by This cost effective solution converts analog voice signals into digital data that can be transmitted over the internet or broadband connection, eliminating the need for costly hardware infrastructure. Global VoIP services enable cross border communication to be accessible and affordable for both personal and commercial usage.
The 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 advantages of VoIP services include improved mobility since users can make or receive calls from any device or location with internet access. It also offers enhanced communication features like video conferencing, file sharing, instant messaging which improve productivity. Scalability is another upside as VoIP networks can flexibly expand user capacity without large investments.
Key Takeaways
Key players operating in the VoIP services are 8×8 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.. 8×8 Inc. and Cisco Systems Inc. dominate the market with their comprehensive UCaaS and CCaaS solutions.
Growing demand for cloud based communication and collaboration suites that facilitate remote work is fueling adoption of Voip Services Market Size. The shift to hybrid work models post pandemic has further accelerated this trend. Moreover, SMEs are increasingly opting for VoIP services over traditional PBX solutions due to their cost effectiveness and easy scalability.
VoIP providers are expanding globally by partnering with local telecom companies and through acquisitions. North America currently accounts for the largest share but emerging economies in Asia Pacific and Latin America are expected to offer high growth opportunities going forward.
Market Key Trends
Digital transformation initiatives across enterprises are driving migration to IP based unified communications. The trend of workspace modernization with technologies like team messaging apps, video conferencing and cloud telephony is positively impacting VoIP services uptake. On the consumer front, high quality HD voice and video calling features incorporated by major providers are triggering cord cutting behavior and replacement of fixed line connections. Overall, innovation centered on enhanced collaboration and omnichannel customer experience will be the defining force propelling the VoIP services market ahead.
Porter’s Analysis
Threat of new entrants: Low setup costs allow new players to enter the market easily.However, established players have strong brand names and hold a significant market share.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes. However, switching costs are low.
Bargaining power of suppliers: Power of suppliers is low due to availability of alternative suppliers and commodity nature of raw materials.
Threat of new substitutes: Products such as unified communication and cloud computing pose a threat as substitutes. However, switching costs act as a barrier.
Competitive rivalry: Intense competition exists among key players to gain market share. Players differentiate through service quality, pricing, brand value and varied service offerings.
Geographical regions with high market concentration in terms of value include North America and Western Europe. North America dominates the VoIP services market accounting for more than 35% share owing to high adoption amongst enterprises.
Asia Pacific exhibits the fastest growth and is expected to grow at over 15% CAGR during the forecast period. Presence of emerging economies like India and China coupled with rapid digitization and industrialization drives the market. Low-cost international calls further support market growth in Asia Pacific.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
Ravina Pandya
Ravina Pandya,Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. LinkedIn
