Consumers are consistently on the lookout for reliable and cost efficient modes of communication. Though landlines are still the preferred forms of communication for many, the ongoing technological advancements are poised to change this scenario The rise of VoIP services is showcasing a new market trend with an increasing subscriber base, gaining popularity over traditional voice services. The result is seen through a substantial growth in the global VoIP services market that is projected to rise with a 9.6% CAGR for the forecast period of 2016 up to 2024. With a market valuation at US$85.9 bn for the year 2015, the global VoIP services market is expected to stand at US$194.5 bn at the end of the forecast period.
Increased Internet Penetration Driving Global VoIP Services Market
Having an internet connection is the norm for all industries. Many companies, especially SMEs have limited operating budgets making it difficult for them to get a dedicated wired telephone connection. With increased internet penetration across the globe and the low cost of VoIP services offer, both SMEs and large enterprises along with households are making the shift to VoIP services, thus driving the market. The global VoIP services market is also driven by the lower maintenance cost, global connectivity, and easy setup.
Peak Hour Traffic Restraining Global VoIP Services Market
Internet uses packet data to transfer information unlike electric pulses in the case of wired connections. For wired connection, peak period has no effect on the performance unlike packet data, which could slow down transmission if the data traffic is too high. If there is drop in the internet speed, VoIP services will not perform effectively leading to call drops, voice breaks. and frequent disconnections. Also, VoIP services being dependent on the internet are susceptible to downtime due to server issues or maintenance leading to loss in connectivity. These factors are expected to restrain the global VoIP services market.
Asia Pacific Expected to Dominate Global VoIP Services Market
The global VoIP services market is dominated by North America with a share of 27.0% in the overall market in 2015. By the end of the forecast period, Asia Pacific is expected to take over as the leading region with Europe in second place. The Europe global VoIP services market is expected to rise with a steady 8.4% CAGR for the forecast period while the North America global VoIP services market is projected to rise with 8.5% CAGR. Asia Pacific is expected to rise at the fastest CAGR during the forecast period to lead the market by the end of 2024.
Asia Pacific is expected to grow owing to the emerging market and growing number of SMEs sprouting in the region. Also, the increased internet penetration in the region, especially in the south and South East Asia is expected to result in the increased demand for VoIP services in the region. Europe’s projected growth is owing to the rising SMEs in the region and the development of good communications base in the region.
Key players in the global VoIP services market include 8x8 Inc., ShoreTel Nextiva Inc., West Corporation, Vonage Holdings Corporation, Verizon Communications Inc., Phone Power LLC., Thinking Phone Networks Inc., RingCentral Inc., and Inphonex LLC.
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