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                                  Home Press Releases

                                  VOIP Services Market Estimated to grow at a CAGR of 13.5% During the Forecast Period 2021-2026

                                  admin by admin
                                  February 18, 2022
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                                  (EMAILWIRE.COM, February 18, 2022 ) VOIP Services Market size was valued at US$ 0.125 Billion in 2020 and is projected to reach US$26.8 billion by 2026 at a CAGR of 13.5% during the forecast period 2021-2026. High penetration of smartphones and the growing demand for new-age unified communication services such as federated VoIP are set to drive the VoIP Services market. The rapid migration of business organizations from plain old telephone service (POTS) to VoIP or IP telephony systems for a connected and cost-effective infrastructure is boosting the market growth. According to Microsoft, Microsoft Team users use their collaboration solution for more than 2.7 billion minutes each day and based on global market insights, it is reported that 85% enterprises have already shifted towards cloud-based VoIP services. With the increasing penetration of remote working and BYOD trends, the demand for VoIP services is analyzed to accelerate the market during 2021-2026. Increasing penetration of instant messaging platforms such as Whatsapp, Facebook Messenger, WeChat is also estimated to propel the market growth during 2021-2026.

                                  VOIP Services Market Segment Analysis – By Communication Type

                                  By Communication type, VoIP Services Market has been segmented into the computer to computer, computer to phone, and phone to phone. Computer to the phone has dominated the market in 2020 acquiring a share of 42% and is estimated to hold the major market share during 2021-2026 owing to the growing demand for cloud-based VoIP services among business customers. Phone to phone segment is analyzed to be the fastest-growing market with a CAGR of 12.43% during the forecast period 2021-2026 owing to the growing adoption of portable devices such as smartphones and tablets and increasing penetration of BYOD trends in workplaces. According to reports, in May 2020, VoIPStudio announced to expand business-grade communication with an emergency calling feature to provide full access to public safety organizations enhancing its regulatory compliance. Such developments are set to propel the market growth during 2021-2026.

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                                  Report Price: $ 4500 (Single User License)

                                  VOIP Services Market Segment Analysis – By End User

                                  By end-user, VoIP Services Market has been segmented into the industrial, commercial, and residential sectors. The industrial sector dominated the market acquiring a share of 52% in 2020 and is analyzed to hold the major market share during the forecast period 2021-2026 owing to increasing demand for next-generation unified communication in various industry verticals. The increasing demand for international distance calls among corporate consumers has accelerated market growth. In the industrial sector, IT & Telecommunication is estimated to hold the largest market share during 2021-2026. In February 2020, Vonage, a VoIP and unified communication service provider announced the partnership with Qunifi for Microsoft Teams integration to keep employees and clients connected all the time. In September 2020, Dialpad, a VoIP provider announced the completion of the acquisition of Highfive to expand business communications and enhance unified communication as a service model. Such acquisitions and partnerships are anticipated to boost the market during 2021-2026.

                                  VOIP Services Market Segment Analysis -By Geography

                                  By geography, VoIP Services Market has been segmented into North America, Europe, APAC, South America, and others. Europe dominated the market acquiring a share of 25% in 2020 and is estimated to hold the major market share during 2021-2026 owing to the high penetration of instant messaging applications among smartphone users and increasing investment towards advanced technology. APAC is estimated to be the fastest-growing market owing to the massive transition towards digitalization for business purposes. The rapid adoption of social media platforms in this region is also accelerating market growth. In July 2018, BSNL launched VoIP services under the brand name “WING” in India. Indian Government’s “Digital India” movement for establishing digital infrastructure across India is also estimated to propel the market growth during 2021-2026.

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                                  VOIP Services Market Drivers

                                  Increasing migration towards VoIP services from traditional telephone systems in the corporate sector

                                  The growing need among business organizations to use data and voice communications simultaneously over a single packet-switched network for enhancing their digital business strategies is set to drive the market. VoIP services do not require additional charges for long-distance international business calls unlike traditional plain old telephone services (POTS). Integration of IoT with company VoIP systems to streamline work processes is boosting business efficiency. The increasing demand for web conferencing in corporate sectors for facilitating collaboration of different teams for business purposes is fueling the market growth. Growing demand for cloud-based wireless communication infrastructure for optimizing productivity and achieving flexible connection is driving the market. Increasing penetration of remote working, BYOD trends is accelerating demand for VoIP services. VoIP service offers unified communications such as phone calls, instant messaging, e-mail, faxes, web conferences over a single network infrastructure with a low maintenance cost, optimized bandwidth efficiency, and scalability. Such advanced benefits are analyzed to drive the market during the forecast period 2021-2026. In November 2020, Ribbon Communication announced that Vivo will be deploying Ribbon’s SBC software for increasing the operational efficiency of VoIP services. In December 2020, Nextiva launched NextOS to integrate AI, IoT with VoIP services to deliver a fully integrated communication platform for business organizations. Such developments are set to drive the market.

                                  Increasing demand for instant messaging services

                                  The increasing adoption of real-time messaging solutions as the primary digital communication platform to stay connected all the time has significantly triggered the growth of VoIP services market. Moreover, using instant messaging apps as customer service channels to solve customer queries or providing service information is fueling VoIP market growth. Many B2C service providers are using this feature-rich digital messaging platform as an advertising and digital marketing platform to promote their brands and drive purchases. Such interactive, two-way communication channels are propelling the market growth in a direct, cost-effective, and accessible way. On the other hand, with high penetration of social media applications globally, the demand for VoIP services has gained huge traction. In December 2020, VoIP service firm ClearlyIP announced the complete acquisition of Telrad Technology group for an undisclosed amount. In December 2020, Ring Central announced to completely acquire DeepAffects for delivering an AI-enabled enhanced meeting experience for its customers. Such acquisitions are propelling market growth.

                                  VOIP Services Market Challenges

                                  Limited network speed and privacy concerns

                                  The adoption of VoIP services requires a high-speed internet connection to deliver efficient and smooth services. Poor network connection results in interrupted communication and poor quality calls which is a major challenge for this technology adoption. According to Intermedia, high internet speed, and consistent, reserved amount of bandwidth only deliver optimal results for VoIP services. Moreover, the privacy concerns such as security breaches, cyber-attacks among enterprises and individuals while using VoIP services are hampering the adoption. However recent investments towards IT infrastructure and cyber-security are set to offset this challenge and promote healthy growth during 2021-2026.

                                  VOIP Services Market Landscape

                                  Product innovations, acquisitions, Partnerships, and R&D activities are key strategies adopted by players in the VoIP Services market. In 2020, the market of VoIP Services industry outlook has been fragmented by several companies. VoIP Services top 10 companies include Ribbon Communication, Orange S.A., Verizon Communications, 8X8 Inc., Deutsche Telecom, Nextiva, Citrix System Inc., RingCentral Inc., Grasshopper, Microsoft Corporation, AT&T Inc. among others.

                                  Acquisitions/Product Innovations

                                  In December 2020, Thompson Street Capital Partners completed the acquisition of SkySwitch, a VoIP solution provider.

                                  In October 2020, Viasat launched VoIP services for SMBs for efficient cost reduction.

                                  In September 2020, Microsoft launched Azure Communication Services to expand VoIP platform.

                                  Key Takeaways

                                  Europe is estimated to dominate the market during 2021-2026 owing to high penetration of instant messages platform and increasing investments towards advanced technology.

                                  Computer to phone is analyzed to dominate the market during 2021-2026 due to the rising demand of cloud-based VoIP services among business organizations.

                                  Increasing migration towards VoIP services in the corporate sector and growing demand for instant messaging apps are anticipated to drive the market between 2021 and 2026.

                                  Limited network and privacy issues are impeding the market growth.

                                  Related Reports:

                                  A. Mobile VoIP Market

                                  https://www.industryarc.com/Research/Mobile-VoIP-Market-Research-503857

                                  B. Hd Voice Market

                                  https://www.industryarc.com/Research/Hd-Voice-Market-Research-500518

                                  For more Information and Communications Technology Market reports, please click here

                                  About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.



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