Voice over Internet Protocol Market Size - Global Industry, Share, Analysis, Trends and Forecast 2023 - 2032

The Global Voice over Internet Protocol (VoIP) Market Size accounted for USD 39.7 Billion in 2022 and is projected to achieve a market size of USD 100.5 Billion by 2032 growing at a CAGR of 9.9% from 2023 to 2032.

Voice over Internet Protocol Market Report Key Highlights

• Global Voice over Internet Protocol market revenue is expected to increase by USD 100.5 Billion by 2032, with a 9.9% CAGR from 2023 to 2032
• North America region led with more than 38% of Voice over Internet Protocol market share in 2022
• VoIP adoption is highest in the Asia-Pacific region, where it is expected to grow at a CAGR of 14.2% from 2022 to 2032
• According to an Ooma survey, 72% of SMEs use VoIP for their phone service
• According to a report, the number of VoIP users worldwide is projected to reach 3 billion by 2022
• According to a study, businesses can save up to 75% on their phone bills by switching to VoIP
• Emergence of new technologies, such as artificial intelligence and the Internet of Things, drives the Voice over Internet Protocol market size

Voice over Internet Protocol (VoIP) is a technology that enables voice communication over the internet instead of traditional telephone lines. It converts analog voice signals into digital data packets that can be transmitted over the internet, making it possible to make calls using a computer or any internet-enabled device. VoIP is an affordable and efficient alternative to traditional phone systems, and it has gained popularity among businesses and consumers alike.

The VoIP market size has been experiencing significant growth over the past few years, and it is expected to continue to grow in the coming years.  The increasing demand for cost-effective communication solutions, the growing adoption of cloud-based services, and the rise of remote working and virtual offices are some of the key drivers of this growth. The VoIP market is also witnessing significant innovations, with new features and capabilities being added to VoIP systems regularly. For example, some VoIP systems now include video conferencing, instant messaging, and file-sharing capabilities, making them more versatile and useful for businesses. Additionally, the emergence of 5G technology is expected to further boost the growth of the VoIP market, as it will enable faster and more reliable internet connectivity, making VoIP even more accessible and reliable for businesses and consumers alike.

Global Voice over Internet Protocol Market Trends

Market Drivers

• Cost-effectiveness compared to traditional phone systems
• Ability to integrate with other communication tools and platforms
• Increased adoption of cloud-based services
• Growth of remote working and virtual offices
• Expansion of broadband infrastructure and internet accessibility
• Integration with artificial intelligence (AI) and Internet of Things (IoT) technologies

Market Restraints

• Concerns over the reliability and security of VoIP systems
• Dependence on internet connectivity and infrastructure

Market Opportunities

• Rising adoption of unified communication and collaboration solutions
• Increasing demand for VoIP services in the healthcare sector

Voice over Internet Protocol Market Report Coverage

The method in which different technologies are amalgamated to provide communication services over an IP data network is defined as voice over internet protocol (VoIP). VoIP primarily deals with the transformation of voice signals into digital data over the internet. VoIP makes use of the internet as a telephony network. A regular computer, mobile phone, telephone, or VoIP phone can be utilized to make a call. The various VoIP services can be distributed across the cable infrastructure and public switched telephone network (PSTN). The other delivery providers include wireless infrastructures, power lines, and satellites. There are several protocols being used to implement VoIP services that include media gateway control protocol (MGCP), inter asterisk exchange (IAX), session initiation protocol (SIP), real-time protocol (RTP), and H.323 among others. The major benefit offered by VoIP service is its cost-effectiveness. VoIP can be used to provide rich media services and phone number portability. Also, VoIP offers certain features such as integrated applications, service mobility user control interface, and other features. It is therefore easy to install, use and troubleshoot various VoIP services.

The technological innovations and development in network structures, high-performance ratio, and mobile communication will propel the global voice over internet protocol market growth in the coming years. The diversification of telecom service providers coupled with the rising bring your own device (BYOD) trend is expected to fuel the growth of the global VoIP services market in the coming years. Moreover, the global VoIP services market is further fuelled by technological advancements. The rising usage of portable devices such as smartphones and tablets has led to the expansion of the global voice over internet protocol market value. The VoIP services are economical for both corporate and individual customers. The use of VoIP services enables corporate customers to reduce their operational costs. Owing to the cost efficiency and packaged service offerings, varied business customers are preferring cloud-based VoIP services. Telecommunication companies are constantly offering VoIP services to their customers thereby fuelling the demand for the global VoIP market.

Voice over Internet Protocol Market Segmentation

The global voice over internet protocol market segmentation is based on type, access type, call type, medium, industry vertical, and geography.

Voice over Internet Protocol Market By Type

• Integrated Access/Session Initiation Protocol (SIP) Trunking
• Hosted IP PBX
• Managed IP PBX

According to voice-over internet protocol industry analysis, the integrated access/session initiation protocol (SIP) trunking segment held the largest market share in 2022. Integrated Access/SIP Trunking is a type of VoIP service that enables businesses to connect their on-premise private branch exchange (PBX) to the internet, allowing them to make and receive calls over the internet instead of traditional phone lines. This service is delivered through a SIP trunk, which is a virtual connection between the PBX and the internet that can carry voice, video, and data traffic. Integrated Access/SIP Trunking is becoming increasingly popular among businesses, as it offers a cost-effective and flexible solution for communication needs.

Voice over Internet Protocol Market By Access Type

• Phone to Phone
• Computer to Phone
• Computer to Computer

In terms of access type, the computer-to-phone segment is dominating the market in 2022. This system allows users to make calls from their computers to traditional phone lines, mobile phones, or other internet-enabled devices. This service is delivered through a software application or a web-based platform that enables users to make calls using a microphone and speakers or a headset connected to their computer. Computer-to-phone VoIP is a cost-effective solution for long-distance and international calls, and it has gained popularity among businesses and consumers alike. The computer-to-phone segment of the VoIP market has been experiencing significant growth in recent years, driven by the increasing demand for remote communication solutions and the growing adoption of cloud-based communication services.

Voice over Internet Protocol Market By Call Type

• Domestic VoIP calls
• International VoIP calls

According to the voice-over-internet protocol market forecast, the international VoIP calls segment is expected to witness significant growth in the coming years. International VoIP calls are a cost-effective solution for long-distance communication and have gained popularity among businesses and consumers alike. The international VoIP calls segment of the market has been experiencing significant growth in recent years, driven by the increasing demand for global communication solutions and the growing adoption of cloud-based communication services.

Voice over Internet Protocol Market By Medium

• Mobile
• Fixed

In terms of the medium, the mobile segment is expected to witness significant growth in the coming years. Mobile VoIP services are delivered through a mobile app or a web-based platform that allows users to make calls using their data or Wi-Fi connection, instead of traditional phone lines. Mobile VoIP has gained popularity among consumers and businesses alike, as it offers a cost-effective solution for communication needs and enables users to stay connected while on the go. The mobile medium segment of the market has been experiencing significant growth in recent years, driven by the increasing adoption of mobile devices and the growing demand for remote communication solutions.

Voice over Internet Protocol Market By Industry Vertical

• IT & Telecom
• Government & Public Sector
• BFSI
• Hospitality
• Healthcare
• Retail
• Others

In terms of industry vertical, the IT & telecom sector has been experiencing significant growth in recent years. VoIP solutions offer several benefits to the IT & telecom industry, including cost savings, improved scalability, and increased efficiency. VoIP technology has become an essential component of the IT & telecom industry, enabling businesses to streamline their communication processes and enhance their overall productivity. The growth of the IT & telecom segment in the VoIP market is also being driven by the emergence of new technologies such as artificial intelligence (AI) and the Internet of Things (IoT), which are being integrated into VoIP solutions to enhance their capabilities and functionality. Additionally, the increasing demand for unified communication and collaboration (UC&C) solutions among businesses is expected to further boost the growth of the IT & telecom segment in the VoIP market.

Voice over Internet Protocol Market Regional Outlook