IP Telephony Market Size Challenges, Leading Key Players Review, Demand and Upcoming Trend by Forecast to 2030

Internet protocol (IP) telephony is an umbrella term for an array of technologies used in exchanging information over voice, fax, and other mediums. It can deliver voice and other multimedia formats for communication purposes. The leaps in internet  based technology and improvement in quality and dip in prices has led to its investments in major corporations and businesses. The IP Telephony Market will reach a CAGR of  14.20% and a strong market valuation of 78.3 Billion in the forecast period from 2022 to 2030. The growth estimation is predicted based on the growth factors and opportunities.

Competitive Outlook

Ascom Holding AG, Panasonic Corporation, Avaya Inc., Cisco Systems, Inc., Yealink Inc., NEC Corporation, Grandstream Networks, Inc., Polycom Inc., Gigaset Communications, Mitel Networks Corporation, and LG Electronics Inc. are key players of the global IP telephony market.

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Market Scope

The global IP telephony market is expected to grow at a CAGR of 9% during the forecast period. Ease of installation and configuration of internet run devices can drive the market demand. Demand for mobile telephony, dependence of enterprises on the Internet, and expansion of ecommerce sector can drive the market. Deployment of new communication networking technologies and investments in high data speed cables can bode well for the market.

The outbreak of the COVID-19 virus has become a boon for IP telephony service providers owing to the rise of remote work. Relaxation of rules and move to shift call center services, medical transcription services, and other IT enabled services at homes can bode well for the market.

Segmentation

The global IP telephony market is segmented by component, organization size, connectivity, and vertical.

Based on the component, the market is segmented into hardware, softphones, and services. The hardware segment is further segmented into audio conference phones, IP desktop phones, and DECT phones. The services segment is further classified into managed services and professional services.

Based on the organization size, the market is segmented into SMEs and large enterprises. Large enterprises can account for a large market share owing to adoption of VoIP applications for reducing operational costs.

Based on vertical, the market is segmented into BFSI, healthcare, manufacturing, IT & telecommunication, retail, government, and others.

Regional Analysis

The global IP telephony market is studied in Asia Pacific (APAC), North America, Europe, and Rest-of-the-World (RoW).

North America is estimated to account for the largest share of the market, whereas Asia Pacific is projected to grow at the fastest rate during the forecast period. The growth of the market in North America is attributed to technological advancements and increased adoption of IP telephony applications across various industry verticals such as healthcare, retail, BFSI, and IT & telecommunication, and others. The focus of organizations to continue their business without interruptions can favor the market till 2023.

APAC is expected to experience a remarkable growth rate during the forecast period owing to demand for video conferencing and rise of bring-your-own-devices (BYOD). The rising globalization and need for stable communication channels can induce the demand for IP telephony services. Rise of startups and stimulus provided to business through subsidies and incentives by governments can bolster the market demand till 2023.

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How do IP Telephones function?

IP telephones work by scanning and detecting an individual's analog voice signal and converting it into digital signals. Then, in the form of data, these digital signals are transmitted across the broadline. In layman's terms, IP phones work by taking phone conversations and routing them through an IP phone system across a network cable into the network, then out, and finally into the internet connection.

Instead, we can say that IP phones use "internet protocols" to connect and communicate through the digital mode across the internet. This system allows you to use this technology instead of traditional phone systems to improve communication. Leverage the internet connection, the associated hardware (phone system), and the applications that improve communication.

Alternatively, instead of the traditional phone line and phone network, the system uses the internet protocol and LAN to transmit calls and other information over your office network and the phone provider's network. Computer systems, devices, and printers all use the same protocol and network. This makes it relatively effective for you and your staff need to operate & maintain only one internal network for all communications.

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