Ip Telephony Market

In the year 2020, the global IP telephony market was valued at $2,130.70 million, and it is forecasted to reach $7,506.54 million by 2030, exhibiting a compound annual growth rate (CAGR) of 13.7% from 2023 to 2030.

In the aftermath of the COVID-19 pandemic, mobile IP telephony applications gained significant traction across various industry verticals. For instance, many healthcare professionals, including doctors and healthcare workers, greatly benefited from the use of mobile IP telephony apps for their training and meetings. Additionally, to facilitate video calls for online classrooms, numerous educational institutions and businesses have extensively adopted IP telephony infrastructure.

IP telephony encompasses systems that operate within internet-based telecommunications, including fax and other communication systems. It relies on various open-source protocols for transmitting data from the phone to the service provider. Furthermore, businesses are increasingly embracing IP telephony solutions due to their portability and cost-effectiveness. Ease of use, technological advancements, and improved productivity are additional factors contributing to the adoption of IP telephony systems.

The cost-effectiveness of IP telephony systems is encouraging organizations to implement them. Moreover, IP telephony presents a cost-effective alternative to traditional business phone systems, enhancing communication capabilities. Consequently, it is a significant driving factor for the global IP telephony market. Furthermore, IP telephony systems easily integrate with existing legacy systems and hardware, including fax machines, alarms, and credit card readers. This compatibility with legacy systems enhances IP telephony's appeal and facilitates its adoption.

However, while IP telephony systems enable high-quality phone conversations for many users, some still experience issues such as echoing voices and prolonged wait times for responses. Consequently, poor voice quality remains a hindrance to the growth of the IP telephony market. On the contrary, IP telephony systems are expected to play a pivotal role in data collection and transmission within the Internet of Things (IoT) landscape, as this technology continues to evolve significantly. The convergence of IP telephony systems and IoT has the potential to transform various functional areas within organizations, presenting lucrative opportunities for the market in the future.

The report focuses on the growth prospects, limitations, and trends within the IP telephony market analysis. It employs Porter's five forces analysis to assess the impact of various factors, including supplier bargaining power, competitive rivalry, threat of new entrants, threat of substitutes, and buyer bargaining power, on the IP telephony market.

Segment review

The IP Telephony market is categorized based on offering, type, call type, installation type, enterprise size, end-user, and region. The offering segment includes solutions (hardware and software) and services (consulting/implementation and maintenance). Types comprise integrated access/Session Initiation Protocol (SIP) Trunking, managed IP PBX, and hosted IP PBX. Call types are divided into international and domestic calls. Installation types encompass wired and wireless options. Enterprise sizes include large enterprises and small & medium enterprises. End-users are categorized as corporate, government, and residential. The geographical breakdown covers North America, Europe, Asia-Pacific, and LAMEA.

The report analyzes the profiles of key players operating in the IP telephony industry, including DIALPAD, INC., Freshworks Inc, Intermedia.net, Inc., Microsoft, Mitel Networks Corp., Ooma, Inc, RingCentral MVP, Vonage, Ziff Davis, Inc., and 8x8, Inc. These players have adopted various strategies to expand their market presence and strengthen their positions within the IP telephony market.

COVID-19 impact analysis

During the COVID-19 pandemic, the demand for mobile IP telephony apps has surged, enabling efficient communication with remote staff. IP video telephony has empowered employees to work from anywhere, leveraging remote access technologies that enhance job quality and productivity. Furthermore, the increased flexibility of IP video telephony can improve employees' work-life balance.

By Offering

Furthermore, mobile IP telephony apps have gained popularity across various industry verticals. Notably, healthcare professionals, including doctors and healthcare workers, have greatly benefited from the use of mobile IP telephony applications for their training and meetings. Consequently, the COVID-19 pandemic has had a positive impact on the IP telephony industry.

Top impacting factors

Low costs of IP telephony systems

Traditional telephone services, typically controlled by government or near-monopoly companies, rely on charges for revenue and market dominance in their respective regions. In contrast, IP telephony systems are more cost-effective, with some providers even offering free calls. Moreover, IP telephony solutions require no additional infrastructure or physical equipment; an existing internet connection suffices. Consequently, businesses can enhance communication, save costs, and improve productivity and efficiency, driving growth in the IP telephony market.

Combination of IP telephony system and IoT

The Internet of Things (IoT) connects internet-enabled devices to facilitate seamless data sharing. As IoT technology advances, IP telephony systems are poised to play a pivotal role in data collection and transmission within the IoT ecosystem. The synergy between the IP telephony industry and IoT has the potential to transform organizational operations. Corporations can establish smart offices, ranging from basic setups that centralize office equipment data for remote access to advanced voice-activated workplaces that enable users to instruct VoIP systems to record meetings. Consequently, the integration of IP telephony systems and IoT presents diverse growth opportunities for the market.

Key benefits for stakeholders

• This study offers a comprehensive examination of the global IP telephony market, including current and future trends, highlighting potential investment opportunities.
• The report provides insights into the key drivers, constraints, and opportunities, including their impact analysis on the size of the global IP telephony market.
• Employing Porter's five forces analysis, the report assesses the bargaining power of both buyers and suppliers operating within the IP telephony market forecast.
• An in-depth analysis of the critical industry segments aids in understanding trends in the global IP telephony market.
• The report includes quantitative analysis of the global IP telephony market's size from 2021 to 2030, facilitating the assessment of market potential.

IP Telephony Market Report HighlightsBy Offering

By Offering

• Solutions
  • Hardware
  • Software
• Services
  • Consulting/ Implementation
  • Maintenance

By Type

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

By Call Type

• International Calls
• Domestic Calls

By Installation Type

• Wired
• Wireless

By Enterprise Size

• Large Enterprise
• Small & Medium Enterprises

By End User

• Corporate
• Government
• Residential

By Region

• North America  (U.S., Canada)
• Europe  (UK, Germany, France, Italy, Spain, Netherlands, Rest of Europe)
• Asia-Pacific   (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
• LAMEA  (Latin America, Middle East, Africa)

Key Market Players

• DIALPAD, INC.
• Freshworks Inc
• Intermedia.net, Inc
• Microsoft
• Mitel Networks Corp.
• Ooma, Inc
• RingCentral MVP
• Vonage
• Ziff Davis, Inc.
• 8x8, Inc.