HD Voice market size is forecast to reach $7.1 billion by 2025, growing at CAGR 20 % during 2020-2025 owing to the increase in high-speed fiber-optic fixed broadband subscriptions opted by small and medium enterprises in developing economies. The growing number of LTE subscribers globally and the upcoming 5G technology to assist the market growth as well as avail new opportunities to HD voice market during 2020-2025
Key Takeaways- HD Voice Industry Outlook
• Audio conferencing to dominate the HD voice market owing to growing customer base of VoIP and VoLTE users
• Enterprise HD voice market to witness significant growth rate due to the increasing reach of fiber optic broadband subscriptions
• North America to dominate the global HD voice market followed by Europe owing to the broad customer base of the VoIP enterprise users
Application - Segment Analysis
Audio conferencing dominated the HD voice market in 2019, owing to the large scale adoption of VoIP and VoLTE in the enterprise and non-enterprise/consumer segment. The explosive growth in the reach of optical fiber network for home and work spaces in the past few years have paved the way for VoIP to replace the traditional phone service lines. Along with the integration of both voice and data over the single network, VoIP features lower cost, ease of scalability, increased productivity and others owing to which the preference to VoIP is gaining significant traction is developing economies.
User Type - Segment Analysis
Non-Enterprise/Consumer segment acquired the largest share of the market in 2019 owing to the broad customer base and penetration of LTE subscribers worldwide. As LTE incorporates HD voice codex and the increasing number of LTE subscribers is set to assist the market growth from 2020 to 2025. As per GSM Association's recent releases, the penetration of 4G subscribers increased is set to increase from 43% in 2018, to 59% by 2025 and 5G technology to acquire a share of 15% by 2025. The smartphone users is set to increase 79% by 2025 from 60% in 2018. This is set to drive the non-enterprise/consumer market during 2020-2025. The enterprise HD voice market is estimated to witness the significant growth of CAGR 22% during the forecast period owing to increase in the Small and Medium Enterprises opting for VoIP for official audio calls and conferencing applications. The switch to VoIP in various enterprise end-users such as BFSI, ICT, hospitality and others to enhance customer experience and reduce the customer defection due to lack to proper communication due to technical glitches and connection failure, to play a major role driving the market during the forecast period 2020-2025
Geography- Segment Analysis
North America held the majority share of 31% of the global HD Voice market followed by Europe in 2019. The broad customer base of VoIP in enterprise users including BFSI, IT, hospitality, government, and others in the region to drive the market. APAC HD voice market to witness the highest growth during 2020-2025 owing to the growing penetration of optical fiber network along with blooming number of startups and SMEs opting for VoIP in this region. Additionally, the rapidly growing consumer base of LTE users and tech savvy customers who would readily opt for 5G subscription is also set to drive the market growing during the forecast period.
Drivers –HD VoiceIndustry
• Growing Penetration and Reach of Optic Fiber for Fixed Broadband
As per Organization for Economic Co-operation and Development, the penetration of fiber optic has reached around 26% of all fixed broadband subscriptions in 2018 and grew by 13% during 2017-2018. The total fixed broadband subscriptions in OECD countries surpassed 418 million by the end of 2018 from 406 million subscriptions in 2017. The growing fixed broadband connections for small and medium enterprises in developing economies to play a significant role in driving the HD voice market during 2020-2025
Challenges – HD VoiceIndustry
• Growing Penetration of Over-the-Top (OTT) Voice Service Providers
The growing penetration of OTT voice service providers such as Skype, WhatsApp and so on which use data over the network to offer voice services pose a prominent challenge to the conventional HD voice, i.e., those offered by the telecom service providers. OTT voice services feature higher quality of service, continuity of services, security and so on owing to which it is gaining significant traction in the non-enterprise/consumer market space thereby impeding the market growth for traditional VoIP market as well be HD voice market for this segment
Market Landscape- HD Voice Market Share
The HD voice top 10 companies includes Ericsson, At & T, Orange AG, Verizon Communications, Polycom, Inc., CISCO Systems, Inc., Nokia Networks, Alcatel-Lucent, Deutsche Telekom AG, Avaya, Inc and so on. The HD Voice market is moderately fragmented with the major players of the market to dominate the same and imposing strong entry barrier to new entrants to the market.
Expansion and Partnership
- In November 2018, Tango Networks Inc. acquired Simetric Telecom, a U.K. based mobile services and telecommunications provider, to expand its enterprise mobility services
- In September 2018, Clique, a U.S. based Communications Platform as a Service (CPaaS) provider entered into partnership with Speechmatics to expand its HD conferencing options to 75 languages
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