IP Telephony Market Size

Global IP Telephony Market Overview:

IP Telephony Market Size was valued at USD 29.57 Billion in 2023. The IP Telephony industry is projected to grow from USD 33.76 Billion in 2024 to USD 85.56 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.32% during the forecast period (2024 - 2032). The primary market driver influencing the IP telephony market is the cost-effectiveness of the services. Leading industry companies making acquisitions and expanding their businesses are also expected to support market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

IP Telephony Market Trends

• Rise in cyberattacks is anticipated to fuel market growth

The rapid development of technology has also led to a rise in vulnerabilities in recent years. Businesses increasingly rely on IP Telephony goods and services due to the rise in cyberattacks and hazards. According to IBM, the overall cost of data breaches in organizations will be nearly $6 trillion in 2021 alone. The numbers are predicted to climb during the anticipated timeframe. As a result, it is critical to safeguard data and avoid data breaches. Businesses are therefore implementing IP telephony systems. These elements are anticipated to expand the IP Telephony Market CAGR during the anticipated time frame.

Furthermore, governments or businesses with monopolies or near-monopolies frequently dominate traditional telephone systems. They pursue market dominance in their home country and rely on fees for income. As a result, IP telephony systems are less expensive than conventional services, and some providers even offer free calls. IP telephony solutions only need an existing internet connection; no additional hardware or infrastructure is needed. As a result, organizations might improve communication while spending less money and operating more effectively. As a result, the expansion of the IP telephony market is being driven by IP telephony systems' low costs.

However, the Internet of Things (IoT) links all internet-capable gadgets together to simplify data sharing. As IoT technology advances, IP telephony systems will become increasingly important for data transmission and collection. IoT and IP telephony can revolutionize how businesses run when used together. Corporations can also construct smart offices. These workplaces might be as basic as a network that collects all data from office equipment to provide employees with access to the info they require regardless of location. Another complex option is voice-activated workplaces that enable users to request that VoIP record meetings for them. Therefore, it is projected that combining IP telephony systems with IoT would present a variety of market growth prospects. Thus, driving the IP telephony market revenue.

IP Telephony Market Segment Insights:

IP Telephony Component Insights

The IP Telephony Market segmentation, based on component, includes hardware and service. The hardware segment dominated the market. The market for IP telephony solutions has recently experienced expansion due to the quick development of remote work hardware. Another key factor fueling the expansion of the IP telephony hardware sub-segment in recent years has been the growing acceptance of IP telephony in a variety of global sectors.

IP Telephony Organization Size Insights

The IP Telephony Market segmentation, based on organization size, includes SMEs and large enterprises. The SMEs category generated the most income. The main driver of IP telephony's growth is the global small- and medium-business sector's explosive development. Small and medium-sized businesses favor IP telephony since they do not have a lot of money to spend on numerous subscriptions, expensive international calls, and other services.

Figure 1: IP Telephony Market, by Organization Size, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

IP Telephony Connectivity Insights

The IP Telephony Market segmentation, based on connectivity, includes wired and wireless. The wireless category generated the most income. One of the main advantages wireless installation tools offer is their simplicity of use. Additionally, having a wireless connection to make international calls from anywhere worldwide has a significant financial advantage.

IP Telephony Vertical Insights

The IP Telephony Market segmentation, based on vertical, includes BFSI, IT & telecommunication, retail and government. The BFSI category generated the most income. The BFSI sector now heavily relies on communication through a variety of channels. To interact with their value chain partners, the major players in the financial and insurance sectors want dependable and on-demand voice communication solutions. IP telephony technology is a suitable solution in the BFSI industry to guarantee connectivity and improve responsiveness.

IP Telephony Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American IP telephony market area will dominate this market. The factors involved result from global growth in IP telephony application usage and technological improvement. These apps are typically developed in certain industry sectors, including BFSI, healthcare, retail, IT, and telecommunications. Furthermore, the region's growth is anticipated to be fueled by the widespread use of IP telephony services, cutting-edge telecommunications infrastructure, and the appeal of workforce mobility.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: IP Telephony Market SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe IP telephony market accounts for the second-largest market share because of numerous regional players. Key organizations also engage in various methods, including product creation and mergers and acquisitions, among others, to acquire a competitive advantage over rivals. Additionally, a rise in smartphone usage, internet penetration, and the adoption of cloud-based communication systems would fuel market expansion. Further, the German IP telephony market held the largest market share, and the UK IP telephony market was the fastest growing market in the European region

The Asia-Pacific IP telephony Market is expected to grow at the fastest CAGR from 2024 to 2032 ascribed to the expansion of enterprises in this area. The amount of technology breakthroughs in this area is another major factor driving the rise of the Asia-Pacific region market during the forecast period. However, businesses in the region generally see an increase in demand for IP telephony solutions and UC applications, particularly in more developed economies like Japan, South Korea, Singapore, and Australia. Moreover, China’s IP telephony market held the largest market share, and the Indian IP telephony market was the fastest growing market in the Asia-Pacific region.

IP Telephony Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the IP telephony market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, IP telephony industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global IP telephony industry to benefit clients and increase the market sector. In recent years, the IP telephony industry has offered some of the most significant advantages to market. Major players in the IP telephony market attempting to increase market demand by investing in research and development operations include Ascom Holding AG (Switzerland), Avaya Inc. (U.S.), Cisco Systems Inc. (U.S.), Gigaset Communications (Germany), LG Electronics Inc. (South Korea), Mitel Networks Corporation (Canada), Panasonic Corporation (Japan), Polycom Inc. (U.S.), Yealink Inc. (China), NEC Corporation (Japan) and Grandstream Networks Inc. (U.S.).

Cisco Systems Inc. is an integrator of cloud, networking, security, collaboration, and intent-based solutions. The company sells wireless equipment, controllers, access points, switches, modules, routers, and interfaces. The company's products and technology assist its customers in managing additional network connections from devices, users, and other entities. Oil and gas, education, government, healthcare, mining, sports, media, entertainment, financial services, retail, utilities, and transportation are just a few of the many industries that Cisco supports. In March 2020, Cisco announced that NTT EAST (NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION) had chosen Cisco SD-WAN powered by Viptela for its newly managed SD-WAN services as part of NTT EAST's VPN service portfolio for businesses. These new services will help organisations resolve network challenges caused by an increase in mobile employees, a shortage of IT professionals, and growing network maintenance expenses.

Consumer electronics and household appliances are made and sold by LG Electronics Inc., a division of LG Corp. Televisions, monitors, personal computers, refrigerators, audio, beauty and video equipment, air purifiers, dehumidifiers, washing machines, dishwashers, home and business air conditioners and hoover cleaners are among the company's product offerings. Additionally, it provides solar panels, cellphones, information displays, motor and sensor components, optic solutions, equipment manufacture, automotive components, camera modules, substrates, and materials.

Key Companies in the IP telephony market include

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  Ascom Holding AG (Switzerland)

  
  


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  Avaya Inc. (U.S.)

  
  


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  Cisco Systems Inc. (U.S.)

  
  


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  Gigaset Communications (Germany)

  
  


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  LG Electronics Inc. (South Korea)

  
  


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  Mitel Networks Corporation (Canada)

  
  


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  Panasonic Corporation (Japan)

  
  


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  Polycom Inc. (U.S.)

  
  


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  Yealink Inc. (China)

  
  


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  NEC Corporation (Japan)

  
  


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  Grandstream Networks Inc. (U.S.)

  
  

IP Telephony Industry Developments

April 2022: Global voice communications for businesses are offered by Pure IP. It is currently accessible through the Zoom Phone Provider Exchange system. Customers will have more flexibility with this program. It will keep Pure IP and use its telecommunications network in other areas.

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