A large number of players exist in the global VoIP services market. This include domestic and international players alike. As a result of its highly fragmented landscape, the top eight companies could occupy less than 15% share in the global VoIP services market, finds Transparency Market Research (TMR) in a new study. These include well established companies with global presence such as Google Talk and Yahoo. Other leading companies such as Nextiva, Inc., RingCentral, Inc., and 8x8, Inc. are pioneer in offering VoIP services to corporate consumers.
Strategies adopted by the leading companies have profound impact on the prevailing market trends. On the other hand, the business tactics of key market participants are influenced by the rising demand for innovation and need for high-quality user experience. According to TMR, between the forecast period of 2014 and 2020, the global VoIP services market is expected to report a CAGR of 9.7%. At this pace, the market’s valuation will reach US$136.76 bn in 2020 from US$70.90 bn in 2012.
By end use corporate consumers are expected to continue holding the dominant share in the global VoIP market. The high pace of gains witnessed by the segment will enable it reach over 225 million subscribers by the end of the forecast period. Regionally, the subscriber base in Asia Pacific is expected to rise at a higher rate than other geographical segments. The region is expected to have over 143 million subscribers before 2020 ends.
Increasing Smart Device Penetration Supporting Market’s Growth
Growth exhibited by the global VoIP services market over the last decade has been robust. “Besides technological advancements and innovations, expansion of the market is attributed to smart device penetration and novel practices across the corporate sector,” says a lead TMR analyst. “The growing trend of bring your own device (BYOD) has resulted in the record rise of smart device penetration, which bolsters opportunities for the market’s growth,” he added.
According to the Ericsson Mobility Report, the worldwide mobile phone subscription is expected to reach 9.3 billion by the end of 2019, which will include over 5.6 billion smart phone subscribers. This will help augment mobility solutions, thus providing significant boost to the global VoIP services market. The technological advancements have led to the growth of advanced telecommunication networks, which in turn has increased the use of VoIP services across these networks. The market is also expected to gain impetus as businesses start adopting cloud-based VoIP services.
Inadequate Public Acceptance Negatively Impacting Market
To realize full benefits of VoIP services, high bandwidth and internet speed are utmost necessities. Considering the same, traditional telephone service providers already have already set standards for reliability, while VoIP service providers are still lagging behind due to technological limitations. It is therefore important that price of VoIP services and features provided are convincing enough for customers to accept them. Despite the surge of internet subscribers in the last few years, a majority of businesses around the world are yet to deploy VoIP services. This is key restraint posing challenge to the global VoIP services market.
Furthermore, protectionist policies are restricting the expansion of the VoIP services market across developing economies. This is a major bottleneck for the market. Nonetheless, the deployment of wireless network technology will boost the adoption of mobile VoIP services in the near future.
This study is based on information published by TMR, in a report, titled “VoIP Services Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 – 2020.”
The report segments the global VoIP services market as:
VoIP Services Market, by Configuration
VoIP Services Market, by Call Type
- International Long Distance VoIP Calls
- Domestic VoIP Calls
VoIP Services Market, by End-use
- Corporate Consumers
- IP Connectivity
- Managed IP PBX
- Hosted Business
- Individual Consumers
VoIP Services Market, by Geography
- North America
- Asia Pacific
- Rest of the World (RoW)
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