66 Business Phone Systems Software Statistics You Must Know: 2022 Market Share Analysis & Data
The telephone is dead. Or at least, nearly obsolete. But that does not mean that it is going away anytime soon. This is because business phone systems still exist. In fact, corporate VoIP subscribers hit 204.8 billion in 2020 (Future Market Insights, 2021).
While other channels of communication are becoming more popular, phone calls remain significant. Below are business phone systems statistics that highlight the relevance of VoIP or cloud telephony. In other sections, we will also touch on the challenges faced by the industry.
Business Phone Systems Statistics Table of Contents
Despite the ubiquity of digital manners of communication, phone calls remain pertinent. This is especially true in building and maintaining customer relations. Though the number of landline connections is declining, SIM connections are increasing. Thus, it is no surprise that companies continue to invest in VoIP software.
The global VoIP market size was more than $30 billion in 2020. This industry is expected to grow at an estimated CAGR of 15% until 2027. (Global Market Insights, 2020)
By 2027, the projected value of the VoIP industry is $95 billion. (Global Market Insights, 2020)
Worldwide, the mobile VoIP sector is anticipated to grow by more than 13% until 2025. (Global Market Insights, 2020)
Meanwhile, the computer-to-computer VoIP sector and the domestic VOIP segment are predicted to have a CAGR of over 10% and 12%, respectively in the same period. (Global Market Insights, 2020)
20%-that is the expected growth rate of the hosted IP PBX sector by 2027. Industry pundits chalk this up to the increased reliance on sophisticated communication technologies to cut down telecom equipment expenses. (Global Market Insights, 2020)
By 2024, the Asia-Pacific region is anticipated to have the largest mobile VoIP market, valued at $60 billion. (Grand View Research & Statista)
Digital transformation, such as the inclusion of new digital channels like PBX, is the number two technology trend prioritized in customer experience. (NTT, 2020)
Phone Calls and Customer Service
As has been mentioned, phone systems are integral to CRM. Indeed, studies have shown that phone calls remain one of the most popular channels of communication with customers.
Despite the accelerated digitization due to COVID-19, 41% of consumers in the US and the United Kingdom still prefer telephone calls when contacting customer service. (Stella Connect, 2021)
Businesses whose phone systems are a part of their overall CX design slash their response times by 41.6%. (NTT, 2020)
62% of consumers still prefer to have phone calls with a representative for customer support. (Pega, 2019)
That coincides with the observations of 58% of leaders and 72% of employees that the phone is the most popular channel among customers. (Pega, 2019)
The average response time through phone or in-person interactions is 54.2 seconds. Companies in the top quartile take only 20 seconds. (NTT, 2020)
The average handle times by customer support agents over the phone or in person is 283.5 seconds. It is shorter with leaders, as they are able to finish addressing concerns in 270.3 seconds. (NTT, 2020)
77.7% of contact channel users aged 51 and up prefer the telephone or speaking in-person with agents. (NTT, 2020)
71.4% of organizations prefer to use the telephone or in-person conversations for retention, escalation, or dispute resolutions. (NTT, 2020)
Most organizations have up to eight channels for customer contact. However, only 66.4% have any strategy in managing cross-channel communications. If a consumer contacts them by social media, then they have no clear-cut way of getting in touch with them through other mediums, such as phones. (NTT, 2020)
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Most Popular Channel Types
for consumers between 51 and 75 years
Most Popular Channel Types Telephone/in-person: 77.7%
Most Popular Channel Types Assisted service: 19.7%
Most Popular Channel Types Automated channels: 2.5%
When Business Calls
Business calls, particularly international ones, contribute to the millions of minutes spent on phone lines. Organizations also conduct business through online conferencing software and other business phone systems for sale. However, there is no data on how much time was spent on those platforms. Nevertheless, since they are ubiquitous, organizations have to be mindful of VoIP best practices.
British Telecommunications recorded 15 million minutes of international business calls from Q1 2012 to Q2 2021. (Ofcom, 2021)
Other telecom operators in the UK recorded a total of 90 million minutes in international business calls in the same period. (Ofcom, 2021)
Because of the COVID-19 pandemic, there was a rise in the use of online meeting platforms whether for voice or video conferences. Microsoft Teams Meetings leads the pack with 55.4% of the audience captured. Zoom Meetings followed at 52.3%. Finishing at the top three is Microsoft Skype for Business On-line, with 34.4% saying they used it for meetings. (Kurmi Software, 2021)
Statistics on Business Phone System Benefits
Do you believe that cloud communication helps small businesses compete with large enterprises? Cloud-based communication systems are accessible even to organizations that have a minimal budget for digital platforms. Plus, they offer savings on business phone systems cost to entities, regardless of size.
Telecommuting helped Dell save $39.5 million and cut their carbon pollution in the process. (Multicom, 2021)
Companies can save on cloud telephony, as experts predicted that prices can decline between 3% and 5% annually. (Rowe, 2021)
In fact, VoIP systems cost around $20 to $30 per user per month. (Rowe, 2021)
With VoIP technology’s silence suppression, users can save on data, considering that 50% of a voice conversation is silent. (Rowe, 2021)
Small businesses that switch to VoIP experience high cost savings. The technology can help them save as much as 45% per month compared to when they use the traditional phone service. (Multicom, 2021)
Telephone or in-person conversations are effective in first contact resolution. On average, 75.3% of issues are addressed in the first contact. For leaders, the rate is 85%. (NTT, 2020)
Small businesses with telephones can have the upper hand when it comes to reaching customers. Turns out that 71% of consumers most prefer telephone to contact small enterprises. (Podium, 2021)
65% of small businesses have noted that conference calling is one of the top VoIP features that aid them in improving productivity. (Startupanz.com, 2020)
AI chatbots are likely to conduct 95% of interactions with customers over the phone. With their help, organizations can optimize their telephony processes. (Startupanz.com, 2020)
Technology and Business Phone System Statistics
As technology keeps on improving, business phone systems continue evolving, too. artificial intelligence technologies in CRM, in particular, have been contributing to changes in telephony. Other innovations that are pushing telephony into the future are 5G and voice recognition solutions.
AI remains one of the hottest trends in customer support and 19.1% of organizations have already rolled out plans with nearly half planning to implement it in the next year. Companies can take advantage of this by utilizing AI to advance their telephone operations. (NTT, 2020)
A US Census Bureau survey revealed that 24.8% of companies with over 250 employees have invested in Artificial Intelligence for the various aspects of their operations. (Wired, 2020)
Use of Third-Party Applications for Calls
Despite phones having native applications for phone calls, there are still users who prefer to use third-party applications. This can be due to many reasons such as cost. Direct phone calls can have a hefty price tag. Meanwhile, calls made using third-party applications over the internet can either be free or more cost-efficient.
A survey showed that 53% of adults often use third-party mobile applications to make voice calls rather than use their smartphones’ native calling application. (YouGov, 2021)
In the US, only 22% of adults expressed that they often use third-party applications for making voice calls. (YouGov, 2021)
Nearly three-quarters of employees utilize a mobile app on their business phones for calls. (Startupanz.com, 2020)
Source: YouGov, 2021
SIM Connections and 5G Connections
More and more of the world’s population are purchasing phones. So it stands that the number of SIM connections is also going to increase. In line with that, 5G connections will also go up. The fifth-generation mobile network first became a commercial reality in 2019. Today, it has proliferated despite 4G remaining a strong contender.
There were 8.1 billion SIM connections in 2020. That number is predicted to increase to 8.8 billion by 2025. (GSMA, 2021)
The penetration rate of SIM connections is going to be 107% when 2025 comes around. (GSMA, 2021)
4G connections are still expected to rise and are predicted to peak below 60% by 2023. (GSMA, 2020)
Global telecom expenditure is forecast to hit $1.595 billion in 2024. This is likely due to the roll-out of 5G network technology and other digitization plans. (Statista, 2020)
5G is predicted to have 21% of the global connections by 2025, as it is now available in 24 markets. (GSMA, 2021)
Developed Asia Pacific is expected to have the highest share of 5G connections by 2025–53%. (GSMA, 2021)
73 operators in 41 countries have launched one or more 3GPP-compliant 5G services (including 66 mobile and 35 FWA services) up from 63 operators in 35 countries as reported in March 2020. (GSA, 2020)
Most Popular Business Phone Systems
RingCentral. An all-in-one business phone system designed to help businesses of any size to communicate more effectively. Read more about it in our comprehensive RingCentral review.
Axon Virtual PBX. Offers an advanced VoIP technology that facilitates better communications management. For more information, read our Axon Virtual PBX review.
Comcast VoIP. A scalable business phone solution provided by one of the biggest telecom providers in the US. This Comcast VoIP review discusses its core features, pricing, and other details.
Jive Voice. A cloud-based business phone system that’s designed to streamline business communications. If you want to know more about it, read this Jive Voice review.
Freshcaller. This cloud business phone solution is easy to set up and customize as well as doesn’t need any additional hardware to run. You can learn more about this system in this Freshcaller review.
Other Technologies Affecting Business Phone Systems
The global voice recognition market is expected to grow to $27.16 billion by 2026. With the rise in the use of artificial intelligence, it is not surprising that pundits expect voice recognition to make a giant leap. With this technology, users can easily make calls and better command voice assistants.
Mobile Number Portability or MNP is a service that enables users to migrate their previous numbers from other ISPs. It is available in more than 100 countries and over 40% have been ported. (XConnect, 2021)
Since business phone systems these days are no longer siloed, they can connect with software or applications that can enrich customer relationship management. Thus, while speaking with customers over the phone, agents can provide the personalization they need. This can put your organization on par with the 20.4% sales operations that have access to information based on recent contacts. (NTT, 2020)
Business Phone System Challenges Statistics
Digital communication channels have been threatening phone systems for more than a decade. Apart from that, there are other serious problems that can affect business phone users negatively.
Residential VoIP subscriptions in the United States peaked at 32.239 million in December 2013. (Federal Communications Commission, 2021)
But since then, the number gradually decreased. By June 2019, there were only 29.793 million active VoIP subscriptions by residential customers. (Federal Communications Commission, 2021)
The number of mobile subscriptions worldwide reached 8.648 billion in 2021. (Federal Communications Commission, 2021)
The number of mobile subscriptions worldwide reached 8.648 billion in 2021. (ITU, 2021)
In the Americas, mobile subscriptions number 1.225 billion. That is a stark contrast to the number of VoIP subscriptions, even at its peak. (ITU, 2021)
Among the most popular smartphone activities worldwide by December 2020, ‘played a game’ garnered 68% of responses. Making telephone calls or even sending SMS is not one of the significant activities done on smartphones by users. (Mobile Ecosystem Forum, 2021)
Leading or Not Leading?
Amid all the impressive business phone systems statistics presented thus far, the telephone remains king in some cases. But there are other data that do not pain a rosy picture for telephones or phone calls.
Agent-led telephone remains one of the most common support channels, with 88.2% of organizations providing it currently. (NTT, 2020)
Unfortunately, email is the top-notcher in customer support channels with 89.8% of organizations using it presently. (NTT, 2020)
Self-service telephone is also the top five modes of customer support. There are 58.8% of organizations that have implemented it. (NTT, 2020)
US (41%) and UK (53%) customers are willing to wait to speak with customer service representatives between 6 to 10 minutes at most. This bodes increasing patience and tells agents they need to work faster. (Stella Connect, 2021)
75% of millennials avoid phone calls because they are time-consuming. (BankMyCell, 2021)
Millennials have apprehension anxiety when it comes to making phone calls. 81% feel they have to muster up the courage to make phone calls. (BankMyCell, 2021)
Only 24% of consumers prefer phone calls as a mode for receiving business communications, according to a survey of smartphone users worldwide from December 2020 to January 2021. (Mobile Ecosystem Forum, 2021)
COVID-19 is an unprecedented crisis. Aside from the global economy taking a huge hit, there were other problems that presented themselves. One of those is the increase in spam calls.
When the economy was hit hard by the COVID-19 pandemic, the number of spam calls worldwide went down beginning in March 2020. Its lowest point was in April 2020. However, it began rising the following month by 9.7% and hit a high in October 2020 with an increase of 22.4% (Truecaller, 2020).
Small businesses with telephones can have the upper hand when it comes to reaching customers. It turns out that 71% of consumers in the US and Australia most prefer telephone to contact small enterprises. (Truecaller, 2020)
The US is now the second country with the most spam calls, as users receive 28.4 spam calls on average. (Truecaller, 2020)
Scammers’ favorite way to contact people is through phone calls in the US. Those they victimized reported a median loss of $1,000 in 2019. (Federal Trade Commission)
The top government-related scam is the Social Security scam. The victims had a median loss of $1,500 each. (Federal Trade Commission)
Overall, impostors who utilized phone calls for scams conned people out of $667 million, most of which was paid through gift cards. (Federal Trade Commission)
1 out of 3 scam calls would be answered because individuals were unfamiliar with the calling number. (First Orion)
28% of scam calls victimized people using their personal data. (First Orion)
75% of victims reported that the scammers were in possession of their personal information. This led to 35% of targets continuing the conversation. (First Orion)
Additionally, 39% said that scammers knew where they lived. (First Orion)
Scammers that present themselves as known businesses can increase call volumes by 100 times in a few hours. (First Orion)
With spam calls proliferating, organizations have to be vigilant of their customers’ information. On top of that, they need to watch out for reports of scammers using their names to get money from people.
Facing the Challenges of the Future
Before telephones, there were analog modes of communication such as snail mail. That was pretty effective in reaching consumers, especially those who may be interested in what a business offers but are in far-flung areas. But when telephones became commonplace, there was less reliance on snail mail. Companies started to take advantage of this new technology to get in touch with consumers. Then, digital communication happened.
One of the business phone systems statistics showed that a certain group of people have expressed anxiety in answering phone calls. Why this is, there could be any number of reasons. However, it says something about the behaviors of consumers these days. Calls, whether on the telephone, smartphone, or maybe even through third-party applications, are not exactly welcome.
So, how can organizations keep up? There are strategies they can follow, such as omnichannel strategy. It can be effective not only in selling but in customer support as well. In this way, businesses can keep up with the times and stay relevant.
Editorial Staff. (2020, August 31). Infographic: How the pandemic will boost worldwide VoIP market – startupanz.com. Startupanz.com.
Federal Communications Commission. (2021). Voice telephone services: Status as of June 30, 2019. FCC.
First Orion. (2019). Scam call trends and projections report summer 2019. First Orion Corp.
Global Market Insights. (2021, April 26). VoIP market size forecast 2021-2027 | Industry share analysis report. Global Market Insights, Inc.
Jenny Chang is a senior writer specializing in SaaS and B2B software solutions. Her decision to focus on these two industries was spurred by their explosive growth in the last decade, much of it she attributes to the emergence of disruptive technologies and the quick adoption by businesses that were quick to recognize their values to their organizations. She has covered all the major developments in SaaS and B2B software solutions, from the introduction of massive ERPs to small business platforms to help startups on their way to success.
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