Market Insight

RESEARCH NOTE - Voice over IP Services Market Up 5 Percent in 2015

April 28, 2016

Diane Myers Diane Myers Senior Research Director, VoIP, UC, and IMS

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IHS Technology analysis and commentary on the 2016 VoIP and Unified Communication Services and Subscribers Annual Market Report, which tracks service provider residential and business voice over IP (VoIP) and unified communication (UC) services, follows. 

Analysis

The global voice over IP (VoIP) service market totaled $73 billion in 2015, a 5 percent increase over the prior year fueled by businesses’ move to cloud-based services and Session Initiation Protocol (SIP), as well as service providers’ de-emphasis of legacy voice connectivity.

VoIP services, both residential and business, have become acceptable alternatives to landlines in most developed countries. Although residential VoIP service remains a significant portion of VoIP services revenue, business services and a dynamic supplier landscape are driving growth.

The competitive landscape has become highly fragmented for VoIP business services, with an increasing number of PBX and unified communications (UC) vendors, enterprise agents and resellers expanding into the market along with traditional service providers. Additionally, hosted PBX and UC services are being pitched alongside SIP trunking as more multi-site businesses seek out hybrid solutions.

Continued strong worldwide growth is expected for the VoIP service market over the next five years, when it is forecast to reach $83 billion in 2020.

More VoIP and UC Services Market Highlights

  • Residential VoIP services continued to make up the majority (62 percent) of VoIP service revenue in 2015
  • There were 230 million residential VoIP subscribers worldwide in 2015, an increase of 3 percent from 2014
  • Roughly 10 to 20 percent of new IP PBX lines sold are part of a managed service or outsourced contract depending on region; as a result, managed IP PBX services, including private cloud services, are expected to comprise the largest segment of business VoIP services over the next several years
  • SIP trunking posted another year of solid growth in 2015, driven predominantly by activity in North America
  • In 2015, UC-as-a-Service (UCaaS) revenue grew 6 percent over the prior year and seats were up 25 percent; the slower revenue growth is due to a highly competitive situation in North America that led to significant price cutting by many providers

VoIP and UC Report Synopsis

The IHS Technology annual VoIP and unified communications report provides worldwide and regional market share, market size, forecasts through 2020, analysis and trends for residential and business VoIP and unified communication services and subscribers. The report includes a Hosted PBX/UC Tracker highlighting deployments by service provider, region and vendor platform. Residential VoIP providers in the report include AT&T, Cablevision, Charter, Comcast, Cox, Deutsche Telekom, Embratel, Iliad, J:Com, KDDI, KPN, KT, LG Uplus, Liberty Global, NTT, Numbericable-SFR, Orange, Rogers, Shaw Communications, SoftBank, Televisa, Time Warner Cable, Verizon, Vodafone and others.

For more information about the report, contact the sales department at IHS in the Americas at +1 844 301 7334 or americasleads@ihs.com; in Europe, Middle East and Africa (EMEA) at +44 1344 328 300 or technology_emea@ihs.com; or Asia Pacific (APAC) at +604 291 3600 or technology_APAC@ihs.com.

Geography
Global
Research by Market
Enterprise & IT Mobile & Telecom
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