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US IP Phones Market

ID: MRFR/SEM/14924-HCR
200 Pages
Garvit Vyas
October 2025

US IP Phones Market Research Report: By Technology (VoIP, SIP, Wireless), By Deployment Type (On-Premises, Cloud-Based, Hybrid), By End User (Corporate, Government, Healthcare, Education) and By Features (Video Conferencing, Call Recording, Multi-Device Support, Mobile Integration) - Forecast to 2035

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US IP Phones Market Infographic
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US IP Phones Market Summary

As per MRFR analysis, the US ip phones market Size was estimated at 1020.58 USD Million in 2024. The US ip phones market is projected to grow from 1082.73 USD Million in 2025 to 1955.6 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 6.09% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US IP phones market is experiencing a transformative shift towards integrated communication solutions.

  • The largest segment in the US IP phones market is the unified communications segment, which is witnessing substantial growth.
  • Enhanced mobility features are becoming increasingly important as businesses adapt to flexible work environments.
  • The fastest-growing segment is the cloud-based IP phones, driven by the rising demand for remote work solutions.
  • Technological advancements in communication and the growing adoption of unified communication solutions are key market drivers.

Market Size & Forecast

2024 Market Size 1020.58 (USD Million)
2035 Market Size 1955.6 (USD Million)

Major Players

Cisco Systems (US), Avaya (US), Mitel Networks (CA), Unify (DE), Polycom (US), Grandstream Networks (US), Yealink (CN), Snom Technology (DE), Aastra Technologies (CA)

US IP Phones Market Trends

The ip phones market is currently experiencing a notable transformation, driven by advancements in technology and changing consumer preferences. As businesses increasingly adopt cloud-based solutions, the demand for ip phones that integrate seamlessly with these systems appears to be on the rise. This shift is likely influenced by the need for enhanced communication capabilities, which are essential for maintaining competitive advantages in various sectors. Furthermore, the growing emphasis on remote work arrangements has led to a heightened interest in devices that offer flexibility and mobility, suggesting that manufacturers may need to adapt their offerings accordingly. In addition, the trend towards unified communications is becoming more pronounced, as organizations seek to streamline their communication tools. This integration of voice, video, and messaging services into a single platform may drive innovation within the ip phones market. As a result, companies are likely to invest in research and development to create devices that not only meet current demands but also anticipate future needs. Overall, the ip phones market is poised for growth, with evolving technologies and user expectations shaping its trajectory.

Integration with Cloud Services

The ip phones market is witnessing a shift towards devices that seamlessly connect with cloud-based communication platforms. This trend reflects the increasing reliance on remote work and the need for flexible communication solutions.

Focus on Unified Communications

There is a growing emphasis on integrating various communication tools into a single platform. This trend indicates a demand for ip phones that support voice, video, and messaging functionalities, enhancing overall user experience.

Enhanced Mobility Features

The market is seeing a rise in demand for ip phones that offer mobility features. This trend suggests that users are looking for devices that allow them to communicate effectively from various locations, supporting the modern workforce.

US IP Phones Market Drivers

Increased Focus on Security Features

Security concerns are becoming paramount in the ip phones market, as businesses prioritize the protection of sensitive information. The rise in cyber threats has led to a demand for ip phones equipped with advanced security features, such as encryption and secure access protocols. Organizations are increasingly aware that their communication systems must be safeguarded against potential breaches. The ip phones market is responding to this need by developing devices that offer robust security measures. It is projected that by 2025, the market for secure communication solutions will grow by approximately 15%, indicating a strong trend towards prioritizing security in communication technologies.

Rising Demand for Remote Work Solutions

The shift towards remote work has significantly impacted the ip phones market. As companies adapt to flexible work arrangements, the need for reliable communication tools has intensified. The ip phones market is witnessing an increase in demand for devices that facilitate seamless communication between remote employees and their teams. In 2025, it is estimated that around 60% of the workforce will engage in remote work, further driving the need for ip phones that offer features such as call forwarding, conferencing, and integration with collaboration tools. This trend suggests that the ip phones market will continue to expand as organizations invest in technology that supports their remote workforce.

Integration with Artificial Intelligence

The integration of artificial intelligence (AI) into communication systems is emerging as a key driver in the ip phones market. AI technologies are enhancing user experiences by providing features such as voice recognition, automated call routing, and predictive analytics. These innovations are likely to improve efficiency and streamline communication processes within organizations. As businesses increasingly recognize the benefits of AI in enhancing productivity, the ip phones market is expected to see a rise in demand for AI-enabled devices. By 2025, it is anticipated that the market for AI-driven communication solutions will grow by around 20%, reflecting the transformative impact of AI on the industry.

Technological Advancements in Communication

The ip phones market is experiencing a surge due to rapid technological advancements in communication systems. Innovations such as Voice over Internet Protocol (VoIP) and high-definition audio are enhancing the quality and efficiency of communication. As organizations increasingly adopt these technologies, the demand for advanced ip phones is likely to rise. In 2025, the market is projected to reach approximately $3 billion, reflecting a growth rate of around 10% annually. This growth is driven by the need for improved communication tools that support remote work and collaboration. The ip phones market is thus positioned to benefit from these advancements, as businesses seek to upgrade their communication infrastructure to remain competitive.

Growing Adoption of Unified Communication Solutions

The trend towards unified communication solutions is significantly influencing the ip phones market. Businesses are increasingly seeking integrated communication platforms that combine voice, video, and messaging services. This shift is driven by the desire for streamlined communication and improved collaboration among teams. The ip phones market is adapting to this demand by offering devices that seamlessly integrate with unified communication systems. In 2025, it is projected that the market for unified communication solutions will reach $5 billion, indicating a robust growth trajectory. This trend suggests that the ip phones market will continue to evolve as organizations prioritize comprehensive communication solutions.

Market Segment Insights

By Technology: VoIP (Largest) vs. Wireless (Fastest-Growing)

In the US ip phones market, the VoIP segment holds a significant share due to its established presence and widespread adoption across various sectors. It has become the dominant technology, driven by the increasing demand for cost-effective and feature-rich communication solutions. Conversely, the Wireless segment, while smaller in comparison, is rapidly gaining traction, especially in environments that prioritize mobility and flexibility in communication. As organizations continue to embrace digital transformation, the growth of technologies like SIP is fostering innovation within the market. This is leading to enhanced interoperability and integration with other communication systems. The rapid advancements in Wireless technology, particularly with the expansion of networks like 5G, are catalyzing growth in the segment, attracting attention from both consumers and businesses seeking adaptable and efficient communication solutions.

Technology: VoIP (Dominant) vs. Wireless (Emerging)

VoIP technology is currently the dominant player in the US ip phones market, thanks to its reliability and cost-effectiveness. Businesses widely adopt it due to its scalability and the rich features it offers, such as call forwarding, voicemail to email, and video conferencing capabilities. In contrast, the Wireless segment is emerging as a significant contender, appealing mainly to mobile users and organizations that require flexible communication solutions without the constraints of wired connections. The advancements in battery technology and portable hardware are enhancing the appeal of Wireless devices, positioning them as a viable alternative as remote and hybrid working arrangements become more prevalent.

By Deployment Type: Cloud-Based (Largest) vs. On-Premises (Fastest-Growing)

In the US ip phones market, the deployment types are witnessing distinct preferences among businesses. Cloud-based solutions currently command the largest share, attributed to their scalability, cost-effectiveness, and ease of integration with existing systems. On-premises solutions, though historically favored, are now being challenged by the growing appeal of cloud alternatives, which provide businesses with flexibility and reduced maintenance overheads. Hybrid deployments are also gaining traction, combining the strengths of both cloud and on-premises systems to create tailored communication solutions that cater to specific organizational needs. The growth trends within this segment indicate a significant shift towards cloud-based deployment as businesses progressively seek greater agility and remote working capabilities. The ongoing digital transformation and the increasing necessity for unified communications are driving this change. Meanwhile, on-premises solutions are leveraging advancements in security and control, appealing to businesses that prioritize data sovereignty. The hybrid model represents an emerging trend, allowing organizations to balance the benefits of both deployment types, leading to a more customized approach aligned with unique business requirements.

Cloud-Based (Dominant) vs. On-Premises (Emerging)

Cloud-based deployments are leading the charge in the US ip phones market, demonstrating considerable advantages such as lower upfront costs, greater accessibility, and extensive scalability options. Businesses adopting cloud solutions benefit from regular updates, enhanced collaboration tools, and eliminating the need for extensive on-site hardware. In contrast, on-premises solutions, while traditionally viewed as a stable and secure option, are now emerging as a compelling choice for organizations that prioritize data control and security, particularly in industries with stringent compliance requirements. The hybrid model offers a middle-ground approach, allowing organizations to leverage both cloud efficiencies and on-premises reliability, making it an increasingly popular choice for enterprises looking to optimize their communication infrastructure.

By End User: Corporate (Largest) vs. Healthcare (Fastest-Growing)

The distribution of market share among the segment values in the US ip phones market indicates a predominant inclination towards the Corporate segment, which holds a significant share. This is followed by the Government segment, which also has a substantial presence. The Healthcare and Education segments show smaller shares, yet they are critical to the overall market dynamics, particularly with the increased adoption of technology in these sectors. Growth trends in the US ip phones market are largely driven by advancements in communication technologies and the rising demand for efficient communication systems across various sectors. The Corporate segment continues to lead, but the Healthcare sector is rapidly emerging as the fastest-growing segment due to the increasing reliance on telecommunication solutions for remote patient care. Education is also witnessing growth as institutions modernize their communication infrastructure.

Corporate: Corporate (Dominant) vs. Healthcare (Emerging)

The Corporate segment in the US ip phones market stands out as the dominant force, characterized by extensive deployments and a robust demand for advanced communication solutions to enhance productivity and efficiency. This sector encompasses a wide range of businesses, driving the need for scalable and feature-rich phone systems. On the other hand, the Healthcare segment is emerging rapidly, reflecting a shift in how healthcare providers communicate, particularly with the rise of telehealth services. This segment is witnessing increased investment in IP telephony due to its role in facilitating patient interaction and operational efficiency. As both segments evolve, their unique characteristics highlight the varying demands and technological adaptations within the market.

By Features: Video Conferencing (Largest) vs. Call Recording (Fastest-Growing)

In the US ip phones market, Video Conferencing is the largest feature segment, holding significant market share due to its wide adoption among businesses for remote collaboration. Call Recording follows as the fastest-growing segment, benefitting from the increasing focus on compliance and quality assurance in communications. Multi-Device Support and Mobile Integration are also essential features but capture smaller portions of the market share. The growth trends in the features segment are driven by technological advancements and changing workplace dynamics. The rise of remote work has notably propelled the demand for Video Conferencing solutions, while Call Recording's growth is fueled by the need for better security and regulatory compliance. Multi-Device Support enhances flexibility in communications, and Mobile Integration caters to the growing mobile workforce, all contributing to the overall development of the segment.

Video Conferencing (Dominant) vs. Call Recording (Emerging)

Video Conferencing stands as the dominant feature in the US ip phones market, characterized by robust usage in corporate environments for seamless communication and collaboration. This feature facilitates real-time video interactions, which are essential for businesses that aim to maintain productivity in remote settings. On the other hand, Call Recording is an emerging feature that has gained traction as businesses prioritize accountability and review processes in their communication strategies. This feature not only assists in maintaining quality standards but also ensures compliance with industry regulations, making it increasingly desirable in the current market. As both features evolve, they reflect the changing landscape of business communications driven by digital transformation.

Get more detailed insights about US IP Phones Market

Key Players and Competitive Insights

The ip phones market is currently characterized by a dynamic competitive landscape, driven by technological advancements and evolving consumer preferences. Major players such as Cisco Systems (US), Avaya (US), and Polycom (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Cisco Systems (US) emphasizes innovation through its robust portfolio of cloud-based solutions, while Avaya (US) focuses on integrating AI capabilities into its offerings to improve user experience. Polycom (US), on the other hand, is leveraging partnerships to expand its reach in the enterprise segment, thereby shaping a competitive environment that is increasingly reliant on technological differentiation.

Key business tactics within the ip phones market include localizing manufacturing and optimizing supply chains to enhance efficiency and reduce costs. The market structure appears moderately fragmented, with several key players exerting influence over various segments. This fragmentation allows for a diverse range of products and services, catering to different customer needs while fostering competition among established and emerging companies.

In October 2025, Cisco Systems (US) announced a strategic partnership with a leading cloud service provider to enhance its VoIP offerings. This collaboration is expected to bolster Cisco's position in the cloud communications space, enabling it to deliver more integrated solutions to its customers. The strategic importance of this partnership lies in its potential to drive innovation and improve service delivery, aligning with the growing demand for cloud-based communication solutions.

In September 2025, Avaya (US) launched a new AI-driven analytics tool designed to optimize call center operations. This tool aims to provide businesses with actionable insights, thereby enhancing customer engagement and operational efficiency. The introduction of this technology underscores Avaya's commitment to integrating advanced analytics into its product suite, which may significantly improve its competitive edge in the market.

In August 2025, Polycom (US) expanded its product line by introducing a series of eco-friendly ip phones, reflecting a growing trend towards sustainability in technology. This move not only caters to environmentally conscious consumers but also positions Polycom as a leader in sustainable practices within the industry. The strategic importance of this initiative lies in its alignment with global sustainability goals, potentially attracting a new customer base that prioritizes eco-friendly products.

As of November 2025, current trends in the ip phones market are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are increasingly shaping the competitive landscape, allowing companies to pool resources and expertise to drive innovation. Looking ahead, it appears that competitive differentiation will evolve from traditional price-based competition to a focus on innovation, technological advancements, and supply chain reliability. This shift may redefine how companies position themselves in the market, emphasizing the importance of adaptability and forward-thinking strategies.

Key Companies in the US IP Phones Market market include

Industry Developments

In the US IP Phones Market,recent developments include a shift towards cloud-based solutions, with several companies innovating to enhance their product offerings. Avaya has been actively promoting its cloud communication platforms, catering to a growing demand for remote work solutions. Unify has also expanded its portfolio, focusing on integrating Artificial Intelligence features into their offerings. Notably, in July 2023, Cisco Systems announced its acquisition of a leading software company to enhance its VoIP functionalities, bolstering its market presence. Furthermore, in September 2022, Mitel completed its merger with a prominent telecommunications provider, significantly increasing its customer base. 

The market has witnessed substantial growth, with valuations improving due to the rise in remote work and digital transformation initiatives among businesses. Polycom and Yealink have reported strong sales growth, capitalizing on this trend. Granstream Networks and Sangoma have expanded their distribution channels, allowing for greater market reach. These developments underline a dynamic market landscape in the US, with companies adapting to new technology demands and changing how businesses communicate. The ongoing advancements highlight a competitive environment aimed at enhancing user experience and operational efficiency.

Future Outlook

US IP Phones Market Future Outlook

The IP phones market is projected to grow at a 6.09% CAGR from 2024 to 2035, driven by advancements in VoIP technology and increasing demand for unified communications.

New opportunities lie in:

  • Integration of AI-driven analytics for enhanced call management.
  • Development of cloud-based IP phone solutions for remote work.
  • Expansion into vertical markets like healthcare and education with tailored solutions.

By 2035, the IP phones market is expected to achieve substantial growth, reflecting evolving communication needs.

Market Segmentation

US IP Phones Market End User Outlook

  • Corporate
  • Government
  • Healthcare
  • Education

US IP Phones Market Features Outlook

  • Video Conferencing
  • Call Recording
  • Multi-Device Support
  • Mobile Integration

US IP Phones Market Technology Outlook

  • VoIP
  • SIP
  • Wireless

US IP Phones Market Deployment Type Outlook

  • On-Premises
  • Cloud-Based
  • Hybrid

Report Scope

MARKET SIZE 2024 1020.58(USD Million)
MARKET SIZE 2025 1082.73(USD Million)
MARKET SIZE 2035 1955.6(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 6.09% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Cisco Systems (US), Avaya (US), Mitel Networks (CA), Unify (DE), Polycom (US), Grandstream Networks (US), Yealink (CN), Snom Technology (DE), Aastra Technologies (CA)
Segments Covered Technology, Deployment Type, End User, Features
Key Market Opportunities Integration of advanced features like AI and cloud services in the ip phones market.
Key Market Dynamics Technological advancements drive innovation in the ip phones market, enhancing features and user experience.
Countries Covered US

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FAQs

What is the expected market size of the US IP Phones Market in 2024?

The US IP Phones Market is expected to be valued at 812.8 million USD in 2024.

What is the projected market size for the US IP Phones Market by 2035?

By 2035, the US IP Phones Market is projected to reach 1509.67 million USD.

What is the expected compound annual growth rate (CAGR) for the US IP Phones Market from 2025 to 2035?

The expected CAGR for the US IP Phones Market from 2025 to 2035 is 5.79 percent.

Which technology segment holds the largest market share in the US IP Phones Market?

The VoIP technology segment holds a significant market share, valued at 300 million USD in 2024.

What will be the value of the VoIP segment in the US IP Phones Market by 2035?

The VoIP segment is expected to grow to 600 million USD by 2035.

Which key players dominate the US IP Phones Market?

Major players in the US IP Phones Market include Avaya, Cisco Systems, and Polycom.

How much is the SIP segment valued in the US IP Phones Market for 2024?

The SIP segment is valued at 250 million USD in the US IP Phones Market for the year 2024.

What is the forecasted market size for the Wireless segment in the US IP Phones Market by 2035?

The Wireless segment is forecasted to reach 459.67 million USD by 2035.

What are the emerging trends impacting the US IP Phones Market?

Emerging trends in the market include advancements in wireless communication and VoIP technology integration.

How has the current global scenario impacted the growth of the US IP Phones Market?

Current global scenarios have accelerated the adoption of IP phone technologies for remote and flexible communication solutions.

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