Global Market Size, Forecast, and Trend Highlights Over 2025-2037
VoIP Services Market size was USD 36.1 billion in 2024 and is estimated to reach USD 111.5 billion by the end of 2037, expanding at a CAGR of 9.8% during the forecast period, i.e., 2025-2037. In 2025, the industry size of VoIP services is evaluated at USD 39.6 billion by the end of 2025.
The global VoIP system production is dependent on a complex supply chain process interlinked to telecommunications hardware and software manufacturing components such as semiconductors, network infrastructure devices, and cloud computing. The study by the U.S. Bureau of Economic Analysis highlights that in 2024, the producer price index for communications equipment grew by 3.9%. This represented moderate cost growth for essential VoIP infrastructure components. According to the same source, the consumer price index for telecommunication services rose by 2.6% year-over-year. This underscored a strong enterprise demand for integrated voice and data solutions.
Furthermore, as per the analysis by the U.S. International Trade Commission, telecommunications equipment imports crossed USD 82.5 billion and USD 47.7 billion in exports in 2024. This highlights a stable import export trade of ICT or telecommunication-specific solutions, including VoIP. The silicon wafers and printed circuit boards, some of the raw materials used in the manufacturing of VoIP solutions, are primarily sourced from East Asia. The assembly operations are concentrated in China, South Korea, and Taiwan. This projects that Asia Pacific is emerging as an opportunistic market for VoIP manufacturers to expand their facilities.
VoIP Services Sector: Growth Drivers and Challenges
Growth Drivers
- Increasing R&D investments: The swift rise in public-private investments in research and development activities is estimated to drive innovations in VoIP solutions. The integration of digital technologies is likely to increase the demand for next-gen VoIP technologies. The booming investments in advanced communication technologies are also expected to open lucrative doors for the VoIP service providers. The developed countries’ robust R&D budgets toward telecom advancements are likely to increase the trade of VoIP solutions in the coming years.
- Expanding remote and hybrid work models: The shift towards remote and hybrid working models is anticipated to drive a high demand for integrated VoIP and unified communications platforms. The Research Nester’s study projects that the enterprise UC adoption, with VoIP, increased by 15.6% in the last five years. The integration of video, messaging, and collaboration tools is attracting end users to invest in the VoIP solutions. The growing popularity of remote and hybrid working models and investments in broadband infrastructure to expected to propel the sales of VoIP services in the years ahead.
Technological Innovations in the VoIP Services Market
The technological advancements are set to double the revenues of VoIP service providers in the coming years. The digital shift is expected to propel the sales of innovative VoIP solutions during the foreseeable period.
|
Technological Trend |
Industry |
Adoption Statistic |
Company Example |
Impact Achieved |
|
AI-powered Voice Analytics |
Finance |
38.5% of financial institutions |
JPMorgan Chase |
Improved fraud detection, 20.5% call handling boost |
|
Cloud-based VoIP |
Manufacturing |
45.7% of manufacturers |
General Electric (GE) |
Enhanced remote ops, 30.3% cost reduction |
|
5G Network Integration |
Telecom |
32.3% rise in VoIP traffic |
Verizon |
Superior call quality, reduced latency |
AL and ML Integration in the VoIP Services Market
The integration of AI and ML is poised to boost the productivity and effectiveness of the VoIP platforms. Both the public and private users are set to lead the sales of AI and ML-powered VoIP systems in the years ahead.
|
Company |
Integration of AI & Machine Learning |
Outcome |
|
Avaya |
AI-driven product design simulations and automated testing |
25.3% cut in product development time |
|
Cisco |
AI-based supply chain optimization |
22.8% fall in logistics costs |
|
RingCentral |
AI-powered predictive maintenance and quality analytics |
15.4% enhancement in product quality |
Challenges
- Pricing pressures: The highly competitive pricing models are expected to limit the new entrants in the VoIP services market. Limited budgets and resistance to change are hindering the growth of the small players and new companies. The study by the U.S. Small Business Administration reveals that in 2023, around 45.5% of small enterprises delayed VoIP adoption owing to high security and compliance costs. This highlights that pricing pressures are hindering the overall market growth.
- Regulatory barriers limit market entry: The complex regulatory policies are hindering the sales of VoIP services in some countries. Many companies are required to invest in in-house advisory owing to varying regulations across the world. This is increasing their operational costs and hampering the profit shares. According to the Department of Telecommunications, India, in 2022, the data localization laws delayed product launches by six months for several VoIP suppliers. Such complexity also distracts companies from investing in these markets.
VoIP Services Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
9.8% |
|
Base Year Market Size (2024) |
USD 36.1 billion |
|
Forecast Year Market Size (2037) |
USD 111.5 billion |
|
Regional Scope |
|
VoIP Services Segmentation
Service Type (Hosted VoIP, On-Premises VoIP)
The hosted VoIP segment in VoIP services market is anticipated to hold 52.1% of the global market share by the end of 2037. Long-term cost benefits and scalability features are driving the sales of hosted VoIP technologies. The digital shift is poised to fuel the application of hosted VoIP solutions in small and medium enterprises. The Small Business Administration 2024 report underscores that SMEs represent over 98.5% of all businesses in the U.S. and are forefront of the adoption of hosted services. The cloud computing advances and improved broadband penetration are further boosting the demand for hosted VoIP services.
End user (BFSI, Telecom, Healthcare, Manufacturing, Retail, Government, Education)
The BFSI segment is foreseen to account for 36.3% of the global VoIP services market share throughout the forecast period. The strict regulatory mandates to secure reliable communication systems are fueling the sales of VoIP solutions. BSFI companies are investing in advanced VoIP technologies to reduce the chances of cyberattacks. Strict regulations, including the Gramm-Leach-Bliley Act in the U.S., are contributing to the increasing sales of reliable and next-gen VoIP technologies. Furthermore, continuous technological innovations are expected to offer robust data protection and seamless connectivity in VoIP solutions. This is set to create trust and operational continuity among BFSI users.
Our in-depth analysis of the global market includes the following segments:
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Service Type |
|
|
End user |
|
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Customize this ReportVoIP Services Industry - Regional Scope
North America Market Forecast
The North America VoIP services market is expected to account for 33.6% of the global revenue share by 2037. The expanding digital equity programs are anticipated to increase the VoIP access in the region. The public digital transformation moves are fueling the adoption of cloud-based VoIP platforms. Furthermore, the growth in cybersecurity spending is expected to accelerate the production and commercialization of VoIP solutions in both the U.S. and Canada.
The rise in broadband expansion and 5G deployment is foreseen to fuel the demand for VoIP services in the U.S. The Federal Communications Commission’s 2023 budget reveals an investment of 15.4% towards ICT initiatives. Rising government spending on digital projects is poised to boost the revenues of VoIP companies in the years ahead. The advanced cybersecurity frameworks to secure communications are also contributing to the overall market growth.
The increasing investments in robust connectivity networks are poised to drive innovations in the voice over internet protocol technologies in Canada. The increasing public-private investment strategies are accelerating the production and commercialization of voice over internet protocol solutions. Manufacturers in the country are collaborating to integrate AI and machine learning in VoIP platforms. These moves are set to double the profit shares of VoIP service providers in the coming years.
APAC Market Statistics
The Asia Pacific VoIP service market is estimated to increase at the fastest CAGR of 13.1% from 2025 to 2037. The growing investments in digital infrastructure are fueling the sales of VoIP services. The riding ICT budget and increasing public cloud-first policies are opening lucrative earning opportunities for VoIP service providers. China and India, owing to rapid urban and industrial activities, are attracting numerous VoIP investors. Japan and South Korea, due to their know-how tactics, are backing their leadership in the APAC market.
The VoIP service demand in China is projected to increase at the fastest CAGR due to robust public spending on ICT projects. The Ministry of Industry and Information Technology (MIIT) and the China Academy of Information and Communications Technology (CAICT) reported over 12.9% growth in VoIP technology spending over the last five years. The digital infrastructure expansion is anticipated to double the revenue of VoIP companies in the coming years.
The growing focus on smart city projects is estimated to fuel the sales of VoIP services in India. The government's focus on cybersecurity and data privacy is increasing the need for advanced voice over internet protocol technologies. The Ministry of Electronics and Information Technology (MeitY) and the Department of Telecommunications (DoT) initiatives increased the government spending at a 9.9% CAGR between 2015 and 2023. The growing startup ecosystem and digitalization campaigns are propelling the sales of voice over internet protocol solutions.
Companies Dominating the VoIP Services Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The VoIP services market is led by leading companies, owing to their know-how tactics and strong global presence. The leading companies are using several organic and inorganic marketing strategies to earn high profits. They are continuously investing in R&D activities to enhance their product offerings. Industry giants are entering into strategic partnerships with other players to boost their customer base. Collaborations with raw material suppliers are poised to drive stable production of VoIP solutions. Furthermore, mergers & acquisitions and global expansion strategies are expected to double the revenue of VoIP service providers in the coming years.
|
Company Name |
Country of Origin |
Revenue Share 2024 |
|
Cisco Systems, Inc. |
USA |
14.7% |
|
Microsoft Corporation |
USA |
12.5% |
|
Avaya Holdings Corp. |
USA |
8.3% |
|
8x8, Inc. |
USA |
6.7% |
|
RingCentral, Inc. |
USA |
6.2% |
|
Ericsson AB |
Sweden |
XX% |
|
Mitel Networks Corporation |
Canada |
XX% |
|
BT Group plc |
UK |
XX% |
|
Alcatel-Lucent Enterprise |
France |
XX% |
|
Optus Communications |
Australia |
XX% |
|
Samsung SDS |
South Korea |
XX% |
|
Tata Communications |
India |
XX% |
|
Axiata Group Berhad |
Malaysia |
XX% |
|
PBR Australia (Bosch Group Subsidiary) |
Australia |
XX% |
Below are the areas covered for each company in the global market:
In the News
- In March 2024, Cisco Systems announced the launch of Webex Suite, integrated with advanced AI-powered meeting transcription and translation features. This launch contributed to a 7.9% increase in Webex subscription revenue in the first quarter of 2024.
- In January 2024, RingCentral revealed the launch of Engage Digital, a cloud-based omnichannel contact center platform. This innovation led to a 12.4% year-over-year growth in cloud communications revenue in Q1’24
Author Credits: Abhishek Verma
- Report ID: 3298
- Published Date: May 26, 2025
- Report Format: PDF, PPT
