IP telephony is an umbrella term for products, technologies, and/or similar kind of services which utilize an internet connection to transmit and receive voice data, such as voicemail, voice calling, video calling and conferencing, etc. IP telephony technology converts voice calls and similar voice data into digital signals and transmits it through Internet Protocol (IP) networks in the form of data packets. Introduced for the first time in 1991, IP telephony technology, unlike regular landlines which use analog signals, establishes connection with the use of internet through a router and a modem.
As compared to other information transmission services, IP telephony services are very much cost effective, which is expected to be the main driving factor of this market. Also, due to major technological advancements in the information technology (IT) and communications sector, data as a resource has become quite vulnerable to cyber-attacks and similar risks. As a result, many businesses have switched to IP telephony services, which is further expected to boost the market in the coming years. IP telephony services, since the last few years, have been integrated with new technologies like Artificial Intelligence (AI), which is anticipated to help the IP telephony market. Along with this, strategic alliances between key market players are projected to offer numerous growth opportunities to the IP telephony market. However, lack of funds with respect to implementation of IP telephony services is expected to hamper the market in the coming years.
Regionally, the IP telephony market in the Asia-Pacific region is expected to have the fastest growth rate and garner a revenue of $2,237.3 million by 2028. Growing number of industries facilitated by the rapid pace of urbanization and industrialization is expected to be the primary growth driver of the market. Moreover, technological advancements taking place in the countries of this region is predicted to offer huge growth opportunities to the market in Asia-Pacific region.
As per the report published by Research Dive, the global IP telephony market is expected to gather a revenue of $7,680.5 million by 2028 and grow at 13.4% CAGR in the 2021–2028 timeframe. Some prominent market players include IBM Corporation, Fidelis Cybersecurity, Tenable, Inc., VMware, Inc., McAfee Corporation, Sysdig, Inc, enSilo, Sonatype, NeuVector, Aqua Security, and many others.
Covid-19 Impact on the IP Telephony Market:
The outbreak of the Covid-19 pandemic has had a massive negative effect on almost all industries and businesses across the world. Government-mandated lockdowns that were put in place to curb the spread of the virus are one of the main reasons behind this negative impact of business and industries. IP telephony market, however, has been one of the few exceptions to this trend. As many offices and industries were closed due to the restrictions, they adopted work-from-home policies for which an effective medium of communication is required. Since IP telephony technology offers quality and cost-effective communication services, many companies started using this technology, which helped in boosting the growth of the market despite the pandemic situation.
Significant IP Telephony Market Developments:
The significant companies operating in the industry are adopting numerous growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, thus helping the IP telephony market to flourish. For instance:
In May 2020, IP4B, a leading IP telephony and unified telecommunications service provider, announced the acquisition of FasTTelecom VoIP, a business unit of FasTTelecom. Since FasTTelecom is a leading structured cabling solutions provider, it has an established infrastructure which will help IP4B to expand its business seamlessly in coming years.
In November 2021, Ericsson, a Swedish multinational telecommunication company, announced the acquisition of a VoIP network operator Vonage. This acquisition deal will help Ericsson to expand its business operations globally, thereby enabling it to cater to the demands of an even bigger customer base.
In April 2022, MiRO, a leading ICT (Information and Communications Technology) distributor, announced a strategic partnership with SNOM, a leading manufacturer of innovation VoIP solutions. With this partnership, both the companies will look to augment each other’s strengths and help each other in increasing their footprint in the IP telephony market.