The Cloud Telephony Services Market is estimated to be valued at USD 27.4 billion in 2025 and is projected to reach USD 66.6 billion by 2035, registering a compound annual growth rate (CAGR) of 9.3% over the forecast period.
| Metric | Value |
|---|---|
| Cloud Telephony Services Market Estimated Value in (2025 E) | USD 27.4 billion |
| Cloud Telephony Services Market Forecast Value in (2035 F) | USD 66.6 billion |
| Forecast CAGR (2025 to 2035) | 9.3% |
The cloud telephony services market is expanding rapidly as businesses prioritize digital transformation, remote collaboration, and scalable communication solutions. Rising adoption of cloud-based infrastructure, cost optimization needs, and flexibility in managing enterprise communications have positioned cloud telephony as a preferred alternative to traditional systems.
Integration with customer relationship management platforms, enhanced call analytics, and omnichannel engagement have further strengthened its value proposition. Regulatory support for digital infrastructure growth and increasing cloud adoption across emerging economies are accelerating uptake.
The outlook remains strong as enterprises seek resilient, flexible, and cost-efficient communication frameworks to support evolving business models and distributed workforce demands.
The hosted deployment segment is projected to account for 57.30% of total revenue by 2025, making it the leading category within deployment. This dominance is being driven by lower upfront investment requirements, simplified scalability, and reduced maintenance responsibilities.
Hosted solutions allow enterprises to streamline operations by outsourcing infrastructure management while retaining access to advanced telephony features. The ability to adapt quickly to changing communication demands, especially in remote and hybrid work models, has reinforced the preference for hosted platforms.
With increased demand for flexible subscription models and faster deployment cycles, hosted deployment continues to establish its leadership in the market.
The public switched telephone networks segment is projected to hold 48.60% of overall market revenue by 2025, making it the dominant network segment. This position is attributed to the extensive existing PSTN infrastructure and its reliability for global communication connectivity.
Many enterprises continue to depend on PSTN as a backbone for integrating with cloud telephony services, ensuring seamless call routing and interconnectivity with traditional systems. The segment has benefited from hybrid models that combine PSTN reliability with cloud innovation, providing businesses with both resilience and advanced telephony features.
As enterprises gradually transition to fully digital communication, PSTNs remain critical in supporting interoperability and maintaining global communication standards.
As new components add up in the corporate structure along with the rising need for better and effective customer support, demand for cloud telephony systems rises excessively.
Key factors that help the cloud telephony services market in its growth are the increased need for telecommunication solutions, better feedback and response system, and remote working.
The ongoing trend in the market shows that small and medium-sized businesses seek telecommunication solutions in order to disseminate information regarding their products and services to market themselves. This being the key reason for the market’s growth is the transformation from traditional phones to IP telephony services that provide better connectivity and bandwidth to the telecom vendors.
Migration from the old telephone lines to IP Telephony systems has increased the ROI in a lot of corporate spaces.
This has helped the vendors in marketing their products in new markets, pushing the sales of cloud telephony services. This made cloud telephony services a better and more efficient way to communicate and connect. Another factor fueling the market is the high penetration of mobile phones that has fastened the migration from regular lines to ISDN and PSTN.
It provides better scalability, better user interface, flexibility, and 24/7 availability or support. It gives small and medium business owners an easy and subtle way to be connected with their customers.
Owing to its call reporting and tracking system, cloud telephony has becomes a better and more technologically advanced way to communicate. Therefore, companies are now focusing on creating awareness about the services and launching new products that work well with the advanced technology available. For instance, brands now launch products that come with multiple connectivity features like the Internet of Things (IoT).
Customer behavior and concern over data privacy and security are restraining the growth of the market. The market declines as big corporations set up their private networks restraining the demand for cloud telephony services.
The need for more investment in small and medium enterprises is also hassling the growth of the cloud telephony services market. As covid-19 destroyed multiple companies’ basic structures and finance systems, companies now try to invest in fixing the damage. This restricts them from investing in the telecommunications department of their workspace.
| Countries | Revenue Share % (2025) |
|---|---|
| United States | 16.6% |
| Germany | 9.2% |
| Japan | 6.2% |
| Australia | 2.3% |
| Countries | CAGR % (2025 to 2035) |
|---|---|
| China | 8.6% |
| India | 11.5% |
| United Kingdom | 9.1% |
The cloud telephony services market is divided into regions; North America, Latin America, Asia Pacific, Middle East and Africa (MEA), and Europe. The leading market is the United States which held a market share of 16.6% in 2025. Though, the overall North American region held a market share of 28.2% in 2025.
The region is expected to hold a market revenue of USD 66.6 billion by the end of 2035. Another reason behind the extensive growth of the cloud telephony solutions and services market in this region is the high competition and new private players in the sector.
Apart from this, Germany held a market share of 9.2% in 2025, while Europe held a market share of 24.3% in 2025. France also grows along with Germany, with a forecasted value of USD 27.4 billion at a CAGR of 9.8% between 2025 to 2035
| Category | By Deployment Mode |
|---|---|
| Leading Segment | Cloud |
| Market Share (2025) | 52..3% |
| Category | By Enterprise Size |
|---|---|
| Leading Segment | Large Enterprise |
| Market Share (2025) | 62.2% |
The cloud telephony services market is categorized by deployment, enterprise size, network, application, and industry. These categories are further divided into small segments that expand their channels in multiple market spaces.
These segments perform differently in multiple markets as they have a stronghold in multiple regions. The deployment category is segmented into hosted and cloud, while enterprise size is segmented into small & medium enterprises (SMEs) and large enterprises.
The network category is divided into public switched telephone networks (PSTNs) and voice over internet protocol (VoIP), and the application category holds four segments; conferencing, multi-level IVR, sales & marketing, and customer relationship management (CRM).
By deployment, the FMI study finds that the cloud type of deployment has a massive sales potential through 2035. The adoption of cloud systems is likely to record a CAGR of 9.1% during the forecast period.
Consumer demand for cloud-type deployment is attributed to its characteristics, like easy implementation, secured loops, and more reliability. In the future, sales of cloud-based cloud telephony systems are estimated to grow in proportion to the need for effective communications. This pushes the sales of cloud telephony systems into new markets.
By network, voice over internet protocol (VoIP) is the leading segment in the cloud telephony services market and is expected to hold a key portion in the forecast period. The segment is thriving at a strong CAGR of 14.3% during the forecast period.
The factors behind the growth of this segment are cost-efficiency, better connections, and a user-friendly interface. Though the public switched telephone networks (PSTNs) segment is also likely to grow at a promising CAGR through the forecast period, fueling the overall sales of cloud telephony systems.
The competitive landscape of cloud telephony is diversified and makes the market more exclusive for new players. Old telecommunication giants also release their new updated IP telephony systems that help in communicating with their customers. Vendor companies focus on mergers and collaborations to expand their distribution channels in new areas.
Market Developments
The global cloud telephony services market is estimated to be valued at USD 27.4 billion in 2025.
The market size for the cloud telephony services market is projected to reach USD 66.6 billion by 2035.
The cloud telephony services market is expected to grow at a 9.3% CAGR between 2025 and 2035.
The key product types in cloud telephony services market are hosted and cloud.
In terms of enterprise size, small & medium enterprise (smes) segment to command 62.5% share in the cloud telephony services market in 2025.
Full Research Suite comprises of:
Market outlook & trends analysis
Interviews & case studies
Strategic recommendations
Vendor profiles & capabilities analysis
5-year forecasts
8 regions and 60+ country-level data splits
Market segment data splits
12 months of continuous data updates
DELIVERED AS:
PDF EXCEL ONLINE
Cloud ERP Industry Analysis in Latin America Forecast Outlook 2025 to 2035
Cloud Backup Service Industry Analysis in Latin America Size and Share Forecast Outlook 2025 to 2035
Cloud Compliance Market Size and Share Forecast Outlook 2025 to 2035
Cloud-Based ITSM Market Size and Share Forecast Outlook 2025 to 2035
Cloud IT Infrastructure Hardware Market Size and Share Forecast Outlook 2025 to 2035
Cloud POS Market Size and Share Forecast Outlook 2025 to 2035
Cloud Systems Management Software Market Size and Share Forecast Outlook 2025 to 2035
Cloud Field Service Management (FSM) Market Size and Share Forecast Outlook 2025 to 2035
Cloud Seeding System Market Size and Share Forecast Outlook 2025 to 2035
Cloud Based Collaboration Software Market Size and Share Forecast Outlook 2025 to 2035
Cloud Migration Service Market Size and Share Forecast Outlook 2025 to 2035
Cloudifier Market Size and Share Forecast Outlook 2025 to 2035
Cloud Database and DBaaS Market Size and Share Forecast Outlook 2025 to 2035
Cloud ERP Market Size and Share Forecast Outlook 2025 to 2035
Cloud Computing Market Size and Share Forecast Outlook 2025 to 2035
Cloud Billing Market Size and Share Forecast Outlook 2025 to 2035
Cloud Access Security Brokers Market Size and Share Forecast Outlook 2025 to 2035
Cloud Storage Industry Analysis in MENA Size and Share Forecast Outlook 2025 to 2035
Cloud API And Management Platforms And Middleware Market Size and Share Forecast Outlook 2025 to 2035
Cloud Encryption Market Size and Share Forecast Outlook 2025 to 2035
Cloud Telephony Services Market
Thank you!
You will receive an email from our Business Development Manager. Please be sure to check your SPAM/JUNK folder too.
Chat With
MaRIA
