Desktop IP Phone Market Size, Share, Growth, and Industry Analysis, By Type (Video Desktop IP Phone, Common Desktop IP Phone), By Application (Commercial, Individual), and Regional Forecast to 2032

DESKTOP IP PHONE MARKET OVERVIEW

The global desktop IP phone market size was USD 2.33 billion in 2023 and is projected to touch USD 2.29 billion by 2032, exhibiting a CAGR of -0.2 % during the forecast period.

The desktop IP phone market is defined as an segment of communication systems that implement Internet Protocol (IP) technology for voice communication as a next generation solution that has extended features over and above the basic functionality of analog phones. These phones relay voice information through the internet or private networks hence an excellent fit for small businesses and large corporations as well. Some of them are; HD audio, video calling, voicemail, call forwarding among others in addition to other integrating working business applications. Thanks to new technologies associated with utilized clouds, IP phones are becoming cheaper and more diverse and may be connected to the unified communication system in order to improve productivity. The drivers include the rising need for cheaper communication services, the rising popularity of VoIP services, and the rising need for effective communication especially during the coronavirus pandemic and the new normal embraced by organizations and firms. This article uses the case of change management to show how the use of desktop IP phones plays a significant role in the adoption of scalable communication during the digital transformation of organizations. Also, it is apparent that through the mobile integration, the market is growing due to the ability of smart IP Phones through which the users can manage the calls as well as the conference calls from other devices.

GLOBAL CRISES IMPACTING DESKTOP IP PHONE MARKETCOVID-19 IMPACT

Desktop IP Phone Market Had a Negative Effect Due to Supply Chain Disruption During COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The effects of COVID-19 on the desktop IP phone market share is the subsequent shift to a remote work model, there was less demand for traditional business communications that depend on offices and the proprietary systems embedded in them, as companies looked for more flexible softphones and easy-to-use applications for mobile devices. A large number of organizations had either scaled back or put on hold their technology spending as and when they incurred unpredicted losses for buying new hardware, such as desktop IP phones. Furthermore, the spread of COVID-19 around the world led to disruptions on the ways desktop IP phone were being manufactured and supplied to consumers. When the COVID-19 pandemic made work from home the new normal, many companies embraced software that enabled the use of employee-owned devices to make and receive calls, minimizing the need for IP phones even further. But, as the world started getting on with the new normal, organizations began to invest in a long-term communication network, and the market started picking up. Hence, the need for better and more secure communication means especially for the newly adopted Hybrid workplace is likely to drive the market for desktop IP phone post pandemic as business seeks to invest in better technologies to enhance the connectedness of their teams regardless of their locations.

LATEST TREND

"Integration with AI and Mobility Features Drives Market Growth"

A new trend pervading the desktop IP phone market is the innovation and use of smart desktop IP phones with sophisticated features such as video, cloud, and mobility interfaces. These are the phones that have provided easy to use communication devices at workplace and are not restricted to calls only. The incorporation of high definition video calls, touch panel, application services and the like makes the devices versatile. Furthermore, there has been the deployment of Ucas systems; in the current ever-evolving business world, the use of smart desktop IP phones can greatly assist those organizations that have embraced cloud based communication systems. This trend is in sync with the trend of rising need for efficient communication channels that address distributed and central employees. Contemporary IP phones allow, for example, to share the contents of the screen, make calls with three or more participants, and are compatible with cloud storage and other services such as Slack, Zoom, or Microsoft Teams . These developments apply to factors such as effectiveness levels and extent of cooperation in hybrid working arrangements. As more businesses turn towards digital methods of communication, smart desktop IP phones should witness an upward trend in demand because they can provide voice calling, video conferencing, and data in the first point of convergence.

DESKTOP IP PHONE MARKET SEGMENTATION

BY TYPE

Based on type, the global market can be categorized into Video Desktop IP Phone, Common Desktop IP Phone

•  Video Desktop IP Phone: These phones come equipped with what’s called video conferencing where users are able to make video calls at high definition. Perfect machines for companies that value ‘face to face’ virtual meetings, these products improve interaction and efficiency in a distant setting.
•  Common Desktop IP Phone: A conventional desktop phone with no video capabilities but specifically for voice calls over the internet through the VoIP. It has call forwarding, voicemail, and call conferencing featured for use mostly in office environment for business throughout the day.

BY APPLICATION

Based on application, the global market can be categorized Commercial, Individual

• Commercial: Designed for small, medium and large companies, these phones offer multiple line options, as well as enhanced functionality for business applications. They are intended towards supporting elaborate demand in telephony and into becoming a constituent of bound unified communication solutions.
•  Individual: These phones are not commercial phones but rather personal they can only perform limited functions and not very complicated. They are suitable for home based and small office users offering basic features including call hold, caller ID and direct VoIP compatibility.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions. 

DRIVING FACTORS

"Demand for Cost-Effective Communication Solutions Boost the Market"

Businesses require communication especially through Phone and to ensure that they do so cheaply is one of the most contributed factors towards the use of desktop IP phone. desktop IP phone market growth, based on the VoIP platform, enable people to make long distance calls at a considerably low price as compared with the line-connected phones. Also, other aspects such as the possibility of connecting calls with other software tools help businesses make switches without increasing complicated communication systems. Thus, the desktop IP phones became even more popular as businesses look for ways to save cost and achieve operational efficiency. Furthermore, the solutions can be easily expanded as more businesses grow, making them even more attractive solutions to market.

"Adoption of Unified Communication Systems Expand the Market"

The other key driver is growing need for unified communication (UC) systems across the globe. These systems allow voice, video, messaging, and collaboration workflow to exist all in one platform. These systems have workstation-based IP phones whose interface for different communication modes are integrated. It could be attributed to the fact that as organizations settle for UCaaS solutions, requirements for IP phones that can support such solutions has enhanced the growth of the desktop IP phone market.

RESTRAINING FACTOR

"Limited Demand for Hardware in Remote Work Environments Potentially Impede Market Growth"

As more workers go remote and as fewer return to the office full-time, they depend on software applications on their smartphones and PCs for communication, so-called mobile- and Internet-based softphones. This trend has been putting brakes on the uptake of conventional desk-bound phones. In the present scenario, organizations adopting the use of personal devices in workplaces, the use of the personal smartphone or personal computers for office use has reduced the importance of IP desk phone. Booming in such an environment poses a problem for manufactures who have to come up with highly adaptive and engaging products that will correspond to the increasing mobile-centere d employee population.

OPPORTUNITY

"Expansion of Unified Communications Create Opportunity for The Product in The Market"

The global adaptation to UCaaS shows that it presents the desktop IP phone market with a huge opportunity. This is due to the fact that to have a continuous interaction with customers through different platforms is a crucial factor that businesses need to adopt when using IP phones with cloud services to become a competitive advantage. Specifically, those enterprises that have been providing multi-functional IP phones that support features like video communication, messaging, and collaboration tools are best placed to address the emerging demands of the new hybrid work format. Needless to say, with distant and office work persistently becoming more widespread, there will be a growing need in enhanced desktop IP phones.

CHALLENGE

"Technological Advancements and Integration Could Be a Potential Challenge for Consumers"

Another issue with the desktop IP phone market is the fact that there must be continual innovation. By virtue of constant improvement in communication technologies as well as software solutions, IP phones require the capability of integrating with new interfaces and functions. New product creation and change has the manufacturers under pressure to keep up with changes such as artificial intelligence, video conferencing and cloud computing. Often, they are incorporated into conventional hardware and often present compatibility issues and obsolescence; product life cycle maintenance costs end up being high due to continuous research and development.

DESKTOP IP PHONE MARKET REGIONAL INSIGHTS

• NORTH AMERICA

North America especially United States desktop IP phone market will be the most influential market due to the increasing implementation of innovative communication solutions and major businesses entities. Related: There exists rich telecommunication base in the United States, and organizations in the region are still spending a lot of money to integrate unified communication systems. In view of the fact that many companies adopted hybrid work styles, the market for feature-rich desktop IP phones is expected to sustain its demand. Also, North America currently dominates the innovations of cloud-based solutions, and therefore, boosts the market growth.

• EUROPE

Europe is also occupies the great share of the desktop IP phone market and actively using paid cloud services and solutions based on unified communications. Today, many European organizations, especially those from the three leading countries: United Kingdom, Germany, and France implement IP phones to support the communication between offices of the company located in different countries. It is also ably backed up by matters of data privacy to ensure secure and superior quality of communication channels. With the emphasis made by the region on increasing business productivity through digitalization, the need for desktop IP phones should persist.

• ASIA

Asia region is gradually becoming a marker for the desktop IP phone mainly due to countries such as China, Japan and India. Rise of industrialization, higher start-up business organizations, increasing use of digital networks are some factors that will increase the sales of the communication systems in the region. Rising demand for IT services and the evolution of new remote working solutions in Asia increase the development of IP-based communication technologies. The implementation of digital solutions in Asia has made adjustments to Company’s communication structure where desktop IP phones now play a significant role.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Competitors involved in the provision of desktop IP phone are fairly many; however, some of the more prominent ones are Cisco Systems, Avaya Inc., Panasonic, Mitel Networks, and Yealink. Cisco is a market leader providing innovated communications solution that converge IP phones with Webex and other unified communications systems. Another chief contender is Avaya which caters to enterprise level solutions and has a variety of different desktop IP phones for both large end small scale businesses. Panasonic provides affordable, durable IP phones suitable for home and office use mostly for small business and home offices. Mitel Networks’ primary market is the enterprise business communications, their aim is to provide communication solutions for business requirements, they sell IP phones that work with cloud platforms. Lastly, Yealink offers cost-effective yet functional IP phones with touchscreen and video conferencing facilities and thus Successfully targets Small to Medium Business Organization. Such companies are defining the development of this type of market at the moment, preserving and developing the ideas of improving product functionality, the compatibility of communication solutions with cloud platforms and organizing the new and new demands of business communities in different countries.

List Of Top Desktop IP Phone Market Companies

• Yealink (China)
• Grandstream (U.S.)
• NEC (Japan)
• D-Link (Taiwan)

KEY INDUSTRY DEVELOPMENT

April 2024: Yealink launched its T5 Series of desktop IP phones, designed to enhance communication in hybrid workplaces. These phones integrate with popular Unified Communication as a Service (UCaaS) platforms, offering users seamless access to voice, video, and collaboration tools.

REPORT COVERAGE

The market on desktop IP phones has expanded rapidly due to the increasing need for affordable and reliable communication tools in different spheres of business activity. As organizations move to more and more centralized telecommuting and hybrid work-from-home-office business models, Voice over Internet Protocol (VoIP) and Unified Communication (UC) solutions are becoming mission-critical, making desktop IP phones fundamental to organizations’ communication strategies and architectures. Some of the driving forces that are impacting the market evolution include the need for transitioning to cloud services, as well as the desire for using additional features as video and high definition audio as well as integration with collaboration platforms. Today, there are numerous providers – from Cisco, which offers IP telephony, to Avaya and Yealink outlined forces concentrating on German-speaking organizations and presents phones that synchronize with cloud options for extending the assembly of teams. With more organizations adopting the new normal working arrangement, incorporating both remote and onsite employees more so via the use of IP phones, the market for the newly versatile desktop IP phones will continue to rise. But, issues like, threat from software communications applications, and cost of new and technological equipment’s can cause a stoppage in certain sectors. However, the market will likely continue growing as enterprises continuing their search of stable, high-quality, and secure means of communications that can meet requirements of current and emerging technologies to keep desktop IP phones as the crucial component of business communications.