by VoIP (Voice over Internet Protocol) services refer to voice communication services that utilize internet for establishing phone calls between users. Some key advantages of VoIP services include cost-effectiveness, advanced features, worldwide connectivity, device compatibility and flexibility. The rising need for more affordable phone call alternatives compared to costly traditional phone services has been driving increased adoption of VoIP calling plans among both residential and commercial users.
The VoIP services market is estimated to be valued at US$ 158.72 Bn in 2024 and is expected to exhibit a CAGR of 12.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the VoIP services are 8×8 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.
The key opportunities in the market include growing interest in integrated cloud-based solutions, increasing penetration of smartphones and mobile applications, and strategic collaborations between service providers. The transition towards work-from-home practices amid the pandemic has also created additional scope for adoption of remote communication tools.
Globally, the Voip Services Market Size is witnessing significant expansion, with major players actively focusing on partnerships and mergers & acquisitions to strengthen their presence across international geographies. Favorable regulatory frameworks and technological advancements will further encourage international providers to offer cross-border VoIP connectivity and unified communication services.
Market Drivers
A major market driver for the growth of VoIP services has been the increasing need to reduce communication costs for organizations. VoIP solutions enable enterprises to minimize their telephony expenditure substantially through options like introductory plans, unlimited calls, and bundled internet-phone packages. This has boosted the uptake of VoIP technology among small and medium enterprises looking to optimize costs.
PEST Analysis
Political: The VoIP services market is positively impacted by favorable government regulations relating to telecom infrastructure modernization and internet penetration. However, stringent privacy laws pose some challenges to the market.
Economic: The market experiences steady growth due to rising corporate spending on unified communication and collaboration solutions. Additionally, favourable macroeconomic factors like GDP growth, increasing disposable income contribute to market expansion.
Social: Younger demographic prefer using over-the-top communication apps for personal use due to features like instant messaging, video calling that save telecom expenses. Transition to remote working also drives demand for VoIP services.
Technological: VoIP services are benefiting from technological developments like integration of AI and ML capabilities to enhance customer support interactions. Transition to 5G networks will further fuel market opportunities through improved connectivity and service quality.
Geographical concentration
The VoIP services market in terms of value is highly concentrated in North America. Countries like the US and Canada have witnessed widespread adoption of VoIP among enterprises as well as individual users. High internet penetration, developed telecom infrastructure and presence of leading VoIP service providers drive the North American market.
Fastest growing region
The Asia Pacific region is poised to be the fastest growing market for VoIP services during the forecast period. Presence of developing economies, rising internet connectivity, and growing digitalization across industries will majorly support the regional market growth. Countries like China, India, Japan, Australia and South Korea are expected to significantly contribute to the Asia Pacific VoIP services market expansion through 2031.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
Ravina Pandya,a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
