The VoIP services market is poised to witness significant growth in the coming years. VoIP or Voice over Internet Protocol is a methodology and group of technologies for the delivery of voice communications and multimedia sessions over Internet Protocol (IP) networks. VoIP services offer cost-effective calling solutions to customers along with several advantages like integrated VoIP solutions.
Some of the key products in the VoIP services market include integrated access/session initiation protocol (SIP) trunking, hosted IP PBX, hosted call center, unified communications as a service (UCaaS) and managed IP PBX. VoIP services are widely being adopted by enterprises to reduce communication costs and gain operational flexibility. They provide features like video calling, messaging, conferencing and mobility along with integration with several business applications. The increasing demand for cost-effective communication services and collaboration tools from businesses is propelling the growth of VoIP services globally.
The Global 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 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. These players are focusing on developing innovative VoIP solutions and acquiring other players to consolidate their market position.
The demand for Voip Services Market Size is growing significantly across several industry verticals like BFSI, retail, IT & telecom, healthcare, education among others. This can be attributed to benefits like mobility, collaboration andintegration with various business applications. The shift towards remote and hybrid working models during the covid-19 pandemic has further accelerated the adoption of VoIP services.
The VoIP services providers are expanding their global footprint by entering into strategic partnerships with other players. They are also enhancing their offerings by integrating unified communication capabilities, contact center solutions and artificial intelligence & analytics functionalities. The growing international business operations and investments in digital transformation across industries will support the global expansion of the VoIP services market during the forecast period.
Market Key Trends
The increasing integration of voice, video and collaboration features in VoIP solutions by providers is one of the key trends in the VoIP services market. This is allowing businesses to improve employee engagement and productivity. Leveraging technologies like WebRTC, providers are offering video conferencing and team collaboration abilities integrated with business telephony. Advanced VoIP solutions are also being developed with cognitive capabilities using artificial intelligence, predictive analytics and machine learning. This is helping businesses in automating certain business processes and enhancing customer experience. The rising popularity of cloud-based hosted VoIP systems owing to benefits like scalability, flexibility and operational cost savings will continue to drive the VoIP services market during the forecast period.
Porter's Analysis
Threat of new entrants: The VoIP services market requires high initial capital for research, marketing, and installation costs. This makes the threat of new entrants relatively moderate.
Bargaining power of buyers: Individual buyers have relatively low bargaining power as there are many established VoIP service providers. However, large enterprise buyers can negotiate customized pricing and service levels.
Bargaining power of suppliers: The threat of backward integration is low as VoIP service providers do not depend heavily on specific technologies or components from suppliers. This gives providers higher bargaining power over suppliers.
Threat of new substitutes: Alternatives like traditional PSTN lines still exist but are declining. Instant messaging and video conferencing apps also provide some substitution. Overall threat from substitutes is moderate.
Competitive rivalry: The market has many global and regional providers competing on price, features, and customer experience. Competitive pressures to retain and acquire customers are intense.
Geographical regions of concentration
North America accounts for the largest share of the global VoIP services market, both in terms of value and volume. High internet penetration, growing trends of BYOD and work-from-home, and large presence of VoIP service providers have made North America the primary regional market.
Fastest growing region
The Asia Pacific region is expected to witness the highest CAGR during the forecast period. Countries like China, India, Japan, and Southeast Asian nations are witnessing rising internet adoption, increasing number of smartphone users, and growing trends of digital transformation among businesses. This makes Asia Pacific the fastest growing regional market for VoIP services.
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