The global Residential VoIP Services Market size is expected to increase from USD 22,102.1 million in 2023 to USD 67,819.1 million by 2033. Over the projection period (2023 to 2033) global demand for residential VoIP services is forecast to rise at 11.9% CAGR.
Key Market Shaping Factors:
Residential VoIP is also referred to as Voice over Internet Protocol. It enables one to place and receive phone calls using the internet rather than relying on conventional telephone lines. By converting voice signals into digital data packets, VoIP technology facilitates the transmission of calls over an internet connection.
Residential VoIP services, leverages the exisitng internet connection to make calls, eliminating the necessity for a dedicated telephone line. This approach presents potential cost savings for long-distance and international calls.
Residential VoIP services frequently provide competitive pricing options and supplementary features such as voicemail, caller ID, call forwarding, and call waiting.
Rising demand for alternative communication services to traditional phone systems is expected to drive the global residential VoIP services industry swiftly. Growing popularity of mobile VoIP or internet-based phone services due to their various advantages will create growth prospects for the market.
The ever-expanding 5G network across the globe is set to create lucrative opportunities for residential VoIP service providers. It is expected to be a key factor to boost global residential VoIP services sales revenue.
Cost benefits of VoIP services over circuit-switched networks will act as a catalyst elevating demand in the market and the trend is expected to continue during the assessment period.
| Attributes | Key Insights |
|---|---|
| Estimated Residential VoIP Services Market Size (2023) | USD 22,102.1 million |
| Projected Residential VoIP Services Market Value (2033) | USD 67,819.1 million |
| Anticipated CAGR (2023 to 2033) | 11.9% |
| Top 5 Vendor Market Share | 34.2% |
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Global residential VoIP sales revenue grew at a considerable CAGR during the historical period from 2018 to 2022. Looking forward, the worldwide market for residential VoIP services is expected to thrive at 11.9% CAGR.
The growth of VoIP services in the residential sector is bolstered by the global expansion and enhancement of high-speed internet infrastructure.
As internet connectivity continues to improve and offer greater bandwidth availability, the quality of VoIP calls is enhanced, rendering it a more appealing choice for residential users. This will fuel market expansion during the assessment period.
Another key driver of the demand for residential VoIP services is the potential for cost savings. Residential users are drawn to VoIP due to its typically lower calling rates, particularly for long-distance and international calls, in comparison to traditional telephone services. This affordability factor appeals to individuals seeking economical communication options.
Feature-rich Residential VoIP Services Boosting the United States Market
The United States residential VoIP services industry is projected to thrive at 10.9% CAGR, reaching a valuation of USD 11,503.7 million in 2033. In 2022, the United States held a share of 73.2% in North America market.
The United States is home to several leading companies that offer residential VoIP services. They also provide unlimited calling features, creating the potential to attract customers in large numbers.
Several end users can use their residential VoIP solutions for both personal and professional reasons. The strong presence of residential VoIP players and the plethora of features being offered to end users are key factors that will continue to boost the United States market.
Rise in High-speed Internet Connections Driving Residential VoIP Service Demand in Japan
As per Future Market Insights (FMI), Japan residential VoIP services market is forecast to thrive at a CAGR of 14.4% over the forecast period. Overall residential VoIP services sales revenue in Japan is anticipated to total USD 5,555.2 million by 2033.
Increasing penetration of high-speed internet (5G) and rising popularity of Wi-Fi calling due to its benefits are expected to fuel demand for residential VoIP services in Japan.
Residential VoIP services industry is gaining popularity in Japan. Various international and domestic companies are competing in the Japan market. Call quality, pricing, features, and international calling ranges are important factors that determine the success of a residential VoIP service provider in Japan.
Need for Easy & Affordable Solution for International Calling Fueling International VoIP Calling Demand
Currently, domestic VoIP calling segment dominates the global residential VoIP services industry with an estimated valuation of USD 14,863.8 million. On the other hand, demand for international VoIP calling is also expected to rise at a robust CAGR of 10.8% through 2033.
Rise popularity of remote working and need for easy & affordable solutions for international calling are key factors driving the international VoIP calling segment.
Residential VoIP solutions can provide an easy solution for end users to communicate with other people from different countries without any high investment in technologies or infrastructure.
Growth in remote work practices and the need to collaborate with employees and team members that are from different countries also act as factors that drive the demand for international VoIP calls.
Cloud Computing Solutions Making Pay-as-you-go Model Popular and Driving Revenues
The pay-as-you-go pricing model has gained popularity with the growing use of cloud computing services and solutions. The growth in residential VoIP solutions deployed on the cloud further influences the growth of the pay-as-you-go pricing model.
The pay-as-you-go pricing model also allows the end users to only pay for the services that they use and when they use them. This benefit of pay-as-you-go pricing model is making it extremely popular among the end users.
According to Future Market Insights (FMI), the pay-as-you-go pricing model segment is expected to progress at an impressive CAGR of 12.6% from 2023 to 2033.
Leading residential VoIP service providers are focused on providing audio quality that is better than their competition to gain an edge over them. While most companies are concentrated on providing the necessary software and devices for residential VoIP, various players are also focusing on providing supplementary features such as online account management.
Recent Developments:
| Attribute | Details |
|---|---|
| Estimated Market Value (2023) | USD 22,102.1 million |
| Projected Market Value (2033) | USD 67,819.1 million |
| Anticipated Growth Rate (2023 to 2033) | 11.9% CAGR |
| Share of top 5 players | 34.2% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Million for Value |
| Key Regions Covered | North America; Latin America; East Asia; South Asia & Pacific; Western Europe; Eastern Europe; Central Asia; Russia & Belarus; Balkan & Baltics; Middle East and Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Rest of Latin America, China, Japan, South Korea, India, ASEAN, Oceania, Germany, Italy, France, United Kingdom, Spain, BENELUX, Nordics, Rest of Western Europe, Poland, Hungary, Romania, Czech Republic, Central Asia, Russia & Belarus, Balkan & Baltics, GCC Countries, Turkiye, Northern Africa, and South Africa |
| Key Segments Covered | Service Location, Revenue Model, and Region |
| Key Companies Profiled | Verizon Communications; Zoom; DialPad; Vonage; Ooma; Nextiva; Aircall; CallTower; Grasshopper (Citrix); CallHippo; Open Phone; 3CX; Mighty Call; Frejun; Go To Connect |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
Increasing application in end-use industries drives sales.
Growing usage of mobile VoIP apps is a key trend in the market.
The market is forecast to register a CAGR of 11.9% through 2033.
The market is estimated to secure a valuation of USD 22,102.1 million in 2023.
The need for easy & affordable solutions for international calling fuels demand.
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Residential VoIP Services Market
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