Voice-over-IP (VoIP) News & Trends to Know in 2023
Corey McCraw is a staff writer covering VoIP and Unified Communications. Corey has over a decade of experience in marketing, tech writing, and corporate communications and has even penned content for the former First Lady Michelle Obama’s Let’s Move initiative.
Marianne is a staff writer at Fit Small Business who covers business phone services, VoIP, and video conferencing tools.
This article is part of a larger series on VoIP.
The rapid expansion of the voice-over-internet-protocol (VoIP) industry continues to evolve as technology advances. The market size shows no signs of slowing down as more businesses move to cloud communications. VoIP trends have intensified, including the evolving cybersecurity concerns and the shifting focus toward mobile VoIP apps. In this article, we explore the latest VoIP news and the trends to watch for in 2023 and beyond.
1. The Rise of the Mobile VoIP Market
With more businesses operating remotely or taking a hybrid approach, they need a solution that allows their distributed employees to connect with their clients and collaborate with their teams. This is why it’s no surprise that more businesses are embracing VoIP platforms. In fact, a report by the Global Industry Analysts, Inc. revealed that the global mobile VoIP market is expected to reach $183.7 billion by 2027.
The mobile VoIP market is predicted to reach a compound annual growth rate (CAGR) of 21.5% between 2020 and 2027.
(Source: Research and Markets)
The increasing VoIP usage is driven by its affordability, robust features, and the ability to scale up and down as needed, according to Global Market Insights. VoIP providers are also fueling the market growth by offering advanced capabilities, such as video conferencing, team collaboration tools, and virtual assistants to enhance the interoperability of their services.
Key Takeaways:
- According to recent voice-over-IP news, many companies are embracing VoIP to support remote and hybrid work arrangements.
- The convenience and advanced capabilities offered by VoIP providers contributed to the market growth of the mobile VoIP industry.
2. VoIP Providers Face Steep Competition
The rising demand for VoIP has fueled market competition among providers of business phone systems. To ensure lasting success in the VoIP market, providers are experimenting with new communication strategies through artificial intelligence (AI), such as digital assistants and real-time analytics. Others are consolidating voice, video, and instant messaging into single unified communications as a service (UCaaS) offering.
This year, RingCentral launched new capabilities to address the challenges of hybrid working. The agent-assist bot automatically suggests responses based on previous customer interactions, allowing agents to retrieve information in real-time amid handling complex queries.8×8 has also recently revealed its automation builder, allowing development teams to design communication workflows within a visual interface.
In its latest update, Nextiva provides a software solution that lets you engage with customers and teams from one tool. (Source: Nextiva)
In the second half of 2022, Nextiva unveiled a digital work hub that brings together team collaboration and customer communication in one platform. Zoom, on the other hand, has taken a unified communications (UC) approach by combining video meetings, VoIP phone service, and team messaging into a single offering.
Overall, these changes make it easy for providers to find potential growth opportunities and deliver enticing offerings for their customers. However, it’s hard to find the right VoIP system with so many options. To help you decide, here are our top picks for the best VoIP services for small businesses:
- RingCentral: Best overall for scaling companies looking for a comprehensive communication solution
- Nextiva: Top choice for teams wanting a phone system with robust productivity tools
- GoTo Connect: Great option for businesses needing rich video conferencing capabilities
- 8×8: Best for unlimited international calling plans and global phone number support
- Phone.com: Suitable for small businesses with low call volumes that prefer metered subscriptions
- Vonage: Excellent choice for organizations looking for flexible, a la carte phone plans and pricing
- Ooma Office: Ideal for solopreneurs and startups looking for a feature-rich solution without upgrading to high-tier plans
Key Takeaways:
- VoIP providers are leveraging their product offerings as they face steep competition.
- VoIP users should look forward to more developments as providers aim to deliver secure, reliable, and robust solutions.
3. Threats to VoIP Security Are Evolving
Forescout’s cybersecurity research arm, Vedere Labs, shares recent VoIP news about the five riskiest connected devices in 2022. VoIP platforms, video conferencing systems, and internet protocol (IP) cameras topped the list. The research identified two recurring themes, which involve the growing attacks due to the number of devices connected to enterprise networks and how threat actors leverage these devices to achieve their purpose.
In its 2022 quarterly report on Distributed Denial of Service (DDoS) attacks, Lumen Technologies reported a rise in DDoS attacks targeting VoIP providers. DDoS occurs when attackers flood an online service with traffic, rendering the system unavailable. They found a 315% increase over Q1 2022, which primarily targeted the session initiation protocol (SIP), a widely used protocol for signaling functions in VoIP networks.
The telecommunications industry, which includes VoIP, was the biggest target among the 500 DDoS attacks Lumen mitigated.
(Source: Lumen Technologies)
Providers are prioritizing security to ensure customer confidence in VoIP. Trends show an increase in the development of higher levels of encryption, tailored security packages, and more comprehensive firewalls. Read our guide about the top VoIP security threats to learn more about the looming security concerns in VoIP systems and the different techniques to combat them.
Key Takeaways:
- Staying up-to-date on cybersecurity and following VoIP security best practices will help your business prepare for emerging risks.
- Choose a reliable VoIP provider that offers encryption and robust security features.
4. Traditional Telephony Is Becoming Obsolete
In the past years, more companies have shifted their focus toward mobile phones. Since 2004, traditional landline usage has decreased yearly as more users switch to mobile phones for personal and business use. This further boosts VoIP’s popularity, as the majority of providers offer mobile apps with advanced capabilities for voice calls, video conferencing, and text messaging.
Landline ownership in the U.S. is on a steady decline as more people use mobile phones. (Source: Statista/CDC)
In the U.K., the adoption of VoIP services is expected to rise by 2025 as every phone line will be digital, routing calls over VoIP instead of the traditional public switched telephone network (PSTN). The transition will affect over 2 million U.K. businesses, particularly those relying on landline telephones and fax machines. VoIP providers are taking advantage of this opportunity by expanding their presence in Europe.
According to Market Research Future, it’s clear that bring your own device (BYOD), a mobile-first concept, is being championed by many providers such as Vonage, Nextiva, and 8×8. The versatility of smartphones and tablets means that agents can make calls from any 3G, 4G, 5G, or Wi-Fi network, making it easy to run a business powered by remote workers.
The era of the landline has clearly met its end. While it had an amazing run, the history of VoIP is similarly rich, and VoIP will be the way companies communicate with customers and colleagues going forward. If you’re ready to switch to a VoIP mobile app, check out our guide on the best VoIP apps for iOS, Android, and softphones.
Key Takeaways:
- Based on voice-over-IP news, businesses are leaning toward cloud services due to their convenience and mobility features.
- The convenience of VoIP mobile apps makes them ideal for remote workers or those who frequently travel.
5. Artificial Intelligence (AI) Adoption in VoIP Services
More VoIP providers are turning to AI to optimize call handling and enhance the overall customer experience. In the latest Global Artificial Intelligence Market report, the AI market size is expected to reach $641.30 billion by 2028. The increasing adoption rate of cloud-based services and the growing demand for virtual assistants are said to play a substantial role in the growth of the AI market.
The global AI market is projected to hit a CAGR of 36.1% by 2028. (Source: Verified Market Research)
Nextiva and Dialpad are the leading VoIP platforms when it comes to AI adoption. Both providers have automation capabilities that detect customer sentiment and track keywords used on calls or messages to provide real-time assistance. They also offer self-service options through conversational AI to deliver 24/7 customer support and understand the entire customer journey.
While conventional VoIP capabilities will continue providing business value, AI-powered VoIP is expected to bring a new set of use cases and more innovative applications to the VoIP landscape.
Bottom Line
The VoIP news and trends we outlined in this article reveal how the VoIP landscape has expanded significantly in 2022. The global VoIP market is seeing exponential growth, cybersecurity is getting stronger, and more AI-powered features are being developed. In 2023 and beyond, we expect further innovations in the VoIP industry and trends that will refine business communications strategy.
