This market research report on the global fax services market identifies Biscom, eFax, HelloFax, SRFax, Nextiva, Open Text, RingCentral, and XMedius as the leading vendors in the market. The report offers analysis on market size and forecast, market share, industry trends, growth drivers, and vendor analysis.
The global fax services market is anticipated to grow $2.88 billion by 2022. The market study also includes insights on segmentation market by user type (individuals and home office, SMEs, and large enterprises), by industry sector (healthcare, financial services and mortgage companies, legal, manufacturing, transportation, and logistics, and others), by application (production and end-user), by deployment model (on-premises fax solutions, cloud-based fax services, and hybrid fax solutions), and by geography (APAC, Europe, North America, and ROW).
FAX SERVICES MARKET - OVERVIEW
Fax services are primarily used to transfer personal or business documents through fax machines, fax servers, and online fax services. The advancements in technology are significantly helping in the transfer of fax documents through the internet with the use of IP based fax solutions and cloud-based hosted fax services. The three major models of deployment in the fax services market include on-premises, cloud-based fax, and hybrid fax solutions. Major vendors in the market are focusing on leveraging the internet infrastructure to introduce fast and cost-effective solutions for online fax services.
The introduction of VOIP (Voice over Internet Protocol) communication services, FOIP (Fax over Internet Protocol) connectivity, cloud-based faxing services, and hybrid fax services will propel the growth of the global market. Major vendors are also integrating online fax systems to existing back-office applications such as ERP and CRM through APIs. The global fax services market is anticipated to grow $2,880 million by 2022, growing at a CAGR of 9.18% during the forecast period.
FAX SERVICES MARKET - DYNAMICS
The growing adoption of UCaaS expected to aid in the growth of cloud-based faxing solutions
The integration of communication systems and collaboration platforms such as data and voice services will increase the demand for online fax services in the global market. Prominent vendors in the market are focusing on launching cloud-based fax systems that offer voice and data services as well. The migration of existing fax systems to cloud-based communication systems will drive the market growth over the next few years. The increased adoption and growth of cloud-based faxing solutions is likely to attribute to the launch of UCaaS (unified communications as a service), which is expected to grow at a CAGR of 15% during the forecast period. The benefits of online services such as flexibility, scalability, reliability, and affordability will improve the operational productivity and cost-effectiveness of various companies.
MARKET - SEGMENTATION
This market research report includes a detailed segmentation of the market by industry sector, by user type, by application, by deployment model, and by geography.
MARKET - BY DEPLOYMENT MODEL
Hybrid services is the fastest growing deployment model
The three major deployment models are on-premises, cloud-based fax, and hybrid fax solutions. On-premises services require the end-user to install in-house servers that operate on operating systems and fax software. Cloud-based allow the end-user to integrate services with existing back-office applications and receive or send information through e-mail platforms. Hybrid solutions offer the best of both systems - it allows the end-user to use on-premises fax server software with the portability feature of cloud faxing. The ease of operation and cost-effectiveness enables consumers to adhere to regulatory compliances such as HIPPA, which is likely to increase the adoption of hybrid services in the global market, and the hybrid segment is expected to grow at a CAGR of 11.39% by 2022.
MARKET - BY END-USER TYPE
SME segment will become a major contributor in the automated fax environment
The user type market segment consists of individuals and home users, small and medium enterprises (SME), and large enterprises. The SME user segment contributed over 31% of the revenue share in the global fax services market in 2016. The growth of SMEs is primarily attributed to sectors such as healthcare, financial, insurance, and legal. The migration to cloud-based platforms will ensure a reduction in the cost of infrastructure and increase in productivity. The establishment of various government regulations and data privacy laws is likely to drive the demand for online fax services in the SME market segment.
MARKET - BY APPLICATION
Global organizations in APAC and ROW contribute the highest production usage revenue
The main classification in the application segment of the market is production usage and end-user usage. The production usage segment in the global fax services market generated a revenue of over $1,066 million in 2016. The research analysts at Arizton state that server solutions such as on-premises, cloud, and hybrid are highly suitable for the implementation of automated fax processing systems. Moreover, due to regulatory compliance, a high number of healthcare and financial organizations will attribute to the production usage in the global fax services market.
MARKET - BY INDUSTRY SECTOR
The industry sector in the market is divided into healthcare, BFSI, legal, manufacturing, transportation, & logistics, and others. Hospitals, clinics, and pharmaceutical companies are the major revenue contributors in the healthcare market segment. The increasing need to drive automation to improve efficiency and ensure regulatory compliance in the healthcare sector will drive the demand for online fax services in the healthcare market segment.
MARKET - BY GEOGRAPHY
North America to dominate the market during the forecast period
North America accounted for close to 50% of the total market share during 2016. The US and Canada are the largest revenue generators in the North American market. The growth of the SMEs business segment in the region will boost the demand for fax services in North America. The increased adoption of cloud-based and collaboration platforms and the hybrid faxing solution will help the region maintain its market share during the forecast period.
KEY VENDOR ANALYSIS
The evolution of cloud-based faxing technology is increasing the level of competition in the global fax services market. Several telecom and unified communication providers are partnering with vendors to offer superior fax solutions to gain a large customer base and market share. The market is also witnessing mergers and acquisitions among prominent vendors which, in turn, will create new opportunities for these players.
The fax services market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments: