Description

This strategic analysis is a part of Frost & Sullivan’s continued coverage of the global desktop and cordless market. In this Excel-based deliverable, Frost & Sullivan provides extensive analysis of key business endpoint markets, including time division multiplexing (TDM) desktop phones, internet protocol (IP) desktop phones, digital enhanced cordless telecomunications (DECT) phones, and voice over wireless local area network (VoWLAN)/Wi-Fi phones. More specifically, the study provides market and technology trend analysis and an assessment of market growth potential and competitor market shares. Frost & Sullivan's analysis also identifies key market drivers that are contributing to the growth of the market and restraints that are deterring unit shipments and revenue growth. The study also includes data from a 2022 global Frost & Sullivan survey of 1,243 customer technology investment decision makers.

In 2021, the desktop and cordless phone market grew by 4.9% to $2.84 billion triggered by measured return to physical offices, communications platform refreshes, and pent-up demand due to massive deployment delays and project cancellations in 2020.

While desktop phones will not be completely abandoned soon, their popularity and usage will continue to drop due to the growing adoption of software-based communications and collaboration clients, and the rise of other hardware endpoint alternatives such as professional headsets, speakers, and mobile devices

Growth of DECT phones across the forecast period will be driven by the continuous popularity of DECT devices in Europe; the growth of the single-cell DECT phone market, especially within the SMB sector; the growth of DECT in verticals such as hospitality and retail; new product launches in both the single- and multi-cell DECT segments; and the growth of DECT phones within hosted hosted/cloud-based communications environments

Growth of VoWLAN/Wi-Fi phones will be driven by continued demand for purpose-built devices within vertical industries such as healthcare, manufacturing, retail/e-commerce, public sector, and transportation; the expanded features and capabilities offered by ruggedized enterprise-grade smartphone devices; and new product launches from VoWLAN/Wi-Fi phone vendors.

Component shortages due to various factors, including pandemic-related work stoppages in manufacturing, growing industry demand for specific parts, and challenging transportation logistics is expected to continue to affect desktop and cordless phone sales. Desktop and cordless phone vendors need to continue to adapt to new supply chain realities by avoiding reliance on single-source manufacturers and spreading things out; nurturing existing supply chain relationships; and quickly launching new endpoint SKUs.

Desktop and cordless phone vendors need to also adapt their endpoint portfolios to reap the benefits of a potential refresh and acquisition of new devices during customer migrations from on-premises to hosted/cloud-based communications within the next seven years. Broadening the endpoint integration with third-party communications and collaboration providers is key. As businesses continue to embrace hybrid work, enterprise endpoints need to be enhanced continually to support both remote workers’ unique needs and new requirements in physical office spaces.

All revenue and market share figures represent Frost & Sullivan estimates, based on primary and secondary research and analysis. Shipments are based on handset units. Revenue includes handsets plus related infrastructure such as accessories, access points, base stations, cables, adapters, etc. Revenue figures exclude revenues associated with maintenance, managed services, hosted/cloud services, and professional services.

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. In the case of original equipment manufacturer (OEM) deals, revenues are attributed to the buyer that owns the copyright to the branding and intellectual property of the specific customized products instead of the original equipment manufacturer.  The base year for this study is 2021, with forecasts included for 2022 through 2028.

Author: Alaa Saayed