The IP telephony market is expected to reach $10.96 trillion by the end of the 2022-2032 forecast period, growing at a compound annual growth rate (CAGR) of 8.3%, according to a recently published report by Fact.MR. As of 2022, the market is poised to reach $49.4 billion, yielding a dollar opportunity worth $60.2 billion throughout the forthcoming decade. Significant increase in AI implementation in the IP telephony market have pushed sales to new heights. 

Demand expanded significantly from 2017 to 2021, registering a growth rate of 8.9% to be valued at $29.5 billion. As countries strengthen their communication systems, investments in furthering IP telephony are rising. Due to the superior broadband speed, minimal upfront investment, reliability, flexibility, and lots of advanced features, the global IP telephony market is experiencing an exponential growth. 

Key Takeaways 

  • IP telephony market to flourish more than two times from 2022 to 2032.
  • U.S to emerge as the dominant IP telephony market, reaching $25.6 billion by 2032.
  • China to be the fastest growing market, registering a CAGR of 10% across the decade.
  • India, U.K, and Japan are likely to yield dollar opportunities worth $12.2 billion, $13.8 billion and $13.1 billion, respectively.
  • By component, hardware-based component to register maximum IP telephony market usage, growing at an 8.1% CAGR.

“As technological advancement in telecommunication sector improves and develops around the world, this growing need stimulates the IP Telephony market growth in recent years,” said an analyst at Fact.MR

Competitive landscape

Prominent manufacturers of IP telephony market are eyeing technological innovations in order to provide the most accurate and precise communication system arrangements to their customers. As there is significant increase in AI implementation in the IP telephony market, companies are forging collaborative agreements with government entities to enhance their presence across major geographies.

  • In April 2022, MiRO, a renowned cloud-based collaboration tool for SMEs, announced its partnership with SNOM, a leading IP phone manufacturer, to offer a complete end-to-end voice over IP (VOIP) solution through SNOM’s powerful, flexible, and versatile communication experience.
  • On March 31, 2020, Cisco announced that Nippon Telegraph and Telephone East Corp. selected Cisco SD-WAN powered by Viptela for its new managed SD-WAN services under NTT EAST's VPN service portfolio for enterprises. This new services will help businesses solve network challenges driven by growth of mobile workers, shortage of IT resources and increasing network management costs.