Voice-over-internet-protocol (VoIP) services are the most popular form of telephony service for businesses of all kinds and sizes. These systems, which transmit calls as data over the internet, provide a substantial cost savings over their older, landline-based counterparts. Notable VoIP stats include its growing market share, savings potential, and popularity on mobile devices.
In basic terms, VoIP is a technology that transmits audio information as data through the internet rather than a copper landline or the cellular network. With the advancements made in internet technology, everyone from personal consumers to large enterprises can enjoy low-cost calling, crystal-clear audio quality, and other functionality not possible with traditional phones, such as video conferencing and mobile apps. For more information on VoIP, check out our guide on the subject.
1. The VoIP market grew an estimated 256% in the 2010s (& shows no signs of stopping)
When high-speed internet became more ubiquitous in the 2000s, it paved the way for office users to make calls over their broadband connections and save a great deal of money over a business landline. While VoIP steadily grew in the 2000s, it exploded in the 2010s. And if projections are correct, that growth shows no signs of stopping well into the 2020s.
According to this 2015 study from TIA, VoIP adoption has seen a large year-to-year increase in both residential and business environments. Although they are only projections, adoption was predicted to keep growing through the end of the decade. As high-speed internet becomes more available in rural America, these numbers are on track for years to come. Compared with 2010, VoIP has become more ubiquitous across the country.
To learn more about how the technology was shaped, check out our history of VoIP article.
2. VoIP users save an average of 29 call minutes per day
Internet-based business phone services provide a cost savings for many reasons, chief among which is savings on call time. Because transmitting data over the web is less taxing on the internet than making a long-distance call is over a landline, most VoIP services offer free unlimited calling to virtually anywhere within the United States. This makes the technology especially attractive to small businesses that serve a nationwide customer base.
Cisco states in a 2014 report that businesses save an average of 29 call minutes per day when they switch over from a landline service to VoIP. While this may sound small on the surface, this can quickly add up to a huge monthly savings, especially for small businesses that need to stretch their budget as much as possible.
3. Approximately 31% of businesses use VoIP in their daily workflows
According to a report from Multicom, 31% of businesses are currently using a VoIP service of some kind. The fact that more than one in four companies are using VoIP speaks to its popularity. At the same time, it also illustrates an opportunity for small businesses.
At this time, VoIP is still being used by less than half of organizations throughout the world. That means that 69% of organizations still aren’t leveraging advanced communication functionality like mobile apps, video chat, and more. If your business decided to get into VoIP now, there’s a fantastic opportunity to get ahead of your local competitors who may still be using outdated services.
4. VoIP is set to be a $55 billion industry by 2025
By and large, tech spaces become better for the customer as they grow. As competition and market cap grows, it incentivizes vendors to lower their prices and make them more accessible to even the most modestly sized businesses. It also pushes providers to offer more value in the form of features.
VoIP is projected to be a $55 billion industry by the year 2025. At present, VoIP solutions can be found for as little as $12 per user, per month. As the industry grows in size, so will competition. Therefore, small businesses can keep expecting to get more value out of their services.
Check out our VoIP features guide for a look at what’s possible with VoIP.
5. Mobile apps can increase team productivity by up to 21%
Getting productivity out of employees is a challenge to companies of all kinds and sizes. This is especially true in the face of growing distractions on the web and the rise of remote work. Fortunately, mobile apps can help keep team members focused on getting through their workload. The fact that nearly every mainstream VoIP service on the market has mobile offerings bodes well for small business productivity.
According to a 2012 study from Gallup, the use of mobile apps in the workplace drives engagement between employees and the work they do. And when employees are highly engaged, the report estimates that those teams are 21% more productive than non-engaged teams that use no apps.
We recommend looking at our guide to VoIP apps for more details on what features they offer.
6. 95% of customer interactions will involve artificial intelligence (AI)
An extremely popular functionality found in most VoIP services is the automated attendant. In basic terms, an auto-attendant picks up every incoming call, greets callers, and routes them to their desired extension without the need for any human intervention. This is an affordable and effective replacement for a human receptionist.
And receptionists won’t be the only thing your system automates. According to Servion, 95% of customer interactions will be handled by artificial intelligence (AI) by 2025. In some cases, we are already seeing this in the VoIP space. Specialized call center systems like Five9 have an AI assistant coded into their attendant.
This is going to be a huge transformation for small businesses that spend a great deal of money on call center staff wages. On the other hand, this will also provide a challenge for workers as well as potential quality of customer interactions.
Check out our guide to call center phone systems to learn more.
7. Hosted VoIP services have a 51% market share
Generally speaking, business customers have a choice when it comes to their phone systems. They can either go with a hosted solution, where the service provider handles all functionality in the cloud, or go with an on-premises version in which the customer is responsible for the installation and maintenance of private branch exchange (PBX) hardware. Both have their advantages, but the majority of users prefer the ease of use that comes with a hosted solution.
According to a Statista report, an estimated 51% of unified communications (UC) systems in 2020 are hosted solutions rather than their on-premises counterparts. While a UC system includes options beyond VoIP, it encompasses the space, so it gives us a good idea of what customers prefer. That disparity is projected to grow in the coming years. This underlines how many users prefer the usability and versatility of a hosted solution. In fact, most mainstream small business VoIP service comes in hosted form.
VoIP is causing a sea change in the way small businesses communicate. These systems provide a cost saving, and they do things that aren’t possible with a traditional setup. They have already changed the way we communicate in the office, and will continue to do so for the foreseeable future.
If you are in the market for a new VoIP service, we suggest looking at our top overall pick, RingCentral. It is powerful, affordable, and exceptionally easy to use. Check out our RingCentral user reviews page for more information.