Transparency Market Research (TMR) recently released a report that predicts a bright future for the global VoIP services market. By 2020, it is expected to grow to $136.76 billion with 348.5 million subscribers.
It’s somewhat counterintuitive, but one of the driving forces behind this growth is the growth of mobile device use. An increase in smartphone and tablet use means more Internet use. This in turn, results in more mobile VoIP (mVoIP) use. BYOD policies and a growing availability of 4G service only fuel the growth further. A Juniper Research (News - Alert) report predicts that the number of mVoIP users will total one billion by 2017.
International VoIP use is another driving force behind the market’s overall growth. This is not surprising, given the costs of such calls through other types of phone plans.
Business by nature has become more globalized, whether it’s from domestic companies expanding to other countries or simply needing to communicate with other businesses overseas. TMR predicts that revenue from international long distance VoIP calls will grow at a CAGR of 8 percent from now until 2020.
The VoIP market has the greatest potential for growth in the Asia Pacific region. This area as a whole is not as established for VoIP as Europe or the Americas are, so there is plenty of room to add infrastructure.
About three-fifths of the world’s population lives in the region, so as infrastructure is added, the number of potential customers added will be much greater than anywhere else. TMR predicts from now through 2020 the subscriber base will increase at a CAGR of 14.6 percent, while revenues will grow at a CAGR of 13.6 percent.
If you look at many of the current technology trends like an increase in the number of mobile devices that people use, the growing availability of 4G service and more BYOD popularity at companies, they all seem to contribute to the growth of VoIP services. Traditional phone service is no longer feasible for most people or businesses, especially if they make a lot of international calls. It’s not much of a gamble to bet on its demise; the only challenge is determining the over/under on when it will happen.