Workplace Collaboration MetriCast 2023: IP Desk Phone Size and Spending Forecast

This year’s Workplace Collaboration MetriCast 2023 market size and forecast report for IP desk phones shows modest adoption rates as businesses continue shifting other communications tools, such as meeting applications and soft clients, for their voice needs. One of the main reasons companies are evaluating making a “vendor” change for IP desk phones is they are fully swapping them out for desktop applications and headsets. We are now fully in the period of only essential locations or functions getting and utilizing a desk phone in the office, including upgrades. No longer does every employee get an assigned phone device. This report provides details on IP desk phone spending, market size and forecast, and vendor selection, along with segmentation by size and global region. Highlights of the study include the following:

• The global market size for IP desk phones was $1.9 billion in 2022, down 7.2% year-over-year. Metrigy forecasts the market to decline at a 15.5% CAGR from 2022 to 2027, reaching $807.4 million by 2027.
• IP desk phones are utilized worldwide by 44.7% of businesses today in some capacity, with North America representing the largest adoption rate. Companies with 2,501-10,000 employees represent the highest percent adoption.
• A number of vendors offer desk phones. The largest of them, Avaya and Cisco, tie their desk phones predominantly to their own telephony platforms. The largest independent IP desk phone vendors are HP|Poly and Yealink, having benefited from the rise of UCaaS adoption and providing cost-effective, standards-based devices for these providers to offer clients. Vendors with Microsoft Teams Phone endpoints, including AudioCodes and HP|Poly, have reported growth of those desk phones.
• Among those using IP desk phones, 64.3% have no plans to replace their primary vendor, in large part because companies are winding down use of desk phones so they find it easier to stick with the inventory they have rather than changing out. Additionally, vendors such as Cisco have added support for Microsoft Teams with specific endpoints.
• We track the percentage of each vendor’s customers that plan to stay with that provider, as well as the percentage that are evaluating or planning a switch to new vendors. Cisco is the top vendor for both retaining existing customers, and under evaluation for businesses looking to make a change.