Technological advancement in network infrastructures, high price performance ratio and demand for mobile communication services (using wireless medium) has led to increasing demand for VoIP services across the corporate and individual consumer segments. Factors such as increasing trend of bring your own device (BYOD) in the corporate consumers segment and diversification of telecommunication service providers to VoIP services is fuelling the growth of the market. Moreover, the increasing competition among the telecommunication and internet service providers to offer best solution is encouraging the industry VoIP service provider to offer bundle services in order to differentiate their offerings. In 2020, the market size of global VoIP services is expected to reach 348.5 million subscribers with revenue of USD 136.76 billion.
The corporate consumers of VoIP services demand for high quality and high-speed data and voice services. This offers potential opportunities for the VoIP service providers to offer their solutions to these enterprises. The major services offered to the corporate consumers by the VoIP service providers include IP connectivity, managed IP PBX and hosted business solutions. In 2013, the highest contribution was from the hosted business solutions with a percentage share of 35.8% of the total revenue generated from the corporate consumers segment. The IP connectivity and managed IP PBX are expected demonstrate close growth rates from 2014 to 2020.
The rising demand for mobility encourages the corporate and individual consumers to adopt smart portable devices such as tablet and smart phones. As a result, the demand for affordable VoIP services also increases, wherein these devices can also be used to communicate over the internet. Thus, with the increasing penetration of these smart portable devices the number of subscribers of phone-to-phone (mobile VoIP) and computer-to-phone VoIP configuration are expected to witness high growth rates over the forecast period. Additionally, the BYOD trend in the corporate consumers segment is further adding to the growth of smart devices and as a result the demand for mobile VoIP in the this segment is expected to witness tremendous growth during the forecast period. The phone-to-phone VoIP subscriber base is expected to grow at a CAGR of 16.6% from 2014 to 2020.
In 2013, international long distance VoIP calls dominated the global VoIP services market in terms of revenue and subscriber base as domestic VoIP calls are commonly offered as free services bundled with an international long distance VoIP service plans/packages. As a result, the revenue generated by domestic VoIP calls is less as compared to international VoIP calls. Moreover, owing to the rising globalization among the business organizations across various industries, the corporate consumers in North America and Europe are the leading revenue generators for international long distance VoIP calls. The market revenue for international long distance VoIP calls is expected to grow at a CAGR of 8.0% from 2014 to 2020.
In 2013, Europe was the largest market in terms of revenue and subscriber base followed by Asia Pacific. However, the Asia Pacific market for VoIP services is expected to show the highest growth over the forecast period. The market for VoIP services in Asia Pacific is expected to grow at a CAGR of 14.6% and 13.6% in terms of subscribers and revenue respectively, from 2014 to 2020. This growth is attributed to the development of network infrastructure and establishment of high speed communication networks such as 3G and 4G in the region. VoIP services have potential opportunities in emerging countries of Latin America, Africa and Middle East. This is due to the affordable prices of availing VoIP services for both the corporate and individual consumers in these geographies.
Rising demand for affordable communication services across the globe and improving wireless and wired network infrastructure is fuelling the growth of voice over internet protocol (VoIP) services market. Voice over Internet Protocol (VoIP) is a methodology used for communication. It uses various technologies such as IP telephony, voice over broadband, and internet telephony among others to provide communication services over a packet switched network (IP data network). In order avail VoIP services major components are VoIP software, network and terminal equipment. Additionally, the network component s consist of several other components such as gateways, switches, routers and others to carry voice and data content over the IP based network. The terminal equipment can be a regular telephone, VoIP phone, computer or mobile phone. There are several protocols used to implement VoIP services such as H.323, Session Initiation Protocol (SIP), Inter Asterisk eXchange (IAX), Real Time Protocol (RTP), and Media Gateway Control Protocol (MGCP), among others.
The major factor contributing the growth of VoIP services market is its price performance. Additionally, these services provide features such as rich media and voice quality and phone number portability. Moreover, VoIP is capable of providing service mobility, integrated applications, user control interface and other rich features. VoIP services are easy to install, use and troubleshoot. The VoIP services finds its application across end-use segments such as residential (consumer market), mobile network providers and corporate.
The research study titled “VoIP Services (End-use – Corporate Consumers and Individual Consumers) Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 - 2020” provides in-depth analysis of the market and related sub-segments. The report strategically focuses on market segments such as configuration, call types and end-use. In addition, this report provides market insights and data about the size and growth of each segment. The report includes detailed analysis of prevalent market trends and also company profiles of key players. To provide better understanding of the competition in the market, the report provides competitive analysis of dominant companies in the market, value chain analysis, Porter’s five forces model analysis and market attractiveness analysis. The study on the global VoIP services market has been conducted with an objective of providing thorough coverage of the underlying technological and economic issues driving the market.
The VoIP services market is expected to foresee continuous growth in the coming years due to cost effectiveness, improving network infrastructure across the globe and rising demand for smart devices and mobility among the corporate and individual consumers. Additionally, the rising competition among the telecommunication service providers and internet service providers across the industry is fueling the growth of the market in terms of product and service differentiation. Moreover, the transition from circuit switched networks to packet switched networks; the market has been witnessing a shift from traditional telephony using CDMA or GSM to VoIP services using cellular networks such as 3G and 4G.
The report aims to provide a comprehensive overview of market data and trends in North America, Europe, Asia Pacific and Rest of the World (RoW) for emerging VoIP technologies. The report identifies factors driving and restraining growth and future business opportunities in the global VoIP services business.
The report also provides a section on the competitive landscape, wherein the market share analysis of leading players of the global VoIP services market, in terms of percentage share in 2013 has been discussed. The report concludes with detailed profiles of major players in the global VoIP services market such as 8×8, Inc., Vonage Holdings Corp., Nextiva, Inc., InPhonex LLC, RingCentral, Inc., Microsoft Corporation (Skype), Viber Media S.r.l and iNet Telecom Ltd.
The global VoIP services market is segmented as follows:
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
- IP Connectivity
- Managed IP PBX
- Hosted Business
- Individual Consumers
VoIP Services Market, by Geography
- North America
- Asia Pacific
- Rest of the World (RoW)