 5G Innovation Hackathon 2025 to accelerate the development of innovative 5G-powered solutions. 

Key players in the market, including Ringcentral (RNG Quick QuoteRNG - Free Report) , Cisco Systems (CSCO Quick QuoteCSCO - Free Report) and Crexendo (CXDO Quick QuoteCXDO - Free Report) , are well poised to benefit from the growing global UCaaS market. Per the Mordor Intelligence report, the Unified Communication-as-a-Service market size is projected to be $56.14 billion in 2025 and is expected to grow to $175.83 billion by 2030, registering a CAGR of 25.65% during the forecast period (2025-2030).

While RNG sports a Zacks Rank #1 (Strong Buy) at present, CSCO and CXDO carry Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

RingCentral Expands UCaaS Leadership With Key Partnerships

RingCentral has a strong position in the UCaaS market, particularly in providing cloud-based communication solutions for enterprises.  The company has been recognized as a Leader in the 2024 Gartner Magic Quadrant for UCaaS, marking its tenth consecutive year in this position.

This dominant position is further enhanced by the company’s increasing focus on bolstering its product portfolio through strategic partnerships with companies like AT&T, Cox Communications, BT, and Vodafone, all of which are aiding its growth. 

RingCentral and Cox Communications recently announced a new partnership to deliver advanced AI-powered communications solutions. This collaboration combines Cox Communications high-speed connectivity with RingCentral’s business communications platform, which is poised to provide enterprises with advanced solutions for enhanced connectivity and communication.

The Zacks Consensus Estimate for 2025 earnings is pegged at $4.20 per share, which has increased by a penny in the past 30 days.

Cisco Expands AI-Powered UCaaS Innovations With Webex

Cisco’s Systems presence in the UCaaS market through its Webex platform has been noteworthy.

Building on its strong market presence, the company has been recognized as a Leader in the 2024 Gartner Magic Quadrant for Unified Communications as a Service for the sixth consecutive year.  This recognition highlights Cisco’s commitment to innovation and excellence in the UCaaS industry.

Further expanding its portfolio, Cisco introduced AI-powered innovations at WebexOne in 2024, including Cisco Spatial Meetings, Ceiling Microphone Pro, and the Cisco AI Assistant, which aim to enhance collaboration, productivity, and smart workspace management. 

Continuing to enhance its offerings, Cisco also introduced AI-powered innovations at WebexOne, including Webex AI Agent, AI Agent Studio, and Cisco AI Assistant for Webex Contact Center to enhance customer interactions, streamline issue resolution, and improve satisfaction.

The Zacks Consensus Estimate for 2025 earnings is pegged at $3.72 per share, which has increased 1.92% over the past 30 days.

Crexendo Launches AI Features for Better Communication

Crexendo has been actively expanding its presence in the UCaaS sector through its expanding portfolio.

Crexendo has won the prestigious Unified Communications Excellence Award for the fourth time, highlighting its leadership and innovation in delivering advanced UCaaS solutions through its NetSapiens Platform.

Crexendo’s recent launch of v44.2 of the NetSapiens Platform introduces AI-driven features, including Video AI Studio, advanced speech-to-text transcription, and intelligent meeting insights for enhanced business communication.

Crexendo’s NetSapiens Platform has also been selected by Popp Communications to replace their legacy Microsoft Metaswitch solution amid Microsoft’s end-of-life announcement and sale of its Metaswitch division. This reinforces Crexendo’s position as a leading UCaaS provider.

The Zacks Consensus Estimate for 2025 earnings is pegged at 28 cents per share, which has increased by 12% over the past 30 days.