The Business Research Company’s report on the Telephony Application Server Market provides insights into the global market size, growth rate, regional distribution, competitive landscape, key segments, emerging trends, and strategic opportunities.
Which emerging drivers are set to accelerate the growth of the telephony application server market further?
The growing digital transformation is expected to propel the growth of the telephony application server market going forward. Digital transformation refers to the integration of digital technology into all aspects of business operations, fundamentally changing how organizations operate and deliver value to customers. The rise in digital transformation is driven by the need for businesses to enhance efficiency, improve customer experiences, and stay competitive in an increasingly digital world. Digital transformation boosts telephony application servers by enabling advanced features such as cloud integration, scalability, and enhanced analytics, improving overall communication efficiency and flexibility. For instance, in October 2023, according to the Australian Bureau of Statistics, an Australia-based government administration, digital activity in Australia grew by 8.6%, reaching $10.9 billion, while the overall Australian economy expanded by 11.7%. During this time, every sector of digital activity saw growth. Notably, the e-commerce retail sector experienced a 12.6% increase in 2021–22, following a substantial 41.8% rise in the previous year. Therefore, the growing digital transformation is driving the growth of the telephony application server market.
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What are the key factors influencing the forecasted market size of the telephony application server industry?
The telephony application server market size has grown strongly in recent years. It will grow from $7.71 billion in 2024 to $8.38 billion in 2025 at a compound annual growth rate (CAGR) of 8.7%. The growth in the historic period can be attributed to the expansion of e-commerce, increasing demand for advanced communication, increased use of cloud-based services, growth in data traffic, and the emergence of 5g technology.
The telephony application server market size is expected to see strong growth in the next few years. It will grow to $11.57 billion in 2029 at a compound annual growth rate (CAGR) of 8.4%. The growth in the forecast period can be attributed to growing digital transformation, growing demand for robust telephony solutions, rising adoption of unified communications, increased remote work adoption, and rising mobile and web applications. Major trends in the forecast period include a focus on advanced technologies, facilitating voice over internet protocol (VoIP), development of advanced solutions such as microservices architecture, adoption of AI and automation, development of network function virtualization (NFV), and strategic partnerships among market players.
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Who are the leading competitors in the telephony application server market?
Major companies operating in the telephony application server market are Microsoft Corporation, Huawei Technologies Co. Ltd., International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, SAP SE, The Hewlett Packard Enterprise Company, Telefonaktiebolaget LM Ericsson, Nokia Corporation, Fujitsu Limited, NEC Corporation, Adobe Inc., Avaya Holdings Corp., Ribbon Communications Inc., Sangoma Technologies Corporation, Squire Technologies Ltd, Dialogic Group Inc., CreaLog Software-Entwicklung und Beratung GmbH, Mobius Software, PAiC BD
Which emerging trends are set to transform the telephony application server market landscape?
Major companies in the telephony application server market are increasingly focusing on advanced cloud-native IMS voice core products to enhance scalability, reduce costs, and offer more flexible communication solutions. Cloud-native IMS voice core products refer to scalable, flexible communication solutions built for cloud environments that support voice over IP (VoIP) and other multimedia services using the IP Multimedia Subsystem (IMS) architecture. For instance, in May 2022, Nokia Corporation, a Finland-based communications and information technology company, launched the Cloud Native Communication Suite (CNCS), a cutting-edge cloud-native IMS voice core product designed to simplify network operations for communication service providers (CSPs). This advanced solution integrates various 3GPP standard functionalities into a single cloud native network function (CNF), streamlining deployment and operational management.
How do different geographies compare in terms of market share and growth potential in the telephony application server market?
North America was the largest region in the telephony application server market in 2024. The regions covered in the telephony application server market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Which major segments of the telephony application server market are experiencing the fastest growth?
The telephony application server market covered in this report is segmented –
1) By Type: Software; Service
2) By Application: Unified Communications (UC); Voice Over Internet Protocol (VoIP); Internet Protocol (IP) Telephony; Cloud Communications; Business Phone Systems; Contact Center Solutions
3) By End User: Education; Banking, Financial Services And Insurance (BFSI); Manufacturing; Healthcare; Defense; Retail And E-Commerce; Media And Entertainment; Information Technology (IT) And Telecom; Oil And Gas; Other End Users
Subsegments:
1) By Software: Cloud-Based Telephony Application Servers; On-Premises Telephony Application Servers; Unified Communication Software
2) By Service: Installation and Configuration Services; Maintenance and Support Services; Consulting and Integration Services
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How is the telephony application server market defined?
A telephony application server (TAS) is a software platform that handles telephony services and applications, such as voice and video calls and messaging. It provides the underlying infrastructure for managing and processing communication requests, enabling integration with various communication protocols and services.
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