Voice Over Internet Protocol Market worth over $95bn by 2027
Published Date: April 28, 2021 Authors: Preeti Wadhwani, Smriti Loomba
Voice over Internet Protocol (VoIP) Market size is set to surpass USD 95 billion by 2027, according to a new research report by Global Market Insights, Inc.
The market growth is owing to the internet penetration and rising investments by the government authorities and private companies in the wireless telecom technologies such as LTE and emerging 5G networks. These technologies are expected to open up new opportunities for organizations who are migrating to IP telephony to enable cost-effective and highly reliable voice communications.
The growing demand for remote workforce is across the globe will fuel the market expansion
The market is projected to showcase 15% growth rate through 2027 on account of growing demand for mobile and remote workforce. The use of web-based IP telephony applications will surge as they help to create a flexible environment and enable employees to collaborate with remote co-workers. This is also anticipated to increase the demand for cloud-hosted IP telephony that enables reliable cloud communications and reduces the need to set up on-premise PBX system. The recent COVID-19 outbreak enabled the enterprises to allow their majority of workforce operate remotely. The growing work-from-home trend due to COVID-19 restrictions impacted positively on the industry growth.
The advanced communication benefits offered by the integrated access/ SIP trunking are supporting the voice over internet protocol market progression
The integrated access/ SIP trunking held around 50% of the market share in 2020 led by growing demand to replace the existing legacy phone system with advanced telephony solutions. The organizations are using the integrated access devices/SIP trunks to utilize the advantages of advanced communication services for converged voice & data services such as conferencing and video applications. These devices provide businesses with a higher level of continuity as the phone networks can be programmed for call routing around broken circuits.
Phone to phone access type will witness at a highest growth rate
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The phone to phone access type is estimated to grow at a CAGR of more than 20% till 2027 impelled by cost-effectiveness offered by the VoIP phones for long distance communication. To meet the growing demands for workforce mobility and facilitate seamless collaboration & communication at workplaces, the demand for IP phones will increase during the forecast time period. These systems act as a catalyst for enhancing both voice and data communications.
Browse key industry insights spread across 430 pages with 588 market data tables and 31 figures & charts from the report “Voice over Internet Protocol (VoIP) Market Size By Type (Integrated Access/Session Initiation Protocol (SIP) Trunking, Managed IP PBX, Hosted IP PBX), By Access Type (Phone to Phone, Computer to Computer, Computer to Phone), By Call Type (International VoIP Calls, Domestic Calls), By Medium (Fixed, Mobile), By End-Use ( Consumers, SMBs, Large Enterprises), By Application (IT & Telecom, BFSI, Healthcare, Government & Public Sector, Retail, Education, Hospitality), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Affordable international calling plans provided by IP telephony vendors are supporting the market value
The international call type accounted for USD 15 billion in 2020 owing to various affordable plans offered by the VoIP service providers for international calls. The IP telephony providers are offering cost-effective international plans for calling or plan extensions to include unlimited international calls.
The need of secure VoIP communication system is predicted to spur the market demand for fixed medium solutions
Fixed medium type will hold the highest voice over internet protocol market share by 2027 on account of growing demand for secure and reliable communication system across the enterprises. The organizations need seamless and secure communication system for connecting internal & external stakeholders. A fixed VoIP system is widely used by organizations as it offers optimum security to safeguard communication. Fixed numbers are assigned by VoIP providers whose broadband network connects to the PSTN.
Cost-effective business IP telephony plans are attracting the more SMBs to deploy advanced IP telephony solutions
SMBs are expected to grow at a significant CAGR during the forecast period. SMBs are rapidly switching from PSTN to IP telephony as the technology enables cost-effective voice communications. Some IP telephony phone services for SMEs include unlimited free domestic calling, advanced call routing, faxing, and voicemail to email & text. The companies operating in the market are offering small business IP telephony plans or charging a low monthly fee to allow SMBs to make domestic as well as international calls cost-effectively.
IT & telecom industry progression is attributed to an extensive usage of VoIP phones and services to support business communication
IT & telecom segment will observe substantial growth during the forecast timeline due to the heavy demand for communication platforms to support business growth. The market is growing led by increase in globalization that has increased the need to utilize collaboration along with unified messaging and communication techniques & tools to establish a secure and reliable means of communication. The companies operating in the market are offering platforms to enable enterprises communicate with their close and remote users.
North America will dominate the market throughout the forecast period
North America voice over internet protocol market size was over USD 15 billion in 2020 driven by rising demand for cloud-based communication services in the region. The enterprises are looking for reliable solutions to manage the remote workforce at a lower cost. IP telephony is enabling enterprises to deploy cloud-based communication network between mobile and remote workers without any hurdle in their work. The enterprises are acquiring subscribers who are looking for the replacement of traditional wireline services.
Strategic acquisition is the key strategy opted by the major market players
Some of the key companies operating in the market are , 8x8 Inc., Alcatel Lucent, AT&T, Inc., Avaya, Cisco Systems, Inc., Citrix, Deutsche Telekom, , Google LLC, Huawei Technologies Co. Ltd., Jive Communication, Microsoft Corporation, Mitel, Nextiva, Orange Business Services, Telenor, Ribbon Communication, RingCentral, Verizon, Vonage and ZTE Corporation. These industry leaders are focusing on strategic partnerships to enhance its VoIP capabilities.