Raised voice: The expansion of 4G data networks will propel subscription growth

Voice over Internet Protocol (VoIP) technology converts voice communications into digital data packets transmitted using a high-speed (broadband) connection. Explosive growth since its commercial introduction in the late 1990s began to stabilize in 2011 as residential customers cut home phone services, shifting instead to wireless devices. The rapid adoption of broadband internet strongly drove revenue growth in the past five years. Meanwhile, the number of mobile internet connections rose at an even faster rate during the same period, as consumers continued to substitute wired phones with mobile devices. VoIP providers quickly adjusted by offering services for the mobile market...read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
What Our Customers Say

Industry Threats & Opportunities

  • Lower implementation costs could lure businesses toward VoIP adoption
  • With saturation looming, the industry quickly shifted its strategy and entered the mobile market
  • The expansion of the 4G mobile data network will make VoIP available to more consumers
  • Industry Report - Industry Key Buyers Chapter

    The VoIP Providers industry has a low level of market share of concentration, with no current major players. In the five years to 2017, market share concentration has decreased as a host of free and low-cost Voice over Internet Protocol (VoIP) providers have increased industry-wide competition. Over this five-year period, the number of operators in the industry has increased 3.3%. Vonage, though still the largest access-independent VoIP provider, has not grown nearly as fast as the rest of the industry, lowering its market share concentration. Concentration is expected to decrease over the next five years as the residential market reaches saturation and providers increasingly turn their attention to the highly competitive and fragmented business market...purchase to read more.

    Additional Insights for the VoIP Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the VoIP Industry are

  • Ability to negotiate successfully with the Federal Communications Commission (FCC)
  • Effective product promotion
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Number of broadband connections and Number of mobile internet connections in the VoIP industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What is the VoIP Industry?

    Industry participants provide Voice over Internet Protocol (VoIP) services to consumers, businesses and government organizations. VoIP technology converts voice signals into digital data that is transmitted using the internet. This industry also includes VoIP providers that bundle their services with internet, cable-operated VoIP, and operators that resell VoIP services.

    Industry Products
  • Business over fixed connection
  • Residential over fixed connection
  • VoIP via other infrastructure
  • Industry Activities
  • VoIP over the PSTN
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of broadband connections
  • Number of mobile internet connections
  • External competition for the VoIP industry
  • Number of cable TV subscriptions
  • Regulation for the VoIP industry

  • Current Performance
  • Slowing residential growth
  • Shift toward the mobile market
  • Opportunities and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • VoIP and 4G LTE
  • Potential challenges
  • Table: VoIP Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - VoIP Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Internet Service Providers
  • Software Publishing
  • Telecommunication Networking Equipment Manufacturing
  • Wired Telecommunications Carriers

  • Products & Services
  • Business over fixed connection
  • Residential over fixed connection
  • VoIP via other infrastructure
  • Chart: VoIP Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential internet telephony
  • Business internet telephony
  • Chart: Major Market Segmentation for the VoIP Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesDepreciation and MarketingWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs VoIP

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the VoIP Industry

  • Industry Globalization
    Microsoft CorporationVonage Holdings Corporation
  • Table: Microsoft Corporation - financial performance
  • Table: Vonage Holdings Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the VoIP Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the VoIP Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of broadband connections (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Access Charges
  • Access fees paid by VoIP providers to PSTN owners and ISPs to connect VoIP calls to traditional phone numbers.
  • Internet Protocol
  • A communications protocol that enables data to be transmitted across network boundaries.
  • Mobile Voip
  • VoIP service delivered wirelessly, either through a wireless internet connection (Wi-Fi) or a cell phone network.
  • Public Switched Telephone Network (Pstn)
  • The legacy circuit-switched telephone network. PSTN operators are traditional phone service providers.
  • Session Initiation Protocol
  • A signaling protocol designed for controlling voice and video communications over internet protocol.
  • Why buy this report?

    The VoIP industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on VoIP:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The VoIP market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on VoIP, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.