Sales of Cloud Telephony Services to Reach US$ 51.5 Billion By The End Of 2032
The global cloud telephony services industry is poised to expand 2.5x from 2022-2032, expected to reach a market value of US$ 51.5 Billion, according to a recently concluded study published by Fact.MR. The market is expected to yield absolute dollar growth worth US$ 30.8 Billion. As of 2022, demand for cloud telephony services is forecast to accrue US$ 20.7 Billion. Growth is attributed to a shift towards more efficient telecommunications technologies.
From 2016-2021, cloud telephony service market demand accelerated at an impressive 10.6% value CAGR, concluding at US$ 17.7 Billion. The rapid transition from conventional phone lines to IP enabled telephony services is a key contributing factor to market growth. The market experienced further growth during the COVID-19 pandemic, as prevalence of remote working prompted enterprises to rely on virtual technologies, including frequent audio calls.
The scalability advantage that cloud telephony offers is particularly useful for today’s hybrid work models. Cloud systems have immediate built-in business continuity and aren’t affected by localized problems, including power cuts or natural disasters. This also helps businesses switch agents to work from anywhere (WFA) when needed and even if something happens near one data center, there are redundancies and backup power generators, making the communication systems disaster-proof. This also helps businesses switch agents to work from anywhere (WFA) when needed and even if something happens near one data center, there are redundancies and backup power generators, making the communication systems disaster-proof.
Key Takeaways from the Market Study
- Global cloud telephony services industry to flourish at a 9.5% value CAGR until 2032
- U.S to be an attractive destination for key cloud telephony service providers, reaching US$ 12 Billion in 2032
- Germany to emerge as the fastest growing market, registering a 10.7% CAGR
- France to be the 2nd most lucrative market in the world, documenting a CAGR of 9.9%
- Canada & Austria to yield dollar growth opportunities worth US$ 476.6 Million and US$ 702.7 Million respectively
- By network, voice-over-internet protocols to be most preferred, growing at over 14% CAGR
“As businesses look to streamline telecommunications technologies, industry leaders are advocating a transition from the conventional telephone apparatus which includes landlines and other fixed devices, towards more remote and flexible alternatives, thus providing traction to market growth,” remarks a Fact.MR analyst.
- Rise in shift of telecom companies from conventional to IP networks is the key factor that drives growth of the market.
- Additionally, increasing consumer adoption of mobile phone devices drives the market's expansion.
- The global market for cloud telephony services is predicted to benefit greatly from the increase in demand for software-as-a-service technologies among different industry verticals.
- Data loss and privacy concerns hampers the market growth
Prominent cloud telephony service providers are continuously innovating their service offerings, often collaborating with leading telecommunications or cloud based software providers. Besides, introducing new software, as well as taking over small to medium-scale vendors are some other strategies relied upon by key players. Some notable developments are as under:
- In March 2022, cloud communication platform provider Dialpad partnered with MIA Distribution, an Australian unified communications-as-a-service (UCaaS) provider. Through this initiative, Dialpad hopes to make its cloud telephony services, most notably its TrueCaaS solution, throughout Australia. Dialpad also partnered with Google to list its UC-CC solution on the Google Cloud Marketplace
- Likewise, Singapore Telecommunications Limited (SingTel) introduced Paragon- a revolutionary platform enabling enterprises to tap into SingTel’s 5G network to activate network slices on demand and deploy mission-critical applications on SingTel MEC in February 2022. Additionally, the solution provides access to robust ecosystems of partner applications, offering unparalleled control and choices
- In June 2020, 8×8 Inc. introduced an enterprise-grade cloud telephony solution for Microsoft Teams environments, allowing organizations to scale and deliver work-from-anywhere communications. The solution delivers an enterprise-class and easy-to-administer global voice solutions for IT leaders, while retaining the Microsoft Teams experience for users