VoIP Services Market Growth, Size, Share, Trends, and Forecast 2030

VoIP Services (Domestic VoIP Calls and International Long Distance VoIP Calls) Industry Prospective:

The global VoIP services (domestic VoIP calls and international long distance VoIP calls) market size was worth around USD 90.61 billion in 2022 and is predicted to grow to around USD 206.98 billion by 2030 with a compound annual growth rate (CAGR) of roughly 10.93% between 2023 and 2030.

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VoIP Services (Domestic VoIP Calls and International Long Distance VoIP Calls) Market: Overview

Voice over Internet Protocol (VoIP) is a contemporary communication-oriented technology. It has paved the way to conduct voice-based calls with the aid of broadband Internet connection. It can either act as a substitute or work in coherence with analog phone lines. In most cases, VoIP can be used to call someone else using the same device; however, certain services allow calling on a cellphone or a telephone equipped with local or international numbers. In addition to this, another aspect of VoIP services is that while special VoIP phones are available in the market, certain service providers allow clients to use traditional phones connected to VoIP adaptors.

Voice over Internet Protocol technology works by converting voice from one end into a digital signal that can travel through the internet to the intended location. In case the recipient is using a regular phone number, the signal will be converted into a corresponding telephone signal before reaching the destination. The most important aspect of VoIP services is access to a high-speed internet connection. The market for VoIP services is growing at a steady pace.

Key Insights:

• As per the analysis shared by our research analyst, the global VoIP services (domestic VoIP calls and international long distance VoIP calls) market is estimated to grow annually at a CAGR of around 10.93% over the forecast period (2023-2030)
• In terms of revenue, the global VoIP services (domestic VoIP calls and international long distance VoIP calls) market size was valued at around USD 90.61 billion in 2022 and is projected to reach USD 206.98 billion, by 2030.
• The VoIP services (domestic VoIP calls and Internal long distance VoIP calls) market is projected to grow at a significant rate due to the growing remote work culture globally
• Based on end-user segmentation, corporate use was predicted to show maximum market share in the year 2022
• Based on configuration segmentation, computer-to-computer was the leading segment in 2022
• On the basis of region, North America was the leading revenue generator in 2022

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VoIP Services (Domestic VoIP Calls and International Long Distance VoIP Calls) Market: Growth Drivers

Growing remote work culture to help the market’s continuous growth

The global VoIP services (domestic VoIP calls and international long distance VoIP calls) market is growing due to the rising remote work culture across the globe. During COVID-19 most businesses worldwide adopted the work-from-home (WFH) culture that continues to prevail in recent times as well. Several companies are currently working on hybrid work models leading to teams being separated by distance while performing everyday business-related tasks. The demand for VoIP services skyrocketed during these times and has continued to remain a primary expenditure as a part of communication technology used by businesses for day-to-day operations. In addition to this, globalization has been crucial in shaping the VoIP services market as there is a growing trend of hiring employees from other parts of the world. Employees do not have to necessarily be located in the region where business offices are situated thus allowing the formation of a diverse workforce. VoIP services such as Zoom and Skype have been some of the most popular voice-over Internet Protocol services used by corporations to save cost and allow employees more flexibility in terms of staying connected with their respective teams. A recent survey reported that nearly 13% of the world’s full-time workplace is currently working from home.

VoIP Services (Domestic VoIP Calls and International Long Distance VoIP Calls) Market: Restraints

Higher reliance on the internet for smooth functioning may hamper market growth

The VoIP services (domestic VoIP calls and international long distance VoIP calls) industry growth is projected to be restricted by the high reliance of VoIP services on internet connection. These services fail to deliver as per expectations in the absence of broadband internet connection and require continuous access to the Internet. In case the connection is lost, VoIP-based calls will automatically drop. Furthermore, if the Internet speed is low, the quality of the calls also remains under question with respect to response time and call lagging especially when conducting long-distance or international calls. These factors result in companies seeking other safer and more-reliant alternatives to VoIP services including traditional landline-based calls and satellite phones.

VoIP Services (Domestic VoIP Calls and International Long Distance VoIP Calls) Market: Opportunities

Increased investment in 5G communication to assist in a higher growth rate

The global VoIP services (domestic VoIP calls and international long distance VoIP calls) market is anticipated to benefit from the ongoing investments in 5G telecommunication infrastructure globally. Internet and network companies are investing heavily in deploying 5G connection on a larger scale in developed and developing countries which in turn, is expected to provide VoIP service providers with a crucial tool to expand their business operations. In October 2023, Vodafone Idea announced its plan to amplify its investment in India’s 5G architecture. The company is a major contributor to India's existing 350,000 setups. Additionally, as of July 2023, Cellnex and the European Investment Bank (EIB) signed a deal worth 315 million Euros in support of improving 5G infrastructure in 5 European countries. The faster internet speed is expected to help VoIP service providers gain access to higher and improved bandwidth thus delivering better services. Furthermore, as per the latest trend, 5G networks are expected to be more reliable and secure causing VoIP companies to improve security protocols.

Integration of advanced technology such as Artificial Intelligence and VoIP creates more doors for higher growth

The VoIP services (domestic VoIP calls and international long distance VoIP calls) industry growth is further expected to be assisted by the ongoing research and development programs undertaken by VoIP service companies to provide enhanced features and deliver better results by creating a comprehensive solution using advanced technology such as artificial intelligence (AI) and machine learning. For instance, in September 2023, Zoom introduced its clients to AI Companion, a new AI-based assistant. Zoom intends to target user productivity and time management with the aid of AI Companion. As of June 2023, in the last year, Microsoft research and development expenses reached around $27.195B.

VoIP Services (Domestic VoIP Calls and International Long Distance VoIP Calls) Market: Challenges

Managing and preventing security threats to act as crucial challenges

The global VoIP services (domestic VoIP calls and international long distance VoIP calls) market sales rate may be hampered by the growing data security threat especially when digital mediums are used for the communication of confidential business or personal data. It also includes the use of VoIP services to hack other institutions. In August 2023, Microsoft announced that it had caught a Russian government-linked hacking group using Microsoft Teams for hacking purposes. In other news, around 500,000 Zoom accounts were hacked and given away for free in 2022.

VoIP Services (Domestic VoIP Calls and International Long Distance VoIP Calls) Market: Segmentation

The global VoIP services (domestic VoIP calls and international long distance VoIP calls) market is segmented based on end-user, call type, services, configuration, and region.

Based on end-user, the global market is divided into corporate use and individual use. In 2022, the highest growth was registered in the corporate use segment mainly because of the high demand for VoIP services for business-related communication. These tools act as backbones for companies as they act as crucial means for internal and external communication. The growing investment in product feature enhancement and improved overall services is expected to aid segmental growth during the projection period. As per official reports, Zoom currently has around 467000 paying customers with more than 10 employees.

Based on call type, the global VoIP services (domestic VoIP calls and international long distance VoIP calls) industry is divided into domestic VoIP calls and international VoIP calls.

Based on configuration, the global market is divided into phone-to-phone, computer-to-phone, computer-to-computer, and others. In 2022, the highest growth was witnessed in the computer-to-computer segment while the other segments also acted as critical drivers. The growing adoption rate of VoIP services in the corporate world along with increasing demand for distance or remote learning along with use of VoIP services for online teaching are essential drivers. As per research, companies tend to spend 4% to 6% of the total revenue on information technology (IT) services.

Based on services, the global market is divided into hosted business IP PBX service, SIP trunking service, and others.

VoIP Services (Domestic VoIP Calls and International Long Distance VoIP Calls) Market: Report Scope

VoIP Services (Domestic VoIP Calls and International Long Distance VoIP Calls) Market: Regional Analysis

North America to continue growing at a steady rate during the forecast period

The global VoIP services (domestic VoIP calls and international long distance VoIP calls) market will be led by North America during the forecast period. The US is one of the highest revenue-generating countries in the region primarily due to the presence of a robust IT infrastructure in the country along with the presence of several key and game-changing VoIP service companies. Microsoft Teams, one of the world’s most regularly used VoIP services, is owned by US-based IT giant Microsoft. The company caters to the IT needs of over 300 million users globally. In addition to this, the US has a growing remote work culture leading to the rising use of voice over Internet Protocol services for business communication. The growing rate of research and development along with increasing strategic partnerships with international companies to improve services will aid future growth. Asia-Pacific is a lucrative market for VoIP service providers. The region is home to some of the fastest-growing economies including China and India with high rates of domestic and international investments.

VoIP Services (Domestic VoIP Calls and International Long Distance VoIP Calls) Market: Competitive Analysis

The global VoIP services (domestic VoIP calls and international long distance VoIP calls) market is led by players like:

• Zoom Video Communications
• Skype
• Vonage
• Microsoft Teams
• VoIP.ms
• Google Meet
• Cisco Webex
• RingCentral
• Zoom Video Communications
• 8x8
• Twilio
• Nextiva
• Jive Communications (LogMeIn)
• Ooma
• WhatsApp

The global VoIP services (domestic VoIP calls and international long distance VoIP calls) market is segmented as follows:

By End-User

• Corporate Use
• Individual Use

By Call Type

• Domestic VoIP Calls
• International VoIP Calls

By Configuration

• Phone-to-Phone
• Computer-to-Phone
• Computer-to-Computer
• Others

By Services

• Hosted Business IP PBX Service
• SIP Trunking Service
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa