The global cloud telephony services industry is poised to expand 2 ½ times from 2022-2032, expected to reach a market value of $51.5 billion, according to a study published by Fact.MR. The market is expected to yield absolute dollar growth worth $30.8 billion. As of 2022, demand for cloud telephony services is forecast to accrue $20.7 billion. Growth is attributed to a shift toward more efficient telecommunications technologies.
From 2016-2021, cloud telephony service market demand accelerated at a 10.6% compound annual growth rate (CAGR), concluding at $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.
- 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 $12 billion in 2032.
- Germany to emerge as the fastest growing market, registering a 10.7% CAGR.
- France to be the second most lucrative market in the world, documenting a CAGR of 9.9%.
- Canada and Austria to yield dollar growth opportunities worth $476.6 million and $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, toward more remote and flexible alternatives, thus providing traction to market growth,” said a Fact.MR analyst.