Enterprise Telephony Solutions (Global)

2023: The global VoIP telephony market grew by 6% over the year, to $40.72 billion

In 2023, costs in the global VoIP telephony market reached $40.72 billion. The increase compared to 2022, when expenses were estimated at $38.34 billion, was recorded at 6%. Industry trends are addressed in the Market Research Future survey published in early December 2024.

The global VoIP industry is experiencing significant growth due to increasing demand for cost-effective communication solutions. Companies around the world are looking for ways to reduce operating costs and increase connectivity. VoIP technology offers an alternative to traditional telephone systems, while providing a number of advantages, including reduced costs and scalability. Employees of organizations can use such services from anywhere in the world with an Internet connection, which is important when deploying remote and hybrid work models.

Another driver of the market in question is technological advances. The integration of features such as video conferencing, instant messaging, and collaboration tools into VoIP platforms has made them more attractive to businesses of all sizes. These tools contribute to more robust and flexible communication services that enhance the user experience. At the same time, the introduction of artificial intelligence and machine learning allows you to personalize user interaction and optimize many processes.

The study also notes that enterprises are increasingly looking for unified communications solutions that combine different methods of interaction into a single platform. VoIP technology can integrate with other tools such as e-mail and conferencing. This approach makes it possible to increase productivity and reduce costs. As a result, the overall efficiency of business operations is improved.

The authors of the report identify four market segments: Session Initiation Protocol (SIP), H.323, Media Gateway Control Protocol (MGCP) and WebRTC. In 2023, the first of these areas accounted for $15.5 billion. H.323 solutions provided revenue of $10.2 billion, MGCP - $8.02 billion. WebRTC costs are estimated at $7 billion. The key players in the industry are:

• BroadSoft;
• Vonage;
• Granite Telecom;
• Microsoft;
• AlcatelLucent;
• Fuze;
• Amazon;
• Cisco;
• Mitel;
• 8x8;
• RingCentral;
• Ooma;
• Zoom;
• Twilio;
• Avaya.

Geographically, in 2023, North America occupied the leading position with expenses of $15 billion: there is an active introduction of advanced technologies supported by a developed business infrastructure. In second place is the Asia-Pacific region with $12 billion: countries such as China and India invest in modern communication solutions, which provides significant growth opportunities. Europe closes the top three with an estimate of $10.5 billion. South America brought in $2.5 billion, and in the Middle East and Africa costs amounted to approximately $0.72 billion.

At the end of 2024, revenue in the VoIP telephony segment is estimated at $43.25 billion. Market Research Future analysts believe that in the future, the CAGR will be 6.21%. As a result, by 2032, costs on a global scale could increase to $70 billion. Overall, the ongoing digital transformation, the increasing proliferation of remote work, and the demand for cost-effective communication solutions are the main factors contributing to the expansion of the industry.^[1]

2015: IHS Data

In early December 2015, analysts at IHS Markit (formerly IHS Inc. and Markit Ltd.) named the largest manufacturers of corporate network equipment by this time. Experts chose leaders according to such criteria as market share and its growth rate, financial stability, technological innovations and user feedback regarding the reliability of equipment, as well as the operation of services and services.

The best providers of network equipment for enterprise networks are Cisco, Brocade, Hewlett-Packard Enterprise and Huawei because these companies are "stable and well known, working to diversify their products, and they tend to be well talked about by corporate customers," said Matthias Machowinski, lead research director for IHS Enterprise Networks and Video.

Cisco, Brocade, Hewlett Packard Enterprise and Huawei lead the corporate network equipment market, according to IHS analysts

The IHS characterized each manufacturer. For example, in the case of Cisco, analysts noted a high margin of financial safety and a positive reaction from customers, as well as successful work on the transition of the company from simple hardware production to the supply of complex IT solutions.

Brocade's advantages included financial sustainability, the ability to develop new technologies and a focus on fast-growing markets related to technologies for data centers.

Hewlett-Packard Enterprise, according to experts, has one of the most famous brands in the technology industry and promotes the network business as a strategic priority.

Huawei is a strong manufacturer of network equipment in China. At the same time, the company seeks to strengthen its position in world markets. Huawei's big plans for international expansion are confirmed by the fact that it has a separate corporate unit, they say in IHS.

According to IHS, Juniper Networks and Avaya (Avaya CIS) are also among the largest suppliers of network equipment for the needs of companies. The latter's specialists noted many years of experience in the telephony and network management services market. Juniper has been focused on high-margin clients with complex network infrastructure requirements, as well as advanced products in the areas of routing, switching and information security.^[2]

2011: Gartner Data

The recovery of the corporate telephony solutions market, which began at the end of 2010, continued in 2011, the research company Gartner notes . After a 17% decline from 2008 to 2009, a reflection of the global economic downturn, supplies rose by 10% in 2010.

However, Gartner forecasts a CAGR of 3.9% from 2011 to 2015.

During 2010, Gartner observed two main trends in the corporate telephony solutions market: The first is that vendors offered aggressive discounts - from 50% to 65% - for corporate telephony systems. This trend first emerged in 2009 and continued in 2010, especially when large contracts were awarded. The second tendency is to combine individual telephony/universal communications functions within one license..

According to the magic quadrant of corporate telephony vendors from Gartner, the market leaders are Cisco, Avaya (Avaya CIS), Unify (formerly Siemens Enterprise Communications) and Alcatel-Lucent.

The current leadership contenders are NEC and Mitel Networks. Seers include ShoreTel, Microsoft and Digium. Niche players in the corporate telephony solutions market are Aastra Technologies and Toshiba.

Among the main events in the market for corporate telephony solutions in the reporting period, Gartner includes the following. In November 2010, Microsoft released Lync with some important refinements that allow for greater voice coverage instead of IP-PBX platforms being deployed before 2008. Although Microsoft does not yet provide sales incentives and Lync partners, there is already significant interest in this solution (as evidenced by surveys conducted by Gartner) as an alternative to the company's IP-PBX platform.

Session management within the telephony platform provides support for routing policies between network endpoints when connected across multiple communication platforms. This increases the role of the enterprise telephony platform, and provides managers with an alternative to create a homogeneous voice platform that can interact with other communication systems in the enterprise.

As an example, many participants in the telephony market have launched video functionality either in the products of their portfolio or in partnership with independent players. Polycom and LifeSize are widely known as partners in products that support HD video. Probably the last opportunity for many vendors to prevent a decrease in the cost of corporate IP-PBX offers will be the development of voice telephony platforms with support for desktop video and collaboration. One way or another, the significance and integrity of the platforms they offer should be formulated better, Gartner believes.

The growing popularity of virtual telephony servers among enterprises forces most vendors to invest in development to meet this need, taking into account the tasks of users to reduce and reduce operating and operational costs.

While providers enhance the integration and interconnections of communications functionality, including not only voice, but also presence, instant messaging, conferencing, and mobility, organizations need to secure a strategy in advance when purchasing unified communications packages.

The key issue that businesses have to deal with in 2011 is to better meet the voice and unified communications requirements of different user groups with associated cost control.

Increasingly, enterprises are building their communication strategies around unified communications and collaboration technologies (UCC), these models are replacing more traditional ones. Organizations will continue to invest in the development of IP telephony platforms after determining the role of telephony in a clearly expressed unified communications (UC) strategy, according to a study by Gartner.

Notes