Report: Global VoIP market “expected to reach more than $136 billion by 2020”

Global VoIP market to increase by 2020 (Image: cybrain via iStock)

The value of the global voice over internet protocol (VoIP) market is expected to reach almost $136.8 billion (£105.6 billion) by 2020, according to a new report by Transparency Market Research.

The report, entitled ‘VoIP Services Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 – 2020’, predicts that the VoIP services market is set to grow by a 9.7 per cent CAGR (Compound Annual Growth Rate).

The market was valued at $70.9 billion in 2013.

A rising demand for affordable communication services around the world as well as a continuously improving wireless and wired network infrastructure is reportedly responsible for the expansion.

It is expected that 348.5 million people will be subscribing to VoIP services across the globe by 2020.

The report has revealed that the main contributing factor to the growth of VoIP services is its cost effectiveness, as it costs nothing to place a call to somebody over the internet.

Other influences, according to the report, include the rising demand for smartphones and other devices, increasing mobility amongst corporate and individual consumers and the growing popularity of bring your own device (BYOD) policies. The adoption of BYOD is responsible for a growing demand for smartphones and tablets. This means that mobile VoIP is a segment that is expected to see significant growth.

The market revenue for international long distance VoIP calls is predicted to grow at a CAGR of eight per cent until 2020. Corporate consumers in Europe and North America are the biggest users of this type of communication due to an increasingly global outlook by businesses.

The report has revealed that the relatively low-cost and packaged service offerings have led to cloud-based VoIP services being favoured by business customers.

It is thought that the biggest barrier to the growth of VoIP is a low public acceptance.