Hosted VoIP Services Market to Double from 2015 to 2020

A chart showing that hosted VoIP services will generate revenue of $13 billion by 2020

Hosted VoIP Services Market to Double from 2015 to 2020

Global cloud VoIP revenue is set to reach over $13 billion annually in a couple of years, more than doubling from 2015 to 2020. Hosted VoIP services will seat about 74 million users by 2020, with unified communications (UC) becoming more and more popular among businesses of all size. North America comprises 43 percent of all hosted VoIP services seats but the rest of the world is adopting business VoIP at a growing rate as well.

Hosted VoIP Services Are Maturing

UC service and cloud-based VoIP systems have matured and the market is not in an early stage already. The widespread adoption of cloud business services is boosting the growth of hosted VoIP and related services. The industry is progressing toward wider implementation of UC concepts, adding new features and improving existing product offerings at scale.


Global Hosted VoIP and UC Revenue Growth from 2015 to 2020

A chart showing that hosted VoIP services will generate revenue of $13 billion by 2020

Source: IHS Markit


Businesses are demanding much more than simply replacing their outdated PBX. These demands force VoIP providers to bet on UC services and offer services beyond the scope of telephony. Internet protocols enable transfer of various data over the Internet. Hence, hosted VoIP providers move to unexplored areas such as project management capabilities and multi-user conferencing with data sharing. A good cloud VoIP service integrates with a growing number of enterprise software suites.

Major Growth Drivers

Market researchers find that an increasing number of enterprise adoption is among the major drivers of a positive cloud VoIP adoptions pace of growth. Small and medium businesses are adding to the growth by realizing the advantages offered by packaged service offerings.

The overall corporate consumer segment generated revenues of $43 billion in 2012 while the segment is estimated to grow to $205 billion by 2020. Hosted VoIP services will account for a growing portion of the revenue as the technology matures further.

Despite the positive market outlook, the global VoIP industry is facing challenges such as the relatively low public acceptance of VoIP services in the residential consumer segment. Business customers are still the major driving force behind the VoIP adoptions growth, hosted services including. The increasingly global economy, where free movement of labor force is more of a norm, gradually removers constraints concerning the low acceptance among the residential consumers. Individuals simply need a cost saving solutions to make international calls.

On the other hand, the VoIP industry is transitioning from circuit-switched networks to packet-switched networks. VoIP services are increasingly relying on cellular networks such as 3G and 4G. This enables hosted VoIP providers to offer more features within their service offerings. The use of 3G and 4G technologies also enables service providers to offer services on the go. Taking advantage of softphones and delivering service to employees on the field is widespread.


The VoIP industry as a whole and the hosted VoIP services in particular, are yet to realize their full growth potential. The transition from copper landlines to hosted PBXs takes time. Also, technology is advancing very rapidly. Therefore, even the most innovative cloud VoIP providers experience difficulties to implement all the latest tech advancements.

That being said, there is still plenty of room for the hosted VoIP market to grow, expanding to residential consumer market, and in fact reaching out to each business customer across the world.