Global VoIP market expected to hit $194.5 billion by 2024

Global VoIP market expected to hit $194.5 billion by 2024 [Image: baona via iStock]

The global voice over internet protocol (VoIP) market is expected to be valued at $194.5 billion (£156.4 billion) by 2024, according to a new report.

According to the report – ‘Global Market Study on VoIP Services: Increasing Hybrid Cloud Communications in Small and Large Enterprises to Drive Market Growth over the Forecast Period, 2016-2024’ – the sector was valued at $85.9 billion in 2015.

The global VoIP market is expected by the report authors, Persistence Market Research, to grow at a compound annual growth rate (CAGR) of 9.5 per cent between 2016 and 2024.

According to the report, the global VoIP services market is currently being largely driven by factors such as low maintenance costs with higher flexibility and minimum staff support, along with wider connectivity and increasing internet penetration in semi-urban and satellite cities.

However, the report found that elements such as fluctuations in internet quality may affect market growth and can be a significant restraint. During peak hours, the network may be congested due to many subscribers using internet services in a locality through single-cable network lines. Unsatisfactory contract proposals could also negatively affect the growth of the market.

Growth of the European VoIP services market is primarily attributed to the introduction of a large number of SMEs. The VoIP services market in Europe is expected to increase at a CAGR of 8.4 per cent in terms of value over the forecast period.

Elsewhere, the North American VoIP sector is predicted to see moderate growth over the forecast period. It accounted for a 27 per cent share of the overall market in 2015 and is expected to register a moderate CAGR of 8.5 per cent in terms of value over the forecast period.