Voice over Internet Protocol (VoIP) services facilitate digital telephony through public internet rather than dedicated circuits. VoIP technology offers benefits such as reduction in call costs and easy upgradeability to advanced unified communication features. Rising need for cost-effective and technologically-advanced communication solutions among businesses has stimulated demand for VoIP services.
The global VoIP Services Market is estimated to be valued at US$ 91.15 billion in 2024 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major factors augmenting growth of the global VoIP services market is rising adoption of cloud-based services. Cloud infrastructure allows flexibility, scalability and cost benefits for telecommunication services. Major players in the market are shifting their portfolio to cloud-based VoIP services owing to its pay-per-use model and omnipresent reach. For instance, Microsoft offers Skype, a cloud-based VoIP solution with advanced communication features. Similarly, Cisco WebEx and Vonage Business Cloud are gaining popularity among small and medium enterprises seeking flexible telephony services. Rapid digitalization of work practices and internet proliferation has catalyzed migration to cloud-based communication services, thereby driving the VoIP services market.
SWOT Analysis
Strength: VoIP offers cost-effective calling solutions for both domestic and international communications. It provides flexibility as calls can be made from any internet-connected device.
Weakness: VoIP services require a stable internet connection for making calls. Calls may get disconnected or face call quality issues in case of internet outages or connection issues. Security concerns over hacking and privacy issues also exist.
Opportunity: Growing adoption of cloud-based solutions and increasing popularity of work-from-home model is driving the demand for VoIP services. 5G rollouts will further enhance voice and video call quality over VoIP.
Threats: Stiff competition from traditional telephony providers and OTT communication apps poses pricing pressures. Regulatory changes affecting telecom tariffs can impact market revenues.
Key Takeaways
The global VoIP Services market is expected to witness high growth over the forecast period of 2023 to 2030. The market size is projected to reach US$ 91.15 Billion by 2024, growing at a CAGR of 7.9% during the forecast period.
Regional analysis indicates that North America currently dominates the market attributed to high penetration of broadband connectivity and widespread tech adoption. Asia Pacific is expected to grow at the fastest pace led by countries like China, India with rising internet subscribers and increasing spend on digital infrastructure by telecom operators.
Key players operating in the VoIP Services market are Microsoft, Cisco Systems, RingCentral, 8×8, Vonage, Mitel Networks, Fuze, Avaya, Ooma, Dialogic. These companies are focusing on enhancing call quality, network scalability, security, and adding value-added features like presence, chat, video, collaboration tools to differentiation from peers. Acquisitions and partnerships are regular strategies adopted by major players to expand their solution portfolio and global footprint.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it