Voice over Internet Protocol Market Size & Share 2023 to 2032
Market Size by Type (Integrated Access/Session Initiation Protocol Trunking, Managed IP PBX, Hosted IP PBX), by Medium (Fixed, Mobile), by Access, by End Use, by Application & Global Forecast.
Report ID: GMI2989
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Published Date: August 2023
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
VoIP Market Market Size
VoIP Market size surpassed USD 40 billion in 2022 and is expected to register 10% CAGR from 2023 to 2032, owing to introduction of the 5G network to provide faster internet speeds and more reliable connections.
Voice over Internet Protocol Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Mobile connections have significantly improved since the launch of fifth-generation networking. The development of extremely fast network connections has led to improvements in workplace communication, from jitter-free VoIP connectivity to 4k or 8k video conferences globally. The growing popularity of hosted VoIP solutions has also fostered voice over internet protocol market growth. These solutions are becoming the primary choice for businesses that require scalable calling capabilities.
A rise in interoperability issues while connecting distinct systems may impede VoIP market progress by 2032. In VoIP, different protocols are used for different applications, devices, and protocols. Rapid technological advancements have enabled the replacement of secure communication mediums such as PSTN telephone systems which has significantly raised security concerns. Other security issues like email phishing, call hijacking, and call tampering that is related to these systems could negatively impact its use.
Growing application of SIP trunking across businesses
VoIP market from the integrated access/session initiation protocol (SIP) trunking segment is expected to observe 5% growth during 2023 to 2032. Integrated access is a form of VoIP that enables companies to combine their current and legacy phone systems with VoIP software. It can employ a new VoIP gateway that can combine SIP trunking with phone systems of businesses or replace their legacy phone networks. Companies that provide SIP trunking services are offering cloud-based SIP or solutions that can help in managing virtual communications.
Adoption of remote working to accelerate the use of computer-to-phone VoIP calling
The Computer-to-Phone segment is expected to capture over 40% VoIP market share by 2032. Calling from a computer to phone is widely done for both commercial and domestic purposes. They can make VoIP calls via a telephone adaptor or by installing VoIP software on their computer to enable computer-to-phone calling. Changing workplace culture and surging use of remote working induced by the COVID-19 pandemic have encouraged businesses to become increasingly dependent on technologically advanced communication solutions to maintain effective communication among cross-functional teams.
High popularity of residential VoIP to influence Market Trends
VoIP market from the consumer end-use segment is anticipated to witness 10% growth rate through 2032. Residential VoIP is becoming popular since it is affordable and provides more features compared to landlines. Due to the unlimited calling and other features, including call waiting, call forwarding, and caller ID, which is often charged by traditional phone carriers, many residential consumers are switching from traditional landlines to residential VoIP.
Widespread espousal of cloud services to boost VoIP uptake in North America
North America VoIP market exceeded USD 15 billion in 2022. Factors like widespread adoption of cloud services, rise in the trend of remote working and the shift to packet-based networks should foster regional market expansion. Businesses are looking for cost-effective ways to manage a remote workforce. VoIP enables businesses to easily set up cloud-based communication networks for their mobile and remote workforces. Enterprises are adopting VoIP to improve and smoothen the hybrid working model.
New business expansion initiatives by the service provider
Some of the leading players in the VoIP market include Alcatel Lucent Enterprise (Nokia Networks), ZTE Corporation, Cisco Systems, Inc., AT&T Inc, Citrix Systems, Inc, Google Inc., Huawei Technologies Co., Ltd., Tandberg, Microsoft Corporation, Avaya Inc., Mitel Networks Corporation, Nextiva, Deutsche Telekom AG, Orange Business Services, RingCentral Inc, Ericsson, Ribbon Communications Inc, Telenor Group, and Verizon Communications Inc. Major market companies are concentrating on delivering IP calling solutions at affordable pricing to draw in more residential and business clients.
Impact of the COVID-19 pandemic on Market Trends
The COVID-19 pandemic has influenced the working practices of businesses across the globe due to restrictions on movement. VoIP has enabled continuity and smooth transitions to remote working practices for businesses worldwide. The system has helped employees and employers to stay connected while negating the geographical aspects. Continued adoption of remote working practices post the pandemic will have a positive influence on global VoIP market development.
This market research report on VoIP includes in-depth coverage of the industry with estimates & forecasts in terms of revenue in USD from 2018 to 2032 for the following segments:
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Market, By type
Market, By access type
Market, By call type
Market, By Medium
Market, By End-use
Market, By Application
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
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Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
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5. Forecast model & key assumptions
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✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
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Verified data sources
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GMI archive
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