Key Market Overview:
The Voice Communication Equipment Market is projected to grow at a Compound Annual Growth Rate (CAGR) of 6.2% from 2023 to 2030, resulting in a value of over USD 5.5 Billion by 2030. The market was valued at USD 3.2 Billion in 2022.
Voice communication equipment are devices that integrates multiple means of communication into one system. Voice communication devices allows effective interconnection between multiple communication systems including telephones, intercoms, very-high frequency (VHF) radio, and ultra-high frequency (UHF) radio to provide reliable and efficient communication between individuals. Moreover, voice communication equipment includes efficient wiring and cabling networks that allow individuals to make audio calls, video calls and conference calls conveniently.
The rising demand for convergence services for voice mail, instant messaging, e-mail, audio conferencing, and video conferencing is driving the growth of voice communication equipment market. Voice communication equipment including routers, switches, and Private Branch Exchange (PBX) provides reliability, cost efficiency and flexibility to communicate effectively without any network interruptions. Moreover, voice communication systems deploy copper wiring systems that facilitate efficient communication between individuals. Additionally, communication equipment is employed in retail stores to provide machine-to-machine communication in order to automate the daily operations. For instance, in January 2023, VoCoVo announced the launch of voice communication wireless headsets in the U.S. market that are installed in 44 stores to improve guest experience and in-store communication. In conclusion, voice communication equipment allows individuals to receive, answer, make, and transfer calls from one system to another in order to provide better speed and quality of service.
Voice Communication Equipment Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||5.5 Billion|
|CAGR (2023-2030)||6.2 %|
|By Component||Solution and Service|
|By Type||Smartphones, Tablets, Soft Phones, IP Phones, and Others|
|By Network Equipment||Switches, Router, and Private Branch Exchange (PBX)|
|By End-User||BFSI, Healthcare, Retail, Hospitality, IT & Telecom, Government, Transportation & Logistics, 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||Microsoft Corporation, PanTerra Networks, Roc Tel International, Ericson-LG, 8×8 Inc., ADTRAN Inc., MDS Gateways, IBM Corporation, Nortel Networks Corp., Outsourcery plc.|
The widespread adoption of consumer electronics including smart-phones and tablets along with the Voice over Internet Protocol (VoIP) technology is driving the growth of voice communication equipment market. Voice communication equipment including a modem converts digital information into analog signals for transmission of information over a telephone line. Moreover, Network Interface Cards (NIC) are deployed to connect different networking devices such as computers and servers to share data over the connected network. Furthermore, the application of wireless access points to extend wireless coverage of an existing network is accelerating the growth of the market. For instance, in April 2022, Broadcom Inc. announced the launch of a new chipset solution for the Wi-Fi 7 ecosystem such as Wi-Fi routers, enterprise access points, residential gateways, and client devices. Thus, the ability of wireless communication equipment to provide extended range and reliable low-latency communications is accelerating the growth of the market.
Voice communications through traditional telephones such as landlines is not convenient for users as they are not portable. As a result, consumers\' shift towards wireless communication networks is limiting the growth voice communication market. However, the market for voice communication equipment is further hindered by network congestion in the communication systems. Network congestion results in lower performance, such as high levels of jitter, packet loss, and higher latency. Moreover, the security concerns associated with wireless communication systems is restraining the growth of the market.
The incorporation of advanced technologies such as Artificial Intelligence (AI) and Augmented Reality (AR) is expected to provide significant growth opportunities for the growth of voice communication equipment market. AI-assisted communication is used to manage calls, e-mails, and text messages by giving appropriate notifications to respond to a call or an e-mail. Moreover, AI-assisted communication systems automatically delete junk messages and e-mails that are not important for the user. For instance, in February 2023, Airtel India collaborated with NVIDIA to launch an AI-based solution in order to improve the customer experience for all in-bound calls in contact center. Therefore, the utilization of AI technology is expected to revolutionize the communication system during the forecast period.
Voice Communication Equipment Market Segmentation:
Based on the component, the market is bifurcated into solution and service. The solution segment accounted for the largest revenue share in the year 2022. The solution segment comprises of a sender, receiver, transmission medium and a set of rules (Protocol) in order to exchange data between two devices via transmission media such as a cable, wire, air or vacuum. Transmission of information or messages is done through wires including twisted pair cable, fiber optic cable, and by means of wireless wavelength including microwaves, radio waves, and others. Moreover, software solutions in communication systems provide remote access to the data and transmits files in a multitude of formats between computers. For instance, in October 2022, Huawei Technologies Co., Ltd. introduced all-band 5G solution series in order to facilitate the evolution of all bands to 5G. Consequently, the transition of all connections and services to 5G is propelling the growth of the market.
The services segment is anticipated to witness the fastest CAGR during the forecast period. The increasing demand for specialized services including WAP (Wireless Application Protocol) and GPRS (General Packet Radio Service) services for mobile phones is driving the growth of the services segment. Moreover, service providers offer installation, maintenance, and repair services for communication systems that further contributes to the growth of voice communication systems. Moreover, service providers avail 24-hour customer support services for maintenance of wireless and fiber optic systems that further results in the growth of services segment during the forecast period.
Based on the type, the market is segregated into smartphones, tablets, soft phones, IP phones, and others. The smartphones segment accounted for the largest revenue share in the year 2022. The increasing adoption of smartphones for wireless communication among individuals is driving the growth of wireless communication equipment market. Consumers are deploying smartphones for audio calls, video calls, messaging, and sending e-mails that requires efficient and reliable communication systems. Moreover, the growing adoption of IoT-enabled devices requires high data transfer speeds that further increases the demand for uninterrupted communication systems. For instance, in January 2023, Qualcomm Technologies, Inc. launched the world\'s first satellite-based solution called Snapdragon Satellite capable of supporting two-way messaging for premium smartphones. Thus, the ability of smartphones to provide high speed for transmission of information is propelling the growth of the market.
The tablets segment is projected to register the fastest CAGR during the forecast period. The advancements in tablet technology such as a high-speed processor, storage chip with additional capacity, and the utilization of a graphics processor is driving the growth of the market. Tablets allow users to access the internet, read and send e-mail, and make audio and video calls for personal and professional communications. Moreover, consumers are gradually increasing their dependency on tablets to read, get maps and directions, set appointments, and do other important tasks that require reliable communication systems and high-speed internet for data transfer. Consequently, the growing adoption of tablets for communication purposes is driving the growth of voice communication equipment market.
By Network Equipment
Based on the network equipment, the market is trifurcated into switches, routers, and Private Branch Exchange (PBX). The switches segment accounted for the largest revenue share in the year 2022. Network switches provide full-duplex communication and connect network segments to improve network performance by making effective use of available bandwidth to provide a seamless communication network. Moreover, switches provide wired connections to desktop computers, wireless access points (APs), printers, industrial machinery, and IoT-enabled devices for efficient transmission of information between connected devices. For instance, in December 2021, Sophos Ltd. introduced a new series of network access switches featuring a local web user interface to improve network visibility. Therefore, network switches play a crucial role in modern data networks, resulting in market growth.
The router segment is anticipated to witness the fastest CAGR during the forecast period. The routers play a crucial role in managing traffic between networks by forwarding data packets to the intended IP addresses, thereby allowing multiple devices to use the same internet connection. Moreover, routers are deployed for connecting multiple logical groups of computer devices called subnets with different network prefixes to provide better connectivity between the devices. Thus, the utilization of routers to transmit and receive data easily is accelerating the growth of the market.
Based on the end-user, the market is divided into BFSI, healthcare, retail, hospitality, IT & telecom, government, transportation & logistics, and others. The BFSI segment accounted for the largest revenue share in the year 2022. Banks and financial institutions employes voice communication equipment to manage customer inquiries, complaints, and requests for assistance that includes automated voice response systems and call center support. Moreover, internet communication systems play an essential role in BFSI sector to ensure that employees in the organization are kept informed about critical corporate initiatives, directives, procedures and policies in order to reduce the risk of errors. As a result, fiber optic-centric telecommunication systems are installed in BFSI industry to ensure the security of internal communication of bank employees and authorities. Moreover, PoE (Power over Ethernet) media converters and switches are deployed for video, audio, and picture format data transmission.
The healthcare segment is anticipated to register the fastest CAGR growth during the forecast period. Healthcare professionals are increasingly adopting wirelessly connected laptops or tablets for monitoring patients and patient data via cell phones or wireless video cameras. Moreover, healthcare professionals are shifting towards Tele-medicine that occurs across a variety of wireless devices facilitating communication between patients and healthcare providers. For instance, in July 2022, 9Solutions introduced next-generation voice communication devices that enable high-quality voice communication between the caregiver and the patient. Thus, radios, smartphones, telephones, and computers, are playing an essential role in connecting patients and healthcare providers.
North America accounted for the largest revenue share in the year 2022. The advancements in wireless communication technology have led to the increasing adoption of consumer electronics including smartphones, laptops, and tablets. As a result, consumers are able to communicate with each other and transfer data efficiently. Moreover, the growing healthcare industry in countries such as the United States and Canada is driving the growth of voice communication equipment market. The advent of COVID-19 has led to the increasing demand for wireless communication systems to provide telemedicine to patients remotely. Therefore, reliable and efficient communication systems are required to gain uninterrupted access to the healthcare facilities.
The Asia-Pacific region is expected to register the fastest CAGR growth during the forecast period. The growing trend of social media in Asia-Pacific region is driving the growth of voice communication equipment market in the region. Consumers are increasingly adopting new technologies and features being provided by smartphones, laptops, and tablets coupled with advanced functionality are further expected to drive the market growth. Efficient voice communication equipment is required to support the advanced features of the aforementioned devices. Moreover, the vast BFSI industry in the Asia-Pacific region is driving the growth of voice communication equipment market. Banks and financial institutions are deploying safe communication systems to in order to safeguard their data and information. For instance, in October 2022, The Reserve Bank of India launched DAKSH – an advanced supervisory monitoring system enabling seamless communication, inspection planning and execution of financial data. Thus, the growing BFSI industry in the region is propelling the growth of the regional market.
Voice Communication Equipment Market Competitive Landscape:
The voice communication equipment market is highly competitive, with the presence of several established players that are constantly working to enhance their market position through various strategies such as product innovation, partnerships, mergers and acquisitions, and geographical expansion. Crucial players are:-
• Microsoft Corporation
• 8×8 Inc.
• Roc Tel International
• PanTerra Networks
• Outsourcery plc
• Nortel Networks Corp.
• MDS Gateways
• IBM Corporation
• ADTRAN Inc.
• In February 2023, Siemens launched first industry-ready 5G routers to provide high-speed internet connectivity for manufacturing industry in India.
• In July 2020, Marvell launched an integrated set of Ethernet switch and PHY solutions that enables efficient and secure data movement throughout enterprise networks.