What is the Historic and Current Scenario of the Telephony Application Server Market?
The telephony application server market has seen considerable growth due to a variety of factors.
• The scale of the telephony application server market has been expanding robustly in the past few years. The market size that stands at $7.71 billion in 2024 is projected to increase to $8.38 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 8.7%.
This growth observed in the historical period can be credited to multiple factors including the rise of e-commerce, growing demand for sophisticated communication, a surge in the utilization of cloud-based services, an increase in data traffic, and the advent of 5g technology.
How Does the Forecast Look for the Telephony Application Server Market?
The telephony application server market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of telephony application servers is predicted to experience substantial growth in the coming years, surging to a value of $11.57 billion by 2029 with an 8.4% compound annual growth rate. This predicted rise over the forecast period can be linked to several factors including the increasing digital transformation, need for sturdy telephony solutions, growing use of unified communications, an uptick in remote work, and a surge in mobile and web applications. The forecast period is also expected to witness certain trends like a shift towards advanced technologies, the facilitation of Voice over Internet Protocol (VoIP), creation of upgraded solutions like microservices architecture, adoption of AI and automation, the emergence of network function virtualization (NFV), and strategic alliances amongst market participants.
What Are the Critical Driver Fuelling the Telephony Application Server Market's Growth?
The telephony application server market is anticipated to expand due to the increasing digital transformation. This transformation encompasses the implementation of digital technology in all business aspects, completely altering how businesses function and provide value to their customers. The continuously growing digital transformation is motivated by businesses' desire to increase effectiveness, improve customer experiences, and remain competitive in an ever-evolving digital environment. Digital transformation aids telephony application server enhancement by introducing superior features like cloud integration, scalability, and enhanced analytics, thus improving the overall communication efficiency and flexibility. As an illustration, the Australian Bureau of Statistics reported in October 2023 that Australian digital activity experienced an 8.6% growth, reaching $10.9 billion, as the overall Australian economy swelled by 11.7%. Furthermore, every digital activity sector witnessed expansion during this period. The e-commerce retail sector, in particular, displayed a 12.6% increase in 2021–22, succeeding a significant 41.8% surge in the preceding year. Thus, this growing digital transformation is propelling the growth of the telephony application server market.
How Are The Segments Defined Within The Global Telephony Application Server Market?
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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How Are New Trends Expected To Influence The Growth Of The Telephony Application Server Market?
Major firms in the telephony application server market are increasingly prioritizing advanced cloud-native IMS voice core products to improve scalability, minimize expenses, and provide more adaptable communication solutions. These are scalable and flexible communication solutions specifically developed for cloud systems that support IP-based voice and other multimedia services using the IP Multimedia Subsystem. Illustratively, Nokia Corporation, a communications and IT firm based in Finland, launched the Cloud Native Communication Suite (CNCS), an innovative cloud-native IMS voice core product, in May 2022. This product aims to simplify network operations for communication service providers. It amalgamates various 3GPP standard features into a single cloud-native network operation, making deployment and operational management more efficient.
Who Are the Key Players in the Telephony Application Server Market?
Major companies operating in the telephony application server market are include:
•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
What Is The Most Dominant Region 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.
