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66 Key Business Phone Systems Statistics: 2021/2022 Market Share Analysis & Data

A new version of this article, featuring the latest data and statistics, is available. Check out our report on Business Phone Systems Statistics for 2022.

Business phone systems have come a long way from relying on manual switchboards to utilizing the internet for calls. We’ve also seen phone systems such as cloud PBX and VoIP become faster and more intelligent. This enabled companies to further optimize and streamline their communication efforts.

However, as we move further into the age of social media and instant messaging, will business phone systems still remain relevant to operations? How will VoIP systems and UC platforms evolve in order to stay competitive? Moreover, what will be the challenges to business phone system implementation in the coming decades?

To help you answer these questions, we compiled the most important business phone systems statistics of 2019. We’ve sifted through several VoIP phone service consumer reports and communication data analysis. Likewise, we dug deep into news articles detailing the shifts in the business phone system industry. This way, you get a more accurate view of what to expect and what you can do to adapt.

key business phone systems statistics

General Business Phone System Statistics

Communication is the key to achieving stronger customer relations and improved efficiency in the workplace. In this light, the business phone system market share is expected to grow further in the coming years. Companies are investing more in their communication systems as well as putting more effort into training live agents. Thus, more vendors will further develop their business phone systems to cater to the changing requirements in the industry.

  • The number of corporate VoIP subscribers worldwide reached an estimated 204.8 billion in 2020. (Future Market Insights, 2021)
  • The global VoIP phone system market size in 2018 was $20 billion. In 2025, the value is projected to reach $55 billion. (Global Market Insights, 2019)
  • Overall, the VoIP market size is estimated to grow at a CAGR of 12% from 2019 to 2025. (Global Market Insights, 2019)
  • 64% of businesses believe customers should always have the option to talk to an agent. (CCW Digital, 2018)
  • 60% of companies say that phone systems and live agents are their most urgent investment priorities. (CCW Digital, 2018)

number of VOIP subscribers worldwide

Despite the popularity of social media, email, and self-service help centers, phone calls still remain an integral part of customer service. After all, in most cases, customers expect a hands-on experience from the companies they do business with. They don’t want to talk to bots for their inquiries but prefer interacting with humans.

  • 65% of people prefer to contact a business by phone call versus only 24% who prefer a web form. (Invoca, 2015)
  • 75% of consumers believe that phone calls will help them get a quicker response from businesses. (American Express, 2017)
  • Consumers prefer face-to-face interaction (23%) or talking to a real person on the phone (40%) for their issues. (American Express, 2017)
  • 37% of people use their smartphones primarily for making phone calls. (ReportLinker, 2017)
  • The total revenue of the VoIP industry was $14 billion in 2020 with 1,088 businesses making up the industry. (IBISWorld, 2020)
  • The hosted IP PBX segment is expected to become the fastest-growing area of the VoIP market. It is predicted to grow by 15% from 2019 to 2025. (Global Market Insights, 2019)
  • 90% of US households had operational landline phones in 2004. Today the number has decreased to less than half with 54.9% having wireless telephones (mobile phones). (CDC, 2018)
  • The fixed VoIP market held a share of over 62% in 2018 and is predicted to dominate the market in 2025 with a share of 55%. (VoIP Review, 2019)
  • Hosted PBX is 18.1% of the total PBX market in 2019. This is up from 3.6% in 2010. (Yeastar, 2019)
  • The general costs for IP PBX for an organization with 1-20 employees is $16,867. This increases to over $1 million for organizations with more than 2,500 employees. (SpectrumVOIP, 2017)

Statistics on Business Phone System Benefits

There are many cloud communication benefits for small businesses and even large companies. For starters, modern business phone systems can mobilize your teams and accelerate your response times. These speed up your processes and allow you to keep up with the demands of customers.

  • VoIP statistics show that 29% of companies switch to VoIP to simplify call forwarding to their mobile phones. (Business 2 Community, 2017)
  • VoIP and UC systems allow agents to take calls anywhere across the globe, increasing productivity by up to 20%. (Harbor Networks)

Another perk from investing in modern business phone systems is savings on operational costs. In addition, time spent on phone calls is reduced. Businesses are able to accommodate more customers without compromising service quality or going beyond the budget.

  • VoIP market research shows companies can save 50% to 75% on communication costs using VoIP instead of landline services. (BullsEye Telecom, 2019)
  • Small businesses using VoIP can decrease the cost of local calls by up to 40% and international costs by 90%. (tech.co, 2015)
  • VoIP can trim down initial costs for startup businesses by roughly 90%. (tech.co, 2015)
  • Businesses that utilize unified communications solutions save an average of 191 hours daily and 49,660 hours yearly. (Digium)
  • Having a UC or VoIP system help employees save an average of 32 call minutes per day. (Cisco, 2007)
  • The subscription-based pricing model allows for an easy user and shopping experience. This leads to more sticking and less churn. The monthly churn of hosted PBX services for SMBs was only 1.3% in 2019. (EasternManagementGroup)
  • 84% of IT managers report that mobility is very important and is one of the factors responsible for boosting PBX growth. (EasternManagementGroup)
  • Solo workers and large teams of 7-11 employees get the biggest benefit from UC systems with 50% of businesses witnessing great benefits for teams of these sizes. (SpectrumVOIP, 2017)
  • VoIP has helped 67% of employees believe that VoIP improves call handling, 63% of employees say it helps manage messages, and 57% state that it helps them with remote work. (SpectrumVOIP, 2017)
  • The setup cost for on-premise phone systems can start at $20,000. On the other hand, setup costs for a cloud phone system can be as low as $0. (Telzio, 2014)
  • Companies can save up to 60% on phone and fax costs. (RingCentral, 2018)
  • Cloud-based contact centers reduced their IT personnel costs by 15%. (TeleTech, 2014)
  • There is a 30% reduction in expenses related to conferencing tools. (Ziff Davis, 2014)
  • Unified communications can lead to 50,000 hours in saved time and $920,000 gains due to higher productivity and efficiency. (Ziff Davis, 2014)

Cost Reduction Rate for Businesses Using VoIP System

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Source: Tech.co

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Technology and Business Phone Systems Statistics

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). Business phone systems are no exception.

For the foreseeable future, VoIP, cloud PBX, and IVR will continue evolving and integrating technological advancements. Of course, as these systems evolve, so will operational workflows and protocols.

  • AI with chatbots will drive 95% of customer interactions by 2025. (The Real PBX, 2017)
  • Deloitte Global predicts that the 5G network will open up new revenue opportunities for telecom companies as it rolls out this year. (Deloitte, 2018)
  • 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)
  • VoIP promotes mobility among operations as well as makes Bring Your Own Device possible, a strategy that 53% of workers believe is key to improving productivity. (Cisco, 2016)
  • The Asia Pacific is predicted to become the most dominant global VoIP services market and will reach $100 billion in revenue by the end of 2024. (VoIP Review, 2019)
  • 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)
  • There will be a growing demand for security in the near future, with 61% of IT spending going towards cloud security. (InformationAge, 2020)
  • The education VoIP market is expected to grow at a CAGR of 12% until 2025. This is thanks to the use of softphone applications and IP phones for seminars and class collaborations. (VoIP Review, 2019)
  • The more than 20 million SMBs in the United States will likely stay as the largest hosted PBX market in the near future. (EasternManagementGroup)

 

AI with chatbots

Most Popular Business Phone Systems

  1. 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.
  2. Axon Virtual PBX. Offers an advanced VoIP technology that facilitates better communications management. For more information, read our Axon Virtual PBX review.
  3. 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.
  4. 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.
  5. 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.

Business Phone System Optimization Statistics

Business phone systems can only go so far. If you want to make the most out of your investment, it is best that you apply VoIP best practices as well as remain up-to-date on the business phone system optimization best practices.

Here, we can see that there are many ways for you to boost your usage of VoIP and UC systems. In addition to leveraging AI and a 5G network, as mentioned previously, many businesses also utilize time-tested strategies like adding click-to-call buttons to websites, monitoring the efficiency of calls as well as performing follow-up calls for sales.

  • 70% of shoppers have utilized click-to-call buttons from search ads. (Search Engine Watch, 2013)
  • Click-to-Call buttons are one of the most effective widgets you can place on your website as it can increase conversion rate by 200% when placed above the fold. (Quick Sprout, 2013)
  • Mobile search accounts for 48% of total call volume. It is closely followed by desktop search at 17%, desktop display at 11%, and content/review sites at 9%. (Invoca, 2016)
  • 55% of people view call monitoring as the best way to gain customer feedback. (Deloitte, 2016)
  • 80% of sales transactions need at least five follow-up phone calls after an initial meeting to boost the chances of conversion. (Marketing Donut)
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Top 10 Sources of Phone Calls for Businesses

Top 10 Sources of Phone Calls for Businesses
Mobile Search: 48

Mobile Search

%
Top 10 Sources of Phone Calls for Businesses
Desktop Search: 17

Desktop Search

%
Top 10 Sources of Phone Calls for Businesses
Desktop Display: 11

Desktop Display

%
Top 10 Sources of Phone Calls for Businesses
Content/Review Sites: 9

Content/Review Sites

%
Top 10 Sources of Phone Calls for Businesses
Mobile Display: 3

Mobile Display

%
Top 10 Sources of Phone Calls for Businesses
Radio: 3

Radio

%
Top 10 Sources of Phone Calls for Businesses
Email: 3

Email

%
Top 10 Sources of Phone Calls for Businesses
TV: 2

TV

%
Top 10 Sources of Phone Calls for Businesses
Newspaper: 2

Newspaper

%
Top 10 Sources of Phone Calls for Businesses
Directory: 2

Directory

%

Source: Invoca Call Intelligence Index

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Business Phone System Challenges Statistics

More and more consumers are relying on their smartphones, rendering landlines obsolete. While these mobile devices may just as easily be used to make phone calls, a good chunk of smartphone owners simply aren’t using them for that purpose. Instead, they opt to utilize these gadgets mainly for social media, emailing, or even browsing the net. This means there will be fewer consumers who would contact your hotlines.

The only silver lining here is that most business phone systems are equipped to handle multiple communication channels, so investing in one won’t be a waste of money. Moreover, as we’ve discussed earlier, there is still a large fraction of consumers who would prefer to talk to live agents for their complex product or service inquiries.

  • The use of landline phones has dropped significantly, with 53.9% of US households depending solely on their cellphones for communications. (Markets Insider, 2018)
  • 37% of teens use their phones to connect with other people, though it is unclear whether they do so through phone calls or other avenues. (Pew Research, 2019)
  • 75% of adults in the United Kingdom have smartphones, 25% of which don’t use them for calls. (The Guardian, 2016)
  • Americans answer only 52% of calls to their mobile phones. (Hiya)

If you intend to utilize VoIP for internal communications, you might be in for a challenge. First off, CEOs are increasingly avoiding the use of phone conferencing in order to boost more personal interactions within teams. Secondly, millennials, the generation comprising a majority of the current workforce, have some kind of aversion to making phone calls.

  • CEOs avoid defaulting to phone or video conferences unless necessary. In fact, 61% of their productive hours are spent on face-to-face interactions, and only 15% is spent on the phone. (Harvard Business Review, 2018)
  • 10 minutes is the average amount of time millennials are willing to wait to speak to a customer service agent over the phone. (Talkdesk, 2018)
  • 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)

Lastly, in terms of making yourself reachable to clients, it might be important to note that there is an increasing number of consumers who are turning to self-service rather than any other form of the customer service channel. In fact, it seems that industries are relying more on AI and bots to handle inquiries or on FAQs and knowledge bases as these can lower operational costs.

  • 6 in 10 shoppers in the US prefer using digital self-serve tools for inquiries. These include websites (24%), mobile apps (14%), voice response systems (13%), or online chat (12%). (American Express, 2017)
  • In 2020, experts estimate that 85% of business relationships can be handled without human interaction. (IBM, 2017)

Aside from technological shifts and changing consumer trends, a great challenge in the industry is dealing with spam, fraudulent, and scam calls. This not only hurts the victims but also the businesses and federal agencies that the scammers would use for posing.

  • 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).
  • Brazil is the most affected by spam calls, with an average of 49.9 calls per user each month. (Truecaller, 2020)
  • The US is now the second country with the most spam calls, as users receive 28.4 scam 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, 2019)
  • The top government-related scam is the Social Security scam. The victims had a median loss of $1,500 each. (Federal Trade Commission, 2019)
  • Overall, imposters who utilized phone calls for scams conned people out of $667 million, most of which were paid through gift cards. (Federal Trade Commission, 2019)
  • 1 out of 3 scam calls would be answered because individuals were unfamiliar with the calling number. (First Orion, 2019)
  • 28% of scam calls victimized people using their personal data. (First Orion, 2019)
  • 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, 2019)
  • Additionally, 39% said that scammers knew where they lived. (First Orion, 2019)
  • Scammers that present themselves as known businesses can increase call volumes by 100 times in a few hours. (First Orion, 2019)

What Does It Mean for Your Business?

Newer, less disruptive communication channels are becoming a staple, and consumers are opting more for self-service support solutions. So, at first glance, the future of business phone systems seems bleak. However, the statistics we gathered say otherwise.

Business phone systems remain crucial software that you should add to your office setup checklist. These tools still prove highly effective in enhancing productivity in the office. Also, though customer care will use more AI, your clients will still prefer to connect with your brand through humans.

Of course, this isn’t to say that you shouldn’t leverage AI systems for your business phone systems. On the contrary, you should take advantage of newer technologies to keep up with the times. It is also imperative that you upgrade not only your communications software but also your workflow. In this regard, VoIP and UC can help streamline communications and operational processes.

If you don’t already have a business phone system or have yet to upgrade your existing system, don’t worry. There are plenty of VoIP software systems for small businesses and large enterprises that you can choose from. Hopefully, with this compilation of business phone systems statistics, you were able to get a good idea of what features you should look for in these software solutions as well as how you can enhance your usage of them in the future.

 

References:

  1. American Express (2017, December 15). #WellActually, Americans Say Customer Service is Better Than Ever. American Express
  2. Blumberg, S. & Luke, J. (2018, December). Wireless Substitution: Early Release of Estimates From the
    National Health Interview Survey, January–June 2018. CDC
  3. Bhutani, A. & Wadhwani, P. (2019, April). Voice over Internet Protocol (VoIP) Market Size By Type (Integrated Access/Session Initiation Protocol (SIP) Trunking, Managed IP PBX, Hosted IP PBX), By Access Type (Phone to Phone, Computer to Computer, Computer to Phone), By Call Type (International VoIP Calls, Domestic Calls), By Medium (Fixed, Mobile), By End-Use ( Consumers, SMBs, Large Enterprises), By Application (IT & Telecom, BFSI, Healthcare, Government & Public Sector, Retail, Education, Hospitality), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2019 – 2025. Global Market Insights
  4. BullsEye Telecom (2019, October 21). An Introduction to VoIP and its Cost Savings. BullsEye Telecom
  5. Buchanan, D. (2016, August 26). Wondering why that millennial won’t take your phone call? Here’s why. The Guardian
  6. Cantor, B. (2018, November). THE FUTURE OF THE CONTACT CENTER IN 2019. CCW Digital
  7. Chen, J. (2014, January 21). The Cost Benefits of Switching to a VoIP Service. Telzio
  8. Clay, R. Why you must follow up leads. Marketing Donut
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  10. Cisco (2016). Why Aren’t You Investing in BYOD? Cisco
  11. Deloitte (2018). Will 5G remake the world, or just make it a little faster? That may depend on telecommunications companies. Deloitte
  12. Digium. Unified Communications Saves You Time and Money. Digium
  13. EasternManagementGroup (2020). NEW REPORT 7-Year Market for Hosted PBX. EasternManagementGroup
  14. Fenech, C., Perkins, B., Thomson, R., & Atkins, F. (2016, November). The Deloitte Consumer Review CX marks the spot: Rethinking the customer experience to win. Deloitte
  15. First Orion (2019). Scam Call Trends and Projections Report Summer 2019. First Orion
  16. Future Market Insights (2021). VOIP Services Market. Future Market Insights 
  17. GSA (2020, April). 5G – LTE & 5G Market Statistics – April 2020. GSA
  18. Goodwin, D. (2013, September 24). Google: 70% of Mobile Searchers Call a Business Directly From Search Results [Study]. Search Engine Watch
  19. Harbor Networks. 13 VoIP Statistics to Build a Business Case. Harbor Networks
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  21. Hurst, A. (2020, November 10). Gartner CIO Agenda 2021 — increased spending in cyber security most commonly projected. InformationAge
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  24. Invoca (2016). CALL INTELLIGENCE INDEX’16. Invoca
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  26. Knight, W. (2020, July 30). AI Is All the Rage. Why Aren’t More Businesses Using It? Wired
  27. Kok, K. (2020, December 8). TRUECALLER INSIGHTS: TOP 20 COUNTRIES AFFECTED BY SPAM CALLS IN 2020. Truecaller
  28. Markets Insider (2018, July 16). Landlines Predicted Obsolete by 2020; ULTATEL Explains What This Means for Businesses. Markets Insider
  29. Porter, M. & Nohria, N. (2018, July-August). How CEOs Manage Time. Harvard Business Review
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  31. ReportLinker (2017, January 26). Smartphone Statistics: For most Users, It’s a ‘Round-the-Clock’ Connection. Report Linker 
  32. RingCentral (2018). Cut your phone costs with RingCentral Office. RingCentral
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  34. Schaeffer, K. (2019, August 23). Most U.S. teens who use cellphones do it to pass time, connect with others, learn new things. Pew Research Center
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  37. SpectrumVoIP (2017, November 13). Compelling Voice over IP Statistics to Build Your Business Case. SpectrumVoIP
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  39. TeleTech (2014). Cloud Contact Center Total Cost of Ownership. TeleTech
  40. Turner, A. (2021, February 21). WHY MILLENNIALS HATE TALKING ON THE PHONE ‘GENERATION MUTE’ MILLENNIALS PHONE CALL STATISTICS. BankMyCell
  41. Vaca, M. (2020, January 23). The top frauds of 2019. Federal Trade Commission
  42. Viasasha, S. (2017, November 19). The State of Business VoIP and Where It’s Headed in 2018. Business 2 Community
  43. XConnect (2021, February 12). Countries with Mobile Number Portability. XConnect
  44. Yeastar (2019, January 24). 2019 Upward Trend: Hosted Small Business Phone System. Yeastar
  45. Ziff Davis (2014). Unified Communications: The Layman’s Guide. Ziff Davis
Jenny Chang

By Jenny Chang

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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