IP Telephony Market Size and Forecast 2031 | Global Report

The IP telephony market size is projected to reach US$ 85.16 billion by 2031 from US$ 29.65 billion in 2023. The IP telephony market is expected to register a CAGR of 14.1% during 2023–2031. Voice over IP (VoIP) is a service and application that falls under the umbrella of IP telephony. It is the transmission of voice communication over IP networks.

IP Telephony Market Analysis

Internet protocol (IP) telephony offers a variety of services, such as voice calling, video calling, voicemail, faxing, instant messaging (1M), and video conferencing. IP telephony, unlike VolP, often offers more than just voice functions. IP telephony benefits organizations of all sizes by providing a combined network for phone and internet features. IP telephony offers lower costs, simpler infrastructure, scalability, and mobility, making it appealing to end users.

IP Telephony Market Overview

IP telephony refers to any system that falls within internet-based telecommunications, including fax and other technologies. It uses a variety of open-source protocols to send data from the phone to the service provider. Businesses are rapidly implementing IP telephony solutions because of their portability and cost-effectiveness. Furthermore, IP telephony systems are easy to use, offer advanced technologies, and boost productivity. These factors are driving the adoption of IP telephony systems. IP telephony adds a new feature to business phones and improves communication by giving a cost-effective solution, which is considered a key driver for the worldwide IP telephony market. Existing legacy systems and hardware, such as fax machines, credit card readers, and alarms, can be easily linked with IP telephone systems.

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IP Telephony Market: Strategic Insights

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IP Telephony Market Drivers and Opportunities

Increase in Cyberattacks to Favor Market

Rapid technological advancements have resulted in an increase in vulnerabilities in recent years. Businesses increasingly rely on IP telephony products and services as cyberattacks become more common. IBM estimates that the total cost of data breaches in enterprises will be approximately US$ 6 trillion in 2021 alone. The numbers are expected to rise during the anticipated timeframe. Hence, businesses are deploying IP telephony solutions to protect data and prevent breaches, which is expected to boost the IP telephony market CAGR throughout the forecast period.

Rise in Remote Work Culture

Increasing use of mobile devices and rising adoption of remote work culture are driving the demand for adaptive and quickly available IP telephony solutions. Employees are increasingly using smartphone apps to make and receive calls from anywhere. Furthermore, remote collaboration requires communication with video conferencing software. IP telephony providers are focusing on developing solutions that address these evolving needs.

IP Telephony Market Report Segmentation Analysis

Key segments that contributed to the derivation of the IP telephony market analysis are component, hardware, service, installation type, enterprise type, and end users.

• Based on component, the IP telephony market is divided into hardware, software, and services.
• By hardware, the market is segmented into IP desktop phones, DECT phones, and IP conference phones.
• Based on service, the IP telephony market is divided into installation & maintenance and professional services.
• Based on installation type, the IP telephony market is segmented into wired and wireless.
• Based on enterprise size, the IP telephony market is segmented into SMEs and large enterprises.
• Based on end users, the IP telephony market is segmented into residential, corporate, and governmental organizations.

IP Telephony Market Share Analysis by Geography

The geographic scope of the IP telephony market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America. The causes involved stem from global increases in IP telephony application adoption and technological advancement. These applications are often created in certain industry sectors, such as BFSI, healthcare, retail, IT, and telecommunications. Furthermore, the region's growth is expected to be propelled by the widespread use of IP telephony services, cutting-edge telecommunications infrastructure, and the appeal of labor mobility.

IP Telephony Market Regional Insights

The regional trends and factors influencing the IP Telephony Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses IP Telephony Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

IP Telephony Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The IP Telephony Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the IP Telephony Market are:

1. Avaya Inc.
2. Cisco Systems Inc.
3. Gigaset Communications
4. LG Electronics Inc.
5. Mitel Networks Corporation
6. Panasonic Corporation

Disclaimer: The companies listed above are not ranked in any particular order.

IP Telephony Market News and Recent Developments

The IP telephony market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the IP telephony market are listed below:

• Broadvoice—a hosted voice, unified communications, and SIP trunking services provider—won the 2022 Internet Telephony Product of the Year award. For the past 23 years, the award has honored and acknowledged VoIP and IP communication products and services.

(Source: Broadvoice, Press Release, March 2022)

• Pure IP offers global voice communications for enterprises. It is now accessible via the Zoom Phone Provider Exchange system. Customers will have greater freedom with this program. It will preserve Pure IP while utilizing its telecommunications network in other places.

(Source: Pure IP, Press Release, April 2023)

IP Telephony Market Report Coverage and Deliverables

The "IP Telephony Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• IP telephony market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• IP telephony market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• IP telephony market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the IP telephony market
• Detailed company profiles