Why Businesses Are Still Sending Faxes in 2025

Growth of the business faxing space

The global fax services market demonstrates the technology’s continued relevance, valued at $3.3 billion in 2024 and projected to reach $4.47 billion by 2030, with a compound annual growth rate (CAGR) of 5.15%. Another comprehensive market analysis indicates the fax services market could reach $6.5 billion by 2029, with an even higher CAGR of 11.08%.

While fax machines have earned their place in technological history, faxing as a file-sharing process should not be confined to the past just yet. In fact, for many businesses, faxing is more important than ever. 

According to a 2024 report by Statista, approximately 17% of businesses globally still rely on faxing for critical operations, with adoption rates significantly higher in industries like healthcare, legal services and government. As it turns out, there are good reasons why these businesses still rely on faxing, even in an age where other communication channels are so commonplace.

Why do businesses still send faxes?

1. Interoperability standards means faxing remains reliable

International technical standards for fax transmissions were first agreed upon in 1968. Over time, those standards have been updated to expedite fax delivery and improve image quality. Fax machines (and other systems capable of fax transmissions) conform to all current and previous standards. That means a fax machine in 2024 is capable of sending to and receiving from a fax machine from the 1980s.

2. The network effect keeps faxing relevant

Modern technologies like text messaging and Facebook caught on because of a phenomenon called “the network effect.” The more a product or service is used, the greater value it has to the people and businesses who use it. 

Here’s why the network effect of faxing still exists:

• An estimated 43 million fax machines are still plugged into phone lines around the world.
• All modern business VoIP systems offer faxing
• You can send and receive faxes via email

3. Faxing is still commonplace in international business dealings

Although fax usage in many countries has fallen sharply, it’s not dead everywhere. On the contrary, in 2021, the Japanese government was forced to backtrack on a plan to rid government departments of fax machines. The project was successfully scuttled by the country’s “faxophiles,” who still see faxing as essential. Many businesses in Japan still use faxes, and anyone wishing to communicate with them effectively would be wise to adopt their document-sharing strategies.

Similarly, in Germany, 25 percent of companies still use faxing “very often,” according to a Bitkom survey. In fact, 82% of German companies with 20 or more employees still use fax, while a third use it “frequently or very frequently.” 

When working with international partners who prefer to use fax, it may be beneficial to use the communication channel. When it comes to faxing, think of the expression “when in Rome …” 

4. Traditional faxing offers a strong level of security 

Modern online fax services have significantly enhanced security through advanced encryption protocols. Premium services use 256-bit Advanced Encryption Standard (AES) for fax transmission, which offers greater protection against brute-force cyber attacks compared to commonly used 128-bit encryption. 

Transport Layer Security (TLS) creates a secure channel from sender to recipient, providing the most secure communications network possible — crucial for HIPAA-compliant faxing. Additionally, Secure Sockets Layer (SSL) requires both sending and receiving parties to be authenticated, providing an additional layer of security.

For healthcare organizations, HIPAA compliance requires specific safeguards when transmitting Protected Health Information (PHI). HIPAA-compliant fax services must include Business Associate Agreements (BAAs), end-to-end encryption for faxes in transit and at rest, audit trails and delivery confirmation capabilities, access controls and user authentication, and secure cover sheets that limit PHI exposure. Healthcare organizations must verify recipient fax numbers, use secure transmission methods, and maintain detailed logs of all fax activities to ensure compliance with HIPAA regulations.

The Sarbanes-Oxley Act (SOX) similarly drives fax usage in financial services, requiring publicly traded companies to maintain internal controls over financial reporting, including secure document transmission. SOX compliance considerations for faxing include secure document transfer from ERP systems to fax servers, automated transmission to intended recipients only, detailed audit trails for document movement, and integration with existing IT security protocols.

5. Faxes come along with confirmation receipts

Although not as secure as the answerback signals from telex machines (remember them?), traditional fax machines print out a receipt confirming that a fax has been successfully sent. Receipts show the date, time and receiving fax number. So, if you fax a late payer with a copy of their overdue invoice and they claim to never have received it, you have proof that they did. Some digital faxing services offer delivery receipts as well. 

6. Fax marketing remains relevant in some markets

If we had written this article 30 years ago, we could have described fax marketing to you as a current marketing trend. Of course, it’s now been completely surpassed by email marketing campaigns and text message (SMS) marketing. 

Overseas, though, database compilers still sell lists of company fax numbers segmented by line of business, geographical area and size. Marketing departments then use those to send material unsolicited to their target audience, typically in the hope of generating a lead rather than making a sale. If you’re selling to these markets, fax marketing remains a viable tactic for lead generation. 

7. Faxing is a unique novelty

Fax volumes have fallen drastically, even in countries where unsolicited fax marketing is still allowed. Today, companies might get only one or two faxes a month instead of the 10 to 20-plus per week they might have received 20 years ago. 

For some businesses, this represents an opportunity to get noticed. Getting a fax is rare for most Americans. So, when you send a fax, it’s likely to get noticed; the odds the recipient responds may increase accordingly.

Compare faxing with postal mail. Even though direct mail marketing has been decreasing in the U.S. over the last 20-plus years, response rates to mailing campaigns have increased. Rarity, it seems, has a value. With that in mind, faxing can be a strategy that makes your business stand out. [Read related article: Snail Mail Will Rescue Your Digital Campaigns From Tech Uncertainty]

Online fax services

In today’s world, you don’t need a fax machine to send and receive faxes. There are many online fax services that you can use instead. You’ll receive incoming faxes as email attachments and send them in a similar manner. These vendors also provide you with a dedicated fax number if you want to save on getting another landline installed.

The fax industry has evolved significantly with modern technological innovations, including cloud integration and AI-powered automated document processing, OCR integration for converting faxed documents to searchable formats, and workflow automation through integration with business process management systems. 

Enhanced security features now include multi-factor authentication, encryption standards and zero-trust architecture for comprehensive fax infrastructure security. Additionally, 5G infrastructure improvements enable faster transmission speeds, improved reliability, and better global connectivity for international fax transmission.

Common objections and how to address them

While faxing offers numerous advantages, organizations should consider potential drawbacks and mitigation strategies. 

Cost considerations include traditional fax machines requiring dedicated phone lines and maintenance, while online fax services typically charge $0.49-$0.98 per page for business users — though cloud-based solutions eliminate hardware costs and reduce operational expenses. 

Technology limitations include slower transmission speeds compared to email and image quality dependencies, though modern fax servers optimize both speed and quality. User experience challenges may include staff training requirements and workflow adjustments, but these can be mitigated by choosing solutions that integrate with existing email and document management systems.

Online fax implementation checklist

Organizations considering fax implementation should follow a comprehensive approach: first, evaluate industry compliance requirements such as HIPAA, SOX, or GLBA regulations and assess current document transmission volumes and types. 

Next, choose between on-premises fax servers or cloud-based services, verify encryption standards meet regulatory requirements, and ensure Business Associate Agreements are available if needed. During implementation, configure secure transmission protocols and access controls, establish user authentication procedures, and set up audit logging capabilities. 

Finally, train staff on secure fax procedures and compliance requirements, implement regular auditing and monitoring procedures, and schedule regular reviews of fax security measures.

Does your business need fax services?

Whether your organization still needs fax services depends largely on your industry and operations.

Your business might still need fax services if:

• You operate in a regulated industry such as healthcare, legal, or financial services
• You work with partners or clients who require fax communication
• You need legally admissible proof of document delivery
• You handle sensitive information requiring secure transmission
• You conduct international business with fax-dependent regions
• You require compliance with specific regulatory frameworks like HIPAA or SOX

Your business might not need fax services if:

• You operate in a non-regulated industry with flexible communication requirements
• Your partners and clients prefer email or digital document sharing
• You have robust digital signature and document management solutions
• Cost considerations outweigh the benefits of fax communication
• Your workflow is fully digital with no paper-based processes

Given the enhanced security features, compliance capabilities, and cost-effectiveness of modern online fax services, implementing fax capabilities can provide a competitive advantage while ensuring regulatory compliance. Organizations should carefully evaluate their specific industry requirements, compliance obligations, and stakeholder preferences when determining whether to implement or maintain fax services.

Sean Peek and Naomi Young contributed to this article.