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VoIP in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

VoIP Market Research Report | NAICS 51711e | Apr 2017

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

IBISWorld’s VoIP market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

Report Snapshot
Market Share of Companies
Industry Statistics & Market Size
Annual Growth 12-17
Annual Growth 17-22
Annual Growth
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
  • ... purchase to read more

Industry Analysis & Industry Trends

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... ... purchase to read more

Industry Report - Industry Locations Chapter

The VoIP industry's geographic concentration closely follows population concentrations. The Southeast (24.4%), West (21.8%), Mid-Atlantic (16.8%), and Great Lakes (11.4%) are the regions with the largest share of industry establishments. Companies such as Skype have their headquarters in the West, while the Mid-Atlantic is home to the industry's largest company, Vonage. The top four states with the most industry establishments are California (15.7%), Florida (9.8%), New York (8.2%) and Texas (6.7%). This follows population patterns, as location does not affect the ability to perform the service for consumers.

.. ... 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... purchase to read more


    Industry ProductsRelated Reports

    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 connectionResidential over fixed connectionVoIP via other infrastructure
    Industry Activities
    VoIP over the PSTN

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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
  • Products & Markets
    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
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • 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
    Major Companies
    Microsoft Corporation
    Vonage Holdings Corporation
  • Table: Microsoft Corporation - financial performance
  • Table: Vonage Holdings Corporation - financial performance
  • Operating Conditions
    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
    Key Statistics
  • Table: Industry Data for the VoIP Industry
  • Includes:
  • 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
  • Jargon & Glossary
    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?
    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 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.

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