Market Analysis for Desktop, VoWLAN, and DECT Phones from 2024-2025 and 2031, Highlighting Key Players - Alcatel-Lucent Enterprise, Cisco, Grandstream, Mitel, Poly, and Yealink - Provided by ResearchAndMarkets.com
The Enterprise Desktop and Cordless Phone Market Analysis 2025 has been added to ResearchAndMarkets.com's roster.
The global market for enterprise desktop and cordless phones is currently experiencing a downturn, although the rate of decrease has slowed compared to previous years. In 2024, total revenue fell by 9.2% to $2.21 billion from $2.44 billion in 2023. Over the next seven years, industry revenue is expected to decrease at a compound annual growth rate of 3.2%.
A primary issue faced by the industry is the commoditization of essential products, making it difficult for vendors to raise prices despite ongoing investment in innovation. Businesses are increasingly adopting software-based communication tools, Bring Your Own Device (BYOD) policies, and portable speakerphones, reducing the need for traditional hardware. The shift towards hybrid work environments and the adoption of AI-powered communication tools are significantly altering the market.
Desktop and cordless phones must now perform more than just basic PBX functions as businesses seek to integrate them into broader collaboration and workflow systems. The industry is also transforming, with some vendors leaving the market and others focusing on niche segments or specialized offerings, creating new growth opportunities.
Future market growth will primarily come from replacement or refresh cycles. Vendors can either expand their customer base or generate more revenue per customer. Customer expansion will predominantly be driven by emerging regions such as Asia-Pacific and China, where demand for DECT and VoWLAN devices is growing due to limited telephony infrastructure.
Increasing revenue per customer remains a significant challenge. Even in segments experiencing growth in device numbers, revenues are not increasing at the same pace due to intense price competition, creating opportunities for consolidation in the industry. Companies that adapt through strategic repositioning, targeted investments, and innovation will be better positioned to thrive in the evolving landscape.
Scope of Analysis
- This research covers the global desktop and cordless phone market.
- Enterprise-level phones included in this study are: time division multiplexing (TDM) desktop phones, internet protocol (IP) desktop phones, digital enhanced cordless telecommunications (DECT) phones, and voice over wireless local area network (VoWLAN)/Wi-Fi phones.
- Shipments are based on handset units.
- Revenues represent manufacturer-level sales of endpoints to service providers, distributors, retailers, resellers, and other distribution channels, as well as direct sales to enterprise customers.
- For OEM deals, revenues are attributed to the entity that owns the copyright to the branding and intellectual property of the customized products, not the original equipment manufacturer.
- Primary and secondary information, combined with internal databases, has been used to analyze the market and provide observations and conclusions in this study.
- Any previous-year(s) market size and market share estimates, if revised, are updated in this study.
Disruptive Technologies
Why:
- Businesses are emphasizing flexibility and scalability in their communication platforms, reshaping the role of traditional desktop and cordless phones in communications deployments.
- AI and machine learning-powered features support a growing list of use cases in both enterprise and contact center environments.
Analyst Perspective:
- Vendors must adapt their endpoint portfolios to capitalize on potential refresh and acquisition of new devices as businesses migrate from on-premises to hosted/cloud-based communications within the next seven years.
- Endpoint integration with third-party communications and collaboration providers is crucial for vendors to remain competitive.
Industry Convergence
Why:
- The boundaries between telecom, IT, and smart home/office automation are becoming increasingly blurred.
- Tech giants (e.g., Microsoft, Zoom, Cisco) are integrating voice communication with collaboration tools, eliminating the need for dedicated phones.
- The integration of telecom with AI, cloud, and cybersecurity is transforming how businesses communicate.
Analyst Perspective:
- Desktop and cordless phone devices must work seamlessly with other business tools, such as CRM systems, video conferencing platforms, and collaboration software.
- This will drive the demand for devices that serve as integrated communication hubs.
Transformative Megatrends
Why:
- The shift towards Unified Communication-as-a-Service (UCaaS) creates a compelling reason for enterprises to consolidate their estates, enhancing collaboration by integrating phone devices.
- Organizations are continually evolving their work models, leading to changes in office space usage and impacting demand for devices.
Analyst Perspective:
- To remain competitive, manufacturers must focus on developing devices with enhanced features, such as high-definition audio and video, noise cancellation, and integration within productivity applications.
- Growing demand exists for specialized cordless phones in sectors where ruggedness and reliability are essential.
Competitive Environment
- Number of Competitors: Over 50 with a revenue exceeding $1.0 million.
- Competitive Factors: Depth and breadth of product portfolio, component quality, audio quality, product reliability, advanced features, UCC integration, interoperability, application support, wireless range, customization options, price, connectivity options, customer service support, global presence, supply chain and channel network.
- Key End-user Industry Verticals: Aerospace, automotive, education, finance, government, healthcare, hospitality, oil and gas, manufacturing, and retail.
- Leading Competitors: Alcatel-Lucent Enterprise, Cisco, Grandstream, Mitel, Poly, and Yealink.
- Revenue Share of Top 5 Competitors: 50.4% (Base Year 2024).
- Other Notable Competitors: AudioCodes, Ascom, Avaya, Snom, Gigaset, VTech Phones.
- Distribution Structure: Primarily through and indirect network of distributors and channel partners.
- Notable Acquisitions and Mergers: VTech Phones acquired Gigaset, NEC has exited the market.
Growth Drivers
- Growth of UCaaS: Cloud-based communication solutions are driving the need for organizations to invest in devices that integrate seamlessly with UCaaS platforms.
- Demand for secure and interference-free communication: Legacy technologies (TDM and DECT) offer secure connectivity and low interference thanks to dedicated frequency, making them desirable for businesses concerned about reliability and cybersecurity.
- Hybrid work and return to office programs: Enterprises are adopting hybrid work models, necessitating a mix of hot-desking, fixed workstations, and cordless communication solutions, as well as a variety of devices.
- Increased adoption in healthcare and industrial sectors: DECT and enterprise IP phones are widely used in hospitals, warehouses, and manufacturing for reliable, hands-free, and interference-free communication.
- Cost efficiency and total cost of ownership: Businesses are prioritizing low-cost devices that integrate seamlessly with existing IT infrastructure to reduce expenses.
Growth Restraints
- Growth of softphones, mobile UC apps, and BYOD: Businesses are shifting to mobile UC apps and softphones, reducing their reliance on DECT and desktop phones.
- Declining investment in proprietary wireless infrastructure: Organizations are moving away from dedicated DECT infrastructure in favor of 5G-based communication, reducing demand for DECT phone deployments.
- Security and cyber threat concerns: IP and SIP phones connected to enterprise networks are vulnerable to hacking, VoIP fraud, and eavesdropping, raising concerns about cybersecurity risks.
- PSTN/ISDN shutdown accelerating VoIP adoption: The phase-out of PSTN and ISDN networks is driving businesses towards alternative communication types. While TDM devices will remain in legacy environments, their long-term decline is inevitable. Growth in IP phones is not offsetting the decline in TDM devices either.
- Competition from AI-driven virtual assistants and chatbots: AI-powered virtual assistants and chatbots are reducing the need for phone-based interactions, particularly in customer service and internal communication.
- The industry analyst perspective suggests that vendors must adapt their endpoint portfolios to capitalize on potential refresh and acquisition of devices, as businesses migrate from on-premises to cloud-based communications within the next seven years.
- In the competitive environment, peripheral technologies like AI-driven virtual assistants and chatbots are reducing the need for phone-based interactions, particularly in customer service and internal communication, posing a significant challenge for the market growth.
- The global market's future growth will primarily come from replacement or refresh cycles, with increasing revenue per customer remaining a significant challenge due to intense price competition, creating opportunities for consolidation in the industry.
- The transformative megatrends emphasize that the shift towards Unified Communication-as-a-Service (UCaaS) is creating a compelling reason for enterprises to invest in devices that integrate seamlessly with UCaaS platforms, enhancing collaboration by integrating phone devices.
