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IP Desk Phone Market Size & Industry Share - Growth Trends & Forecasts (2023 - 2030)
ID : CBI_1009 | Updated on : | Author : Rashmee Shrestha | Category : IT and Telecommunications
IP Desk Phone Market Introduction :
IP Desk Phone Market is estimated to reach over USD 2,411.65 Million by 2030 from a value of USD 1,524.73 Million in 2022, growing at a CAGR of 6.2% from 2023 to 2030.
IP Desk Phone Market Definition & Overview:
IP desk phones are fixed communication devices deployed to place phone calls through VoIP, or Voice over Internet Protocol. IP phones use internet through Ethernet cable or Wi-Fi to place phone calls. IP phones allow employees to gain unlimited access to phone calls eliminating the need to pay for a physical phone line. Thus, IP desk phones offer HD voice quality, cheaper running costs, and advanced features that are well-suited to enterprise operations.
Key Market Insights
- Global CAGR (2023 - 2030): 6.2%
- Global Market Size (2022): USD 1,524.73 Million
- Global Market Size (2030): USD 2,411.65 Million
- North America: 2022 valued at USD 486.24 million with a CAGR of 6.4%
IP Desk Phone Market Dynamics - (DRO) :
Key Drivers :
Increasing Investments by government and private organizations
The increasing investments by government & private-led organizations in wireless communication technologies such as 4G and 5G networks is driving the growth of the market. The advent of hybrid and remote working environments is driving the demand for advanced and efficient communication systems that are well-suited to meet the expectations of the organizations. As a result, government and private organizations are investing in wireless communication technologies to improve overall business operations. For instance, in November 2021, ALE International, ALE USA Inc. launched a new range of desk phones based on OmniPCX Enterprise Purple communications platform to support hybrid and remote working styles. Consequently, the low maintenance, easy access, and advanced capabilities of IP desk phones are driving the growth of IP desk phones market.
The integration of Wi-Fi and Bluetooth connectivity
The technological advancements in desktop IP phones such as Wi-Fi and Bluetooth connectivity along with the integration of USB ports to landline phones is driving the growth of global IP desk phone market. IP phones integrated with Wi-Fi or Bluetooth offer seamless roaming and advanced features that are well-suited to a variety of industries including retail, logistics, enterprise, healthcare, and security. Moreover, IP phones offer scalability and significant cost-savings for large-volume deployments and provide a competitive replacement of traditional DECT solutions. For instance, in June 2020, Grandstream Networks, Inc. introduced WP810 cordless Wi-Fi IP phone based on Cisco's BroadWorks Platform to provide roaming throughout the location with Wi-Fi coverage. Thus, the integration of advanced technologies in traditional IP desk phones is accelerating the growth of the market.
Key Restraints :
Increased dependence on high-speed Internet
The continuous requirement of reliable and high-speed internet for IP desk phones is limiting the growth of the market. 5-25 Mbps internet speed is required to place VoIP calls as well as video conference calls. Thus, the low network bandwidth results in poor audio quality leading to the inefficiency of the wireless networks. Moreover, the increased dependence of IP landlines phones on the internet raises the demand for uninterrupted and continuous power supply. As a result, the inability of IP desk phones to operate in power outage or emergency situations is restraining the growth of IP desk phones market.
Security concerns associated with IP desk phones
The utilization of Voice over Internet Protocol (VoIP) raises security concerns that limit the growth of IP desk phone market. Communication with VoIP technology is vulnerable to phishing, malware, and virus attacks as it uses internet to place calls. Moreover, hackers inject noise packets into a VoIP phone system's network that affects the audio and quality of calls. Consequently, the aforementioned security concerns are restraining the growth of IP desk phone market.
Future Opportunities :
Integration of Wi-Fi 6/6E technology
The emergence of advanced technologies such as Wi-Fi 6/6E technology is expected to provide significant growth opportunities for the IP desk phone market. Wi-Fi 6 utilizes advanced technology to reduce interference and provide better connectivity, ensuring stable and consistent connections for all devices. Moreover, Wi-Fi 6 includes enhanced security features such as WPA3 and Enhanced Open, allowing businesses to protect their communications and sensitive data. Therefore, the integration of Wi-Fi 6/6E technology to provide better coverage and enhanced security features is expected to drive market growth during the forecast period.
IP Desk Phone Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Million) | USD 2,411.65 Million |
| CAGR (2023-2030) | 6.2% |
| By Type | Video Desktop IP Phone and Common Desktop IP Phone |
| By Connectivity | Wired, DECT, Wi-Fi, and Others |
| By End-User | IT & Telecommunication, Healthcare, Government, Enterprise, and Others |
| By Region | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
| Key Players | ALE International, ALE USA Inc., Avaya LLC, Cisco Systems, Inc., D-Link, Escene, Grandstream Networks, Inc., Mitel Networks Corp., NEC Corporation, Plantronics, Inc., Yealink Inc. |
IP Desk Phone Market Segmental Analysis :
Based on the Type :
Based on the type, the market is bifurcated into video desktop IP phone and common desktop IP phone. The common desktop IP phone segment accounted for the largest revenue share in the year 2022. Common desktop IP phone is an effective communication technology that allows all types of communications including audio, video, and wired as well as wireless voice, through the usage of Internet Protocol (IP) network. IP desk phones enable business firms to communicate with their employees and customers effectively, thereby improving the productivity of the business. For instance, in May 2021, Sangoma Technologies launched value-based P315 & P310 IP phones offering high-definition call quality, built-in Electronic Hook Switch (EHS) support, and two VoIP lines for wireless headset compatibility. In conclusion, IP desk phones have revolutionized the way business firms communicate, contributing to the growth of the market.
Video desktop IP phone segment is expected to emerge as the fastest-growing segment during the forecast period. Video desktop IP phones allow multiple users to participate in video conferencing over the internet calls. Video IP phones offer advanced call features such as voice recording and intercom/intercom barge while talking and a BLF list. Thus, video desktop phones are cost-effective and provide an easy user interface to bring a better video experience to the employees and customers, resulting in market growth.
Based on the Connectivity :
Based on the connectivity, the market is segregated into wired, DECT, Wi-Fi, and others. The wired IP desk phones segment accounted for the largest revenue share of 31.98% in the year 2022. Wired IP phones are highly reliable communication systems that allow users to place calls any time and under any circumstance, provided it is physically connected to the network. Moreover, wired IP phones provide better security of business operations as it eliminates any third-party intrusion in the communication. For instance, in December 2022, Gigaset introduced a new corded fixed-line phone family DESK 800A, 600 and 200 models allowing visual call display for in hands-free mode, incoming calls, and missed calls. Consequently, the application of wired IP phones to ensure the privacy and security of communication is propelling the growth of the market.
The Wi-Fi segment is expected to witness fastest CAGR growth during the forecast period. Wi-Fi IP desk phone allows the user to connect to the VoIP software at any location and from any device, as long as Wi-Fi connection is present. Wi-Fi desk-phones offer cost saving opportunities to businesses and are well-suited for IT & telecommunication, healthcare, and government industries. Moreover, Wi-Fi IP phones are portable allow employees to navigate through departments and offices and be more responsive to customer enquiries as long as the phone has an available Wi-Fi connection. Therefore, the increasing demand for mobile communication technologies to support hybrid and remote working environments is accelerating the growth of IP desk phones market.
Based on the End-User :
Based on the end-user, the market is segmented into IT & telecommunication, healthcare, government, enterprise, and others. The enterprise segment accounted for the largest revenue share in the year 2022. IP desk phones function primarily as a speaker phone, enabling users to join meetings or dial from corporate directories conveniently. As a result, desk phones are present in open areas to support guest access and security in locations including office hallways and receptions. Moreover, businesses are adopting VoIP infrastructure to provide efficient communication systems to support hybrid work culture in the organizations. For instance, in October 2022, Flyingvoice Network Technology Co., Ltd. launched FIP15G Plus Elite touch screen IP phone featuring quad-core processor, built-in dual-band 5G & 2.4G Bluetooth and Wi-Fi, dual USB ports and advanced software that provides user-friendly and easy calling experience for businesses of all sizes.
The government sector is expected to witness the fastest CAGR growth during the forecast period. Government agencies need a robust communication platform to help enforce policies, support community programs, and answer inquiries from customers. As a result, VoIP systems provide government agencies with a seamless communication tool that helps solve community issues, support modernization efforts, and enhance public service. In conclusion, the deployment of IP desk phones by local and state governments to send appointment reminders, payment collections, social surveys, and delivery confirmations is driving the growth of the market.
Based on the Region :
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
North America accounted for the largest revenue share in the year 2022 valued at USD 486.24 million and is projected to grow at a CAGR of 6.4% during the forecast period. Technological advancement such as Wi-Fi and Bluetooth connectivity has led to the increasing adoption of advanced IP desk phones that facilitate audio calling, video calling, and instant messaging. The growing number of commercial spaces including corporate and government offices, shopping malls, and retail stores in the region is increasing the demand for IP phones provide better and efficient communication system in order to increase the productivity of the business operations.
The Asia-Pacific region is anticipated to witness the fastest CAGR of 7.1% during the forecast period. The region accounted for USD 367.61 Million market share in the year 2022. In addition, China accounted to hold for the maximum revenue share of 26.6% in the year 2022.The growing trend of hybrid work culture in the Asia-Pacific region is driving the growth of IP desk jobs market. The advent of COVID-19 has allowed businesses to work in hybrid models enabling employees to work conveniently according to the schedules. For instance, according to Cisco Global Hybrid Work Study 2022 on 28,000 full-time employees witnessed that 65% of employees in ASEAN believed that the quality of work has improved while working in hybrid mode. Moreover, the rapid development of IT infrastructure in countries such as India, China, and Japan are driving the growth of IP desk phones market. The presence of advanced telecommunications infrastructure is accelerating the growth of IP desk phones market.
Top Key Players & Market Share Insights:
The IP Desk Phone market is highly competitive with major players providing IP desk phones to the national and international markets. Furthermore, the surge in product innovation, research, and development (R&D), and various business strategies, and application launches have accelerated the growth of the IP desk phone market. Key players in the IP desk phone market include -
- ALE International, ALE USA Inc.
- Avaya LLC
- Avaya LLC
- D-Link
- Escene
- Grandstream Networks, Inc.
- Mitel Networks Corp.
- NEC Corporation
- Plantronics, Inc.
- Yealink Inc.
Recent Industry Developments :
- In January 2023, Grandstream Networks, Inc. introduced a series of IP phones for hotels featuring 3 or 6 programmable keys, 3-way voice conferencing, and Hearing Aid Compatibility (HAC) to meet the requirements of any hotel and their guests.
- In March 2021, Avaya LLC launched video device called Avaya Vantage K155 to deliver seamless workstream collaboration for work from remote environments.
Key Questions Answered in the Report
What is IP Desk Phone? +
IP desk phone is a communication device that enables users to receive and place calls using an IP network rather than through digital wired lines. IP desk phones are connected to the host computer via USB, Bluetooth wireless LAN, and other methods.
What specific segmentation details are covered in the IP desk phone market report, and how is the dominating segment impacting the market growth? +
The report consists of segments including Type, Connectivity, and End-User. Each segment has key dominating sub-segment being driven by the industry trends and market dynamics. For instance, by type has witnessed common desktop IP phone as the dominating segment in the year 2022, due to the increasing demand for efficient communication systems in commercial spaces such as corporate offices.
What specific segmentation details are covered in the IP desk phone market report, and how is the fastest segment anticipated to impact the market growth? +
The report consists of segments including Type, Connectivity, and End-User. Each segment is projected to have the fastest growing sub-segment being fueled by industry trends and drivers. For instance, by connectivity segment has witnessed Wi-Fi as the fastest-growing segment during the forecast period due to the increasing demand for wireless communication networks such as Wi-Fi and Bluetooth connectivity.
Which region/country is anticipated to witness the highest CAGR during the forecast period, 2023-2030? +
The Asia-Pacific region is expected to register fastest CAGR growth during the forecast period due to growing culture of hybrid work models in the Asia-Pacific region. Moreover, the vast IT infrastructure is the region is propelling the growth of IP desk phone market.