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Mobile VoIP Market Expects 28% Annual Growth through 2020
June 27th, 2016

Mobile VoIP Market Expects 28% Annual Growth through 2020

Bill Gaskill

“Technavio’s market research analyst predicts the global mobile VoIP (mVoIP) market to grow at an impressive CAGR of around 28%.” Many experts project the mobile phone market in VoIP, sometimes referr...

“Technavio’s market research analyst predicts the global mobile VoIP (mVoIP) market to grow at an impressive CAGR of around 28%.”

 

Many experts project the mobile phone market in VoIP, sometimes referred to as mVoIP, will grow at a breakneck pace over the next five years. Market research company, Technavio, released a report on May 25, 2016, titled “Global Mobile VoIP Market 2016-2020.”

The detailed analysis provided in the report asserts the global mobile VoIP market is projected to sustain a CAGR (Compound Annual Growth Rate) of 28 percent through 2020. At that rate, the CAGR of mVoIP is staggering compared to the projected CAGR of the overall global VoIP market, which Transparency Market Research estimated at 9.7% between 2014 and 2020.

In other words, Mobile VoIP’s CAGR is more than three times the CAGR of the general VoIP market. Market Research, in fact, attributed a portion of the general VoIP market growth to that of the mVoIP market.

Advances in the mVoIP market

An investment with 28 percent annual growth is a significant and credit should go to advances in the mVoIP market. According to the Technavio report, the primary factor for these growth results is industry deployment of voice over long-term evolution (VoLTE) and LTE-A (marketed as 4G LTE). LTE Advanced permits ten times the uplink and downlink speeds of data for mobile phones and data terminals than 3G wireless connection. In other words, users experience faster data streaming.

A reduction in the Total Cost of Ownership (TCO) is an important secondary factor in expectations for tremendous mVoIP growth in the next four years. When the technology created a method to integrate data and voice communication traffic into one network, this allowed services to eliminate infrastructure and maintenance costs, bundling multiple media products like voice, data, and video.

Mobile VoIP products streaming multimedia data

  • Video sharing
  • Screen sharing
  • File sharing
  • Video and voice calls
  • Instant messaging
  • CRM integration services
  • Virtual number service

Within the enterprise model, lead analyst at Technavio, Rakesh Panda, credits Unified Communications (UC) as a driving factor in VoIP’s growth projections. UC is a marketing term referring to a set of products that integrate real-time communication services, such as instant messaging and video conferencing for businesses.

Panda explains

Converged applications such as UCs help companies increase revenues and decrease costs. These also enhance productivity and improve customer service. UC adds real-time call control, collaboration, media handling, and integration of voice and data applications. IP-enabled UC systems provide opportunities to integrate instant messaging (IM), presence awareness, and features such as click-to-call, click-to-conference, web and voice conferencing, web or multimedia chat, and document collaboration through a common user interface.

Converged applications such as UCs help companies increase revenues and decrease costs. These also enhance productivity and improve customer service. UC adds real-time call control, collaboration, media handling, and integration of voice and data applications. IP-enabled UC systems provide opportunities to integrate instant messaging (IM), presence awareness, and features such as click-to-call, click-to-conference, web and voice conferencing, web or multimedia chat, and document collaboration through a common user interface.

Many companies in the mVoIP market rely on a “freemium” model, where companies offer products or services to consumers free, generating revenue through advertising, and premium subscriptions from added services and upgrades.

One explanation for an estimated 28% CAGR is the untapped potential of the customer base. Even though profits from the freemium mVoIP market is less than premium and enterprise models, the number of freemium customers will significantly increase in the mVoIP market through 2020.

Advantages of mVoIP

This rapid growth projection is unsurprising considering the advantages for both individuals and companies using VoIP. Global immigration and multi-national corporations with a remote workforce have increased the demand for international communication. Individual customers now access services unavailable or costly through traditional phone lines and may stop using non-VoIP telephone systems.

For companies, VoIP facilitates quick and effective decision-making, increasing business efficiency. Business VoIP, still generating the most market revenue, is also projecting growth.

Employment factors

However, besides convenience and low costs, mVoIP’s growth projections rest on certain key facts about employment in the digital age.

• More people prefer to work and communicate with mobile devices such as smartphones and laptops.
• The BYOD (Bring Your Own Device) trend has risen significantly in corporations.
• Employers increasingly allow employees to work remotely, and on the device of their choosing.

These three factors rely on reliable collaboration and communication services that are provided by the mVoIP market.
Being a VoIP User

If you are one of the millions of subscribers that the VoIP market hopes to convert by 2020, keep these two things in mind.

• First, every VoIP service is different. Details in the “Terms and Conditions” place restrictions on which VoIP services you can connect with; the inclusion of international, national, and local calls; the cost for those; and additional service fees.
• Second, some VoIP services are unavailable during power outages, a key consideration especially for those in isolated regions with a spotty connection.
• Third, and most importantly, not all VoIP services connect to police and other emergency services through 911 in the United States.

These are definite considerations in selecting a VoIP service.

Final thoughts

This growth rate in the mVoIP market will have a significant impact on businesses. Factoring this growth rate and the reasons behind it into your business plan and projects will keep your company on the cutting edge of productivity, ensuring you remain competitive.


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