Enterprise Migration To Cloud-based Communications Creates Growth Opportunities For The Global Desktop And Cordless Phone Market

Reliance on purpose-built cordless phones for communications leads to continuous demand for DECT and VoWLAN/Wi-Fi phones, says Frost & Sullivan

Frost & Sullivan’s recent analysis of the global desktop and cordless phone market finds that revenues will likely drop to $2.13 billion by 2027 from $2.79 billion in 2020 due to the increased popularity of other types of endpoints such as PC and mobile communications, the rise of newer generations of workers that have rarely used a desk phone, and supply chain disruptions caused by the pandemic. However, increased migration by enterprises to hosted/cloud-based communications solutions due to remote work is expected to help grow the demand for the internet protocol (IP) desktop phones segment in the coming years. Similarly, reliance on purpose-built cordless phones for communications and collaboration across verticals such as healthcare, retail, manufacturing, hospitality, and the public sector will lead to continued demand for digital enhanced cordless telecommunications (DECT) and voice over wireless local area network (VoWLAN)/Wi-Fi phone segments.

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“To remain viable in the post-pandemic period, vendors need to quickly and efficiently embrace new business models, restructure the supply chain, and promptly manage delivery models,” said Alaa Saayed, Director, Information & Communications Technologies at Frost & Sullivan. “Going forward, they should also offer flexible licensing options to mitigate business risks, including advanced Device-as-a-Service (DaaS) programs, offering customers flexible OPEX-based product acquisition leasing/renting options.”

Saayed added: “As businesses continue to embrace hybrid work within the next two years, enterprise endpoints need to undertake a technology refresh to support both remote workers’ specific needs and new requirements in physical office spaces.”

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As organizations migrate to hosted/cloud-based communications systems, vendors should focus on certain aspects across various segments of the market, including:

• IP Desktop Phones: Adapt offering to a home work setting with devices that come with power supplies/adapters, potential Wi-Fi and Bluetooth support, VPN automatic configuration, and plug-and-play provisioning.
• Time-division Multiplexing (TDM) Desktop Phones: Focus on niche environments such as small businesses, traditional call centers, and industrial environments where cabling length is important and companies run analog and digital call control systems.
• DECT Phones: Evolve offerings to include single-cell, multi-cell, and hybrid offerings for small and medium-sized businesses (SMBs) and businesses that need simple, reliable, easy-to-install, and scalable solutions.
• VoWLAN/Wi-Fi Phones: Integrate devices with a wide variety of vertical-specific systems and third-party applications.

Growth Opportunities in the Desktop and Cordless Phone Market, Forecast to 2027 is the latest addition to Frost & Sullivan’s Information & Communications Technologies research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

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 [To share your insights with us, please write to sghosh@martechseries.com]