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 2021. 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.
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.
$183.7 billion – expected size of mobile VoIP Market by 2027 (Business Wire, 2020)
3 billion – projected mobile VOIP users by 2021 (WisdomPlexus, 2019)
$93.2 billion – projected global VOIP market share by 2024 (WisdomPlexus, 2019)
$194.5 billion – projected global VOIP revenue by 2024 (Persistence Market Research, 2018)
$14.1 billion – total revenue of VOIP industry in the US in 2020 (IBISWorld, 2020)
1,088 – total number of VOIP businesses in the US in 2020 (IBISWorld, 2020)
-1.9% – the average annual growth rate of VOIP businesses in the US from 2015-2020 (IBISWorld, 2020)
28,597 – workers employed by the VOIP industry in the US, 2019 (IBISWorld, 2020)
21.5% – CAGR of the global mobile VoIP market from 2020 to 2027. (Business Wire, 2020)
The global VoIP phone system market share is projected to grow at a CAGR of 3.1% between 2019 and 2024. (Global Info Research, 2019).
$109.5 billion – Android OS share of mobile VOIP market (Business Wire, 2020)
17% – the growth rate of computer-to-phone VOIP services from 2019-2025, the highest among VOIP services (WisdomPlexus, 2019)
$80 billion – projected revenue of Managed IP PBX in 2024, the highest share among global VOIP services (Persistence Market Research, 2018)
15.3% – CAGR of Managed IP PBX service segment by 2024 (Persistence Market Research, 2018)
7.8% – CAGR of hosted business IP PBX service segment by 2024 (Persistence Market Research, 2018)
$124 billion – projected revenue from long-distance VOIP through 2024 (Persistence Market Research, 2018)
Experts predict that the fastest growing VoIP segment from 2014 to 2019 is phone-to-phone services. (Future Market Insights, 2021)
204.8 billion – VOIP users by 2020. Growth attributed to positive government policies and cost-efficiency of VOIP (WisdomPlexus, 2019)
25 – operators who have launched 5G service, expected to double by 2020. This will further boost the demand for VOIP services. (WisdomPlexus, 2019)
The Asia Pacific is primed to be the biggest VoIP services market with projected revenue of $100 billion by the end of 2024. (Persistence Market Research, 2018)
14% – projected CAGR of the VOIP market in the Asia Pacific by 2024 (Persistence Market Research, 2018)
34 million – VOIP users in the US, the highest in the world. (Point Topic, 2013)
31 million – VOIP users in Japan, the second-highest in the world. (Point Topic, 2013)
22 million – VOIP users in France, third highest in the world after the US and Japan (Point Topic, 2013)
Computer-to-phone VoIP services will experience their highest market growth between 2017 and 2024. (Persistence Market Research, 2018)
Bring-Your-Own-Device – a major driver of VOIP growth (Deloitte, 2018)
Source: Statista estimates; Grand View Research
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.
22% of businesses that have a toll-free number (Telzio, 2014)
400 minutes – average employee call consumption per month (Telzio, 2014)
3 – the average number of VOIP phone menu call options (Telzio, 2014)
89% – phone menus allow callers to enter an extension (Telzio, 2014)
15 seconds – the average length of phone menu greetings (Telzio, 2014)
90 seconds – average time callers hold before hanging up phones (Telzio, 2014)
36 seconds – average time callers hold until connected (Telzio, 2014)
Migration from on-premise to VOIP installation
90% of IT leaders will cease purchasing on-premise communication tools by the end of 2021. (GetVoIP, 2020)
204.8 billion – projected corporate VoIP subscribers worldwide in 2020. (Future Market Insights, 2021)
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. (Telecommunications Industry Association, 2015)
Global VoIP subscriptions increased due to the number of individuals and businesses who want to reduce communication costs. (BuddeComm, 2018)
55% of businesses now use a mix of hybrid and legacy on-premise phone service solutions. (Blueface, 2018)
Business VoIP Technologies Used by Businesses
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Source: Blueface Business Communications Technology Report
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 (Tech.co, 2015)
90% – international cost savings made by small businesses that switched to VOIP phones service (Tech.co, 2015)
90% – reduction in startup cost for small businesses that use VOIP (Tech.co, 2015)
30% – reduction in teleconferencing expenses by integrating voice and online conferencing capabilities (Harbor Networks)
$1,200 – savings per month by businesses with 30 users using a new VOIP system (Harbor Networks)
$1,727 – business savings per month on mobile and long-distance calls using softphones—calls over VOIP using a computer (Harbor Networks)
Businesses can save up to 75% on communication if they opt for VoIP. (BullsEye Telecom, 2019)
Having a VoIP system can help you save an average of 32 call minutes per day. (Cisco, 2007)
VoIP makes it easy to accommodate calls anywhere, allowing companies to increase productivity by up to 20%. (Harbor Networks)
Savings and Benefits from Business VOIP Features
47% – businesses have implemented SMS over VOIP (Telzio, 2014)
69% of employees use internet-based voice service, including VoIP tools or unified communications platforms. (Nextiva, 2020)
68% – average small business savings from bundling their uses into VOIP usage-based plan (RingCentral, 2020)
0 – typical setup cost for a VOIP cloud phone (Telzio, 2014)
$20,000 – average setup cost for on-premise phone system (Telzio, 2014)
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.
The increasing popularity of the Bring-Your-Own-Device (BYOD) strategy in businesses is driving the growth of VoIP in North America. (Persistence Market Research, 2018)
Experts forecast that by 2025, AI with chatbots will drive 95% of customer interactions. (The Real PBX, 2017)
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. (Deloitte, 2018)
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%). (SpectrumVoIP, 2017)
VoIP has helped small businesses improve the handling of phone calls (67%), boost the management of messages (63%), and perform work remotely (57%). (SpectrumVoIP, 2017)
Unified communications still have a significant or moderate value for 88% of employees. (SpectrumVoIP, 2017)
Unified communications platforms are deemed to deliver the best benefit to small companies. (SpectrumVoIP, 2017)
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Top VoIP Features & Benefits According to Small Businesses
Top VoIP Features & Benefits According to Small Businesses Find Me/Follow Me: 77
Find Me/Follow Me
Top VoIP Features & Benefits According to Small Businesses Conference Calling: 65
Top VoIP Features & Benefits According to Small Businesses Mobile IP PBX: 58
Mobile IP PBX
Top VoIP Features & Benefits According to Small Businesses Handling phone calls: 67
Handling phone calls
Top VoIP Features & Benefits According to Small Businesses Managing messages: 63
Top VoIP Features & Benefits According to Small Businesses Remote work: 57
Source: Spectrum VoIP
Most Popular VoIP Software
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.
Slack. Offers a comprehensive VoIP-based platform that streamlines business communications. This Slack review offers a complete detailed discussion of its features and pricing.
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.
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.
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. (VoipReview.org, 2019)
Toll fraud is estimated to cost shoppers a total of $28 billion, according to recent data. (No Jitter, 2019).
38% of small businesses have no established protocols for dealing with cybersecurity threats. (International Federation of Accountants, 2019)
80% of hacking-related data breaches involved compromised login credentials. (Verizon, 2019)
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. (Harvard Business Review, 2018)
61% of millennials believe that texting is the best way to get in touch with a business or brand. (Interactions, 2019)
75% of millennials do not like making or taking phone calls because of its time-consuming nature. (BankMyCell, 2021)
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.
79% of consumers expect organizations to provide self-service support options. (Vanilla, 2020)
92% of customers would use a knowledge base for self-service support, if available. (Vanilla, 2020)
Bots can handle up to 80% of customer engagements. (Accenture, 2016)
85% of participants in online meetings encounter issues in using the software (Cisco, 2007)
The Impact of COVID-19 on the VoIP Market
The COVID-19 pandemic has greatly affected everyday life, not the least of which is the workforce’s sudden switch to remote work arrangements. Statistics show that VoIP software and similar tools have been indispensable for easing the transition to work-from-home setups and improving team collaboration.
42% of the U.S. workforce now works from home. (Stanford Institute for Economic Policy Research, 2020)
In India, there was a spike in the usage of VoIP chat applications—from 3.45 hours per week to 5.22 hours per week—in the first phase of the country’s nationwide lockdown. (Nielsen, 2020)
In April 2020, Webex supported 25 billion meeting minutes and half a billion meeting, participants. These figures are triple the software’s average volume. (PR Newswire, 2020)
In March 2020, Microsoft Teams saw a 500% increase in calls, meetings, and conferences. (No Jitter, 2020)
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 2021, 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.
Accenture (2016). Chatbots in Customer Service. Accenture
Blueface (2018). Business Communications Technology. Blueface
A senior FinancesOnline writer on SaaS and B2B topics, James Anthony passion is keeping abreast of the industry’s cutting-edge practices (other than writing personal blog posts on why Firefly needs to be renewed). He has written extensively on these two subjects, being a firm believer in SaaS to PaaS migration and how this inevitable transition would impact economies of scale. With reviews and analyses spanning a breadth of topics from software to learning models, James is one of FinancesOnline’s most creative resources on and off the office.
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