IP Phones Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component (Software, Hardware), By Type (Wired, DECT, Wi-Fi), By End User (Corporate Consumers, Individual Consumers), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 4.15 Billion
CAGR (2026-2031)	6.16%
Fastest Growing Segment	Hardware
Largest Market	North America
Market Size (2031)	USD 5.94 Billion

Market Overview

The Global IP Phones Market will grow from USD 4.15 Billion in 2025 to USD 5.94 Billion by 2031 at a 6.16% CAGR. Global IP Phones Market

IP phones are advanced telecommunication devices that utilize the Internet Protocol to transmit voice and video data over a network, effectively replacing traditional Public Switched Telephone Network infrastructure. The primary drivers supporting market growth include the extensive migration of enterprises toward cloud-based Unified Communications as a Service platforms, which provide superior scalability and cost efficiencies compared to legacy systems. Furthermore, the necessity for flexible communication endpoints in hybrid work environments continues to bolster demand for these versatile devices. According to the Federal Communications Commission, in 2024, there were 65 million interconnected VoIP subscriptions in the United States, illustrating the substantial industrial reliance on IP-based telephony solutions.

However, the expansion of the IP phones market encounters a significant challenge related to network security and infrastructure reliability. Since these devices depend heavily on internet connectivity, they remain vulnerable to cyber threats such as eavesdropping and Denial of Service attacks. This susceptibility necessitates rigorous encryption and network defense mechanisms, which can complicate deployment and deter adoption in highly regulated sectors where data privacy is paramount.

Key Market Drivers

Rapid migration from legacy analog systems to VoIP infrastructure is reshaping the telecommunications landscape, necessitating the deployment of IP-based hardware. As traditional copper networks degrade, enterprises are compelled to upgrade to digital solutions to maintain operational continuity and access advanced features unavailable on Public Switched Telephone Network (PSTN) lines. This urgency is underscored by the deteriorating reliability of legacy infrastructure; according to Ofcom, December 2024, in the 'Connected Nations 2024' report, the number of reported resilience incidents on the PSTN increased by 45% in 2024 compared to the previous year. Such instability accelerates the decommissioning of analog lines, directly fueling the procurement of IP phones as essential replacements for business-critical voice communication.

Simultaneously, the corporate shift toward cloud-based communication ecosystems is acting as a primary catalyst for market expansion. Modern IP phones are increasingly designed as integral endpoints within Unified Communications and Collaboration (UC&C) platforms, supporting hybrid work models through seamless application integration. This trend is evidenced by the performance of leading cloud providers; according to RingCentral, November 2024, in the 'Third Quarter 2024 Results' announcement, subscription revenue grew by 10% year-over-year to reach $583 million, highlighting the surging enterprise investment in cloud telephony solutions. Facilitating this transition is the global proliferation of broadband connectivity; according to the International Telecommunication Union (ITU), in 2024, an estimated 5.5 billion people were using the internet, providing the necessary high-speed infrastructure for widespread IP phone adoption.

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Key Market Challenges

The expansion of the Global IP Phones Market is significantly impeded by persistent network security vulnerabilities and infrastructure reliability issues. As IP telephony relies intrinsically on internet connectivity, these systems are susceptible to cyber threats such as eavesdropping, Denial of Service attacks, and service outages. This exposure creates substantial barriers to adoption, particularly within regulated sectors like finance, healthcare, and government, where data privacy and continuous operation are critical. Organizations in these fields often hesitate to migrate from legacy systems to IP-based solutions due to the potential financial and reputational damage associated with security breaches and network downtime.

Consequently, the necessity for rigorous and often expensive defense mechanisms complicates deployment and erodes the cost-efficiency advantages typically associated with IP phones. This growing instability is evident in recent industry data. According to the European Union Agency for Cybersecurity (ENISA), in 2025, the sector recorded 188 significant telecom security incidents for the year 2024, representing a 20.5% increase compared to the previous year. Such statistics underscore the escalating risks that deter widespread market implementation and dampen growth momentum.

Key Market Trends

Native Compatibility with Leading Unified Communications as a Service Platforms is emerging as a critical determinant in hardware selection, fundamentally altering product development strategies. Manufacturers are increasingly pivoting from generic SIP-based devices to engineering endpoints that are certified for specific ecosystems, such as Microsoft Teams and Zoom, to ensure seamless interoperability. This trend is driven by the enterprise requirement for feature parity between desktop clients and physical hardware, necessitating devices that support advanced functionalities like synchronized presence, centralized directories, and one-touch meeting entry. The accelerating demand for such specialized infrastructure is evident in vendor performance; according to AudioCodes, November 2024, in the 'Third Quarter 2024 Results', the company reported that its Live Teams business grew 21% year over year, highlighting the substantial market shift toward dedicated voice solutions integrated within the Microsoft environment.

Simultaneously, the Proliferation of Video-Enabled Desktop Endpoints for Visual Collaboration is transforming the traditional desk phone into a multimodal communication hub. As hybrid work models necessitate more equitable meeting experiences, enterprises are deploying desktop devices equipped with high-definition cameras and touchscreens to facilitate face-to-face interaction without reliance on a personal computer. This evolution allows on-site and remote employees to maintain visual engagement through standalone hardware that offloads processing from laptops, thereby enhancing reliability and user experience. The financial impact of this transition is reflected in recent industrial data; according to HP, November 2024, in the 'Q4 FY24 Earnings Presentation', revenue growth was directly driven by strong performance in peripherals, voice, and video collaboration, underscoring the prioritization of visual capabilities in modern corporate communication procurement.

Segmental Insights

The Hardware segment currently stands as the fastest-growing category within the Global IP Phones Market. This expansion is primarily driven by the widespread migration from legacy Public Switched Telephone Networks to Voice over Internet Protocol infrastructures, which necessitates the procurement of compatible physical endpoints. Enterprises continue to prioritize tangible devices for conference rooms and executive desks to ensure consistent audio reliability, which purely software-based alternatives may lack in high-density environments. Additionally, the expansion of broadband connectivity in emerging economies is fueling the acquisition of physical IP units by small businesses seeking professional communication standards.

Regional Insights

North America holds the leading position in the Global IP Phones Market, driven by the widespread adoption of cloud-based unified communications across enterprises. The region benefits from robust telecommunications infrastructure that supports the high bandwidth requirements of Voice over Internet Protocol systems. This dominance is further strengthened by initiatives from the Federal Communications Commission, which actively facilitate the transition from legacy Time Division Multiplexing networks to IP-based infrastructure. Additionally, the concentrated presence of major technology providers in the region accelerates the deployment of advanced communication hardware, solidifying North America's status as the key revenue contributor.

Recent Developments

• In October 2024, Snom Technology introduced the M56, a rugged DECT handset specifically developed for use in demanding industrial environments such as workshops, construction sites, and warehouses. The device features an IP67-rated antibacterial housing that is resistant to dust, water, and mud, ensuring durability under harsh conditions. The M56 includes safety-oriented functionalities like an integrated alarm button, a "man down" sensor, and a built-in torch to support the security of lone workers. The handset integrates with the M500 base station system, allowing for zero-touch provisioning and over-the-air software updates to streamline device management for IT administrators.
• In August 2024, Fanvil announced the release of the V61 and V62 Series IP phones, expanding its portfolio of business communication endpoints. These new models are designed to improve workplace efficiency with features such as built-in Wi-Fi 6 and Bluetooth 5.4, which facilitate stable wireless connections and seamless peripheral integration. The V61 and V62 series support six-way audio conferencing and utilize advanced echo cancellation and noise reduction algorithms to deliver high-definition audio quality. The phones are compatible with major IP PBX and softswitch platforms, making them suitable for diverse deployment scenarios ranging from small offices to large enterprise networks.
• In May 2024, Grandstream Networks released the WP816 and WP826, two new cordless IP phones equipped with Wi-Fi 6 technology. These devices were engineered to provide enhanced mobility and network performance for businesses with complex roaming requirements, such as those in retail, logistics, and healthcare. The WP826 model features a robust battery offering up to 12 hours of talk time, integrated Bluetooth for headset pairing, and a configurable push-to-talk button for instant communication. Both models support advanced roaming protocols and HD voice with noise shield technology, ensuring reliable and clear connectivity across large wireless network deployments.
• In April 2024, Cisco launched the Desk Phone 9800 Series, a new portfolio of enterprise devices designed for modern hybrid work environments. The series operates on the newly introduced PhoneOS software, which simplifies the user experience and aligns with the company's video device interface. Key features of the 9800 Series include integrated desk reservation capabilities, QR code-based hot desking for seamless personalized login, and advanced noise removal technology for clear audio in busy offices. The phones also feature a programmable action button for quick access to emergency services or support, addressing safety and operational needs in shared workspaces.

Key Market Players

• Cisco Systems, Inc.
• Poly, Inc.
• Yealink Network Technology Co., Ltd.
• Grandstream Networks, Inc.
• Mitel Networks Corporation
• Avaya Inc.
• Snom Technology GmbH
• Unify GmbH & Co. KG
• Aastra Technologies Limited
• Zycoo Co., Ltd.

By Component	By Type	By End User	By Region
Software Hardware	Wired DECT Wi-Fi	Corporate Consumers Individual Consumers	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global IP Phones Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• IP Phones Market, By Component:

• Software
• Hardware

• IP Phones Market, By Type:

• Wired
• DECT
• Wi-Fi

• IP Phones Market, By End User:

• Corporate Consumers
• Individual Consumers

• IP Phones Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE