Home > Electronics & Media > Voice over Internet Protocol (VoIP) Market
Industry Trends
VoIP Market size was over USD 30 billion in 2020 and is estimated to grow at a CAGR of 15% from 2021 to 2027.
Get more details on this report - Request Free Sample PDF
The VoIP market growth is attributed to factors such as efforts taken by government agencies & private companies for the development of wireless communications infrastructure and the increased adoption of cloud-based VoIP services due to cost-efficiency. The global industry is further witnessing a spike owing to market disruption with increasing commercialization of 5G and rapidly growing use of VoIP networks. Increasing dependence on cloud-based unified communications and transition from legacy systems are promoting the acceptance of hosted VoIP services. Businesses with poor communication infrastructure face issues, such as low audio quality and long delays, that can adversely impact their productivity; thus, they migrate from traditional phone systems to cloud-based phone systems, which are tailored to handle voice mails & calls to enable smooth communication.
Voice over IP (VoIP) is the transmission of voice and multimedia content over Internet Protocol (IP) networks. VoIP historically referred to using IP to connect Private Branch Exchanges (PBXs), but the term is now used interchangeably with IP telephony.
VoIP services have gained market traction amid the ongoing COVID-19 pandemic as a majority of the industries have switched to remote working protocols. The telecom sector especially VoIP has outdone the global economy with an upsurge in demand for cloud-based phone services worldwide. The education sector has largely adopted the VoIP system for seamless online classes. In addition to the education sector, the healthcare industry including healthcare workers and doctors used the system in 2020 for virtual trainings and meetings across countries.
Report Coverage | Details |
---|---|
Base Year: | 2020 |
Market Size in 2020: | USD 30 Billion |
Forecast Period: | 2021 to 2027 |
Forecast Period 2021 to 2027 CAGR: | 15% |
2027 Value Projection: | USD 95 Billion |
Historical Data for: | 2016 to 2019 |
No. of Pages: | 324 |
Tables, Charts & Figures: | 619 |
Segments covered: | Type, Access Type, Call Type, Medium, End-use, Application, and Region |
Growth Drivers: |
|
Pitfalls & Challenges: |
|
Get more details on this report - Request Free Sample PDF
The hosted IP PBX segment in the VoIP market is projected to observe around a 20% growth rate by 2027 owing to the usage of sophisticated communication services to address the need for reducing telecom equipment expenditure. Enterprises are increasingly inclining toward the purchasing of hosted PBX services to improve CAPEX and OPEX as hosted services require minimum hardware investment, creating new avenues for the industry growth.
The VoIP market for computer to computer segment has garnered significant revenue in 2020 led by higher scalability and increased accessibility of VoIP calling. The companies operating in the market are offering softphones for users to initiate calls, start a conference or send a fax from their desktop computers in a hassle-free manner.
Get more details on this report - Request Free Sample PDF
In the U.S., the VoIP market for domestic call type segment accounted for more than USD 5 billion in 2020 impelled by the enterprises using the popular VoIP services, such as Google Voice, Viber, and Skype, to make domestic calls to any phone number free of cost. Web-based apps are gaining popularity as they utilize Over-The-Top (OTT) voice and messaging technologies for tablets and smartphones. The use of these apps for domestic calling has gained traction since the penetration of smartphones and Wi-Fi. Some providers are offering unlimited local call plans for a fixed monthly fee. VoIPstudio offers VoIPstudio National plan for USD 19.99 per user/month in which each user can make 2,000 minutes’ worth of calls to any country of his choice.
Mexico’s businesses are demanding IP telephony services to get cost benefits over legacy telephone systems. The improved bandwidth capabilities of VoIP solutions are helping in providing better performance in IP-based transfer. The enterprises are strategically collaborating with telecom companies to tap the growing market in the country.
Get more details on this report - Request Free Sample PDF
In Germany, the VoIP market for large enterprises segment is anticipated to reach USD 1.8 billion by 2027 on account of the rising dependency of large enterprises on VoIP services for high uptime. The German companies are focusing on providing low-cost communication solutions to their customer through collaboration with VoIP solution providers.
In Japan, the BFSI segment in the VoIP market is set to attain a CAGR of over 15% through 2027, which is attributed to the enterprises looking for an alternative to a traditional desk phone as it ties workers to a location and cuts productivity with its limited functionalities. Japanese companies are shifting toward cloud-based unified communication services to increase productivity by managing a remote workforce. The enterprises are expanding their enterprise communication solutions portfolio by integrating cloud services into their products to tap the growing market in the country.
Get more details on this report - Request Free Sample PDF
Asia Pacific VoIP market captured around 20% of revenue share in 2020. The APAC region is characterized by the growing internet penetration in the region, fueling the growth of the market. The country has the largest population of internet users who are looking for reliable communication solutions. The VoIP technology is proving to be an alternative to traditional telephony services. China is one of the highest revenue-generating countries in the region.
The companies in China are focusing on providing mobile VoIP solutions for the smartphone user population of the country. The companies are continuously innovating their products to provide better mobile VoIP solutions for their customers.
The global VoIP market is characterized by large-scale investments in VoIP technologies to meet low latency and real-time communication demands.
The market has also showcased several strategic alliances between key players to launch new products with added functionalities to maintain their revenue share and profitability.
Some of the companies operating in the VoIP market are Alcatel Lucent, AT&T, Cisco, Citrix, Deutsche Telekom, Ribbon Communication, Google, Huawei, Microsoft, Orange, Telenor, ZTE, Nextiva, RingCentral, Verizon, Vonage, 8x8, Avaya, Mitel, and Jive Communication.
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: