VOIP Services Market

VOIP Services Market Overview

Global voice over Internet Protocol (VOIP) demand is estimated to exceed US$ 127 Bn by the end of 2022. The global market is expected to total US$ 255 Bn by 2032, exhibiting growth at a CAGR of 9.7% over the forecast period 2022-2032. The sales are anticipated to be driven by industry participants emphasizing on pushing VoIP solutions across corporate and individual consumer sectors.

VOIP is a methodology or a group of technologies that are used for various multimedia, data, and voice transfer over internet protocol networks such as internet telephony, voice over broadband, and IP telephony, to provide communication services over a packet-switched network. Hence, increasing use of the internet for voice calls and multimedia transfers is expected to spur the sales of VOIP services.

These services are needed for the conversion of voice signals into digital signals that are then carried over to the IP-based networks. Calls can be made from computers, internet, mobile phones, VoIP phones, and regular telephones.

Increasing penetration of smartphones and internet has resulted in creating strong demand for assistive technologies such as VOIP across the globe. According to a report by India Brand Equity Foundation, the smartphone shipments are projected to reach 173 million in terms of unit by 2021, exhibiting 14% growth in comparison to 2020.

In addition to this, growing popularity of user-friendly and innovative multimedia applications such Skype, WhatsApp, Instagram, and Viber, Line among others, where a large number of data and voice calls are shared, is expected to further augment the demand for VoIP services.

Which are Some Prominent Drivers Spearheading Chloromethane Market Growth?

VoIP services have gained immense traction amidst the ongoing COVID-19 pandemic as a majority of the sectors such as education, corporate, and others have switched to remote working protocols owing to concerns regarding employee safety.

For instance, Google, an American multinational technology company recently announced to extend the work from home policy due to the uncertainty of the COVID-pandemic in various parts of the world. As the usage of VoIP increases with increasing data sharing and international team calls during remote working, this is expected to facilitate the growth in the VoIP services market.

In addition, increasing adoption of hybrid cloud communications small and mid-sized as well as large enterprises, owing to the strategic advantages associated with it such as ease of adding forthcoming innovations and uniformity across networks is propelling the demand for VoIP services.

What are the Challenges Faced by the VoIP Service Industry?

Although there are numerous advantages of adopting internet-based technologies and cloud computing, shifting files to the cloud makes data vulnerable, especially the ones which can be accessed by third-party.

A large amount of data such as financial data of several organizations is uploaded on the cloud on regular basis. As these data on cloud services are maintained and managed by third parties, the risk of data being exposed to unauthorized users is high. Hence, increasing incidence of cybercrimes such as data theft, breach, and others is discouraging industry players from adopting cloud computing, which is in turn, hampering the growth in the market.

Why is Asia-Pacific Emerging as an Opportunistic VoIP Service Market?

As per FMI, the Asia Pacific VoIP services market is expected to continue dominating the global VoIP services market between 2022 and 2032

With shifting education industry towards e-learning, numerous educational industry players in Asia Pacific are increasingly emphasizing on launching novel online educational applications to capitalize on the existing opportunity. For instance, in December 2020, Digital Articistotle, a leading technology company announced entering into a collaboration with Bluebot Digital to launch its educational application, Dosti Ki Paathshaala which provides gamified classroom experience to kids.

As VoIP systems and services are increasingly used for providing a seamless transfer of data, videos, and other multimedia during the classes and live sessions, such developments are projected to create lucrative growth opportunities in the Asia Pacific market.

Also, increasing initiatives undertaken by private companies and government agencies for the enhancement & development of wireless communications infrastructure and rising adoption of cloud-based data transfer services are projected to bolster the sales of VoIP services over the forthcoming years.

Sudip Saha

Principal Consultant

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How is North America Contributing to Growth of the VoIP Service Market?

Future Market Insights states that the North America is anticipated to register growth at a robust CAGR over the forecast period 2022-2032.

Increasing implementation of VoIP services using various protocols such as Real Time Protocol (RTP), Inter Asterisk eXchange (IAX), H.323, Media Gateway Control Protocol (MGCP), and Session Initiation Protocol (SIP) is estimated to favor the growth in the market.

A number of players in the market are aiming at entering into collaboration, agreement, and partnership with companies to gain competitive edge in the market. For instance, in 2019 Verizon Communications Inc., an American multinational telecommunications conglomerate announced collaborating with a leading technology company, Microsoft Corporation to provide integrated connectivity and VoIP services for Microsoft Teams users. A slew of such developments are projected to elevate the sales of VoIP services in North America market.

Market Competition

Some of the leading players in the global VOIP services market include Vonage Holdings Corp., RingCentral, Inc., 8×8, Inc., Nextiva, Inc. and InPhonex LLC. among others.

With increasing inclination towards adoption cloud-based services and growing penetration of internet, number of VOIP services start-ups are being emerged, especially across India and China, making the Asia Pacific market highly competitive.

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Key Segments Profiled in the VOIP Services Industry Survey

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 VoIP calls

By Medium:

• Fixed
• Mobile

By End-use:

• Consumers
• SMBs
• Large Enterprises

By Application:

• IT & telecom
• BFSI 
• Government & public sector
• Healthcare
• Retail
• Education 
• Hospitality
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America