Global VoIP Market to Double by 2024
Global Voice over Internet Protocol (VoIP) market will grow to $93.9 billion by 2024, being valued at $43.3 billion in 2016, according to a report by Ameri Research. Analysts believe the VoIP market will grow steady at a rate of CAGR of 10.2 percent a year until 2024.
VoIP market is to grow
VoIP service providers are developing into feasible alternative to traditional phone and data companies. The industry is expanding into new markets on a global scale. Other analysts such as Zion Research estimate the global VoIP industry will report revenues worth $140 billion by 2021.
A number of industry researchers are even more optimistic. Grand View Research forecast the global mobile VoIP market alone to exceed $145 billion by 2024 due to transition to packet-switched networks. Currently, circuit switch networks shift to new technologies that enable mobile VoIP services that is a very lucrative market.
Key growth drivers
Increasing wireless bandwidth and implementation of high-speed networks by telecom operators is a major driving force behind the growth of the VoIP market. Another major factor is the adoption of 4G/LTE standards. Moreover, next generation communication technologies will make deployment of VoIP service easier and more widespread.
Mobile VoIP services offer unparalleled affordability making voice plans obsolete. They provide texting capabilities and greater flexibility to individual and business customers.
Value-added VoIP services
One of the fastest growing VoIP segments is video conferencing. The sector is estimated to grow at a CAGR of over 20 percent in the next decade. Video conferencing and similar services are growing in demand in a global economy where many companies have offices abroad and employ remote workers across a variety of industries.
Increasing popularity of Bring your Own Device (BYOD) policy adoption is another segment that will boost growth of VoIP services. Use of personal mobile devices at corporations is also increasing demand for value added services. These include messaging, data transmission, and video over VoIP networks.
Regional VoIP markets
Various reports estimate the European VoIP industry to retain its leading position within the next decade. Major growth driver is increasing use of smart devices and growing popularity of instant messaging services. Asia Pacific region will witness the fastest growth rate, growing at a CAGR of over 23 percent in the period until 2024.
Asia Pacific is also witnessing a strong overall economic growth. This will fuel the use of VoIP services by small and medium enterprises. Booming number of startups across the region will both adopt and develop VoIP services. On the other hand, the economic recovery in North America is boosting the adoption rate of VoIP services in the US and Canada. States and territories where small business activity is thriving will see largest growth.
VoIP usage Canada Radio Television Communications Commission
VoIP market trends to watch
Growing popularity and reliability of VoIP services will inevitably result in a wave of mergers and acquisitions. The trend will be more visible in established markets. New market players will emerge, offering more innovative service compared to existing VoIP service providers.
Rising awareness of benefits of using of real-time VoIP communication solutions in large, small and mid-sized enterprises is creating opportunities for innovative VoIP startups. These new companies will gain market share at the expense of established VoIP providers.
Increasing Internet penetration in rural and developing regions is creating opportunities for broader use of VoIP services in locations that are still to grow. We’ll witness largest growth in the segment for cloud VoIP services that do not depend on local infrastructure and are able to provide innovative services all over the world. Those solutions and platforms will incorporate both voice and data transmission services along with advanced features like remote control and mobile capabilities.