The VoIP services market comprises Internet protocol-based services that allow users to make voice calls over an internet network or the public switched telephone network (PSTN). VoIP services provide several advantages over traditional telephone networks such as customizable business telephone solutions, inexpensive international calls, and unified communication capabilities. With the ubiquity of high-speed internet, businesses are increasingly adopting VoIP technology to lower telephony costs and improve workforce productivity.
The global VoIP services market is estimated to be valued at US$ 158.72 billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the VoIP services market are 8x8 Inc., ATandT Inc., Avaya Inc., Bandwidth Inc., BT Group plc, CenturyLink Inc., Cisco Systems Inc., Dialpad Inc., Frontier Communications Corporation, GoTo (LogMeIn Inc.), Intermedia.net Inc., Mitel Networks Corporation, RingCentral Inc., Verizon Communications Inc., Vonage Holdings Corp. Many key players are focusing on strategic collaborations to expand their product portfolio and global footprint. For instance, in 2022, RingCentral partnered with AT&T to launch a fully integrated unified communications as a service (UCaaS) solution for large enterprises.
The rising trend of work from home during the COVID-19 pandemic has opened lucrative opportunities for Voip Services Market Size providers to cater to the communication needs of a dispersed workforce. Furthermore, the growing adoption of BYOD and work flexibility policies by businesses is boosting the demand for flexible and cost-effective VoIP solutions. Major players are also focusing on enhanced AI and cloud-based capabilities to offer personalized VoIP services.
Geographically, North America dominated the VoIP services market in 2023 due to widespread technological adoption. However, Asia Pacific is expected to exhibit the highest growth during the forecast period supported by rapid digitalization of businesses in emerging economies. Several VoIP players are expanding their presence across Asia to tap the potential growth opportunities.
Market Drivers
The growing trend of work from home amid the COVID-19 pandemic is a key factor driving the VoIP services market. WFH arrangements have necessitated advanced communication solutions for seamless collaboration between remote teams. Moreover, the ability of VoIP solutions to offer unified communication tools and reduce communication costs for businesses worldwide is boosting their demand substantially. VoIP technology integrations with CRM and business intelligence tools are further enhancing communications and supporting commercial growth. The cost benefits of VoIP compared to traditional telephone networks is estimated to remain a major growth driver for the market during the forecast period.
PEST Analysis
Political: Governments around the world are supporting the adoption of VoIP services by establishing favorable regulations to promote their usage. This has helped drive adoption of these services.
Economic: VoIP services help lower communication costs for both businesses and consumers. This cost reduction has fueled greater demand for these services as users look to save money on voice calls.
Social: Younger customers have embraced VoIP services as they are more comfortable with internet-based communication technologies. This social shift has made VoIP services more socially acceptable.
Technological: Advances in broadband connectivity and networks have enabled high quality voice and video calls over the internet. This improvement in call quality has further encouraged businesses and users to adopt VoIP services for their communication needs. Rising speeds and network coverage are also helping expand the potential market.
The regions where the VoIP services market is concentrated in terms of value are North America and Europe. Both regions are home to technologically advanced networks that can support high-quality VoIP calls. Their economies also tend to adopt new technologies quickly, driving early adoption of VoIP.
The fastest growing region for the VoIP services market is Asia Pacific. Countries in this region are experiencing rapid economic development and network expansions. This is improving connectivity and enabling more organizations and users to take advantage of cost-effective VoIP options. Rising disposable income is also expanding the potential customer base in Asia Pacific.
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