Business Phone Systems Market Size, Share, Growth, And Industry Analysis, By Type (On-premise Business Phone Systems and Cloud Based Business Phone Systems), By Application (Enterprise, Government, Hospital/School and Others), Regional Forecast To 2031

Updated On: 01 April 2024

Business Phone Systems Market Report Overview

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The global business phone systems market size is expanded rapidly in 2021 and market is expected to generate substantial revenue by 2031, exhibiting a high compound annual growth rate (CAGR) from 2021 to 2031.

Business phone systems are communication tools created specifically for commercial use. Many functions offered by these systems, including call management, voicemail, teleconference, and auto attendants, assist businesses in managing their communications more successfully and efficiently. Business systems come in a variety of designs, from classic landline systems to contemporary cloud-based systems. Each firm that needs to connect with clients, vendors, and staff should invest in a company phone system. They provide a variety of features and abilities that assist companies in enhancing their output, effectiveness, and customer care.

There are many reasons why the market for business phone systems is expanding. First, advances in communication technology have made it feasible for businesses to communicate with their clients and staff in a more effective and efficient manner. Second, there is a greater need for adaptable and mobile phone systems due to the growth of remote work and the requirement for virtual communication. Furthermore, cloud-based phone systems are now more accessible and affordable, making it simpler for companies of all sizes to implement them. Last but not least, businesses are investing in phone systems with enhanced features and capabilities as the value of customer service and happiness continues to rise.

COVID-19 Impact: Demand for Business Phones Increased as Online Communication Became more Important

On the market for business systems, the COVID-19 epidemic has had a considerable effect. With more businesses embracing remote work, there had been a rise in requests for cloud-based phone systems that let employees do business with coworkers and clients while working from home. As a result of the pandemic's emphasis on the value of online collaboration and communication technologies, teleconferencing and other unified communications systems had seen a boost in use. Overall, the pandemic sped up the transition to mobile and flexible communication methods, creating prospects for the business phone systems sector.

Latest Trends

"Streamlining Procedures Is Made Possible by the Integration of Analytics and Reporting Capabilities"

The market for business phone systems is one that is continuously changing and competitive, and many businesses are providing fresh, cutting-edge features to draw in clients. Businesses may now track parameters including call volume, conversation duration, and caller demographics thanks to the integration of sophisticated analytics and reporting capabilities into commercial phone systems. Making data-driven judgements and streamlining processes with this data is possible. The market for corporate phone systems has recently seen a number of advancements, all of which aim to improve productivity, cooperation, and communications within firms of all kinds.

Business Phone Systems Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into On-premise Business Phone Systems and Cloud Based Business Phone Systems

• By Application Analysis

Based on application, the market can be divided into Enterprise, Government, Hospital/School and Others 

Driving Factors

"Increase in Remote Working is a Significant Driver in the Business Phone Industry"

A significant market driver for business phone systems is the increase in remote work. The demand for adaptable and mobile phone systems that enable workers to operate from any location is increasing as more individuals work from home or remotely. Particularly since they enable distant work and virtual communication, cloud-based phone systems have grown in popularity. The ability to make and receive calls, send and receive messages, and use collaborative tools from any location is made possible by these phone systems, which boosts productivity and efficiency.

"Use of Unified Communications for a Variety of Benefits is Growing the Industry"

The market for business phone systems is also being driven by the demand for unified communications. When multiple communication channels, including audio, video, and messaging, are combined into one platform to enable seamless communication and collaboration, this is referred to as unified communications. The need for unified communication solutions has increased dramatically as more firms embrace remote work practises. Employee productivity may be increased, communication expenses can be decreased, and customer service can be improved with the help of unified communication systems. In order to provide a more thorough picture of client interactions, these platforms can also be connected with other business applications, such as customer relationship management (CRM) solutions.

Restraining Factors

"High Expenses Associated with the Phone Systems Might Obstruct the Market Expansion"

The high expense of updating and maintaining phone systems is one issue limiting the market for commercial phone systems. For small and medium-sized organizations, traditional on premise phone systems can present a substantial barrier due to the high initial expenditure required for hardware, installation, and ongoing maintenance. Businesses may also need to spend more money by hiring specialized IT personnel to monitor and troubleshoot the phone system. Although cloud-based phone systems are now more reasonably priced, some businesses may still be apprehensive about making the switch due to worries about data security and dependability. Consequently, the expense and difficulty of upgrading phone systems may function as a major impediment to the business phone systems market growth.

Business Phone Systems Market Regional Insights

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"High Adoption Rate of Latest Technologies are Driving the Regional Market"

First off, the region has a high rate of uptake for cutting-edge communication technology, such as cloud-based services and phone systems with cutting-edge capabilities such as unified communications. Second, a number of major market companies with a significant presence in North America and a broad selection of phone system solutions are based in the area. Also, due to reasons including urbanization, rising real estate prices, and growing demand for work-life balance, the trend towards remote work and virtual communication has intensified. Due to this, there is now a higher need for mobile and adaptable phone systems that provide remote communication and collaboration. Overall, these elements working together are increasing the business phone systems market share during the anticipated time frame.

Key Industry Players

"Key Players Focus on Innovation to Increase their Market Share"

Major players are making significant investments in R&D to develop cutting-edge corporate phone systems with sophisticated features that meet the changing needs of enterprises. This includes tools such as unified communications, virtual assistants with AI, and sophisticated call routing. Important players are also collaborating with other businesses to use their knowledge or technology to increase their market share. For instance, Microsoft and Cisco Systems announced a collaboration in 2020 to combine their interaction and cooperation solutions, enabling users to use the platforms of the two firms in unison.

List of Market Players Profiled

• Cisco (U.S.)
• Nextiva (U.S.)
• Toshiba (Japan)
• ShoreTel Sky (U.S.)
• Avaya (U.S.)
• AT&T (U.S.)
• Vonage Business Solutions (U.S.)
• Huawei (China)
• Microsoft (U.S.)
• Lenovo (Hong Kong)

Report Coverage

This report covers the business phone systems market. The CAGR expected to be in during the forecast period, and also the USD value in 2021 and what it is expected to be in 2031. The effect COVID-19 had on the market in the beginning of the pandemic. The latest trends taking place in this industry. The factors that are driving this market as well as the factors that are restraining the growth of industry. The segmentation of this market based on type and applications. The region leading in the industry and why they will continue to do so during the forecast period. Further, the key market players, what all is being done by them to stay ahead of their competition as well as retain their market positions. All these details are covered in the report.