Cloud Telephony Services Market Overview
The Cloud Telephony Services Market is projected to grow from USD 23.20 billion in 2024 to USD 42.7 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.92% during the forecast period (2024 - 2032). Additionally, the market size for cloud telephony services was valued at USD 21.27 billion in 2023.
The surge in demand for cloud-based services, especially in developing economies, growing technological advancements in public switched telephone networks (PSTNs), and rising adoption of cloud telephony service by small and medium-scale enterprises are the key market drivers enhancing the market growth.
Figure 1: Cloud Telephony Services Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Cloud Telephony Services Market Trends
Growing awareness about communication services is driving market growth
Market CAGR for cloud telephony services is driven by the rising number of technologies. The trend towards remote work has accelerated the adoption of Unified Communication and Collaboration (UCC) tools. These tools enable employees to communicate and collaborate seamlessly from anywhere, anytime, and on any device. This growth is applied to the increasing demand for remote collaboration, the rising adoption of cloud-based communication platforms, and the growing trend of bringing your device policies to organizations.
Additionally, the demand for Contact Center as a Service solution is expected to grow significantly in the coming years, driven by the increasing need for businesses to provide Omni channel customer support. CCaaS solutions enable organizations to provide a seamless customer experience across multiple channels, such as voice, chat, email, and social media. The growth is attributed to the increasing adoption of cloud-based solutions, the need for scalable and flexible contact center solutions, and the rising demand for personalized customer experiences.
The cloud telephony services market is evolving rapidly, with the emergence of advanced services such as AI-powered virtual assistants, voice analytics, and automated call routing. These services are expected to transform how organizations communicate with their customers and employees, improving customer experience, increasing productivity, and reducing costs. AI-powered virtual assistants can handle customer queries and provide personalized solutions, reducing the need for human intervention and improving response times.
For instance, the increasing demand for advanced communication technologies, the adoption of UCC tools, the emergence of advanced cloud telephony services, and the increasing demand for CCaaS solutions drive the Cloud Telephony Services Market revenue.
Cloud Telephony Services Market Segment Insights
Cloud Telephony Services Deployment Insights
The Cloud Telephony Services Market segmentation, based on deployment, includes services and cloud. The cloud deployment segment dominated the market due to its ease of use, flexibility, and cost-effectiveness. It is gaining popularity due to its ability to provide both scalability and security.
Cloud Telephony Services Application Insights
The Cloud Telephony Services Market segmentation, based on application, includes conferencing, customer relationship management, and sales & marketing multilevel VR. The customer relationship management segment dominated the market. Cloud telephony solutions integrated with CRM systems can improve customer engagement, automate communication workflows, and provide valuable customer insights.
Cloud Telephony Services End Users Insights
The Cloud Telephony Services Market segmentation, based on end users, includes retail, IT, healthcare, media & entertainment, government, and BFSI. The BFSI segment dominated the market. Banks, insurance companies, and other financial institutions require efficient and reliable communication systems. Cloud telephony services can help these organizations improve customer service by providing features such as IVR, automatic call distribution, and call recording.
Cloud Telephony Services Network Type Insights
The Cloud Telephony Services Market segmentation, based on network type, includes voice over internet protocol and publicly switched telephones. The voice-over-internet protocol category generated the most income. It is gaining popularity due to its cost-effectiveness, flexibility, and scalability. VoIP uses the internet to transmit voice communication, making it more efficient and cost-effective than public switched telephones.
Figure 2: Cloud Telephony Services Market, by Network Type, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Cloud Telephony Services Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American cloud telephony services market will dominate this market. It can be attributed to the high adoption rate of advanced technologies, such as cloud computing, in the region. The presence of major cloud service providers and the increasing number of new enterprises in the region will likely drive the growth of the cloud telephony services market.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: CLOUD TELEPHONY MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Cloud Telephony Services Market accounts for the second-largest market share due to a highly developed telecommunications infrastructure and many enterprises adopting cloud technology. The rising demand for advanced communication features, such as call recording and analytics, is expected to drive the market's growth. Further, the German Cloud Telephony Services Market held the largest market share, and the UK Cloud Telephony Services Market was the fastest-growing market in the European region.
The Asia-Pacific Cloud Telephony Services Market is expected to grow at a significant CAGR from 2023 to 2032. It is due to the increasing adoption of cloud technology, the rise in the number of SMEs, and the rapid growth of the e-commerce industry in the region. Moreover, China’s Cloud Telephony Services Market held the largest market share, and the Indian Cloud Telephony Services Market was the fastest-growing market in the Asia-Pacific region.
For instance, the cloud telephony services market will likely grow rapidly in the coming years, driven by increased adoption of cloud technology, rising demand for unified communication solutions, and the need for cost-effective communication solutions.
Cloud Telephony Services Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Cloud Telephony Services Market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Cloud Telephony Services industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Cloud Telephony Services industry to benefit clients and increase the market sector. The Cloud Telephony Services industry has offered some of the most significant medical advantages in recent years. Major players in the Cloud Telephony Services Market, including DIALPAD, Broad Soft, Exotel Tech com Pvt, Vox Telecom, Vonage Intermedia.net, Singtel, AVOXI, Knowlarity Communications Pvt Ltd, PortaOne, Cisco Systems, Mitel Networks Corporation, and others, are attempting to increase market demand by investing in research and development operations.
8x8 Inc. is an American company founded in 1987. Its products include cloud-based voice, contact center, video, mobile, and unified business communications. It is a provider of Voice over IP products. In June 2020, 8x8 Inc. introduced an enterprise-grade cloud telephony solution for Microsoft Teams environments, allowing organizations to scale and deliver work-from-anywhere communications. The solution delivers enterprise-class and easy-to-administer voice solutions for IT leaders while retaining the Microsoft Teams experience for users.
Cisco Systems, Inc., known as Cisco, is an American-based multinational digital communications technology corporation in San Jose, California. Cisco develops, manufactures, and sells hardware, software, telecommunications equipment, and other high-technology services and products. Cisco's broad works have introduced its new platform, providing enterprise-level performance and full PBX functionality in the cloud, supporting hunt-group and auto-attendant, and fueling the sales of cloud telephony systems.
Key Companies in the Cloud Telephony Services Market include
Cloud Telephony Services Industry Developments
August 2023 saw Dialpad Inc. build on its global efforts by partnering with MIA Distribution, a leading Australian Unified Communications as a Service (UCaaS) provider. By so doing, the company hopes to extend the coverage of its TrueCaaS products across Australia. It is expected that this will further expand Dialpad’s presence in the market and address the growing need for integrated cloud communication solutions in this part of the world.
In the same vein, Cisco Systems Inc. signed a contract with AT&T in June 2023 aimed at enhancing connectivity options for businesses with mobile workforce first orientation. The collaboration supports companies’ increasing adaptation towards mobile and remote work settings ensuring quality connection across these different environments.
Gupshup, a leading conversational engagement firm, announced its partnership with Truecaller—an identity verification platform to develop advanced enterprise identity solutions in February 2022. With this strategic alliance, they aim to provide brands with secure voice ecosystems that foster better customer interaction and efficient calling experiences throughout India.
During March 2022, Dialpad partnered with MIA Distribution Ltd to make sure that they made their TrueCaaS solution all over Australia. In addition, it entered into an agreement with Google while planning to list its UC-CC offering on Google Cloud Marketplace.
Tata Tele Business Services launched a business-tailored cloud-based communication system emphasizing hybrid connectivity to support seamless interactions between employees and clients in December 2020. It integrates voice, video chat and conferencing into one user-friendly platform that can be scaled up or down depending on the size of the organization using it while making it highly secure.
Also, during June 2020, Microsoft Teams was advanced by adding an enterprise-class cloud telephony solution from 8x8 Inc. This adds direct routing for PSTN calls into Microsoft Teams, advanced telephony features like call transfer and call queues as well as global reach for multi-country deployments. Both entities target businesses desiring enhanced communication for remote working by offering an integrated, scalable and cost-effective platform that streamlines communication and increases efficiency.
Cloud Telephony Services Market Segmentation
Cloud Telephony Services Deployment Outlook
Cloud Telephony Services Network Type Outlook
Cloud Telephony Services Application Outlook
Cloud Telephony Services End Users Outlook
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Retail
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IT
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Healthcare
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Media and entertainment
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Government
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BFSI
Cloud Telephony Services Regional Outlook
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Middle East
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Africa
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Latin America
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 21.27 billion |
| Market Size 2024 |
USD 23.20 billion |
| Market Size 2032 |
USD 42.7 billion |
| Compound Annual Growth Rate (CAGR) |
7.92% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2023-2032 |
| Historical Data |
2019- 2021 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Deployment, Network Type, Application, End User, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
DIALPAD, Broad soft, Exotel tech com Pvt, Vox Telecom, Vonage Intermedia.net, SingTel, AVOXI, Knowlarity Communications Pvt Ltd, PortaOne, Cisco Systems, Mitel Networks Corporation |
| Key Market Opportunities |
To run applications and deliver services to the customers smoothly |
| Key Market Dynamics |
The need of businesses ly to reduce operational costs and speedily scale the communication solution when needed are the factors for the market's growth. |
Cloud Telephony Services Market Highlights:
Frequently Asked Questions (FAQ) :
The Cloud Telephony Services Market size was valued at USD 21.27 Billion in 2023.
The market is projected to grow at a CAGR of 7.92% during the forecast period, 2024-2032.
North America held the largest share of the cloud telephony services market.
The key players in the market are DIALPAD, Broad soft, Exotel Tech com Pvt, Vox Telecom, Vonage Intermedia.net, SingTel, AVOXI, Knowlarity Communications Pvt Ltd, PortaOne, Cisco Systems, and Mitel Networks Corporation.
The cloud deployment category dominated the Cloud Telephony Services market in 2023.
The voice-over-internet protocol had the largest share of the market.
The customer relationship management application had the largest Cloud Telephony Services Market share.
The BFSI end user had the largest share of the market.
