VoIP Services Market
The “Global VoIP Services Market, by Call Type (International VoIP Call Type and Domestic VoIP calls), by End-Use (Individual Use, Corporate Use (Small and Medium-sized Enterprises (SMEs) and large Enterprises)), by Configuration (Computer to Computer, Computer to Phone, and Phone to Phone), by Service (SIP Trunking Service, Hosted Business IP PBX Service, Managed IP PBX service, and Other Services), and by Geography (North America, Europe, Asia Pacific, and Latin America, Middle East & Africa) - Global Forecast to 2027”, is expected to be valued at US$ 251.9 billion by 2027, witnessing a CAGR of 9.3% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
Market Overview
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. VoIP technology allows conventional telephony services to operate over computer network by using packet-switched protocols. VoIP services as adopted by individuals as well as corporate organizations. Moreover, it is cost-effective and can connect with overseas devices. Generally, international calls on VoIP are free, while the only cost is for internet access.
Market Drivers
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.
Market Opportunity
Increasing investment in mobile VoIP services is expected to present lucrative growth opportunities in the near future
Market players and service providers can invest in mobile VoIP services, in order to increase their market share and gain competitive edge. For instance, in January 2010, Apple Inc. introduced iCall app for enabling VoIP services on Apple iPhone. Moreover, in June 2012, Nokia introduced two mobile handset models of Nokia Asha namely Nokia Asha 311 and 302 and other models such as Nokia C3-01, Nokia X3-02, and Nokia C3-01 Gold Edition with integrated SIP VoIP.
Market Restraint
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
For smoothly function VoIP services, uninterrupted and high-quality internet connection is necessary. However, fluctuations in internet quality, especially in emerging economies is hindering the market growth. Moreover, during peak hours the network is congested due to many subscribers using internet services in a locality through single cable network line. Thus, low-quality service of internet is expected to restrain the global VoIP services market growth in the near future. For instance, there are four types of delay in IP networks: delays such as Network, accumulation, propagation and processing delay, which can cause disruption in the internet connection, which can result in delay of services and finally lead to customer dissatisfaction.
Market Trends
Advent of consumer VoIP services in Brazil, in order to provide cost-effective mobile and landline calling
Introduction of VoIP services for consumers in Brazil is expected to drive the regional market growth in the near future. This is owing to benefits of low-cost mobile and landline calling with high connectivity over traditional calling. For instance, in April 2014, Vonage ventured into the international services market, and entered into a joint venture with Datora Telecom for launching its consumer VoIP service in Brazil. Through these services, the company offers unlimited calls to landline. The company plans to roll out the service in Curitiba and Brasilia and eventually extend its offerings to the rest of the country.
Exponential increase in number of small- and mid-sized enterprises in Europe is expected to boost growth of the regional market in the near future. There is significant success in addressing simple business process improvements in SME through indirect channels. According to Coherent Market Insights’ analysis, around 20 million European SMEs exist and play a vital role in the European economy. Small and medium-sized enterprises (SME) are a central point in making enterprise policy in the European Union (EU). The SME and entrepreneurship are key for confirming economic growth, innovation, job creation, and social integration in the European countries according to the European Commission.
Competitive Section
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.
Key Developments
Segmentation
Market Taxonomy:
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