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The global market for VoIP services is forecasted to grow from $85.2 billion in 2021 to $102.5 billion by 2026. This comes with a compound annual growth rate (CAGR) of 3.8% for the period 2021-2026.
This study by Research and Markets highlights the rapid acclaim garnered by VoIP (Voice over Internet Protocol) systems. Furthermore, it signifies the importance of VoIP in the coming years and is thus the basis of the following literature.
What is VoIP Technology?
Voice over Internet Protocol is a technology that enables you to make voice calls over a broadband internet connection. Rather than a traditional (or analog) phone line, VoIP calls happen over the internet. Some VoIP services may only allow you to call other VoIP users, whereas others may allow you to call anyone with a phone number, including local, long-distance, mobile, and international numbers.
Furthermore, while some VoIP services require you to use a computer or a special VoIP phone, others allow you to use a traditional phone connected to a VoIP adapter.
Why is the VoIP Market Growing?
The growth of the VoIP market can be attributed to factors such as efforts made by government agencies and private companies to develop wireless communications infrastructure, as well as increased adoption of cloud-based VoIP services for their cost-effectiveness.
Communication and productivity go hand-in-hand and therefore breaking down, or inadequate communication can lead to severe drops in productivity, harming a business’s profit margin. To avoid the scenario depicted above, businesses tend to migrate from traditional phone systems to cloud-based phone systems, which are designed to handle voice mails and calls to enable smooth communication.
Key Players Driving VoIP Market Growth
COVID had an adverse impact on most industries. However, when it came to VoIP, the effect was profoundly positive.
With a massive overhaul of existing systems, remote work systems suddenly gained traction. With an increase in demand for cloud-based phone services worldwide, the telecom sector, particularly VoIP, outperformed the global economy.
For seamless online classes, the education sector has largely adopted the VoIP system. Aside from the education sector, the healthcare industry, including healthcare workers and doctors, used the system in 2020 for cross-country virtual training and meetings.
Although 4G LTE is sufficient for the majority of today’s communications, bandwidth is physically running out. Because of a lack of resources along the 4G LTE pipeline, people in urban cities are already experiencing an internet slowdown and high latency. 5G brings with it a new level of resources to the general public, alongside a new volume of those resources.
VoIP communications rely heavily on multimedia. Business VoIP is built on cutting-edge communication technology. In a few years, businesses will be centered on UHD, VR/AR functionality, multi-node meetings, and a variety of other things that only 5G can support.
Video communications will proliferate and will most likely become the most common form of business communication on a global scale. Video has already surpassed text as the most popular form of overall online content, so the business world will naturally follow suit.
The aspect of VoIP that will drive the market here is serving as endpoints that can serve as smart solutions to share information, collaborate proactively, and serve a wide range of purposes.
There will also be an emphasis on the development of more dynamic smart endpoints. As these endpoints become smarter over time, their functionality will expand, allowing service providers to extract even more value from their existing networks. To top it off, businesses will be capable of providing more services to their clients without the need for infrastructure changes or the construction of new networks.
Advantages of VoIP Communication Systems
Commercialization of 5G has led to a spike in the global market: leading to an increased rate of adoption of VoIP technologies. Coupled with the impact of COVID-19 and the rapid adoption of IoT, it’s easy to understand why the VoIP market is growing. However, below is a list of a few other edges that VoIP has over existing solutions:
- Installation is competitive and low-cost – Unlike traditional systems, VoIP does not rely on the installation of phone lines and other obsolete hardware.
- Cheaper calls – International calls are not charged a premium, and prices are generally more affordable than the classic phone system.
- Remotely accessibility – Your team is reachable no matter where they are. Providing over-the-phone customer service is no longer a hassle and can be done straight from the comfort of your employee’s homes.
- Savings on hardware and software – VoIP infrastructure is generally cheaper, leading to increased savings by reducing the required staff of IT experts.
- Well integrated with new technology – VoIP is well suited to integrating with emerging technology. VoIP integrates well with other upcoming tech trends such as 5G, IoT, and so on.
- Scalability – Unlike standard phone systems, VoIP is scalable. When necessary, simple software updates can be used to expand your VoIP system. There is no need to spend time or money installing new phone lines or upgrading hardware.
- VoIP improves communication efficiency and effectiveness – Call quality over VoIP is better than ever. You do not rely on aging infrastructure that can be easily damaged or end up failing completely.
Largest Players in the VoIP Market
It may come as a surprise, but some of the largest players in the VoIP market are companies that you may already know. From Alcatel to Google, the list of the largest players in the VoIP market is unsurprisingly full of tech-titans. The list goes as follows (in no particular order):
- Jive Communication
There’s a reason VoIP is still growing: it’s a low-cost but effective way to improve internal and external business communication.
VoIP is on its way. The deciding factor in this war will not be between those who deploy it and those who do not, nor between early adopters and laggards. Rather, it will be a battle between those who see VoIP as just another way to do the same old things and those who use it to completely rethink their businesses.