IP Telephony Market Statistics: 2030
The global IP telephony market was valued at $2,130.70 million in 2020, and is projected to reach $7,506.54 million by 2030, growing at a CAGR of 13.7% from 2021 to 2030.
IP telephony describes any system that fits within the internet-based telecommunications, including fax and other systems. It relies on a variety of open-source protocols to transfer data from the phone to the service provider. Furthermore, business corporations are increasingly using IP telephony solutions since they're portable and price effective. In addition, ease of use, improved technology, and increased productivity are contributing toward adoption of IP telephony systems.
The low cost of IP telephony systems is encouraging organizations to implement them. Moreover, IP telephony provides a new way to business phones and improves communication by providing a cost-effective method. Therefore, it is considered as an important factor boosting the global IP telephony market. In addition, existing legacy systems & hardware including fax machines, alarms, and credit card readers, can also be readily integrated with IP telephone systems. In addition, legacy systems can also be compatible with IP telephones since they interface with corporate applications. Thus, the easy integration of IP telephony systems is fueling the growth of the market. However, mostly individuals are using high-quality phone conversations owing to IP telephony systems, many customers still complain about hearing echoing voices, having to wait a long time for an answer. Thus, the poor voice quality in IP telephony systems is impeding the growth of the IP telephony market. On the contrary, IP telephony systems will play a crucial part in data collecting and transmission levels of IoT as this technology is developing & advancing tremendously. In addition, IP telephony systems and IoT, when utilized together, have the potential to transform the existing organizational functional areas. Thus, these factors are expected to provide major lucrative opportunities for the market in the upcoming years.
The report focuses on growth prospects, restraints, and trends of the IP telephony market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the IP Telephony market.
The IP Telephony market is segmented on the basis of offering, type, call type, installation type, enterprise size, end user and region. By offering, it is bifurcated into solutions (hardware and software) and services (consulting/ implementation and maintenance). By type, it is classified into integrated access/Session Initiation Protocol (SIP) Trunking, managed IP PBX, and hosted IP PBX. Based on call type, it is segregated into international calls and domestic calls. By installation type, the market is divided into wired and wireless. Based on enterprise size, it is segmented into large enterprise and small & medium enterprises. By end user, the market is segmented into corporate, government and residential. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the IP telephony industry such as DIALPAD, INC., Freshworks Inc, Intermedia.net, Inc., Microsoft, Mitel Networks Corp., Ooma, Inc, RingCentral MVP, Vonage, Ziff Davis, Inc., and 8x8, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the IP telephony market.
COVID-19 impact analysis
During the COVID-19 pandemic, the demand for mobile IP telephone apps has increased in order to keep in touch with the staff working remotely. IP video telephony allows employees the opportunity to work anywhere at any time utilizing remote access technologies, enhancing their job quality and productivity. In addition, the enhanced flexibility of IP video telephony can bring lifestyle benefits to employees.
Solution segment accounted for the highest market share in 2020.
Moreover, mobile IP telephony apps became more popular in a variety of industry verticals. For instance, many doctors and healthcare workers have benefited greatly from the use of mobile IP telephony applications in their training and meetings. Therefore, IP telephony industry has been positively impacted by the COVID-19 pandemic.
Top impacting factors
Low costs of IP telephony systems
Traditional telephone services are usually controlled by governments or companies with a monopoly or near-monopoly. They rely on charges for income and the goal of market supremacy in their home country.
Integrated Access/Session Initiation Protocol (SIP) Trunking segment accounted for the highest market share in 2020.
As a result, IP telephony systems are less expensive than traditional services, with some companies even providing free calls. Furthermore, IP telephony solutions do not require any extra infrastructure or physical gear; all that is necessary is an existing internet connection. As a result, businesses may increase communication while saving money and be more productive and efficient. Thus, the low costs of IP telephony systems are driving the IP telephony market growth.
Combination of IP telephony system and IoT
To make data sharing easier, the Internet of Things (IoT) connects all internet-enabled devices. IP telephony systems will play a crucial part in data collecting and transmission levels of IoT, as this technology becomes more advanced. IP telephony industry and IoT, when utilized together, have the potential to transform how organizations function. In addition, smart offices can be put up by corporations. These workspaces may be as basic as a network that collects all data from the office equipment so that employees have access to all of the information, they require no matter where they are. It can also be as complicated as having voice-activated workplaces that allow users to ask the VoIP to record meetings for them. Thus, combination of IP telephony system and IoT is anticipated to provide various growth opportunities for the market.
Asia-Pacific would exhibit the highest CAGR of 16.3% during 2021-2030
Key benefits for stakeholders
- The study provides in-depth analysis of the global IP telephony market share along with current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the global IP telephony market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the IP telephony market forecast.
- An extensive analysis of the key segments of the industry helps to understand the global IP telephony market trends.
- The quantitative analysis of the global IP telephony market size from 2021 to 2030 is provided to determine the market potential.
IP Telephony Market Report Highlights
By Call Type
By Installation Type
By Enterprise Size
By End User
By Key Market Players
IP telephony services have acquired commercial traction as majority of sectors have shifted to remote working protocols. With an increase in demand for cloud-based phone services throughout the world, the telecom sector, particularly IP telephony, has outperformed the global economy. In addition, for flawless online classrooms, the education industry has extensively utilized IP telephony. Moreover, in 2020, the healthcare industry, which included healthcare workers and physicians, used the technology for virtual trainings and meetings across nations, in addition to the education sector. Hence, the consumers of IP telephony system across various sectors increased the demand for IP telephony systems throughout the pandemic. In addition, being the most operational industry during the pandemic, clients from the health sector had a vital influence on the increased usage of IP telephony systems.
The IP telephony system market has observed a significant growth during the pandemic and was adopted by various industry verticals, however, there were certain challenges faced by the providers. The system requires a stable and reliable internet connection to establish a call or to perform any operation. In addition, the IP telephonic system also required a sufficient bandwidth to perform the operations successfully. Some of the key players profiled in the report include DIALPAD, INC., Freshworks Inc., Intermedia.net, Inc., Microsoft, Mitel Networks Corp., Ooma, Inc., RingCentral MVP, Vonage, Ziff Davis, Inc., and 8x8, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.