As more businesses expand their use of telecommunications technology, the growth of the Voice over Internet Protocol (VoIP) market is transforming the way companies interact with customers.
VoIP systems allow businesses to place calls from handsets, desktops, laptops, and mobile apps, increasing employee flexibility while also providing robust data and analysis of customer interactions. The VoIP systems offer businesses greater flexibility as they expand hybrid and remote workplace options. The systems also offer effective and efficient solutions that can reduce telecommunications costs and eliminate the need for expensive, upfront infrastructure installation.
Since emerging in the 1990s, VoIP technology has greatly evolved. The market includes a number of providers, including OnSip.
VoIP growth in the U.S. is significant
Businesses in the U.S. have helped fuel the popularity of VoIP systems. The number of VoIP lines increased from 6.2 million to 41.6 million between 2010 and 2018. That is significantly greater growth as a percentage than the use of VoIP in residential telephone lines, indicating that continued growth across industries can happen quickly for businesses as they learn about the advantages of VoIP systems.
The greatest opportunity for growth lies with small to medium-sized businesses as they discover the technology. The biggest growth drivers appear to be the need for more cost-effective telecommunications technology and the expansion of distributed and remote work opportunities. The technology also has the added benefit of improving worker satisfaction because of the powerful tools available in many VoIP solutions.
VoIP systems save money
Another benefit of VoIP systems is that they save data. Unlike a traditional landline that sends data even when a caller is not talking, VoIP systems use about half of the data because it is not transferring when a line is silent. The silence suppression feature of VoIP systems recognizes when a caller is silent and won’t transfer data at that time, transmitting only when it detects when a caller is speaking. This reduces data transmission costs for both the VoIP provider and the business using the service.
The costs of VoIP systems can be as low as $20 to $30 a month, a flat rate charged to users. Traditional landline services can be much more expensive because providers often charge by the minute of call time used. Additional features can increase the cost of VoIP, but the return on investment can be significant for these services that help businesses analyze customer interactions and sentiment.
In some cases, businesses have reported significant cost savings with VoIP, by as much as 50%. The savings realized will depend on the size of the company and the VoIP system used. Large savings comes from the lack of any required special equipment and the use of a cloud-based system that reduces upfront capital costs.
Future savings expected from VoIP
The cost of VoIP is expected to continue declining as technology advances and the market consolidates. The cost of VoIP is expected to decline annually between 3% and 5%, according to Gartner. This trend continues with annual declines recorded from 2017 to 2018. .
VoIP savings also will continue to increase as businesses use the technology, which can reduce team member calls by 32 minutes a day. These savings are primarily the result of improved availability, flexibility, and functionality of VoIP technology. That’s particularly true for small businesses that experience a disproportionate cost burden from personnel expenses required to staff call centers.
Businesses will also experience future savings as they shift into more remote work opportunities, eliminating the need to pay for large call center offices while allowing workers to take calls from anywhere.
Growth in the VoIP market continues
The greatest growth in VoIP is expected in North America, with the region expected to make up to 40% of the market by 2025. Much of that growth is attributed to telecommunication infrastructure advancements, increased reliance on remote workers, and the popularity of cloud services.
The global market is expected to grow to $55 billion by 2025 from about $20 billion in 2018. That growth will continue to surge as the internet becomes more widely available across the globe and more businesses have the option to switch to VoIP in the future.
