IP Adoption Drives the European Business Telephony Endpoints Market

The European business telephony market is experiencing solid growth. However, in order to overcome the tendency of companies to reuse their existing phones when upgrading their systems, vendors must present a compelling offer, which guarantees immediate and tangible business benefits.

New analysis from Frost & Sullivan, European Business Telephony Endpoints Markets, finds that the market earned revenues of €1,277.3 million in 2007 and estimates this to reach €2,193.1 million in 2013.

“The overall growth rate in the endpoint market is above that of the European GDP growth,” notes Frost & Sullivan Research Analyst Dorota Oviedo. ”This is attributed to the low penetration of IP phones in a relatively significant IP PBX installed base, the growing attractiveness of softphone as a complementary client and the increase in demand for enterprise mobility solutions.”

IP adoption is rising in the business telephony market. As many businesses have migrated to IP PBX, having converged their network, they are increasingly taking action to expand IP deployments. This is impacting different categories such as IP desk phones, softphones, SIP phones and wireless IP phones.

However, buying organisations continue to maximise their returns on investments in phones. Many aim to reuse their existing phones, while upgrading their systems.

“Current economic indicators, coupled with the preference for phased migration, limit market potential,” cautions Oviedo. “Vendors are challenged to come up with solutions that can be used to yield business benefits not available on current investments.”

Vendors must look to develop packaging programmes to promote IP phones. Inducements to replace DECT with WLAN/mobile extension and digital with IP phones/softphones can help grow the market, while preserving the installed base.