The internet protocol (IP) telephony market size was valued at nearly USD 2.71 Mn in 2022 and is projected to reach USD 7914.3 Mn by 2031, expanding at a CAGR of 9.12% during the forecast period, 2023–2031. The growth of the market is attributed to the cost-effective nature and portable service of internet protocol (IP) telephony.
Internet Protocol (IP) Telephony refers to telecommunication with the help of the internet. Communication modes including call routing, fax, voice mail, and contact centers can be exchanged with the help of this service. Transferring data from one phone to another service provider depends on the open-source protocols being used.
The effective portable services offered by the market are estimated to be beneficial to organizations and businesses. Increased connectivity, ease of communication & configuration, effective data transmission through the internet, and easy installation process are the key factors to help the growth of the market.
This technology is estimated to gain popularity attributed to providing mobility to employees, flexibility in cloud telephony services & communication systems, and reduced total cost of ownership (TCO), among other advantages in the market. The upsurge observed in the market is reflected by an increased adaption of internal communication in organizations across the world.
The significantly increased demand for the communication and telephone industry is projected to positively grow the internet protocol (IP) telephony market. Enterprises and organizations demand web-based solutions and facilities, which can be provided by internet protocol (IP) telephony services.
The report finds that the COVID-19 pandemic hampered the overall revenue of the global internet protocol (IP) telephony market due to the sharp decline in technical advancements and its scope worldwide.
As a part of preventive measures imposed by governments across countries to curb the virus spread, the prolonged shutdown of enterprises and industries had plummeted the overall demand for internet protocol (IP) telephony. The market players were obliged to either delay their production or reschedule their existing research and projects.
The rapid expansion of e-commerce platforms during the pandemic offering a variety of essential items to customers presented another key aspect that boosted the demand for mobility and ease of communication. This contributed to the increased adoption of internet protocol (IP) telephony services in the e-commerce segment.
Internet Protocol (IP) Telephony Market Dynamics
Drivers
The rise in the urban population and modernization across the globe demands advanced & smart communication systems on both domestic and commercial grounds. The market growth is attributed to the increased number of e-commerce services and enterprises that require easy communication services. Information technology (IT) and telecommunication sectors are the key industries that require internet protocol (IP) telephony services.
The low-cost service provided by the market, as compared to traditional communication services is anticipated to drive the market. Internet connectivity is the key necessity for internet protocol (IP) telephony services to operate. This reduces the investments made in other infrastructure required for communication purposes. These are the major factors influencing the growth of the market.
Restraints
Interrupted speed of the internet, poor network connectivity in certain locations, and insufficiency in the equipment required for the service are key factors anticipated to restrain the market. Additionally, the lack of funds and investments required for the setup and implementation of IP telephony services in small and medium segments of the market is estimated to restrain the revenue generation of the internet protocol (IP) telephony market.
Opportunities
The enhanced research and developments in order to improve the market and reduce the restraining factors are estimated to create lucrative opportunities in the forecast period. The implementation of artificial intelligence can increase the productivity of the enterprises that use the service. The market revenue is projected to grow with the increased investments made by the key players for communication and call management purposes in their premises.
Scope of Internet Protocol (IP) Telephony Market Report
The report on the global internet protocol (IP) telephony market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Internet Protocol (IP) Telephony Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2020 – 2021
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Forecast Period
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2023–2031
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Segmentation
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Product Type (Hardware-based, Softphones, and Services), Type (Integrated Access/Session Initiation Protocol (SIP) Trunking, Hosted IP PBX, and Managed IP PBX), Enterprise Size (Large Enterprises and Small & Medium Enterprises), Connectivity (Wired and Wireless), Call Type (International Calls and Domestic Calls), and End-user (Corporate, Government, Residential, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Cisco Systems, Inc.; Gigaset; Ascom; Plantronics, Inc.; Yealink Inc.; Avaya Inc.; Broadvoice; Panasonic Holdings Corporation; NEC Corporation; and Grandstream Networks, Inc.
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Internet Protocol (IP) Telephony Market Segment Insights
Based on product type, the global internet protocol (IP) telephony market is divided into hardware-based, softphones, and services. The hardware-based segment accounts for a key share of the market attributed to the integrated phone set service which includes a speakerphone and a handset with a dial, which consists of calling buttons. The convenient setup is estimated to drive segment growth.
On the basis of type, the market is categorized into integrated access/session initiation protocol (SIP) trunking, hosted IP PBX, and managed IP PBX. The integrated access/session initiation protocol (SIP) trunking segment holds a key share in the market as it provides an end-to-end encrypted communication facility. The segment is estimated to have no restrictions on the number of users. These factors are projected to drive the segment of the market.
Based on enterprise size, the market is segmented into large enterprises and small & medium enterprises. The small & medium enterprises segment is projected to hold a key share of the market attributed to the fewer investment requirement for subscriptions and international calling.
This is estimated to be favorable to small & medium enterprises, as they have limited funds. This is anticipated to be the factor for an increased adaption of internet protocol (IP) telephony.
In terms of connectivity, the market is bifurcated into wired and wireless. The wireless segment is anticipated to contribute a key share to the market growth in the forecast period. The wireless installation service is projected to provide an easy and convenient conversation facility to contact any user across different locations, by transmitting signals.
On the basis of call type, the market is divided into international calls and domestic calls. The international calls segment is projected to hold a key share of the market. The facilities including cheaper call rates and clear voice quality are attributed to the growth of the segment. Additionally, users can purchase a particular number of specific countries for conversation purposes, which is estimated to be cost-effective.
Based on end-user, the market is categorized into corporate, government, residential, and others. The corporate segment is estimated to have a high contribution to the growth of the market.
Internet protocol (IP) telephony provides a secure connection and efficient communication on the organization’s premises when compared to conventional telecom services. Small or even large businesses are projected to adapt to internet protocol (IP) telephony as it enables easy communication with users or employees in distant locations.
In terms of region, the global internet protocol (IP) telephony market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific accounted for a key share of the market, especially the healthcare industry in the region is anticipated to provide advanced solutions. However, the market in North America is anticipated to expand at a rapid pace during the forecast period attributed to the high adaption of technical advancements.
This helps companies and businesses to introduce products and solutions conveniently to consumers. Additionally, countries including Mexico, and Canada, among others in the region have a high development rate in terms of technology and infrastructure.
Segments
The global internet protocol (IP) telephony market has been segmented on the basis of
Product Type
- Hardware-based
- Softphones
- Services
Type
- Integrated Access/Session Initiation Protocol (SIP) Trunking
- Hosted IP PBX
- Managed IP PBX
Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
Connectivity
Call Type
- International Calls
- Domestic Calls
End-user
- Corporate
- Government
- Residential
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Cisco Systems, Inc.
- Gigaset
- Ascom
- Plantronics, Inc.
- Yealink Inc.
- Avaya Inc.
- Broadvoice
- Panasonic Holdings Corporation
- NEC Corporation
- Grandstream Networks, Inc.
Competitive Landscape
Key players in the global internet protocol (IP) telephony market are Cisco Systems, Inc.; Gigaset; Ascom; Plantronics, Inc.; Yealink Inc.; Avaya Inc.; Broadvoice; Panasonic Holdings Corporation; NEC Corporation; and Grandstream Networks, Inc. followed by the strategies they use.
In March, 2022- Broadvoice, a provider of combined communications introduced voice and SIP trunking services and received an Internet Telephony Product of the Year 2022 Award.
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