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Report Analyzes Growth of Global VoIP Market, Sees Big Rise

August 24, 2015

A recently published a report titled “VoIP Services Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020” takes a closer look at this rising market and sees it almost doubling in the near future.

Marketing firm Transparency Market Research (TMR) concluded the VoIP services market was worth nearly $71 billion in 2013 and expects it will reach about $137 billion by 2020 at a compound annual growth rate (CAGR) of 9.7 percent. The firm confidently expects the global subscriber base will grow to nearly 350 million over the next five years.

This forecasted growth is attributed primarily to the steadily rising demand for smart devices and improved mobility among businesses and individual consumers alike, which is in turn due to the many advantages offered by VoIP. Services of this type enable higher quality communications with more features such as rich media and phone number portability, and are universally much more cost effective. Furthermore, VoIP services are very easy to install, maintain and troubleshoot. Telecommunication and Internet Service Providers are more competitive in response to this demand and thus are motivated to continuously improve and differentiate their products and services.

Further contributing to the rising popularity of VoIP services is the steady transition from circuit switched networks to packet switched networks. Traditional telephony networks operating on CDMA or GSM technology have become obsolete in favor of 3G and 4G networks that provide the necessary technology for VoIP services.

For the purposes of analysis, TMR segmented the market in several different ways. Once categorized according to configuration into computer-to-computer, phone-to-phone and computer-to-phone segments, the computer-to-phone segment held the largest market share and subscriber base, whereas the phone-to-phone segment was noted for the highest CAGR. Segmented on the basis of call type, the market for international long distance VoIP holds a considerable lead over domestic calls.

The firm also segmented the market’s consumers into two categories: individual and corporate. The corporate market share is much larger than individual, with hosted business services contributed the most revenue among corporate consumers as opposed to managed IP PBX (News - Alert) and IP connectivity. Finally, TMR segmented the market according to geographic region, and Europe lead the pack above the Asia Pacific, North America and Rest of the World regions.