Business News

How Are Productivity Enhancement Efforts Driving VoIP Software Market?

A number of factors, such as the increasing demand for voice over internet protocol (VoIP) software among small and medium enterprises (SMEs), surging focus of organizations on enhancing their productivity, and rising penetration of smartphones, are expected to drive the growth of the VoIP software market at a CAGR of 13.4% in the foreseeable period (2020–2025). At this rate, the market size will increase from $15,114.3 million in 2019 to $30,441.5 million by 2025. Moreover, the market is witnessing the shifting preference toward hosted cloud-based VoIP solutions and development of 5G technology.

One of the prime factors aiding the VoIP software market is the surging focus of organizations on enhancing their productivity. VoIP software enables businesses to allocate funds, which are else disbursed on traditional hardware and phone bills, to other important areas of the businesses. It also allows video conferencing, through which virtual meetings can be conducted; users to integrate other solutions, including e-fax and e-mail; and digital transfer of documents, which make the software an effective solution for businesses across the globe.

The industry segment of the VoIP software market is categorized into information technology (IT) & telecom, government, retail, healthcare, residential, education, and banking, financial services, and insurance (BFSI). Among these, the IT & telecom category accounted for the largest share in 2019 in the market. This is ascribed to the surging need for high internet speeds and increasing adoption of advanced technologies, such as voice over long-term evolution (VoLTE) and 5G, for proper management of bandwidth in the growing IT & telecom industry.

Moreover, the VoIP software market is classified into phone-to-phone, computer-to-phone, and computer-to-computer, based on access type. Out of these, the computer-to-phone category accounted for the largest market share in 2019. This is attributed to the fact that contact centers are generating a high demand for VoIP solutions, which provide customer care services over fixed/mobile phones of the customers. Whereas, the phone-to-phone category is projected to witness the fastest growth during the forecast period owing to the surging requirement for this software for providing smartphone users with access to IP telephony.

Geographically, the VoIP software market in the Asia-Pacific (APAC) region held the largest share in 2019, and it is projected to witness the same trend during the foreseeable period, progressing at the highest CAGR. This is ascribed to the increasing number of smartphone users, surging investments in the IT sector, and rising number of contact centers, which are deploying VoIP software to reduce their spending on traditional telephony hardware. Moreover, the total number of users of IP telephony software WeChat in China has reached over 800 million.

Thus, the surging adoption of VoIP software by SMEs and the increasing focus of organizations across the globe on enhancing their productivity are expected to propel the market growth during the forecast period.