Press release
Telephony Application Server Market Set to Reach $11.57 Billion by 2029 with 8.4% Yearly Growth
Telephony Application ServerMarket Size
The continuous digital transformation is set to spur the expansion of the telephony application server market. This transformation involves the incorporation of digital technology into every facet of corporate processes, fundamentally altering the way companies operate and adds values for customers. The momentum in digital transformation comes from businesses' demand to amplify efficiency, enhance customer experiences, and maintain their edge in the progressively digitalized environment. This shift towards digitization augments telephony application servers by facilitating advanced features such as integration with the cloud, scalability, and improved analytics, thereby elevating overall communication efficiency and adaptability. For instance, the Australian Bureau of Statistics, the government administration of Australia, reported in October 2023 that the nation's digital activities had grown by 8.6% to reach $10.9 billion, while the total Australian economy saw an 11.7% expansion. During that period, all sectors of digital activity witnessed growth, with the e-commerce retail sector seeing a 12.6% rise in 2021-22, following a massive 41.8% increase in the previous year. As a result, the thriving digital transformation is indeed propelling the telephony application server market's growth.
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How will the growth rate of the telephony application server market shape industry trends by 2034?
In recent times, the market size for telephony application servers has experienced robust growth. The market which was worth $7.71 billion in 2024 is predicted to escalate to $8.38 billion in 2025, expanding at a compound annual growth rate (CAGR) of 8.7%. Factors contributing to this growth include the rise of e-commerce, a surge in demand for advanced communication, broader utilization of cloud-based services, an increase in data traffic, and the advent of 5G technology.
The market size for telephony application servers is projected to experience robust expansion in the coming years, reaching a value of $11.57 billion in 2029, marking a compound annual growth rate (CAGR) of 8.4%. The projected growth within this timeframe is largely due to the ongoing digital revolution, increasing needs for solid telephony solutions, growing uptake of unified communications, a rise in remote work practices, and an uptrend in mobile and web applications. The forecast period is also expected to see a concentration on advanced technologies, enabling voice over internet protocol (VoIP), creation of sophisticated solutions like microservices architecture, embracing AI and automation, development of network function virtualization (NFV), and strategic alliances among key market participants.
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What trends are poised to drive the future success of the telephony application server market?
Significant players in the telephony application server market are steadily shifting their focus towards advanced cloud-native IMS voice core products. These products are designed to improve scalability, decrease expenses, and provide more adaptable communication solutions. These voice core products are built to support VoIP and other multimedia services using the IMS architecture specifically for cloud atmospheres. For example, In May 2022, the technology and communications company from Finland, Nokia Corporation, unveiled their Cloud Native Communication Suite (CNCS). This state-of-the-art cloud-native IMS voice core product aims to simplify network operations for CSPs. It integrates several functionalities established by the 3GPP standard into one cloud-native network function (CNF), making deployment and operational management more efficient.
Which primary segments of the telephony application server market are driving growth and industry transformations?
The telephony application server market covered in this report is segmented -
1) By Type: Software; Service
2) By Application: Unified Communications (UC); Voice Over Internet Protocol (VoIP); Internet Protocol (IP) Telephony; Cloud Communications; Business Phone Systems; Contact Center Solutions
3) By End User: Education; Banking, Financial Services And Insurance (BFSI); Manufacturing; Healthcare; Defense; Retail And E-Commerce; Media And Entertainment; Information Technology (IT) And Telecom; Oil And Gas; Other End Users
Subsegments:
1) By Software: Cloud-Based Telephony Application Servers; On-Premises Telephony Application Servers; Unified Communication Software
2) By Service: Installation and Configuration Services; Maintenance and Support Services; Consulting and Integration Services
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Which geographical regions are pioneering growth in the telephony application server market?
North America was the largest region in the telephony application server market in 2024. The regions covered in the telephony application server market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Who are the influential players reshaping the telephony application server market landscape?
Major companies operating in the telephony application server market are Microsoft Corporation, Huawei Technologies Co. Ltd., International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, SAP SE, The Hewlett Packard Enterprise Company, Telefonaktiebolaget LM Ericsson, Nokia Corporation, Fujitsu Limited, NEC Corporation, Adobe Inc., Avaya Holdings Corp., Ribbon Communications Inc., Sangoma Technologies Corporation, Squire Technologies Ltd, Dialogic Group Inc., CreaLog Software-Entwicklung und Beratung GmbH, Mobius Software, PAiC BD
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What Is Covered In The Telephony Application Server Global Market Report?
•Market Size Forecast: Examine the telephony application server market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the telephony application server market for a structured understanding.
•Key Players Overview: Analyze major players in the telephony application server market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the telephony application server market.
•Segment Contributions: Evaluate how different segments drive overall growth in the telephony application server market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the telephony application server market.
•Industry Challenges: Identify potential risks and obstacles affecting the telephony application server market.
•Competitive Landscape: Review strategic developments in the telephony application server market, including expansions, agreements, and new product launches.
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