Market Size of Global IP Telephony & Ucaas Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 98.13 Billion |
| Market Size (2029) | USD 99.36 Billion |
| CAGR (2024 - 2029) | 0.25 % |
| Fastest Growing Market | North America |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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IP Telephony & UCaaS Market Analysis
The Global IP Telephony & Ucaas Market size is estimated at USD 98.13 billion in 2024, and is expected to reach USD 99.36 billion by 2029, growing at a CAGR of 0.25% during the forecast period (2024-2029).
As 2020 marked the whole year of pandemic and economic slowdown, the IP telephony market cumulative revenue contribution by vendors declined. The sharp decline in sales volume for IP phones coupled with a hiccup in initial quarters to provide seamless hosted VoIP service due to unprecedented pandemic affected the market negatively. While cloud-based UCaaS demand increased as employees resorted to remote work and used online mediums for official interactions.
- Unified communications-as-a-service (UCaaS) refers to a service model where the provider delivers different telecom or communications applications, software products, and processes generally over the web. Moreover, IP telephony refers to any phone system that uses an internet connection to send and receive voice data.
- Recently, IP technology has used a variety of protocols to exchange voice, fax, and other forms over the public switched telephone network. The internet protocol became the transport for all data communication. The business telephone system is now able to deliver much more to enterprises. The IP technology has provided a complete communication package over a single network.
- Unified communications provide a more manageable cost structure and a lower acquisition cost. While IP telephony and hardware phones may be required or desired, many businesses get started using a softphone or smartphone app that can replicate the functions of a desktop telephone. However, the pay-as-you-go subscription model is in trend across UCaaS and IP telephony solutions as it provides the best cost structure to customers.
- As UC spending increases, the buying power within the organization rises. Traditionally, IT departments were handing the UC budgets, but the cloud has enabled lines of business to also invest in UC apps.
- The modern workplace is digitizing and shifting. Employees expect more openness, improved collaboration, better technology, and higher flexibility in a workplace. As the workforce continues to become more distributed, with many employees going remote and others working from traditional offices, organizations need the right tools to keep their dispersed workforce always connected.
