By 2017, there were almost 1 billion mobile VoIP users. According to the research, the number is expected to reach 3 billion by 2021.
Though the adoption of VoIP was slow when it was introduced in the ’90s, and it only began to pick up after 2008. The demand for VoIP increased today due to it being cheaper than traditional phone systems.
So, what is VoIP?
It is basically a teleconnection through the Internet. Internet Protocol (IP) is used to send the data digitally instead of the telephone lines.
Data packets are obtained by contracting the codecs and then sent through the IP network which is then contracted back into audio at the receiving end.
When VoIP was first started in 1995 by VocalTech, it was simply called “Internet Phone.” It had no video available at that time and was connectable to a microphone. The adoption was slow to the extent that by 2001, less than 10% of calls were VoIP.
In 1998, the company created a telephone-to-telephone and computer-to-telephone range for VoIP. The VoIP calls were less than 1% of all the business calls made.
Many digital transformations were also developed in this decade were the telecommunicators began to develop software that could attach a VoIP adapter to the phones as it offered more speed and quality.
Due to this transformation, the VoIP calls increased to 25% by 2003. Ethernet services gave more quality calls and connectivity compared to the dial-up connections.
The government regulated the VoIP calls in 2000. It started getting recognized by the consumers as they can browse the Internet, play games, and while making voice calls.
In 2004, companies installed call centers outside their countries using VoIP, creating a positive impact on the job market. This resulted in 24 Hour customer service.
Enter SKYPE. Skype launched its beta software in 2003. People could make computer voice calls for free. It gained international attention when it introduced video calls in 2005.
It integrated video chat and made itself a pioneer for other VoIP companies in the market. It gained a monopoly in the market as it was accessible to anyone who was on the Internet.
Companies began to offer free calling for the people using the same VoIP provider. In 2018, the VoIP market rose to USD 20 billion
- The global market share for VOIP stood at $77,400 million in 2018 and will increase by up to $93,200 million by 2024. This will amount to a surge at a CAGR of 3.1% from 2019 to 2024.
- The mobile VoIP market is expected to grow at a rate of over 28% from 2016 to 2020.
- The IP BPX segment of VoIP is expected to grow at a CAGR of 15% from 2019 to 2025.
- The highest growth rate will be experienced by the Computer-to-phone VoIP services, of over 17% from 2019 to 2025.
- The subscribers are expected to grow to 204.8 billion in 2020. The growth is attributed to factors such as government policies and the cost efficiency of VoIP.
- The mobile business VoIP market will be dominated by Android OS which is expected to reach over $90 billion by 2024
- By 2019, 25 operators had launched the 5G service which is expected to double by the end of 2020.
- The top VoIP features improved 67% of the phone calls, accelerated the handling of messages by 63% in the small business organization.
- Major growth reason for VoIP is contributed to the recognition of Bring-Your-Own-Device (BYOD).
- Countries with the highest statistics of VoIP are Japan (28 million), USA (31 million), and France (21 million).
Various companies installed call centers outside their countries using VoIP, creating a positive impact on the job market. This resulted in 24 Hour customer service.
Companies are adopting VoIP to reduce their phone bills and get a platform for unified communication, like combing faxes, phones, web conferencing, and other services.
VoIP plays a vital role in remote locations, as 3G and 4G coverage are going to expand in the urban areas. Along with that hotspot, technologies are advancing in the traditional dead zones like elevators.
Through VoIP, it is possible to access the office directory and make calls by installing on the phone. If the VoIP system is installed on the phone, it allows making calls like Skype, FaceTime, WhatsApp, Facebook messenger.
Integration of the Office systems
All the functions once unified in the office systems, and it is easier to access the contacts and respond to the critical issues that occur in the working hours.
It is only a matter of time when we’ll be making calls from the internet and cut ourselves from the landline. Businesses that have shifted to VoIP have saved around 30% on their phone bills.
The global VoIP is subjected to rise at $136.76 billion, and the subscriber base is set to increase by 348.5 billion.
Apart from this, VoIP over cloud technology, free video calling, and the growth of mobile VoIP services are the factors triggering the growth of VoIP services