VoIP Services Shooting for the Moon

VoIP is quickly earning the status of preferred communication method, with VoIP services servings as attractive options for businesses. Innovation is driving demand, with development of network infrastructure empowering a more mobile, digital workforce. And, a recent report from Zion Market Research delved into all things business VoIP services.

“VoIP Services (Domestic VoIP Calls and International Long Distance VoIP Calls) Market by Configuration (Phone-to-Phone, Computer-to-Phone, and Computer-to-Computer) for Hosted Business, IP Connectivity, Managed IP PBX, Individual Consumers and Corporate Consumers: Global Industry Perspective, Comprehensive Analysis, Size, Share, Growth, Segment, Trends and Forecast, 2015 – 2021,” highlights a market in 2015 earned a demand valuation of more than $83 billion, which is projected to push that number to nearly $150 billion by 2021. This represents a 9.1 percent CAGR between 2016 and 2021.

Why is this happening? Well, that smartphone or iPad you’re reading this on, for starters. The influx of mobile devices has spurred demand for VoIP services, which is pushing the market. As individuals and businesses seek more VoIP services, a climate of competition is brewing among telecommunications providers furthering demand, with the only major market hurdle coming from what the report refers to as a lack of acceptance from local sectors.

Regardless of efforts from government to implement strict regulation, and save local telecom services, this hindrance will not stop the VoIP services market. A dispersed, highly mobile workforce will ensure that opportunity for international and business VoIP continues to expand.

The report also noted the leading market segment in 2015 at 52 percent was international long distance VoIP calls, with the expectation that it will grow in the next five years by 10 percentage points. Also of note was the type of configuration most deployed – phone-to-phone, computer-to-phone or computer-to-computer – with computer-to-computer leading the way in 2015 with over 35 percent; however, this could change. Phone-to-phone is expected to make a charge, and is projected for serious gains in market share.

As far as firms to keep an eye on, this short list includes names like AT&T, Avaya, Vonage, Nextiva, RingCentral and 8x8. The leader in the clubhouse was AT&T with 7 percent total revenue share in 2015, but only time will tell who climbs the leader board in the coming years.

Edited by Alicia Young