VoIP Gateways Article

VoIP Market to be a Nine-Figure Enterprise

February 24, 2017

Voice over Internet protocol (VoIP) is a widely-used technology that, for many, is as much a part of everyday life as the internal combustion engine. That sheer ubiquity means a lot of users, and a lot more likely to follow just to keep up with the changing technology. To that end, Zion Research recently offered up a report that says the VoIP market is in for some substantial gains.

The Zion Research report notes that, in 2015, the global VoIP market was worth about $83 billion, but by 2021, that number would nearly double to $140 billion. That's a compound annual growth rate of 9.1 percent from 2016 to 2021, and represents a substantial gain.

Forces driving this gain include several key points, ranging from reduced costs to flexibility of the technology. Being able to route all communications over one network is also an encouraging development that's got some interest going. The overall improvement of broadband connectivity in the United States, though still lagging in many countries, is also helping drive this market.

Some restraining features include government regulation—though that may be less of a problem as the Trump administration takes hold—as well as some issues of infrastructure, as broadband connectivity does still lag in many areas.

One major example of VoIP technology advancing is beroNet, a German firm that offers several different breeds of cloud-managed VoIP hardware, including VoIP gateways. It recently branched into the Americas, taking on USA-VoIP as a distributor to serve the United States and Latin American markets. With that as a foothold, it likely won't be long before beroNet can push into the remainder of North America as well as into South America, where VoIP growth is more likely to occur at faster rates than in the more mature United States market. For its part, USA-VoIP notes that beroNet was a “frequently requested” addition to the lineup, and having it in play would likely drive some further sales as well.

Good news all around; the VoIP market is gaining, and with those general gains come more specific gains as well. This is likely to be a market that has a lot of room for opportunity, and those who take the best advantage of it are likely to come out ahead in the end. People want VoIP service thanks to its potential for significant cost savings as well as its new features set, as VoIP service often includes features that aren't commonly available on standard phone lines.

VoIP is likely to continue gaining ground as companies like beroNet enter new markets and current providers expand lineups to fend off these new competitors. That should be all we need to hit Zion Research's projected numbers, and that will make for a very exciting future going forward. 

Edited by Alicia Young
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