2023-2028 Global Fax Services Market Forecast with Key Vendors: Consensus Cloud, Biscom, Dropbox, RingCentral, OpenText

The offering from ResearchAndMarkets.com, titled “Global Fax Services Market – Outlook & Forecast 2023-2028,” highlights significant insights into the global fax services market. Valued at USD 3.18 billion in 2022, the market is projected to reach $5.96 billion by 2028, with a robust CAGR of 11.05%.

Leading players in the global fax services market are strategically focusing on key business approaches, such as partnerships, mergers and acquisitions, product advancements, and collaborative ventures. These initiatives aim to expand their product portfolios and enhance market presence across diverse geographical regions.

Expansion and investment strategies cover a wide range of initiatives, from research and development investments to the establishment of new manufacturing facilities and supply chain optimization. Vendors are also keen on elevating their services through investments in research and development, technological advancements, and product development.

North America is witnessing substantial growth in the fax services market, driven by the increasing demand for high-speed internet access and the widespread adoption of advanced fax technologies. In 2022, North America held the largest market share globally, fueled by the rapid proliferation of accessible and affordable internet connections, the popularity of cloud-based software and services, and businesses’ focus on enhancing workflow efficiency and reducing operational costs.

Technological convergence in fax services involves integrating fax functionalities into enterprise resource planning (ERP), systems applications and products (SAP), and customer relationship management (CRM) systems. Innovations such as 5G, machine-to-machine (M2M) communication, IoT, automated intelligence, cloud computing, and digital fax solutions are driving market growth.

Key drivers for the fax services market include the attributes of cloud-based fax services, providing flexibility, high performance, and reliability for organizations seeking seamless fax communication from their ERPs, desktops, or other business applications. Automation, especially in computer-based fax services, is in high demand, particularly among small and medium-sized businesses (SMBs) and large enterprises in transaction-intensive environments.

Privacy advantages set faxing services apart from alternative methods such as email and web-based document transfer. The security benefits make faxing services appealing, leading to continued market growth. Many vendors are offering HIPAA-compliant fax solutions, targeting healthcare providers and contributing to the robust growth of the market.

Market Trends & Drivers:

1. Increasing Online Scam and Data Breaches: Faxing remains crucial for many corporations, especially in law enforcement and healthcare sectors, where stringent legal requirements govern the secure transfer of sensitive data. With a rise in online scams and data breaches, fax services are increasingly utilized to protect organizations. In 2022, a notable 11% increase in breaches among Russian internet users further highlights the importance of fax services in addressing security concerns.

2. Rising Telecom Industry: The global fax services market is driven by the growing telecom industry, which seeks reliable, secure, and cost-effective communication solutions to safeguard customer data. The implementation of 5G infrastructures and changing consumer preferences toward advanced technologies and smartphone devices contribute to the adoption of cloud-based fax services in the telecom industry.

Industry Restraints:

Unstructured Data: While fax enjoys extensive acceptance across various IT systems, the nature of fax files as image files containing data poses challenges. The unstructured nature of fax data is a potential restraint for businesses, although fax remains a frequently supported messaging protocol.

Segmentation Insights:

By User Type: The global fax services market is segmented into large enterprises, small & medium enterprises (SMEs), and individuals & home offices. The large enterprises segment dominated the market in 2022, driven by their substantial workforce and significant revenue contribution to the global automated fax market. Large enterprises are migrating to cloud-based fax services for reduced operational costs, improved automation-driven productivity, and increased flexibility and scalability.

By Service Type: The on-premises service type segment held the majority share in 2022, driven by factors such as enhanced control over data storage, high configurability, and customizability. Organizations with in-house fax infrastructure and data centers favor on-premises solutions for integration options aligned with specific operational requirements.

By Industry Users: Industry segments include healthcare, banking, financial services, & insurance (BFSI), legal, manufacturing, and others. The healthcare industry user segment dominated the market, given its highly regulated nature and the importance of securing patient information. Healthcare organizations are adopting cloud-based fax services to address operational expenditure and environmental concerns.

Key Market Attributes: