Device-as-a-service Model Key to Propel Desktop and Cordless Phone Global Market, Says Frost & Sullivan

Hosted/cloud-based communications solutions represent the biggest growth opportunity for desktop and cordless phones

SANTA CLARA, California, July 7, 2020 /PRNewswire/ -- Frost & Sullivan's recent analysis, Growth Opportunities in the Desktop and Cordless Phone Market, Forecast to 2026, reveals that increased migration to hosted/cloud-based communications solutions, device-as-a-service (DaaS) models, and the reliance of various vertical industries on ruggedized or purpose-built cordless phones will be the main drivers propelling the growth of the desktop and cordless phone market. However, with COVID-19 uncertainty and looming global economic recession, the sales of desktop and cordless phones are likely to experience a slowdown as businesses emphasize the adoption of software communication and collaboration services. In terms of sales of desktop and cordless phones, the market is expected to decrease by a compound annual growth rate (CAGR) of -7.4%, reaching $1.96 billion by 2026 from $3.35 billion in 2019. Likewise, in terms of shipment, the market is estimated to spiral down at a CAGR of -4.8%, reaching 20.9 million units over the forecast period from 29.5 million units in 2019.

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"The largest opportunity for IP desktop and cordless phones will continue to be the migration of businesses to hosted/cloud-based communications solutions. Hence, striking partnerships with a large ecosystem of unified communications-as-a-service (UCaaS) providers is key," said Alaa Saayed, Information & Communication Technologies Industry Director, Frost & Sullivan."

Saayed added: "While time-division multiplexing (TDM) and Internet Protocol (IP) desktop phones are expected to decrease over time, many businesses will still demand IP desk sets due to their overall performance, reliability, convenience, and security. Further, sectors that require purpose-built devices to ensure reliable and clear communications will push the demand for voice over wireless local area network/wireless fidelity (VoWLAN/Wi-Fi) phones, whereas digital enhanced cordless telecommunications (DECT) phones will continue to ship within businesses, work from home (WFH) environments, and vertical industries."

To tap into growth opportunities exposed by desktop and cordless phones, market participants should focus on the following:

• Develop open session initiation protocol (SIP) devices that cater to the full spectrum of customer needs to create a portfolio comprised of basic, mid-range, and high-end SIP desktop phone models.
• Focus on addressing WFH needs—especially audio and video quality—in terms of desktop and DECT phones.
• Emphasize the DaaS model as it avoids upfront cost for subscribers and also provides greater flexibility in managing communications endpoints.
• Consider younger generations of workers and their priorities when developing business endpoints.
• Customize device offerings and marketing campaigns based on regional preferences.

Growth Opportunities in the Desktop and Cordless Phone Market, Forecast to 2026 is the latest addition to Frost & Sullivan's Information & Communication 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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Growth Opportunities in the Desktop and Cordless Phone Market, Forecast to 2026 

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Francesca Valente

Corporate Communications

E: Francesca.Valente@frost.com