IP Telephony Market Size, Share, Growth, and Industry Analysis, By Type (Hardware, Software, Service and Others), By Application (BFSI, IT & Telecommunication, Retail, Government and Others) and Regional Forecast to 2032

Updated On: 29 April 2024

IP TELEPHONY MARKET REPORT OVERVIEW

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The global IP telephony market size was USD 2810.74 million in 2022 and the market is projected to touch USD 6359.98 million by 2032, exhibiting a CAGR of 8.51% during the forecast period.

Any technology, including fax machines and other technologies, that falls under the category of internet-based telephony is referred to as IP telephony. To send data from the phone to the service provider, it uses a number of open-source protocols. Additionally, because IP telephony solutions are affordable and portable, commercial organizations are using them more and more. IP telephony system adoption is also being aided by enhanced productivity, better technology, and ease of use.

COVID-19 Impact: Pandemic Driven Remote and Cloud-Based Solutions, with Digital Transformation Propelled the Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.    

The implementation of social distance and lockdowns resulted in an increase in the need for distant communication and collaboration solutions. As an essential part of unified communications, IP telephony probably saw a rise in use as businesses looked for ways to support remote work. Initiatives for digital transformation in many industries were accelerated by the pandemic. In order to facilitate distant work and guarantee business continuity, companies that may have been considering or preparing to use IP Telephony systems may have accelerated their plans. Solutions for cloud-based IP telephony, which are frequently provided as part of Unified Communications as a Service (UCaaS), became popular. The adaptability and expandability of cloud-based services proved especially advantageous as establishments adjusted to evolving work settings.    

LATEST TRENDS

"5G and IoT Integration to Build Up the Market Share"

IP telephony was predicted to be impacted by the introduction of 5G networks, which would offer quicker and more dependable communication. This may result in lower latency, higher call quality, and enhanced support for mobile IP telephony applications. IP telephony systems started integrating with Internet of Things (IoT) devices for better automation and communication as the IoT ecosystem grew. Applications in industrial and smart office environments were among them. The integration of IP telephony with collaboration technologies like file sharing, video conferencing, and texting was getting closer. The goal of unified communications systems was to give users a smooth, integrated communication experience.

IP TELEPHONY MARKET SEGMENTATION

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• By Type

Based on type the global market can be categorized into hardware, software, service and others.

IP telephony solutions that satisfy an organization's communication needs can be deployed and managed through the integration of hardware, software, and services. Devices that look like physical phones yet communicate voice over the internet. Desk phones, conference phones, and wireless phones are just a few of the models available. Services that suppliers give to administer and keep up an organization's IP phone system. This can involve upgrades, troubleshooting, and monitoring.

• By Application

Based on application the global market can be categorized into BFSI, IT & telecommunication, retail, government and others.

IP telephony makes it easier for staff members to communicate internally by enabling audio and video calls, instant messaging, and project collaboration. IP telephony is used by businesses to communicate externally with customers, partners, and suppliers. It offers an affordable option for making international and long-distance calls. IP telephony is used by government organizations for citizen services and internal communication. IP telephony can also be used by emergency services to enhance communication and reaction times in times of crisis. IP telephony has many uses, and as technology develops, so do its applications. It is an essential tool for modern enterprises and organizations in a variety of sectors due to its adaptability and capacity to change to meet diverse communication needs.

DRIVING FACTORS

"Low Cost and Easy Integration to Step Up the Market Sales"

Organizations are implementing IP telephony solutions because of their low cost. Additionally, IP telephony offers an affordable alternative to business phones and enhances collaboration. Consequently, it is regarded as a significant driver of the global IP telephony market. Additionally, IP telephone systems can easily be linked with legacy hardware and systems already in place, such as credit card readers, alarms, and fax machines. Additionally, because IP phones connect with corporate applications, legacy systems may also be compatible with them. Therefore, the industry is expanding due to the ease of integration of IP telephony systems.    

"Extensive Application by the BFSI Segment to Accelerate the Market Growth"

For the BFSI industry, Unified Communications as a Service (UCaaS) has shown to be an affordable option. The main reason banks and the financial industry invest in UCaaS is to gain a deeper understanding of client communications through all available channels and achieve the scalability needed for large-scale adoption. UCaaS services improve cooperation while increasing availability and scalability. Businesses can concentrate on business growth instead of maintenance with the help of UCaaS solutions. Companies can save money by avoiding having to pay for UC software capabilities they will never use. In general, UCaaS services include VoIP services, e-mail, unified messaging, live chat, video conferencing, interactive voice response (IVR), and other client management features. Furthermore, BFSI businesses need a great deal of departmental cooperation.

RESTRAINING FACTORS

"Dependence on Internet Connectivity to Restrain and Hold Back the Market Growth"

Internet connectivity is necessary for IP telephony. There may be poor call quality, dropped calls, or disruptions if the internet connection is unstable when jitters, packet losses, or latency occurs. However, it is anticipated that low internet penetration in some developing nations and a lack of knowledge about IP telephony may restrict the worldwide IP telephony market growth.

IP TELEPHONY MARKET REGIONAL INSIGHTS

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"North America to Lead the Market owing to Innovators and Investors in the 5G Market"

The market is primarily segregated into North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa.

United States, in particular, has been a hub for Legal Tech AI development and use, as well as a major contributor to the IP telephony market share. The nation's dominance can be attributed to the recent boom in 5G connections and spike in mobility brought about by the consumerization of IT, which has helped businesses use UCaaS and IP telephony to enable remote workers to replicate in-office work environments. End consumers in the US want a more direct and seamless experience for all of their communications audio, video, and chat regardless of where they are. These end users include retail, banking and finance, healthcare, information technology, and telecommunications. In order to meet this need, businesses are searching for a single provider that can provide them with a unified deployment and administration solution that meets all of their UCC criteria. With the arrival of 5G, they will be able to integrate solutions for distant connectivity on a single UCaaS platform.

Because of its growing investment in 5G roll-out, the United States is one of the leading inventors and investors in the field. A large amount of the 5G technology used worldwide is consumed by the nation's telecom sector.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

Important market players are crucial for determining consumer preferences and market dynamics since they have a big impact on the market. Customers have easy access to a huge selection of garment options because to the large retail networks and online platforms of these large corporations. Product adoption has increased as a result of their well-known brand and strong worldwide presence, which have also boosted customer loyalty and confidence.

List of Market Players Profiled

• Polycom (U.S.)
• Avaya (U.S.)
• Grandstream (U.S.)
• Mitel (Canada)
• NEC (Japan)
• Cisco (U.S.)
• LG (South Korea)
• Panasonic (Japan)
• Yealink (China)
• Gigaset (Germany)
• MCM (Mexico).

INDUSTRIAL DEVELOPMENT

• December 2021: A regional partnership between Telia Carrier and MCM Telecom was launched in Mexico. The best global backbone in the world, AS1299, from Telia Carrier, as well as local access to high-speed IP Transit, Cloud Connect, DDOS Mitigation, Ethernet, and IP connect services for operators, content providers, and businesses, would be advantageous to Querétaro customers.

REPORT COVERAGE

The report includes a thorough SWOT analysis and offers predictions for market growth in the future. It explores a broad range of market categories and possible applications that might have an impact on the market's trajectory in the upcoming years, as well as key aspects that contribute to the market's growth. The research provides a comprehensive overview of the market's components and identifies possible growth opportunities by taking into account both historical turning points and present trends.