The global mobile VoIP market size was valued at USD 27.5 billion in 2015. Low data rates, inexpensive calling prices, and the presence of robust network infrastructure are expected to boost the growth of mobile VoIP industry. Widespread adoption of social media applications is increasing the usage of these services.
Global mobile VoIP market by region, 2014- 2024 (USD Billion)
The increase in penetration of smartphones is fueling the growth of mobile VoIP market. Smartphone manufacturers are developing devices that are compatible with VoIP services. Moreover, the rising popularity of innovative and user-friendly applications including Skype, Viber, Line, and WhatsApp are driving the demand for mobile VoIP services. These apps enhance the smartphone functionality regarding communication, connectivity, and entertainment, which exploits the full potential of the device.
However, limited availability of high-speed networks is expected to challenge the industry growth. Moreover, in few economies, strict regulations exist against the use of VoIP services. For instance, in Turkey, VoIP is not banned but is strictly regulated.
The instant messaging is estimated to be the fastest-growing segment accounting for a CAGR of over 21% from 2016 to 2024. The widespread availability of different devices and platforms, ease of usage and free accessibility is providing traction to the demand for instant messaging applications. These applications offer a high level of user experience and convenience over text-based messaging. With the increasing need for social connectedness, there is a growing demand for the usage of instant messaging applications which is further expected to drive demand of the overall mobile VoIP industry.
Video and voice call segment is expected to witness considerable growth owing to the deployment of 4G services. The availability of 4G services is increasing the capability of network providers to offer high-quality voice and video calls. Various instant messaging applications are focusing on adding video and voice calling facilities to their applications owing to their growing popularity. For instance, in 2015, a popular instant messaging application WhatsApp added the voice-calling feature.
The Android OS is anticipated to dominate the mobile VoIP industry, reaching over USD 90 billion by 2024. This growth can be accredited to the rising need for smartphones with improved features such as augmented reality, flexible screens, and holographic displays. Despite the growing popularity of these devices, manufacturers are constantly differentiating by building user interface skins to provide a different mobile appearance to consumers. Moreover, unlike iOS and Windows, Android powers several popular and widely accepted devices such as Samsung, Motorola, and Sony smartphones.
The iOS is expected to witness a significant growth owing to the growing popularity of Apple products. The increased demand for luxury smartphones is further boosting the growth of iOS devices. Moreover, the company is focusing on several initiatives to reignite the growth of iOS devices. For instance, in May 2016, Apple announced its plan to open a center in India to encourage the development of applications for its iOS software that powers its mobile devices such as iPad and iPhone.
Asia Pacific is projected to be the fastest-growing region owing to the increasing subscriber base in economies such as India, China, and Japan. This growth is owing to the increased investment in the deployment of high-speed internet and the wider availability of free applications. Moreover, content and mobile consumption are on a rise in India leading to increased demand for these services.
Europe is one of the major contributors to the industry growth, owing to the high internet penetration in the region, which is boosting the need for instant communication platforms such as Skype and WhatsApp. As of November 2015, Europe accounted for 82.1% of internet users. Moreover, the western and central European region is one of the fastest growing mobile internet market, boosting the adoption of these services over the forecast period.
Key competitors such as Microsoft Inc., Facebook Inc., and Vonage Holdings Corporation majorly occupy the global mobile VoIP market share. Other prominent players include Apple Inc., Google Inc., Kakao Corporation, One Horizon Group Inc., and others.
The intense competition is enabling industry players to develop groundbreaking applications that are cost-effective to maintain their share. Smartphone manufacturers are focusing on providing differentiated solutions, increased capability for mass production and reduced production cost. Telecom operators are investing in the deployment of LTE services owing to significant opportunity in carrier generation.
Key players are adopting various strategies such as acquisition and collaboration with service providers. For instance, in 2014, Facebook Inc. acquired WhatsApp to expand its reach in emerging markets. In 2014, Rakuten Inc. acquired Viber to expand its digital empire.
b. The global mobile VoIP market size was estimated at USD 57.5 billion in 2019 and is expected to reach USD 69.3 billion in 2020.
b. The global mobile VoIP market is expected to grow at a compound annual growth rate of 20.4% from 2016 to 2024 to reach USD 145.8 billion by 2024.
b. North America dominated the mobile voip market with a share of 36.5% in 2019. This is attributable to the increased investment in the deployment of high-speed internet and the wider availability of free applications.
b. Some key players operating in the mobile VoIP market include Microsoft Inc.; Facebook Inc.; Apple Inc.; Google Inc.; and Vonage Holdings Corporation.
b. Key factors that are driving the market growth include the increase in penetration of smartphones, and widespread adoption of social media applications across the world.
Avail customized purchase options to meet your exact research needs:
Get your queries resolved from an industry expert.
Design an exclusive study to serve your research needs.
A testimonial for service in the form of BBB "A" Accreditation.
Your personal and confidential information is safe and secure.
"The quality of research they have done for us has been excellent..."
In order to ensure business continuity amidst the COVID-19 crisis, business organizations, especially in highly affected countries are allowing their employees to work from home. The increase in people working from home has led to a surge in demand for online video viewing, downloading, and communication through video conferencing, all of which are leading to increased network traffic and data usage. COVID-19 shall accelerate the demand for agile and flexible work styles and further push the adoption of communication services that tend to improve work-life balance. On the flip side, telecom regulators worldwide have postponed their plans of 5G spectrum auction amidst the global pandemic. This is expected to have an impact on the commercialization of commercial 5G standalone deployments and revenue generated through 5G services. The ongoing pandemic has forced telecom operators worldwide to test their network resiliency and revisit their planned investments, especially in 5G technology. The report will account for Covid19 as a key market contributor.