Key Market Overview:
IP Telephony Market, with a valuation of USD 2,556.38 Million in 2022, is poised for substantial growth with a CAGR of 7.3% during the forecast period (2023-2030). the IP Telephony Market is expected to reach a value of USD 7,054.74 Million by 2030
IP telephony (Internet Protocol Telephony) refers to technologies, products, and services that utilize the Internet Protocols packet-switched connections for supporting voicemail, voice calling, video conferencing, faxing, video calling, and instant messaging. IP telephony offers several benefits including lower costs, increased accessibility, higher scalability, clearer voice quality, and complete portability among others. The aforementioned benefits of IP telephony are primary determinants for increasing its utilization in corporate, government, and residential sectors among others for efficient communication and collaboration applications.
Factors such as the growing trend towards digitalization, rising development of corporate enterprises, and the growing demand for enhanced communication solutions among business enterprises are among the major factors driving the adoption of IP telephony. Additionally, the market is also driven by advances in technology including 5G cellular technology, which have led to the development of more efficient and reliable IP telephony solutions.
For instance, in September 2022, Grandstream Networks launched its new high-end video IP phone. The IP phone integrates a multi-platform video collaboration solution with a 16-line IP phone for providing a complete desktop communication solution. The IP phone is also capable of operating on version Android 11 to provide complete access to millions of Android applications while supporting custom app development. Therefore, the rising development of IP telephones is further driving the growth of the IP telephony market.
IP Telephony Report Coverage Coverage:
Rising utilization of IP telephony among business enterprises is driving the market growth
|Report Attributes||Report Details|
|Market Size in 2030 (USD Million)||5,609.64 million|
|CAGR (2023-2030)||7.3 %|
|By Type||Unmanaged Switches, Managed Switches, and Others|
|By End Use||Aerospace & Defense, Food & Beverage, Oil & Gas, Automotive, and Others|
- Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia]
- Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
- North America [United States, Canada, Mexico]
- Middle East & Africa [GCC, North Africa, South Africa]
- South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||Cisco Systems Inc., Belden Inc., Alcatel-Lucent, Hewlett Packard Enterprise, Avaya Inc., IBM Corporation, Broadcom Inc., Siemens AG, ZTE Corporation, Omron Corporation, Rockwell Automation, and Moxa Inc.|
The rising utilization of IP telephony among business enterprises is a key factor driving the market growth. IP telephony is often utilized in business enterprises for a range of applications including voicemail, voice calling, faxing, video conferencing, video calling, and other related applications. Moreover, IP telephony offers higher flexibility, scalability, clearer voice quality, and improved accessibility, thereby increasing its utilization among business entities.
Factors such as the rapid pace of urbanization, increasing development of business enterprises, and the growing need for highly efficient communication solutions in business enterprises are major factors fostering the market demand for IP telephony.
According to the Organization for Economic Co-operation and Development (OECD), there were more than 140 million SMEs (Small and Medium Enterprises) in China in 2020. Similarly, China registered around 2.52 million new corporate companies in 2020. Business enterprises require efficient communication and connectivity solutions for fostering team collaboration, interacting with customers, and driving operational efficiency. Thus, the growing number of business enterprises is increasing the utilization of IP telephony for communication and connectivity applications, in turn driving the growth of the market.
Limitations associated with connectivity of IP telephony is restraining the market growth
The implementation of IP telephony is associated with certain limitations and operational challenges, which is a prime factor restricting the market growth. For instance, IP telephony primarily relies on the availability of a reliable internet connection for its efficient functioning. Moreover, several operational challenges including slow internet speed, lower bandwidth, or server traffic result in the unavailability of internet connectivity, in turn restricting the implementation of IP telephony.
Meanwhile, challenges associated with latency and jitter due to poor internet connection and inadequate routers hamper the performance of IP telephony solutions. Additionally, the lack of reliable internet services in rural areas further restricts the deployment of IP telephony. The aforementioned factors are restraining the growth of the market.
IP Telephony Report Market Segmentation:
The type segment is divided into softphones, and hard phones.
The softphones segment is anticipated to contribute to a substantial revenue share during the forecast period. A softphone refers to a software program that makes phone calls through VoIP service by utilizing a smartphone or computer instead of using hardware. A softphone performs similar functionalities to that of a traditional telephone and is equipped with a display panel and buttons for user control to perform functionalities similar to a standard phone interface. Softphones offer numerous benefits such as greater mobility, increased functionality, and enhanced privacy among others. The above benefits of softphones are further increasing their utilization in the corporate sector, among others.
Furthermore, the rising development of corporate offices and growing need for economical and flexible telephony solutions in the corporate sector are among the major factors driving the growth of the softphone segment.
Additionally, the hard phone segment is expected to grow steadily during the forecast period. Hard phones refer to hardware-based IP phones that perform similar functionalities as that of a traditional desk phone. IP hard phones are often plugged directly into an Ethernet port on a router and interface with a VoIP gateway or VoIP service. Moreover, IP hard phones offer multiple benefits such as higher call quality, deployment in various locations, and others. Further, factors including the rising need for seamless and clear communication solutions in corporate and government sectors are among the key factors driving the market demand for IP hard phones.
By End Use
The end user segment is divided into corporate, government, and residential.
The corporate segment accounted for the largest share in the IP telephony market in 2022. IP telephony is primarily utilized in corporate enterprises for multiple applications including voicemail, faxing, voice calling, video conferencing, video calling, and others. Moreover, the benefits of IP telephony including higher flexibility, clearer voice quality, scalability, and improved accessibility are driving its utilization in the corporate sector.
Factors including the increasing development of business enterprises, rising adoption of remote and hybrid work cultures, and the growing need for highly efficient communication solutions in corporate offices are major factors driving the growth of the corporate segment. According to the India Brand Equity Foundation (IBEF), the number of small and medium enterprises in India witnessed a growth of 18.5% from 2019 to 2020. Hence, the growth of corporate sector is increasing the utilization of IP telephony for communication applications, in turn driving the growth of the segment.
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. The North American region is considered to contribute the largest revenue share in the year 2022. Several factors such as the rising development of corporate offices and the increasing demand for IP telephony from business enterprises in the region for improving communication, enhancing team collaboration, and increasing productivity are driving the market growth in North America. According to Oberlo, the number of small businesses in the United States reached 33.2 million in 2022, representing nearly 99% of total businesses in the region. Hence, the above factors are driving the adoption of IP telephony among business enterprises in North America, in turn proliferating the market growth in the region.
The Asia-Pacific region is anticipated to witness substantial growth during the forecast period. The growing pace of urbanization and development is creating lucrative opportunities for the growth of the market in the Asia-Pacific region. Additionally, several factors such as the rise in large and small/medium enterprises, increasing investments in business enterprises, and the growing demand for efficient and scalable communication solutions are prime factors boosting the market growth in the Asia-Pacific region. For instance, according to the India Brand Equity Foundation (IBEF), the budget allocation for small and medium enterprises in India in the financial year FY22 was valued at USD 2.14 billion, depicting a substantial increase from USD 1.03 billion in FY21. Thus, the growth of business enterprises is further driving the adoption of IP telephony for communication and collaboration applications, thereby driving the market growth in the region.
IP Telephony Report Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and application launches have accelerated the growth of the Global IP Telephony Market. Key players in the market include-
• Gigaset Communications
• Cisco Systems
• Ascom Holding AG
• Yealink Inc.
• Avaya Inc.
• Mitel Networks Corporation
• Panasonic Corporation
• NEC Corporation
• Grandstream Networks
• In February 2023, Flyingvoice Network Technology Co. Ltd. launched its new series of IP phones, P2X series. The new series of IP Phones offers excellent voice quality, appearance, ease of configuration, and expanded functions for efficient communication and collaboration.
• In May 2021, Sangoma launched value-based IP phones, P310 and P315. The IP phones provide high-definition call quality, VoIP lines, and built-in support for wireless headset compatibility.