Voice over Internet Protocol (VoIP) is a cost-effective technology to communicate around the world. VoIP uses the internet as a medium for digital signal propagation instead of analog signals. The global VoIP service market is anticipated to exhibit significant growth over 2016–2024. Increasing hybrid cloud communications in small and large enterprises, couple with VoIP’s low maintenance cost with higher flexibility and minimum staff support, are factors anticipated to drive the growth of the global VoIP services market over the forecast period. Demand for VoIP service due to growing need for cloud-based communication services is increasing steadily and can be attributed to various budgetary advantages such as probable per-user monthly fees, low capital expenses, and strategic advantages such as uniformity across a network and ease of adding future innovations.
To understand and assess opportunities in this market, the report is categorically split into three sections, namely market overview, market analysis, and market dynamics by call type, end use, configuration, service, and region. The report analyzes the global VoIP service market in terms of market value (US$ Bn) and a number of subscribers (Mn).
In the same section, Persistence Market Research (PMR) covers the global VoIP service market performance on the basis of adoption of services in terms of value and number of subscribers, respectively. This section includes PMR’s analysis of key trends, drivers, and restraints from the macroeconomic perspective. Impact analysis of key growth drivers and restraints, based on the weighted average model, is included in this report to better equip clients with exclusive decision-making insights.
The next section of the report analyzes the market on the basis of VoIP service type and presents the market size in terms of value and number of subscribers over the forecast period.
The Global VoIP service market is segmented as follows:
By Call type
By End Use
Managed IP PBX service segment accounted for 27.0% market share of the overall VoIP service market in 2015 in terms of revenue, followed by hosted business IP PBX service segment. Managed IP PBX service segment is mainly driven by the introduction of a large number of small and medium-sized enterprises.
The section that follows analyzes the market on the basis of configuration and presents the market size in terms of value and number of subscribers for the forecast period.
On the basis of configuration, the market is segmented into the following:
Computer-to-phone segment is expected to expand at the highest CAGR of 11.7% in terms of value during the forecast period. In terms of market share, computer-to-computer segment accounted for 43.8% revenue share of the overall market in 2015 and is expected to dominate the overall market during the forecast years. Computer-to-computer segment accounts for almost half of the total revenue in configuration category in the global VoIP Services market currently.
The section that follows analyzes the market on the basis of country and presents the market size in terms of value and volume over the forecast period.
Regions covered in the report are as follows:
In this report, the global VoIP services market is tracked in terms of both value and number of subscribers. The global VoIP services market is projected to increase from US$ 94.1 Bn by 2016 end to US$ 194.5 Bn by 2024, increasing at a CAGR of 9.5% over 2016–2024. Increasing hybrid cloud communications in small and large enterprises is anticipated to drive growth of the global VoIP services market over the forecast period. Demand for VoIP services is rising gradually owing to low maintenance cost with higher flexibility and minimum staff support. Some benefits of VoIP include the presence of services over cloud and its uninterrupted and highly-trusted communication services to consumer. Increasing Internet penetration in semi-urban and satellite cities is further fueling growth of the VoIP services market currently.
One of the major restraints for growth of the VoIP services market is that VoIP provides low service quality due to variable latencies and dropped packets that lead to low public acceptance of VoIP services by individual/residential users, thereby limiting its demand. Also, despite the presence of numerous VoIP service providers, there are many providers whose contract proposals are unsatisfactory or limits customer choices, keeping customer occupied in the same plan or contract. These factors are anticipated to restrain growth of the VoIP services market over the forecast period.
In 2015, among the various call types, international long-distance VoIP calls segment was valued at US$ 50.4 Bn and is estimated to reach US$ 55.8 Bn by the end of 2016. The whole VoIP services market for call types was valued at US$ 85.9 Bn in 2015, and is estimated to reach US$ 94.1 Mn by the end of 2016.
In 2015, individual user segment accounted for 32.8% volume share of the overall market and is expected to increase to 34.1% by the end of 2024. In terms of value, the segment is expected to expand at the highest CAGR of 10.1% over the forecast period, followed by corporate user segment.
In terms of number of subscribers, corporate user segment dominated the overall market in 2015, and it is expected to continue its dominance over the forecast period as compared to individual user segment. In terms of value, managed IP PBX service segment is anticipated to expand at a CAGR of 15.3% over 2016–2024, while hosted business IP PBX segment is expected to expand at a CAGR of around 7.8% over the same period.
APAC region is expected to increase at the highest CAGR in terms of number of subscribers and value. Among all APAC countries, China is anticipated to register the highest CAGR in terms of value and number of subscriber over the forecast period, followed by India.
Key players in the global VoIP services market include