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IP Telephony Market

IP Telephony Market

IP Telephony Market Analysis by Component (Hardware Based, Softphones, Service), by End Use (BSFI, Healthcare, Retail, Government Organizations), by Region - Global Forecast 2022-2032

IP Telephony Market
FACT7290MR
  • Apr-2022
  • List of Tables : 98
  • List of Figures : 99
  • 170 Pages
  • Technology

IP Telephony Market Outlook (2022-2032)

The global IP Telephony market was valued at US$ 29.5 Billion in 2021, and is projected to be valued at US$ 49.4 Billion in 2022.

During the 2022-2032 period of assessment, demand is expected to rise at an 8.3% value CAGR, likely to reach US$ 109.6 Billion by the end of the said forecast period.

Report Attributes Details

Anticipated Base Year Value (2021)

US$ 29.5 Billion

Expected Market Value (2022)

US$ 49.4 Billion

Projected Forecast Value (2032)

US$ 109.6 Billion

Global Growth Rate (2022-2032)

8.3% CAGR

Growth Rate of the U.S (2022-2032)

10% CAGR

Expected Market Value of China (2032)

US$ 10.9 Billion

Growth Rate of U.K (2022-2032)

8.7% CAGR

Key IP Telephony market Players

  • Avaya Inc.
  • Cisco
  • Gigaset
  • LG
  • Mitel

Overall, the IP Telephony market landscape is poised to yield an absolute dollar opportunity worth US$ 60.2 Billion until 2032. Sales of IP telephony hardware components continued to flourish, with a documented CAGR of 8.5% from 2017-2022.

Moreover, the BFSI industry is slated to emerge as the primary end user, expected to flourish at an 8.7% value CAGR until 2032. The U.S will remain a significant market, generating an opportunity worth US$ 15.7 Billion during the forecast period.

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IP Telephony Market Revenue Analysis 2017-2021 vs. Future Outlook 2022-2032

According to market research and competitive intelligence provider Fact.MR, the IP telephony market grew at a CAGR of 8.9% from 2017 to 2022. As countries strengthen their military capabilities, investments in furthering aerial warfare are rising, with increased procurement of weapon elements such as automatic gun fire control systems, missile control systems, multiple weapon release systems and jettison systems to name a few.

Due to more profitability and affordability, IP Telephony industry is one of the fastest growing industries in the business world. IP telephony solutions are more popular among the different business corporations. Additionally, ease of use improved technology, and increased productivity drives IP telephony adoption.

Several benefits such as cost effectiveness, attractive user interface, business call tracking, call reports, easy and quick setup and security over network are provided by cloud telephony services. Due to such benefits, Enterprises are adopting IP telephony services and this is boosting the market growth during forecasting period. From 2022 to 2032, the global IP telephony market is expected to grow 2.2x.

Prominent IP Telephony Market Growth Drivers

Low costs of IP Telephony Systems to Augment Growth Prospects

IP telephony system provides most cost effective solutions to the business telephones. Also the IP telephony system provide improved communication solutions. Due to these factors, the global IP telephony market is likely to grow in fore coming year because of its rapidly growing aspect in business sector. Because of Low cost the IP telephone is the predominant in the business world in many countries across the globe.

IP telephony systems are cost effective than traditional services, with some companies even providing free calls, also the system only require internet connection. IP Telephony is highly profitable because of its rapidly growing and beneficial culture prospects in the business sector. IP Telephony is gaining popularity this factor anticipated to drive the growth of the market.

Combination of IP Telephony Systems and IoT to Generate Major Opportunities

The Internet of Things (IoT) connects all internet-enabled devices and make data sharing easier. Combining of IP telephony industry and IoT have capability to transform the way organisation perform.

IP telephony market forecast by Fact.MR

The hardware & systems, such as fax machines, alarms, and credit card readers, can easily be integrated with IP telephone systems. In Addition, as legacy system connects to corporate applications they can be easily integrated IP Telephony system. Therefore, the ease of integrating IP telephony systems is fuelling the global market growth.

An Adaptive Approach to Modern-day Research Needs

Key Challenges Affecting IP Telephony Market Growth

High cost of value added services and ensuring privacy of customers are among the major factors restraining the growth of the IP Telephony Market. The poor voice quality of IP telephony systems this factor is likely to impede growth prospects for the IP Telephony industry in forthcoming years may slow down the global market’s growth.

Also the security issues and equipment expenses are some of the factors negatively affecting the telecommunication market. There is a rise in penetration of mobile phone devices among customers, which is further contributing to the market growth of IP telephony services.

Poor internet connection can also affect call quality and lead to problems like latency as it is totally dependent on the strength of your broadband connection.

Congestion in network particularly in residential internet connectivity results in poor voice quality or call drop in the mildest of emergency this factor affects the growth. Furthermore, just like other internet integrated networks IP telephony is also subjected to Denial of service breakdown if an address used is a public IP ID. All the above mention factors hinder the growth of the IP telephony market.

Country-wise Analysis

How Opportunistic will the Market for IP telephony market be across the U.S?

Rapid development of IT infrastructure to Widen Scope of market

U.S is expected to hold a significant position in the global IP telephony market, experiencing a CAGR of CAGR of 10% during the forecast period. The rapid development of IT infrastructure in the region is the main driver in the market growth. A market valuation of US$ 25.6 Billion is projected for the U.S market in 2032.

Also the presence of advanced telecommunication system in the region expected to drive the growth of the region. An increase in internet penetration, Smartphone users, and adoption of cloud-based communication platforms are expected to drive the growth of the IP Telephony US market. Furthermore, Fact.MR expects the country to generate a dollar opportunity worth US$ 15.7 Billion.

Will China emerge as an Attractive IP Telephony Market?

IP Telephony Market in the China to Witness Better Growth Opportunities

China dominated the IP telephony market and is forecast to continue this trend throughout the forecast period with CAGR of 10% through forecasted period. The growth is majorly due to the growing number of corporates and the presence of large number of market players in this region.

These efforts to facilitate migration to the next-generation network, Players of the IP telephony market are also adopting open standards and offering backward compatibility with legacy equipment. As a result, these are the major factors driving the IP telephony market in china.

The ongoing growth in Chinese spending is due in part to the country’s long-term and expansion plans, in line with a stated desire to catch up with other leading telecommunication systems. Consequently, deployment of advanced IP Telephony system is rising significantly across the East Asian giant. For instance, Jan 02, 2020 International calls to China can result in expensive charges with a traditional phone company. However, with a VoIP provider, calling China can cost just pennies per minute.

Country-wise Forecast CAGRs for the IP telephony Market

U.S

10.0%

U.K

8.7%

China

10.0%

Japan

9.9%

India

9.9%

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Category-wise Insights

Which is expected to be the Top IP telephony market component?

IP Telephony Market to Witness Considerable Rise in Demand for Hardware

Based on component, the global IP telephony market can be segmented into hardware based, softphones and services. The hardware segment is likely to exhibit an 8% CAGR during the forecast period. At the same time, demand for softphones is also gaining major traction in the market.

Many IP telephony providers are offering softphones free of cost. As a result of high competition in the fields market is witnessing many new emerging players. Recent innovations in IP phones is expected to give significant increment to the global IP telephony market. Countries are striving to improve IP telephony capabilities by installing advanced systems, AI enabled services and heat sensitive ammunition.

By End Use, which Vertical is likely to make Maximum Usage of IP telephony Market?

BFSI to be Primary Utilizers of IP Telephony Market

BFSI vertical is expected to hold a share of 8.7% in the IP Telephony Market during the forecasted period i.e. 2032. Communication through the different channel is the integrated part of BFSI industry.

Key players are demanding reliable and on-demand voice communication solutions to connect with their partners. To ensure connectivity and increase the responsiveness the BFSI sector can rely on IP telephony market.

Competitive Landscape

Prominent manufacturers of IP telephony market are eyeing technological innovations in order to provide the most accurate and precise communication system arrangements to their customers. As there is significant increase in AI implementation in the IP telephony market, companies are forging collaborative agreements with government entities to enhance their presence across major geographies. Also many key players are collaborating with others and incorporating new strategies to expand their business.

  • In April 2022, MiRO, a renowned cloud-based collaboration tool for SMEs, announced its partnership with SNOM, a leading IP phone manufacturer, to offer a complete end-to-end voice over IP (VOIP) solution through SNOM’s powerful, flexible, and versatile communication experience.
  • On March 31, 2020 Cisco announced that NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION (NTT EAST) has selected Cisco SD-WAN powered by Viptela for its new managed SD-WAN services under NTT EAST's VPN service portfolio for enterprises. This new services will help businesses solve network challenges driven by growth of mobile workers, shortage of IT resources and increasing network management costs.

Key Segments Covered in IP Telephony Market Study

  • IP Telephony by Component :

    • Hardware Based
      • IP Desktop Phones
      • Audio Conference Phones
      • DECT Phones
    • Softphones
    • Service
      • Maintenance
      • Installation
      • Consultant
      • Other
  • IP Telephony by End Use :

    • IP Telephony for BSFI
    • IP Telephony for Healthcare
    • IP Telephony for Retail
    • IP Telephony for Government Organisations
    • IP Telephony for Other End Use Industries
  • IP Telephony by Region :

    • North America IP Telephony Market
    • Europe IP Telephony Market
    • Asia Pacific IP Telephony Market
    • Middle East and Africa IP Telephony Market
    • South America IP Telephony Market

- FAQs -

As of 2021, Fact.MR estimated the IP telephony market to have reached US$ 29.5 Billion
By 2022, Fact.MR expected demand for IP telephony market to reach US$ 49.4 Billion
From 2017-2021, the IP telephony market grew at an 8.9% value CAGR
From 2022-2032, IP telephony market demand is likely to surge at an 8.3% CAGR
By 2032, the market for IP telephony market is likely to be valued at US$ 109.6 Billion
By 2032, Fact.MR expects the U.S market for IP telephony market to reach US$ 25.6 Billion
China is expected to register a 10.0% CAGR with regard to the IP telephony market industry
U.K is expected to document a CAGR worth 8.7% in the IP telephony market.
BFSI will remain most sought after, expanding at CAGR of 8.7% until 2032

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