Voice over internet protocol (VoIP) is a group of technologies for the transfer of voice communication and multimedia sessions over internet protocol networks. It is a cost-effective technology to communicate with people around the globe. The technology makes use of internet as medium for digital signal propagation. The various related terms in VoIP are internet telephony, broadband telephony and IP telephony. These changes are expected to favor the market positively in near future by replacing the vertically separated networks from all IP converged Network. Furthermore, VoIP providers are introducing additional features to attract end users at both corporate and individual levels.
The global VoIP Services market is estimated to account for US$ 123.7 Bn in terms of value in 2019.
Market Dynamics- Drivers
Small and mid-sized as well as large enterprises are increasingly adopting hybrid cloud communications in their infrastructure. For instance, in July 2015, Seagate Technology plc, a storage solutions company, introduced an updated hybrid cloud data protection solutions that allow customers to manage their data growth and progressively compound security needs in easy and cost effective manner. Furthermore, increasing need for cloud-based communication services is expected to support the market growth. This is owing to budgetary advantages offered by these services such as probable per-user monthly fees, low capital expenses and fewer IT personnel along with strategic advantages like uniformity across a network and the easiness of adding forthcoming innovations.
Access to high-speed internet has increased in semi-urban as well as satellite cities, especially in emerging economies. As a result of this, small- and mid-sized businesses can reach out to all the mass media at very low investment. For instance, across nine emerging economies such as India, Vietnam, Argentina, Mexico, Malaysia, Turkey, Taiwan, Morocco, Hungary, the Internet has allowed them to gain revenue and reduce costs as stated by almost 3,000 surveyed SME based there. Hence, increasing penetration of internet is semi-urban and satellite cities are expected to boost the global VoIP services market growth in the near future.
Asia Pacific region dominated the global VoIP services market in 2018, accounting for 35.4% share in terms of volume, followed by Europe, North America, Latin America, and MEA respectively.
Source: Coherent Market Insights
Market Dynamics- Restraints
Although there are various advantages of adopting cloud computing, shifting files to cloud makes personal data vulnerable, which can be potentially accessed by third-party. Moreover, the data of large organizations such as financial data is maintained on the cloud. Since cloud services are maintained and managed by third party, there is a chance that data can be exposed to unauthorized users. Thus, such privacy issues related to data on cloud are expected to restrain the global VoIP services market growth in the near future.
Many VoIP service providers in the market offer contract proposals with unsatisfactory terms or limit the customer choice. Such terms keep the customer occupied in the same plan or contract. As a result of this, customers are not eager to accept services from any new service provider. Therefore, such inadequate contract proposals are expected to hamper the market growth over the forecast period.
Rising smartphone penetration has increased the use of mobile VoIP services across the customer segment globally. Various companies around the globe are offering software for mVoIP including Nextivqa, 8x8, Vonage, Ring central IBM, Thinkingphones, etc. For instance, in 2012, VoIP subscribers using mVoIP services accounted for 64.7% of the total VoIP subscribers either on any segment such as phone-to-phone configuration or on computer-to-phone configuration. This share is expected to reach 77.3% by 2019.
Transition of small and medium-sized businesses from hardware such as IP PBX and unified communication services into cloud-based VoIP services. The reason for this is high costs involved in processes of hardware used to get the VoIP communication services. Better quality of services with high bandwidth and security assurance might ensure uninterrupted and highly-trusted communication services to consumers.
Source: Coherent Market Insights
Global International long distance VoIP calls based VoIP services market was valued at US$ 68.6 Bn market in 2018 and is forecasted to reach a value of US$ 251.9 Bn by 2027 at a CAGR of 9.3% between 2017 and 2027.
Robust increase in sales of smartphones has led to significant increase in adoption of mobile VoIP over fixed-line VoIP. A vast number of users are subscribing to one of many OTT companies offering mobile VoIP applications and services. For instance, Google developed Google Hangouts—an Android-based application that provides free VoIP services. Similarly, Apple Face Time comes pre-installed on iPhones and offers similar functionalities. Growing competition and a wide range of differentiated service offerings by VoIP service providers are expected to result in exponential growth of mobile mVoIP services in the near future.
Conventional fixed line voice calls have comparatively cost to VoIP services. Since VoIP services are cost-effective, they facilitate companies to shift from conventional voice services on fixed line to communication based on IP. For instance, A1 Telekom based in Austria transformed into a VoIP platform from an entire fixed line voice service provider. More network providers are following suit. This trend is expected to continue during the forecast period.
In Global VoIP services market, by call type segment, the International long distance VoIP calls sub-segment dominated the global market in 2018, accounting for 60.8% share in terms of value, followed by domestic VoIP calls, respectively.
Source: Coherent Market Insights
Key players operating in the global VoIP services market are Verizon Communications Inc., Vonage Holdings Corporation, ShoreTel, 8x8 Inc., Inphonex LLC, Nextiva Inc., Phone Power LLC, RingCentral Inc., Thinking Phone Networks, Inc., West Corporation, and Microsoft Corporation.
Voice over internet protocol or IP telephony is a technology that converts voice into digital signal thereby allowing to make a call directly from a VoIP phone, computer, or other data-driven devices. In layman’s terms, a VoIP is a phone service over the internet. It is a cost-effective technology to communicate with people around the globe. The technology makes use of internet as medium for digital signal propagation. The various related terms in VoIP are internet telephony, broadband telephony and IP telephony. These changes are expected to favor the market positively in near future by replacing the vertically separated networks from all IP converged Network. Furthermore, VoIP providers are introducing additional features to attract end users at both corporate and individual levels.
Rise in demand for high-speed internet for commercial applications is expected to propel the global VoIP services market growth during the forecast period. Various commercial sectors such as retail, banking and finance, real estate, and others ranging between high and low revenue generation use VoIP services that are being provided by high-speed internet to reduce operational expenses. For instance, digital banking service provided by the banks with internet technology can also provide rapid changes for traditional bank to improve customer service satisfaction and cross-selling ability where commercial banks in the city offer online to offline financial service repetition. Therefore, increasing demand for high-speed internet for commercial applications is expected to drive growth of the global VoIP services market over the forecast period.
However, low-quality service due to changing latencies and dropped packets are expected to hamper growth of the global VoIP services market during the forecast period
This report segments the global VoIP services market on the basis of call type, end-use, configuration, and services. On the basis of call type, the global VoIP services market is segmented into international long distance VoIP calls and domestic VoIP calls. On the basis of end-use, the market is segmented into individual use and corporate use. On the basis of configuration, the market is segmented into computer to computer, computer to phone, and phone to phone. On the basis of services, the market is segmented into SIP Trunking service, Hosted Business IP PBX Service, Managed IP PBX service, and other services.
Key features of the study:
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