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VoIP Market Forecast 2016: A Look Ahead
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The VoIP Market Today

When VoIP technology first arrived on the market in the late 1990s, its adoption by both developers and corporations was initially slow. In 2001, less than 5% of business calls in North America were being conducted using IP-based lines. By 2008, however, 80% of all new corporate lines being installed were VoIP lines.
In the mid-2010s, VoIP technology began experiencing an explosive new phase of growth, as applications aimed at specific niches like hospitality, health & education began to emerge. The most important contributors to increased VoIP adoption in recent years have been the enterprise & SME segments. Small- and mid-sized businesses, which comprise an estimated 99% of all businesses in the United States and 98.2% of businesses in Canada, had largely steered clear of early VoIP offerings due to the technical & cost implications of installing an IP-based phone system. It was not until the emergence of hosted PBX service in the 2010s that VoIP became highly suitable for SMEs, as well as other sectors like Hospitality, offering cost savings of up to 70% and far greater flexibility when compared to traditional telephony.
As of 2015, VoIP technology is far from ubiquitous among SMEs. On the other hand, the rate of growth in this segment is unparalleled, far exceeding the VoIP adoption rates among corporations in the early 2000s. This presents long-time industry actors with a number of exciting business opportunities for the years to come.

VoIP Market Trends in 2015

The lure of decreased costs and increased flexibility has led to a marked uptick in the number of businesses that are abandoning on-premise PBX systems for hosted PBX platforms. Cloud-based business solutions are the way of the future, spurred by innovations in technology and accessibility that make the switch from on-premises systems to hosted solutions easier and more affordable than ever imaginable in the past.

The rise in demand creates a major opportunity for VoIP developers who specialize in both on-site & hosted solutions. While on-premise VoIP PBX systems still have their place in 2015, more and more businesses of all sizes are turning to cloud-based solutions in order to cut costs and increase flexibility.

infonetics voip market research

VoIP Services Market Forecast for 2016

The VoIP services market is expected to see continuous growth in the coming years due to cost effectiveness, improving network infrastructure across the globe and rising demand for smart devices and mobility among corporate and individual consumers. Additionally, the rising competition among the telecommunication service providers and internet service providers across the industry is fueling the growth of the market in terms of product and service differentiation. While the enterprise VoIP market has been witnessing a shift from traditional telephony using CDMA or GSM to VoIP services using cellular networks such as 3G and 4G for over a decade now, many analysts believe the transition is now in the midst of a rapid acceleration phase.
Infonetics research expects strong worldwide growth in global VoIP services revenue through 2019, when it will reach $82.5 billion, largely due to expansion of the enterprise VoIP segment.

Cloud Technology Forecast for 2016

The rise in popularity of hosted (cloud-based) telephony solutions within the VoIP sector is part of a much larger multi-sectorial trend that is seeing businesses migrate towards a cloud-based service delivery model. In some cases, technology providers are doing away with offering non-cloud options altogether – For example, in 2013 software giant Adobe began offering its creative suite product roster exclusively through a web-based monthly subscription.

The Software-as-a-Service (SaaS) delivery approach is expected to see its market share make dramatic gains in the coming years. According to market research firm Forrester Research, the SaaS market – currently valued at $63 billion – is expected to reach a market value of 132.6 billion by 2020.

VoIP market cloud forecast - Forrester

Vertical VoIP Market to Watch in 2016: Hospitality

With over 5,000,000 hotel rooms in the United States alone, the hospitality sector is a major consumer of telecommunications worldwide and a highly sought-after vertical for providers operating in the VoIP market. The Hospitality sector today remains largely untapped, as many hotels continue to use landline-based hospitality PBX systems.

Cloud adoption rates have been limited in the hospitality sector, in part due to a wide-spread reliance on PMS (property management system) platforms, which until recently could only integrate with traditional PBX systems. While house phones are becoming increasingly viewed as unnecessary by consumers, hotel room phones – used to deliver a number of important services to guests are just as essential today as they were a few decades ago. What’s more, recent studies suggest hotel guests are increasingly likely to favor establishments with newer technology offerings that add value and convenience, like lower calling costs, smartphone integration and self-check-out.

While technology investments tend to comprise a higher percentage of the overall budget for Hotels & Resorts than for other sectors, the difficulties surrounding PMS integration had, until very recently, prevented cloud-based PBX solution providers from entering the lucrative hospitality market. Many analysts expect that the shift towards hosted VoIP in hotels will enter full swing in 2016, as hosted hospitality solutions offering seamless PMS integration begin to emerge.

Learn more about Dialexia’s hosted and on-site VoIP PBX software solutions for telecom providers, Hospitality operators, K12 Schools and SMEs. For more information about our products, or to obtain a demo for your organization, please contact us for a free consultation.