The Global Market for Business VoIP Services is Forecast to Reach US$32.9 Billion by 2024

Shifting of Voice Traffic Away from PSTN to Mobile & Internet Networks Drives Adoption of Business VoIP Services, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Business VoIP Services market. The global market for Business VoIP Services is forecast to reach US$32.9 billion by 2024, driven by the growing dominance of IP based enterprise networking and the resulting migration of voice minutes from the traditional public switched telephone networks (PSTN) to mobile and Internet networks.  

The drivers for the migration from PSTN to mobile and Internet networks are numerous including lower costs, benefits of converged communications, reduction of overheads associated with overlapping networks for voice and data, cheaper long distance communications (a vital advantage for modern geographically spread enterprises), and elimination of CAPEX associated with local IP-PSTN gateways/BRIs (Basic Rate Interfaces) and PRIs (Primary Rate Interfaces). In light of the numerous advantages including a high ROI, a growing number of enterprises are investing in Session Initiation Protocol (SIP) trunking as an enabler protocol for VoIP. In addition to the well-known low cost communication benefits offered by VoIP, other equally compelling benefits offered include always on availability, a key enabling technology for virtual workforce, ability to send voice mails directly via email clients, additional calling features such as conference calling and call routing, simplicity and elimination of complex hardware accessories, phone portability, easy deployment and implementation on existing LAN and WAN networks, optimized utilization of bandwidth, and rich media experience (gained through simultaneous use of voice, video calls and instant messaging and file/image/documents transfer and exchange).

Maintenance of aging time division multiplexing (TDM) networks is expensive with reliability and flexibility of the technology rapidly fading in the modern IP enabled world. With companies seeking to avoid costly investments in yesterday’s technology, migration to VoIP is the only logical path forward for forward thinking enterprises. The focus is therefore shifting to newer services and technologies better suited for modern enterprises with their mobile and virtual business models and workforce. Also, with a growing number of equipment vendors phasing out support for TDM, there is growing pressure on companies to migrate to the new communication technology platform. A key feature of VoIP that overcomes the CPAEX challenges of migrating to completely new communication architecture is the feasibility of using a conventional telephone through a simple VoIP telephone adapter/converter, thus helping enterprises preserve their investments in traditional communication end-points. Other major market forces poised to drive growth in the market include pervasive business WLANs and strong sales of Wi-Fi phone units; increased focus on implementing QoS in enterprise networks (LAN, WAN & WLAN); development of WebRTC; and growing demand for cloud telephony services.

As stated by the new market research report on Business VoIP Services, Europe represents the largest market worldwide. Asia-Pacific ranks as the fastest growing market with a CAGR of 5.7% over the analysis period led by factors such as developing telecom infrastructure, robust investments in 4G networks, falling mobile data tariffs and increasing Internet speeds, mushrooming SMBs and enterprise sector, growing investments in converged IT environments and the resulting increase in long-term enterprise UC implementation programs, growing business value of mobility and BYOD and the ensuing strong interest in VoIP enterprise mobility systems, and widespread use of affordable audio conferencing solutions supported by the technology’s trusted reliability, simplicity, ease of use, mobility, cost effectiveness and low CAPEX load.

Major players in the market include 8x8 Inc., AT&T Inc., Avaya Inc., Cisco Systems Inc., Deutsche Telekom AG, InPhonex LLC, MegaPath, Microsoft Corporation, Mitel Networks Corporation, Nextiva, Orange Business Services, RingCentral Inc., ShoreTel Inc., Sprint Corporation, Telenor Group, Verizon Enterprise Solutions, Viber Media S.à r.l, Vonage Holdings Corp., and West Corporation, among others.

The research report titled “Business VoIP Services: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections for all major geographic markets such as the USA, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific, Latin America, and Rest of World.  The global market analytics are further analyzed by the following service segment types:  Managed IP PBX Services, Hosted VoIP, and IP Connectivity Services.

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