VoIP Service Market Revenue to Reach $88 Billion by 2018

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VoIP Service Market Revenue to Reach $88 Billion by 2018 VoIP Service Market Revenue to Reach $88 Billion by 2018VoIP Service Market Revenue to Reach $88 Billion by 2018

 

30 April 2014

Ever since they were first introduced over a decade ago, VoIP services have become a lot more popular among both business and residential customers. In recent years, the widespread availability of broadband Internet access has caused many consumers and businesses to switch their telephony services to VoIP. The latest figures show that business and residential VoIP services around the world are in full expansion, with the market rising by 8 percent in 2013, reaching $68 billion. This growth is expected to continue for the next five years, with global revenues from business and residential services expected to reach $88 billion by the year 2018.

SIP Trunking Getting More Popular

New data released by Infonetics Research shows that SIP trunking has increased by 50 percent in 2013 when compared to figures from the previous year. While business VoIP is in use in all parts of the world, the SIP trunking growth has occurred mainly as a result on activity on the North American continent, as more and more businesses, ranging from small local shops, to multinational corporations, decide to use IP telephony solutions for their communications needs.

SIP trunking is a service based on the Session Initiation Protocol, which is the most commonly used protocol by Internet telephony providers. SIP trunking is used by enterprises that have installed an IP PBX and want to communicate with the outside world. In contrast to traditional telephony services, where physical wires went from a telecommunications provider to the business, SIP trunking lets a business replace regular PSTN lines with an Internet telephony solution. This gives the business the ability to use IP telephony to communicate not only within their own organization, but also to place and receive outgoing calls.

Many Businesses Switch to VoIP

One of the reasons why SIP trunking has been in such high demand recently is that many businesses have replaced their traditional PSTN phone services with an IP PBX, after seeing the flexibility and reduced costs offered by IP telephony. When considering what kind of telephony services to adopt, many newly-created businesses also opt to install an IP PBX and use the services of a SIP trunking provider.

Business VoIP services have now gone from being mainly a niche market with only limited adoption to a mainstream communications solution for various kinds of enterprises around the globe. Figures show that many companies in all countries of the world are now using cloud services and SIP trunking to create a custom communications solution that will be well suited for their needs.

There is also a growing interest in hosted unified communications solutions as medium and large businesses find ways to optimize their applications and increasingly try to move them to the cloud, which has had a positive impact on the VoIP market in recent times.

Figures for hosted IP PBX and unified communication services show that there was an increase of 13 percent in sales figures reported in 2013. The main driving force behind this increase in sales is enterprise customers seeking cloud-based solutions that will be able to meet their telecommunications needs.

Providers of managed communication services are also seeing many benefits from companies that adopt an IP PBX. Between 10 and 20 percent of new IP PBX sales are made as part of a managed service, or through a contract with an outsourcing firm.

What Is Unified Communication and How Does it Relate to IP Telephony Growth?

Unified communication services are popular with medium and large businesses as they are able to offer a lot more than just telephony. Unified communication combines various real-time communication methods, such as telephony, video conferencing, data sharing and instant messages, with non-real time communication methods like fax, email, voicemail and SMS. The primary advantage of such a service is that it makes it easier for business users to communicate with each other by using the method that is the most suitable at the time. It also makes business easier by making unified messaging solutions more accessible. For example, a user could check the voicemail box for their office phone on their mobile, receive faxes via email and even have emails read to them by an automated system over the phone.

One thing that is worth noting is that the growth in IP telephony use isn't just limited to the business sector. Research indicates that VoIP use is growing among residential users as well. The number of individuals who subscribe to an IP telephony provider has risen by 8 percent in 2013, reaching 212 million subscribers from all over the world. One factor that explains this growth is that there is increased competition among residential communications services providers to give products that offer the most value to their customers.

Consumer Market is Also Growing

Many large telecommunication carriers now offer IP telephony alongside their regular PSTN offerings. In the last couple of years, there have been many smaller providers and resellers that entered the residential market too. These companies try to get new subscribers by offering them value-added packages which include an IP telephony service. For example, some providers will offer a bundle that includes a VoIP phone service, broadband Internet access, as well as Internet-based television. There are now many consumers who have opted to cancel their home PSTN service and go for an IP telephony solution instead. For these reasons, it is expected that the number of residential Internet telephony subscribers will keep growing in the next couple of years as well.

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