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VoIP Industry: Latest Market Trends and Statistics

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Global VOIP Industry

The Voice over internet Protocol (VoIP) services industry refers to the conversion of voice signals into digital data, which is transmitted over the internet, reports IBIS World. In other words, it represents the concept of telecommunicating using your internet connection as telephony network. VoIP services cater to businesses, consumers and state bodies. VoIP services are delivered through several facilities, including cable infrastructures and the Public Switched Telephone Network (PSTN). Other delivery providers include power lines, satellite and wireless infrastructures.

The global VoIP market recorded strong growth between 2006 and 2010, but the residential customer segment has witnessed a decline since 2010. Obstacles to market entry include competition from leading outfits such as Google, and strict regulations to which the industry must adhere. The rollout of 4G technology will fuel market growth, and cable companies offering VoIP service together with cable service will do well over coming years.

Mobile VoIP applications are expected to reach $36 billion by 2016, with the number of users rising to 180 million, reports Visiongain. VoIP technology is allowing operators to provide cheaper communication services to an ever-expanding global consumer base. Mobile operators and VoIP vendors continue to team up to better deploy mobile VoIP services.

Key Segments

The number of mobile VoIP users throughout the world is expected to reach close to 170 million by 2015, according to research from IDATE Consulting & Research. This accounts for 6% of 3G subscribers and 2% of mobile subscribers. VoIP technology is expected to carry over 100 billion minutes of mobile voice calls by 2015. Mobile VoIP will grow parallel to the existing voice market, without taking over the latter. VoIP has advantages over the traditional operator voice model, including free VoIP-to-VoIP client calls and lower cost international calls. However, regulative measures will limit mobile termination rates and roaming fees, thereby restricting the VoIP price advantage. Obstacles to market growth include commoditization and a competitive environment.

The global IP Multimedia Subsystem (IMS) constitutes a system to operate and develop applications supporting any-network on any-device, reports Mind Commerce Publishing. IMS allows messaging to break the boundary of mobile via IP to provide a comprehensive service spanning many networks, applications and media.

Regional Market Share

The EMEA Mobile VoIP market is expected to generate close to $5.5 billion in 2014, reports TechNavio. The availability of next-generation networks is fuelling market growth, with rising usage of social networking sites also expanding. One obstacle to market growth involves the slow roll out of mobile broadband services.

TechNavio estimates the North American Mobile VoIP market will exceed a yearly growth rate of 55% between 2010 and 2014. Market growth continues to be driven by demand for less costly communication solutions. In North America, an increasingly competitive environment is pushing vendors to offer cheaper services. Rising concern regarding data security among end-users constitutes one potential challenge market growth. Leading venders operating in this market include Fring, TruphoneVonage and Skype.



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