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  • 71 Key VoIP Statistics: 2020 Data Analysis & Market Share

71 Key VoIP Statistics: 2020 Data Analysis & Market Share

Category: B2B News

The modern business landscape demands a global approach to communications. This is why many companies have turned to Voice over Internet Protocol or VoIP software to connect with stakeholders, staff members, and customers worldwide. Not only does it allow them to make communication more convenient, but it also enables them to make it more cost-effective as it doesn’t incur surcharges beyond what you pay for the VoIP service and your internet access.

The only question now is, with the emergence of newer communication channels, will VoIP evolve in order to keep up with the times? Will it remain as relevant to business operations in the coming years?

To find out, we have gathered some of the most noteworthy VoIP statistics of 2019. From general market research to forecasts on industry challenges, this compilation should provide you with a clearer view of where VoIP is headed in the coming years as well as how you can best utilize these tools for your operations.

voip statistics

General VoIP Market Statistics

Since its humble beginnings back in the ’90s, the VoIP market has certainly reached new heights, and it is predicted to grow even more in the coming years. This comes as no surprise with the emergence of mobile VoIP and the expansion of internet access across the globe.

  • 1 billion – mobile VOIP users in 2017 [1]
  • 3 billion – projected mobile VOIP users by 2021 [1]
  • $77.4 billion – global VOIP market share in 2018 [1]
  • $93.2 billion – projected global VOIP market share by 2024 [1]
  • $194.5 billion – projected global VOIP revenue by 2024 [2]
  • $14 billion – total revenue of VOIP industry in the US in 2019 [3]
  • 1,519 – total number of VOIP businesses in the US in 2019 [3]
  • -3.6% – the average annual growth rate of VOIP businesses in the US from 2014-2019 [3]
  • 31,072 – workers employed by the VOIP industry in the US, 2019 [3]
  • 28% – CAGR of the global mobile VoIP market from 2016 to 2020. [4]
  • The global VoIP phone system market share is projected to grow at a CAGR of 3.1% between 2019 and 2024. [5]
  • $90 billion – Android OS share of mobile VOIP market, dominating other platforms [1]
  • 17% – the growth rate of computer-to-phone VOIP services from 2019-2025, the highest among VOIP services [1]
  • $80 billion – projected revenue of Managed IP PBX in 2024, the highest share among global VOIP services [2]
  • 15.3% – CAGR of Managed IP PBX service segment from 2016-2024 [2]
  • 7.8% – CAGR of hosted business IP PBX service segment for 2016-2024 [2]
  • $124 billion – projected revenue from long-distance VOIP through 2024 [2]
  • Experts predict that the fastest growing VoIP segment from 2014 to 2019 is phone-to-phone services. [6]
  • 204.8 billion – VOIP users by 2020. Growth attributed to positive government policies and cost-efficiency of VOIP [1]
  • 25 – operators who have launched 5G service, expected to double by 2020. This will further boost the demand for VOIP services. [1]
  • The Asia Pacific is primed to be the biggest VoIP services market with projected revenue of $100 billion by the end of 2024. [2]
  • 14% – projected CAGR of the VOIP market in the Asia Pacific by 2024 [2]
  • 34 million – VOIP users in the US, the highest in the world. [7]
  • 31 million – VOIP users in Japan, second highest in the world. [7]
  • 22 million – VOIP users in France, third highest in the world after the US and Japan [7]
  • Computer-to-phone VoIP services will experience its highest market growth between 2017 and 2024. [2]
  • Bring-Your-Own-Device – a major driver of VOIP growth [8]

Source: spectrumvoip.com

VoIP Usage Statistics

More and more VoIP providers are offering their services at affordable prices. This is why a larger number of individuals and businesses are now able to leverage it for their work or their business, and it seems that the number is about to get bigger in the coming years. This can be attributed to the many benefits that the platform has to offer as well as the demand to shift from on-premise to cloud-hosted software solutions over the past few years.

Call Activity

  • 22% of businesses that have a toll-free number [9]
  • 400 minutes – average employee  call consumption per month [9]
  • 3 – the average number of VOIP phone menu call options [9]
  • 89% – phone menus allow callers to enter an extension [9]
  • 15 seconds – the average length of phone menu greetings [9]
  • 90 seconds – average time callers hold before hanging up phones [9]
  • 36 seconds – average time callers hold until connected [9]

Migration from on-premise to VOIP installation

  • 50% of IT leaders ceased purchasing on-premise communications tools in 2018. [10]
  • 90% of IT leaders will cease purchasing on-premise communication tools by the end of 2021. [10]
  • 204.8 billion – projected corporate VoIP subscribers worldwide in 2020. [6]
  • The United States VoIP residential telephone lines have increased from 28 million in 2010 to 76.6 million in 2018. Consequently, business phone lines also expanded from 6.2 million to 41.6 million during the same period. [11]
  • Global VoIP subscriptions increased due to the number of individuals and businesses who want to reduce communication costs. [12]

VoIP Cost and Savings Statistics

Statistics don’t lie. VoIP is a godsend to companies that are trying to reduce their operational expenses. This communication system allows businesses to reinforce how they connect with other people without compromising their budgets. In addition, it is also great for improving productivity in the workplace as it boosts the mobility of agents.

  • 40% – local call savings made by small businesses that switched to VoIP phone service  [13]
  • 90% – international cost savings made by small businesses that switched to VOIP phones service [13]
  • 90% – reduction in startup cost for small businesses that use VOIP [13]
  • 30% – reduction in teleconferencing expenses by integrating voice and online conferencing capabilities [14]
  • $1,200 – savings per month by businesses with 30 users using a new VOIP system [14]
  • $1,727 – business savings per month on mobile and long-distance calls using softphones—calls over VOIP using a computer [14]
  • Businesses can save up to 75% on communication if they opt for VoIP. [15]
  • Having a VoIP system can help you save an average of 32 call minutes per day. [16]
  • VoIP makes it easy to accommodate calls anywhere, allowing companies to increase productivity by up to 20%. [14]

Savings and Benefits from Business VOIP Features

  • 47% – businesses have implemented SMS over VOIP [9]
  • 74% – employees who use mobile app for business calls over VOIP [9]
  • 68% – average small business savings from bundling their uses into VOIP usage-based plan
  • 0 – typical setup cost for a VOIP cloud phone [9]
  • $20,000 – average setup cost for on-premise phone system [9]

VoIP cost & savings

VoIP and Technology Statistics

VoIP is far from reaching its full potential. However, it is important to note that it is gradually changing because of newer technological advancements. This is why it is important to understand how you can integrate these innovations into your current workflow to make the most out of your investment. But, of course, don’t simply rely on new technology. Be sure to also apply VoIP best practices to reap the benefits that they have to offer.

  • Android OS is predicted to dominate mobile VoIP by 2024, with a projected market share of $90 billion. [17]
  • The increasing popularity of the Bring-Your-Own-Device (BYOD) strategy in businesses is driving the growth of VoIP in North America. [18]
  • Experts forecast that by 2025, AI with chatbots will drive 95% of customer interactions. [19]
  • The prevalence of 5G has increased significantly. As of 2018, 72 operators have tested the service, and by the end of 2019, 25 operations will have already launched the service. This figure is projected to double by 2020. [8]

VoIP and technology

Small Business VoIP Data Statistics

Phone systems serve a purpose not just for large corporations but for small startups as well. VoIP levels the playing field for small businesses as it helps them accommodate their clients in a timely manner without having to increase their workforce or pay a lot of money for international calls. What’s more, there’s a myriad of VoIP software for small businesses available on the market that cater to different kinds of industries.

The only downside here is that VoIP systems are not created to be all-in-one communication hubs. As you will see below, this is the reason why many businesses are considering using their VoIP with unified communication platforms.

  • The top VoIP features that improve productivity for small businesses are Find Me/Follow Me (77%), conference calling (65%), and mobile IP PBX (58%). [20]
  • VoIP has helped small businesses improve the handling of phone calls (67%), boost the management of messages (63%), and perform work remotely (57%). [20]
  • Unified communications still have a significant or moderate value for 88% of employees. [20]
  • Unified communications platforms are deemed to deliver the best benefit to small companies. [20]
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Top VoIP Features & Benefits According to Small Businesses

Top VoIP Features & Benefits According to Small Businesses
Find Me/Follow Me: %

Find Me/Follow Me

%
Top VoIP Features & Benefits According to Small Businesses
Conference Calling: %

Conference Calling

%
Top VoIP Features & Benefits According to Small Businesses
Mobile IP PBX: %

Mobile IP PBX

%
Top VoIP Features & Benefits According to Small Businesses
Handling phone calls: %

Handling phone calls

%
Top VoIP Features & Benefits According to Small Businesses
Managing messages: %

Managing messages

%
Top VoIP Features & Benefits According to Small Businesses
Remote work: %

Remote work

%

Source: Spectrum VoIP

Designed by

Most Popular VoIP Software

  1. RingCentral. An award-winning VoIP platform that’s easy to set up and use, offering a wide range of functionalities that businesses need for their operations. You can know more about this solution with this RingCentral review.
  2. Slack. Offers a comprehensive VoIP-based platform that streamlines business communications. This Slack review offers a complete detailed discussion of its features and pricing.
  3. 8×8 VoIP Phone Service. Cloud-hosted VoIP business phone service system that offers mobile, flexible solutions for anywhere, 24/7 access. For more details, read this 8×8 VoIP Phone Service review.
  4. Lifesize. A cloud-based all-in-one VoIP communications suite that thousands of businesses worldwide turn to for their video conferencing needs. Our Lifesize review discusses its features and other important details.
  5. Skype. Considered as one of the best VoIP platforms, it offers a host of communications solutions and collaboration functionalities. For more information, check out our definitive Skype review.

VoIP Challenges Statistics

Like any other technology, VoIP has its weaknesses. To work your way around them, it is not enough to simply know how SaaS works but also what kinds of challenges you will encounter in the industry.

As you will see from the statistics below, security is one of the biggest issues with VoIP. While the use of the internet for transmitting calls makes communicating cheap and convenient, it also makes you more vulnerable to cyber-attacks. This is why it is crucial that you reinforce your VoIP system with the necessary security measures offered by top cybersecurity vendors so that the integrity of your information, as well as the details of your customers, remain safe and sound.

  • Roughly 46% of illegally made calls across the world involve VoIP technology. [21]
  • Toll fraud and dial-through fraud are estimated to cost shoppers globally, an average of $46 billion dollars. [22]
  • Only 38% of individuals believe that they are equipped to counter cyber-attacks.
  • 40% of internet users have experienced getting their password stolen, account hacked, and login credentials compromised. [23]

VoIP challenges

Another problem you might encounter is the adoption of VoIP in the workplace. You should anticipate that calling, via voice or video, is not deemed as the best way to collaborate in the office. Below, you’ll find that more CEOs are pushing for personal interactions to boost employee engagement. In addition, millennials, the generation comprising the majority of the modern workforce, simply prefer less disruptive means of communication.

  • Most CEOs avoid utilizing phone conferences unless completely necessary. So much so that 61% of their hours are allocated to face-to-face interactions and only 15% for calls. [24]
  • 72% of the millennial generation believe that calls are not the most efficient channel for resolving customer concerns. [25]
  • 75% of millennials do not like making or taking phone calls because of its time-consuming nature. [26]

Lastly, in terms of using VoIP for customer support, more and more shoppers are opting for self-service options. Simply put, not everyone wants to deal with agents when resolving product or service issues and would rather find solutions on their own. With this said, it might be time to invest not only in VoIP but also in unified communications systems that would allow you to support multiple channels.

  • 6 out of 10 American shoppers opt to use self-service tools for their concerns. These include websites (24%), mobile apps (14%), voice response systems (13%), or online chat (12%). [27]
  • Professionals predict that an average of 85% of business relationships will be handled sans human interaction by the year 2020. [28]

What Do These VoIP Facts Mean for Your Business?

The statistics make it clear: now is the time to upgrade from traditional phone systems to VoIP if you haven’t already.

VoIP allows you to take advantage of the impact of SaaS on businesses. As discussed earlier, these communication systems are great for keeping up with the globalization of the modern business landscape. It bridges the gap between managers and remote employees and allows businesses to connect with customers residing halfway around the world, especially now that an increasing number of individuals and businesses are utilizing the system. Moreover, it allows you to make the communications aspect of your operations more cost-effective than ever.

In case you are already utilizing a VoIP system, we highly suggest that you maximize it by understanding the factors that drive the industry. For example, BYOD is something that you might consider using for your operations to boost employee efficiency. Investing in mobile-ready systems might also allow you to simplify work for remote employees. And if  Skype is the only VoIP tool you know, you’re missing out on the robust features these Skype alternatives deliver.

One thing to note about VoIP systems, however, is that while it undeniably offers a plethora of benefits, it has its own set of weaknesses. The biggest one of which is that it makes you vulnerable to security risks. In addition, it might not be enough to reinforce your communication needs.

After all, there are quite a number of emerging communication channels today. While VoIP systems may easily be able to accommodate voice calls and video calls, not all providers can give you access to instant messaging and built-in SMS. With these said, you might want to dig a little deeper into the inclusions of the VoIP software you’re interested in or find out what integrations you may use to expand the functionalities of your existing system.

Hopefully, with this guide to the VoIP statistics of 2019, you were able to get a better idea of how you can better adapt to the tectonic shifts in the industry. To further help you expand your product choices, you can check this related list of top business phone systems.

 


References:

  1. ^VOIP Adoption Statistics for 2019 & Beyond
  2. ^Global Market Study on VoIP Services
  3. ^VoIP industry
  4. ^Global Mobile VoIP Market 2016-2020
  5. ^Global VoIP Market 2019 by Company, Regions, Type and Application, Forecast to 2024
  6. ^VOIP Services Market: Global Industry Analysis and Opportunity Assessment 2015 – 2025
  7. ^Countries by number of Voice over Internet Protocol (VoIP) subscribers in 1Q 2013
  8. ^5G: The new network arrives
  9. ^The Cost Benefits of Switching to a VoIP Service
  10. ^The State of the Unified Communications Market in 2018
  11. ^VoIP residential and business telephone lines in the U.S. 2010-2018
  12. ^BuddeComm Intelligence Report – Global OTT VoIP and Messaging Services Market
  13. ^5 Reasons VoIP is Essential for Business Today
  14. ^13 VoIP Statistics to Build a Business Case
  15. ^An Introduction to VoIP and its Cost Savings
  16. ^Cisco Unified Communications
  17. ^Mobile VoIP Market Analysis
  18. ^Global VoIP Services Market is Expected to be Valued at US$ 194.5 Bn by 2024
  19. ^How Artificial Intelligence Will Shape The Future of VoIP & UC
  20. ^Compelling Voice over IP Statistics to Build Your Business Case
  21. ^2017 Lineup: VoIP Technology, Tools and Trends
  22. ^VoIP Fraud Analysis
  23. ^Password Statistics: The Bad, the Worse and the Ugly
  24. ^THE LEADER’S CALENDAR
  25. ^Desk Customer Service Across Generational Divide Report
  26. ^WHY MILLENNIALS HATE TALKING ON THE PHONE
  27. ^#WellActually, Americans Say Customer Service is Better Than Ever
  28. ^10 reasons why AI-powered, automated customer service is the future

 

Nestor Gilbert

By Nestor Gilbert

Senior writer for FinancesOnline. If he is not writing about the booming SaaS and B2B industry, with special focus on developments in CRM and business intelligence software spaces, he is editing manuscripts for aspiring and veteran authors. He has compiled years of experience editing book titles and writing for popular marketing and technical publications.

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