Cloud Telephony Services Market

Cloud Telephony Services Market Outlook (2024 to 2034)

The global cloud telephony services market is expected to reach US$ 24.68 billion in 2024, as revealed in an updated research report by Fact.MR. Worldwide revenue from the sales of cloud telephony services is forecasted to rise at a CAGR of 9.2% and reach US$ 59.5 billion by 2034.

Rising adoption of advanced technologies, such as IoT, ML, and AI in corporate spaces and growing preference for cloud-based solutions are making it more feasible to establish communication with customers and end users. Increased storage space, 24x7 availability, scalability, and flexibility of cloud telephony services are helping companies improve operational efficiency. This system works on different VoIP (voice over internet protocol) phone systems and networks for streamlining business communication.

Increasing use of cloud telephony is helping enhance customer experience. More corporate spaces are installing these systems to increase the efficiency of communication by shifting operations to online mediums. Moreover, with the constant increase in the upgradation of corporate structure along with surging requirements for effective and better customer support, a rising demand for cloud telephony is witnessed.

Some of the key factors responsible for expanding the cloud telephony services market size include the increasing requirements for better feedback and response systems, remote working, and telecommunication solutions. Several medium and small-sized businesses are looking for telecommunication solutions for disseminating information about their services and products themselves. This is one of the prominent reasons for the expansion of the global market, which is contributing to increased demand for IP telephony services offering better bandwidth and connectivity to telecom vendors.

• North America is analyzed to account for a market share of 31.5% by 2034.
• Worldwide demand for public switched telephone network (PSTN)-based cloud telephony services is evaluated to increase at 8.5% CAGR and reach a market value of US$ 34.5 billion by the end of 2034.
• Sales of public telephony systems in Japan are projected to rise at 10.5% CAGR through 2034.
• The market in South Korea is forecasted to expand at a CAGR of 10.7% from 2024 to 2034.

Report Attribute	Detail
Cloud Telephony Market Size (2024E)	US$ 24.68 Billion
Forecasted Market Value (2034F)	US$ 59.5 Billion
Global Market Growth Rate (2024 to 2034)	9.2% CAGR
Canada Market Growth Rate (2024 to 2034)	9% CAGR
East Asia Market Share (2034F)	26%
Market Share of Cloud-based Telephony Solutions (2034F)	75%
Key Companies Profiled	NetFortris; 8x8 Inc.; Vox Telecom; AVOXI; Tripudio Telecom Ltd.; BroadSoft Inc.; Singapore Telecommunications Limited (SingTel); Cisco Systems Inc.; RingCentral Inc.; Nextiva; Dialpad; PortaOne; Go2Market India Pvt. Ltd; LeadNXT; NFON AG; Microsoft Corporation.

Why is Demand for Cloud Telephony Services Rising Rapidly?

“Expansion of MSMEs and Resilience to Localized Issues”

MSMEs (micro small & medium enterprises) are getting central stage across several industries. Several business leaders have been pushing technological advancements with increasing requirements for effective operations. The scalability of cloud telephony services is helpful in effective operation in present hybrid work models.

These solutions are not affected by any specific localized problems, such as natural disasters or power cuts. Cloud telephony services assist businesses in switching agents to WFA (work from anywhere) if required or in case of any issues with nearby data centers. Moreover, their features of backup power generation are helping in effective communication.

What is Limiting Global Market Expansion to Some Degree?

“Growing Security Concerns Related to Cloud Telephony Services”

Cloud telephony services are more prone to attacks from malicious entities that are actively involved in hacking databases. These security vulnerability issues are more prevalent in VoIP (voice-over-internet protocol) services. Thereby, it becomes more important for enterprises to establish several security and firewall layers and protect calls with encryptions and passwords. Furthermore, threats of constant technical glitches and power failures are limiting cloud telephony services market growth.

How are Start-ups Penetrating This Competitive Market?

“Focus on Integration of IoT Features with Cloud Telephony Services”

Start-ups are focusing on new product development with the incorporation of several advanced connectivity features, such as IoT (Internet of Things). They are putting efforts into offering services with more advanced security and data privacy features for advanced communication, which is further positively influencing cloud telephony services market trends.

Country-wise Insights

A recently updated report by proficient researchers at Fact.MR, a market research and competitive intelligence provider, reveals that North America is evaluated to contribute a share of 31.5% to global market revenue by 2034. The growing dominance of the region is due to the increased adoption of advanced technologies, such as IoT, cloud computing, and others.

Which Industry Generates Substantial Demand for Cloud Telephony Services in the United States?

“IT & Telecom Industry Looking to Reduce Business Costs”

Attribute	United States
Market Value (2024E)	US$ 3.62 Billion
Growth Rate (2024 to 2034)	9% CAGR
Projected Value (2034F)	US$ 8.5 Billion

The United States is analyzed to occupy 45.6% share of the North American market by the end of 2034. An ever-growing scope of the IT & telecom industry in the country is widening the application scope of cloud telephony services. A widespread penetration of 5G technology along with a dependency on cloud telephonic services are stimulating prominent telecom operators to adopt cloud telephony solutions in the United States.

The country’s IT & telecom industry is constantly putting efforts into retaining its customer base with the deployment of advanced services for customer relationship management. Subsequently, more businesses are incorporating CRM platforms equipped with cloud telephony services. These solutions assist in minimizing business costs.

Why are More Small and Medium Enterprises Turning to Cloud Telephony in China?

“Demand for Cost-Effective, Scalable, and Feature-Rich Communication Solutions”

Attribute	China
Market Value (2024E)	US$ 2.84 Billion
Growth Rate (2024 to 2034)	10% CAGR
Projected Value (2034F)	US$ 7.4 Billion

China is projected to hold a share of 47.5% of the East Asia market by 2034-end. Rising preference for cloud technology and an increasing number of small & medium enterprises are widening the application scope of cloud telephony services in the country for effective communication.

Will Japan Be a Profitable Market for Cloud Telephony Service Providers?

“Market Benefitting from Growing Need for Unified Communication Solutions”

Attribute	Japan
Market Value (2024E)	US$ 1.68 Billion
Growth Rate (2024 to 2034)	10.5% CAGR
Projected Value (2034F)	US$ 4.5 Billion

Japan is evaluated to capture 29.4% share of the East Asia market by the end of 2034. Market growth is driven by the growing adoption of cloud technology, requirements for economic communication solutions, and increasing demand for unified communications across small- & medium-sized enterprises.

Category-wise Insights

According to an updated Fact.MR report, large enterprises are capturing a significant share of global market revenue for the aptness of cloud telephony services for greater control, easy integration with existing systems, and customization. These cloud services match specific requirements of organizations for ensuring compliance and security.

Why are Cloud-based Telephony Services Gaining Traction?

“Rising Preference for Email Encryption Solutions for Protection Against Cyber Threats”

Attribute	Cloud-based Services
Segment Value (2024E)	US$ 17.8 Billion
Growth Rate (2024 to 2034)	9.6% CAGR
Projected Value (2034F)	US$ 44.6 Billion

Cloud-based telephony services are projected to account for 75% of the market by 2034. From well-established to startup industry leaders, efficient communication is one of the prominent growth engines for business ventures. Businesses would be devoid of further progress due to the lack of effective communication.

More small and large businesses are spending significantly in procuring cloud telephony solutions. These cloud-based services ensure more flexibility in operation without any need to install dedicated and static landline desk phones. They help in facilitating remote working. Secured loops, more reliability, and easy implementation of these cloud-based solutions are contributing to their increased adoption.

Which Cloud Telephony Service Network is Most Widely Preferred?

“Preference for Public Switched Telephone Networks Due to Their Adherence to Regulations”

Attribute	Public Switched Telephone Networks (PSTNs)
Segment Value (2024E)	US$ 15.3 Billion
Growth Rate (2024 to 2034)	8.5% CAGR
Projected Value (2034F)	US$ 34.5 Billion

Public switched telephone networks (PSTNs)-based solutions are forecasted to account for 58% of the global cloud telephony services market share by 2034. Several service providers are offering cloud telephony services based on PSTN networks for their ability to support not only data but also voice transmission. In addition, telecommunication authorities are regulating these networks, which is further aiding their reliability and popularity among end users.

Competitive Landscape

Key players in the cloud telephony services market are constantly investing in innovations in their offerings. They are collaborating with some prominent cloud-based or telecommunication software providers. In addition, introducing new software, collaborations, partnerships, and agreements is helping market players gain a competitive edge.

For instance :

• Dialpad is one of the prominent service providers of cloud communications solutions. In March 2022, the company entered into a collaboration with an Australia-based UCaaS (unified communications-as-a-service) provider, MIA Distribution. This initiative will help Dialpad strengthen its cloud telephony services throughout Australia.
• Singapore Telecommunications Limited (Sing Te) recently introduced Paragon, which is a revolutionary platform helping enterprises tap into the 5G network for activating network slices based on requirements and deploying solutions on SingTel MEC. This newly developed solution also offers access to a robust ecosystem while providing unparalleled choice and control.

Fact.MR provides detailed information about the price points of key providers of cloud telephony services positioned across the world, sales growth, production capacity, and speculative technological expansion, in this recently updated market report.

Segmentation of Cloud Telephony Services Market Research

• By Deployment :

  • Cloud
  • On-premise

• By Enterprise Size :

  • SMEs
  • Large Enterprises

• By Network :

  • Public Switched Telephone Networks (PSTNs)
  • Voice-over-Internet Protocol (VOIP)

• By Application :

  • Conferencing
  • Multi-level IVR
  • Sales & Marketing
  • Customer Relationship Management (CRM)
  • Others

• By End-use Industry :

  • BFSI
  • Education
  • Government
  • Media & Entertainment
  • Healthcare
  • Retail
  • Telecom & IT
  • Others

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • MEA