VoIP Gateways Article

Brace for Growth in VoIP

April 05, 2017

Recently, Credence Research brought out a report that nicely quantified what most of us figured would be so, anecdotally, for the next few years. The global VoIP market is set for major growth in a fairly short term, and those who prepare for such developments now may come out ahead down the line.

The Credence Research report predicted substantial gains, with the global VoIP market projected to grow at a compound annual growth rate (CAGR) of 9.7 percent through 2023. That's a fairly big number, especially for a market that could be called mature, and the biggest reason for this gain is the increasing awareness of what VoIP can do. This is especially true in developing markets like China and India, where demand is on the rise.

Rising demand, in turn, fuels a market's competitive streak, and several new vendors are stepping in to take advantage of this rapidly-increasingly demand. Businesses are also increasingly taking advantage of services provided on a cloud basis that are more easily accessed with VoIP systems. With Internet service access in general on the rise, more companies can take advantage of this technology, and since more likely want to, bringing supply on par with demand means more opportunities for suppliers.

This is particularly true for VoIP gateways, a system that makes it easier to set up VoIP service in the first place. Since a VoIP gateway allows companies to take a legacy telephony connection—like a T1 line or the like—and incorporate it into a VoIP connection using session initiation protocol, the end result is that companies can more readily take advantage of VoIP capability without having to renovate entire systems first.

While VoIP represents some substantial cost savings, especially if used as part of a conferencing system to replace business travel, having to revamp a network to take advantage of it would be heavily cost-prohibitive. It would be made back from VoIP savings, yes, but the break-even point would stretch substantially. VoIP gateways can help shorten the time to payback and make profitability happen sooner. It also helps make the process easier, which means fewer man-hours to devote to the changeover and to the subsequent maintenance.

With VoIP in general on the rise, it's a great opportunity for VoIP gateways to make a step forward as well.  When a device can make it easier to access a service that's growing in popularity, it's not surprising to see interest in that device go up as well. VoIP gateway makers will have to work hard to raise awareness, but have fertile market ground to go into.

Edited by Alicia Young
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