The Voice over Internet Protocol (VoIP) Market is set to record a CAGR of 9.8% during the forecast period. The market holds a share of USD 43.92 billion in 2023 while it is anticipated to cross a valuation of USD 118.86 billion by 2033.
VoIP is generally used to convert voice impulses into digital signals for transmission. It also merges voice and data operations to deliver unique standard services. These services include video voice mail, instant messaging, and real-time language translation.
The growing demand for VoIP is attributed to rapid technological advancements, including video calls and audio calls. Urban cities are being penetrated by 5G technology, which has a significant amount of bandwidth, products, and services that are specifically made for high-speed transmission. Effective communications that have an impact on business growth are therefore the best alternative for each business. Scalable calling capabilities are provided by voice over internet protocol (VoIP) services.
The VoIP services include three kinds of technology, IP telephony, broadband telephony, and internet telephony. The increasing spectrum efficiency and HD video calls demand 5G bandwidths for operability. The COVID-19 pandemic has fueled a shift in corporate practices towards remote working, which has increased the requirement for efficient communication systems. The applications like Skype, WhatsApp, Line, and Viber have become more popular due to their friendly interface and innovative functioning. Voice over internet protocol (VoIP) IP) solutions have therefore started to gain popularity and are expected to continue growing. Also, the market is growing because of the adoption of cutting-edge and user-friendly programs like Viber, Line, Skype, and WhatsApp. The public's low adoption of VoIP services and the limited accessibility of high-speed networks, however, impede this expansion. Likewise, a lot of chances for market expansion are anticipated as a result of ongoing technological advancements and an increase in Research and Development spending to create technologically improved solutions.
According to the Voice over Internet Protocol (VoIP) industry outlook, increased smartphone adoption is having a direct beneficial impact on the market. The robust phone-to-phone and phone-to-computer communication channels are made possible by the 5G and LTE network connectivity. Some of the frequently used programs on cellphones, laptops, and even tablets include Skype and Google Meet. Due to the increased mobility it offers to the end user, this multichannel communication also aids in VoIP sales across the globe. Government bodies foster and use these qualities because they increase inclusion.
| Attributes | Details |
|---|---|
| Voice over Internet Protocol (VoIP) Market CAGR (2023 to 2033) | 9.8% |
| Voice over Internet Protocol (VoIP) Market Size (2023) | USD 43.92 billion |
| Voice over Internet Protocol (VoIP) Market Size (2033) | USD 118.86 billion |
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Short-term Growth: From 2018 to 2022, the Voice over Internet Protocol (VoIP) market recorded a higher CAGR of 12.27%. The pandemic and businesses' acceptance of work-from-home policies had a beneficial impact on the market. The growth was also observed due to the growing outsourcing businesses during the forecast period. The rapid implementation of digital communication products and services across the sector also fueled market growth.
Mid-term Growth: This period is likely to grow at a steady rate, as the restoration or normalization of corporate, education systems, and other entities have impacted the market growth. However, multiple businesses and outsourcing companies are still using technology to effectively communicate. It is projected that this technology is expected to continue to be used longer in its many verticals due to its accessibility, convenience, and time-saving features. The market is likely to grow steadily between 2023 and 2028.
Long-term Growth: The future of the Voice over Internet Protocol (VoIP) Market looks promising, as BFSI, remote educational, and outsourcing programs are still running and are successful. Various businesses born at the time of the pandemic are still functioning in a hybrid or remote manner, and are likely to remain the same during the forecast period. The Voice over Internet Protocol (VoIP) Market is anticipated to record a CAGR of 9.8% between 2023 and 2033.
VoIP systems evolve through many research and development projects, as well as supporting an efficient communication channel. The market is growing as a result of the quick development of ed-tech projects for distance learning and efficient course delivery in education systems.
The fifth-generation networking develops a high popularity of residential VoIP along with industrial applications. The features like call forwarding, caller ID, call waiting, and many more give residential VoIP an edge over traditional landlines.
Another factor like cloud-based communication has improved the VoIP prospects is fueling the remote workforce. The cost benefits, along with the rapidly growing adoption of SMEs, and the emergence of 5G technology, penetrating the sales of voice over internet protocol (VoIP) solutions. The rising trend of adding the mobile element to businesses is also expanding the Voice over Internet Protocol (VoIP) Market size.
The significant factors that restrict the growth of the Voice over Internet Protocol (VoIP) Market are security breaches, malicious activities, fraud, and interoperability issues. Other than that, the lack of network connectivity in remote areas of developing regions also limits the market growth.
Principal Consultant
Higher Penetration of 5G networks, along with Affordable Remote Workplaces, puts North America's market on the Top.
The Voice over Internet Protocol (VoIP) Market in North America holds the significant space in 2023.
The United States is expected to dominate the Voice over Internet Protocol (VoIP) market owing to the higher penetration of 5G and increased outsourcing. The corporate structure adopted the work-from-home or hybrid mode of working while transitioning to online communication channels such as video calls, VoIP calls, and digital calls. Businesses are looking for affordable communication solutions that are also easy to implement and learn.
The start-ups in the United States, along with the international business calling, are collectively gaining traction in the market. The increasingly expanding outsourcing industries require a dependable and cost-effective line link, which VoIP services offer.
Expanded International Businesses coupled with Higher Economical Activities Propels the Regional Growth
Asia Pacific is the hub for outsourcing, with Taiwan, China, and India growing their BPO and KPO businesses. The huge population in India and China is likely to lay a vital role in the growth of the region. With its domestic VoIP service providers, India uses the services for worldwide outsourcing in parallel to using them locally. These are the factors behind the increasing expenditure on VoIP services in Asia Pacific.
Increased Tourism with Higher Penetration of Remote Work fuels the Regional Growth
The need for good communication is growing as the number of people working and traveling increases in nations like Germany, France, Spain, and Poland. VoIP services are therefore considered the most effective. With the option of domestic and international calling, a tourist spot like Europe finds VoIP better than any other communication channel. Growing trade between different parts of Europe is also pushing businesses to adopt VoIP services. The digitizing cities, along with the early 5G deployments in spaces, are fueling the demand for voice over internet protocol (VoIP) market.
| Segment | Top Access |
|---|---|
| Top Sub-segment | Computer-to-phone |
| Expected Value in 2033/CAGR | 40% of the Global Market by 2033 |
| Segment | Top End-User |
|---|---|
| Top Sub-segment | Consumer |
| Expected Value in 2033/CAGR | 9.8% (2023 to 2033) |
By holding 40% of the global market by 2033, the computer-to-phone sector is predicted to take the lead in the access category. This growth is attributed to the higher mobility of the consumers who run a national/international business. From the meeting to the brainstorming sessions, the computer-to-phone segment comes with an inclusive approach and adds each component of a business in the loop. Access of this segment can be obtained through the installation of a VoIP adopter or VoIP application in the respected device.
By end-user, the consumer segment is likely to record a CAGR of 9.8% between 2023 and 2033. Though, residential VoIP is also thriving at a significant rate. Advanced features like call waiting, call forwarding, and caller ID are making VoIP services the preferred choice for consumers. The high popularity among residential places is likely to shape the trends for the market. The growing multi-channel applications, along with the downfall of (Plain Old Telephone Service) POTS, are also gaining traction for this segment.
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The Voice over Internet Protocol (VoIP) market is dynamic and is likely to have a bright future in the forecast period. The competitors add cloud-based, AI, and machine learning elements in the VoIP services to enhance the communication experience. The vendors also try to provide personalized solutions for different outsourcing businesses.
Market Developments
The market CAGR for 2033 is 9.8%.
The market is estimated to reach USD 118.86 billion by 2033.
North America, Europe, and Asia-Pacific are the top 3 countries leading the market.
The market is estimated to secure a valuation of USD 43.92 billion in 2023.
India, Japan, and China dominate the Asian market.
1. Executive Summary | Voice over Internet Protocol (VoIP) Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 5.1. Integrated Access/ SIP Trunking 5.2. Hosted IP PBX 5.3. Managed IP PBX 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Access 6.1. Phone to Phone 6.2. Computer to Computer 6.3. Computer to Phone 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User 7.1. Consumers 7.2. Small and Medium Enterprises 7.3. Large Enterprises 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 8.1. IT & Telecom 8.2. BFSI 8.3. Healthcare 8.4. Media & Entertainment 8.5. Retail & ecommerce 8.6. Travel & Hospitality 8.7. Others 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. South Asia 9.5. East Asia 9.6. Oceania 9.7. MEA 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. Vonage Holdings Corporation 19.2. 8x8 Inc. 19.3. Nextiva Inc. 19.4. RingCentral Inc. 19.5. West Corporation 19.6. Verizon Communications Inc. 19.7. Microsoft Corporation 19.8. Thinking Phone Networks, Inc 19.9. Phone Power LLC 19.10. Inphonex LLC 19.11. ShoreTel 20. Assumptions & Acronyms Used 21. Research Methodology
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Voice over Internet Protocol (VoIP) Market
