Cloud is dominating the market today, thanks to the immense benefits offered by this technology. Talking about Cloud Telephony, businesses worldwide are turning to cloud telephony solutions due to cost-effectiveness and remote working support. A few years back, businesses were stuck with those on-premise traditional phone systems that required large financial investments. Through this post, we are going to delve deeper into the cloud telephony service market, its current trends, and its growth forecast. So let’s take a look!
Cloud Telephony Service Market Size & Growth Forecast
Current Market Size of Cloud Telephony Service
According to Market Research Future, the cloud telephony services market was valued at 19.5 billion in the previous year i.e. 2022. is likely to strengthen its hold on the global market by growing to USD 21.2745 billion in the current year 2023 exhibiting a CAGR of 9.10%.
Current Trends in Cloud Telephony Service Market
Rise in Remote Working Trend
From the time CVID-19 Pandemic happened, the cloud telephony service market grew excessively, especially when the pandemic was at its peak due to the increase in the demand for telecommunication devices. Small to medium-sized and even corporate spaces have adopted cloud telephony due to its various advantages over traditional business phone systems.
Integration of Advanced Technologies
Various advanced technologies like Machine Learning (ML), Artificial Intelligence (AI), and the Internet of Things (IoT) are being integrated with cloud telephony and are penetrating the corporate spaces to enhance communication with customers.
Factors Driving Market Growth
There are several factors driving the growth of the cloud telephony market.
The cost-effectiveness of cloud-based solutions in contrast to conventional phone systems is a significant driving factor. Cloud-based systems eradicate the requirement for expensive hardware and maintenance expenses, thereby making them a cost-efficient choice for businesses.
Another factor is the scalability of these solutions, allowing businesses to easily adapt to changing communication needs without having to invest in additional infrastructure.
Additional Useful Features
Advanced features like automated attendants, call routing, and call recording also contribute to the growth of the market as businesses seek to improve their communication systems.
The rising popularity of internet-based services and the availability of high-speed internet connectivity have made it easier to deploy cloud telephony solutions.
Transition to IP Telephony
Furthermore, the switch of telecom vendors from traditional phone lines to IP telephony is hastening the uptake of cloud telephony services.
Remote Work Culture
The growing adoption of remote work and virtual communication has fueled the need for reliable and scalable communication solutions, which cloud telephony platforms provide.
Forecast for Market Size & Growth
In a report by Maximize Market Research Cloud Telephony Service Market was valued at USD 24.70 Bn in 2021 and is expected to reach USD 66.98 Bn by 2029 at a CAGR of 13.28% over the forecast period 2022-2029.
Forecast for Growth Opportunities for Cloud Telephony Service Providers
The rapid pace of technological advancements is expected to create abundant growth opportunities in the cloud telephony service market. Manufacturing companies in this sector are nowadays more focused on the development and launching of products that are in line with the latest technologies. For example, launching products that come with a range of connectivity features including the Internet of Things. The growing popularity of this trend is pushing the focus toward research and development, thus adding to the growth of the market.
Market Segmentation Analysis
By Deployment Model
On the basis of deployment, the cloud telephony service market is divided into two segments – Cloud and Hosted. According to the FMI i.e. Future Market Insights, the cloud model has the highest sales potential during the forecast period. The growth of the cloud deployment segment is expected at a CAGR of 9.1% by 2032.
By Organization Size
On the basis of organization size, the cloud telephony service market is divided into Small & Medium Enterprises and Large enterprises. Here it has been seen that small & medium enterprises are adopting cloud telephony at a higher pace as it needs lesser cost and maintenance.
On the basis of the Industry type, the cloud telephony service market is divided into BFSI, Healthcare, IT & Telecom, Retail, Education, Government & others. Here the BFSI segment ranked highest because financial institutions like banks and insurance companies need effective and efficient communication systems and cloud telephony suffices the same.
The application category of the cloud telephony service market holds 4 segments i.e. Multi-level IVR, Conferencing, Sales & Marketing, and CRM.
By Network Type
On the basis of network type, the cloud telephony service market is divided into two segments- VoIP and PSTN. The VoIP segment generated the highest revenue in 2022 and is likely to grow exponentially by 2032.
On the basis of region, the cloud telephony service market is segmented into North America, Latin America, Asia Pacific, Middle East and Africa (MEA), and Europe. Some impressive statistics of the cloud telephony market basis the regional analysis are:
- According to MR’s estimates, a CAGR of 10.7% is projected for the cloud telephony service industry in Germany until 2032, reaching US$ 4.7 Billion.
- The USA is likely to generate a market revenue of US$ 12 billion by 2032, growing at a CAGR of 8.9% within the forecast period of 2022 and 2032.
- Additionally, Germany also appears to be a leader in the cloud telephony service market and is expected to reach US$ 4.7 billion by the end of 2032 growing at a CAGR of 10.7 within the forecast period.
- Alongside Germany, France also shows significant growth and is likely to reach a value of US$ 3.5 billion by 2032 at a CAGR of 9.9% between 2022 and 2032.
North America Cloud Telephony Service Market
North America held a 34% market share in 2021 and is likely to maintain its dominance over the forecast period. The leading countries of this region are The US and Canada. The growth of the cloud telephony service market in the North American region is attributed to the presence of large cloud telephony service providers. Also, an increasing number of new enterprises and the availability of advanced IT infrastructure contribute to the growth of this market.
Europe Cloud Telephony Service Market
The cloud telephony service market is expected to witness visible growth as a result of the technological advancements in the European telecom industry. There’s a significant adoption of cloud services by this industry which will skyrocket the growth of the cloud telephony services market.
Asia Pacific Cloud Telephony Service Market
The Asia-Pacific held a 28% market share over the forecast period and is expected to lead as the most opportunistic region. The key drivers for the growth of the cloud telephony services market in this region are the rise in digitalization and the increasing adoption of cloud services to minimize operational costs for businesses.
Some of the key players of the cloud telephony service market include Dialpad, 8X8 Inc., KloudTalk, Avoxi, Singtel, Cisco Systems, Knowlarity Communications Pvt. Ltd., Exotel Techcom Pvt. Ltd., Nextiva, and Vonage to name a few.
Future of the Cloud Telephony Service Market
Below mentioned are some key points depicting the future of the cloud telephony service market:
- The rising adoption of the cloud and the emergence of innovative technologies clearly indicate that the cloud telephony service market will strengthen its position in the global market.
- Businesses are ever-ready to improve their communication systems and the advanced features offered by cloud telephony certainly fit into the picture.
- The trend of remote work and virtual communication is on a continuous rise, which indicates that the demand for cloud telephony services will increase even further.
Cloud Telephony Service Market is expected to witness more competition as businesses become more customer-centric and seek ways to enhance their communication processes, thus offering better customer experience.
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