Global Voice over Internet Protocol (VoIP) Equipment Market Report, Size, Share, Opportunities, And Trends By Type (Wired, Wireless), By Devices (Analog Telephone Adaptors, Telephone Sets, VoIP Routers, Headsets, Others), By End User Industry (Communication Technology, Aerospace and Defence, Education, Consumer Electronics, Banking and Financial Services, Others), And By Geography - Forecasts From 2025 To 2030

Description

Voice over Internet Protocol (VoIP) Equipment Market Size:

The Global Voice Over Internet Protocol (VoIP) Equipment Market is expected to grow from USD 142.552 billion in 2025 to USD 222.217 billion in 2030, at a CAGR of 9.29%.

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Voice Over Internet Protocol (VoIP) Equipment Market Introduction:

The Voice over Internet Protocol (VoIP) equipment market is a critical component of the global telecommunications landscape, enabling voice and multimedia communication over Internet Protocol networks. VoIP equipment, including IP phones, session border controllers (SBCs), VoIP gateways, and softswitches, converts analog voice signals into digital data packets for transmission over broadband connections, offering cost-effective telephony compared to traditional public switched telephone networks (PSTNs). This market supports diverse applications, from enterprise communication to consumer services, driven by digital transformation and technological advancements. Bicom Systems introduced an evolved Private Branch Exchange (PBX) system, enhancing scalability for cloud-based VoIP deployments. The rise of remote work communication and cloud adoption has significantly accelerated market growth, while mobile VoIP applications expand accessibility.

VoIP equipment facilitates communication by converting voice signals into digital packets transmitted over IP networks. IP phones, equipped with codecs like G.711 or G.729, encode audio for efficient transmission, while VoIP gateways bridge IP and legacy PSTN networks. Session border controllers ensure security and quality of service (QoS) by managing traffic and preventing unauthorized access. Softswitches, such as Vindaloo’s VinSwitch, route calls and support features like call forwarding and conferencing. Protocols like Session Initiation Protocol (SIP) and Real-Time Transport Protocol (RTP) enable seamless call setup and media streaming. Zoom enhanced its Zoom Phone platform with AI-driven call summaries, improving enterprise communication. This equipment’s interoperability with cloud-based solutions and mobile VoIP apps ensures flexibility, making it integral to modern communication infrastructures.

The VoIP equipment market serves diverse sectors, including IT, telecom, healthcare, and retail. IP phones and softswitches power enterprise communication, enabling unified communications as a service (UCaaS) with features like video conferencing and instant messaging. For example, 8x8 Inc. launched its XCaaS platform, integrating voice, video, and chat for businesses. Mobile VoIP apps, such as WhatsApp and Skype, dominate consumer markets, offering low-cost international calling. VoIP gateways support cost-effective telephony by connecting legacy systems to IP networks, widely used in call centers. Healthcare leverages VoIP for telemedicine, with Zoom’s partnership with Five9 enhancing patient engagement through integrated VoIP solutions. Retail and education sectors adopt VoIP for customer service and e-learning, driven by digital transformation and the need for scalable communication.

Voice over Internet Protocol (VoIP) Equipment Market is Driven By:

1. Remote Work Communication: The shift to hybrid and remote work models fuels demand for VoIP equipment, as businesses require flexible communication tools.
2. Cloud Adoption: Cloud-based solutions like hosted PBX reduce infrastructure costs, driving VoIP equipment adoption.
3. Digital Transformation: Enterprises modernizing operations adopt VoIP for integrated, scalable communication.

Voice over Internet Protocol (VoIP) Equipment Market Growth is Hampered By:

1. Network Reliability Issues: Dependence on stable internet connections limits VoIP performance in areas with poor broadband infrastructure.
2. Security Concerns: Cybersecurity risks, such as DDoS attacks, challenge VoIP adoption, requiring robust encryption.

• Impact of Cloud-Based Solutions and Remote Work

The rise of cloud-based solutions and remote work communication has profoundly impacted the VoIP equipment market. Cloud adoption enables businesses to deploy hosted PBX and UCaaS platforms, reducing the need for on-premises hardware and lowering costs. IPFone’s acquisition of Joon expanded cloud communication offerings, enhancing scalability for remote teams. Cloud-based VoIP systems, like those from RingCentral, integrate voice, video, and messaging, supporting hybrid work environments. Remote work communication drives demand for IP phones and softswitches that support mobile VoIP, enabling seamless collaboration across geographies. Microsoft Teams integrated advanced VoIP features for remote workers, improving productivity. These trends accelerate market growth by offering flexibility, cost savings, and integration with AI-driven tools, though challenges like network reliability and security persist.

The VoIP equipment market is thriving, driven by remote work communication, cloud adoption, and digital transformation. Innovations like Bicom’s PBX evolution and 8x8’s XCaaS platform highlight the market’s focus on scalability and integration. Despite challenges like network reliability and cybersecurity, the shift to cloud-based solutions and mobile VoIP ensures continued growth. Market players must prioritize secure, scalable VoIP equipment to leverage opportunities in enterprise and consumer markets, aligning with the global push for cost-effective telephony and modern communication infrastructures.

• Voice Over Internet Protocol (VoIP) Equipment Market Trends

The VoIP equipment market is advancing rapidly, driven by technological innovations and evolving communication needs. AI-powered VoIP is a key trend, enhancing call analytics and automation. Zoom integrated AI-driven call summaries into its Zoom Phone platform, improving enterprise productivity. The UCaaS market is expanding, with platforms like 8x8’s XCaaS integrating voice, video, and chat for seamless collaboration. 5G VoIP solutions leverage high-speed networks for low-latency communication, as seen in AT&T’s 5G-enabled VoIP deployments for businesses. VoIP security trends focus on encryption and DDoS protection, with Ribbon Communications enhancing session border controllers. WebRTC enables browser-based communication, boosting mobile VoIP accessibility. SIP trunking streamlines enterprise telephony, while virtual PBX systems, like Bicom Systems’ PBX evolution, enhance scalability in cloud communication. These trends highlight the market’s shift toward integrated, secure, and high-performance cloud communication solutions.

Voice Over Internet Protocol (VoIP) Equipment Market Dynamics:

Market Drivers

• AI-Powered VoIP Enhances Enterprise Productivity

AI-powered VoIP is a key driver of the VoIP equipment market, revolutionizing enterprise communication through advanced analytics and automation. AI-driven features, such as call transcription, sentiment analysis, and automated call routing, improve efficiency and user experience. Zoom integrated AI-driven call summaries into its Zoom Phone platform, enabling businesses to streamline workflows and enhance remote team collaboration. This technology supports cloud communication, allowing real-time data insights for customer service and sales teams. The growing adoption of AI in UCaaS market platforms drives demand for VoIP equipment like IP phones and softswitches, as enterprises seek scalable, intelligent solutions. As businesses prioritize data-driven decision-making, AI-powered VoIP fuels market growth by offering innovative tools that integrate seamlessly with modern communication infrastructures, particularly in hybrid work environments.

• 5G VoIP Solutions for High-Speed Connectivity

The rollout of 5G VoIP solutions is propelling the VoIP equipment market by enabling low-latency, high-bandwidth communication critical for mobile VoIP and enterprise applications. 5G networks enhance call quality and support multimedia features like video conferencing, addressing the needs of remote and mobile workforces. AT&T deployed 5G-enabled VoIP solutions for businesses, improving connectivity for remote work communication. This trend drives demand for VoIP equipment, such as session border controllers and IP phones, optimized for 5G’s high-speed infrastructure. The technology’s ability to handle data-intensive applications, like real-time collaboration tools, supports digital transformation in industries like healthcare and education. As global 5G adoption accelerates, 5G VoIP solutions fuel market expansion by providing reliable, high-performance communication platforms that meet the evolving demands of modern enterprises.

• Cloud Communication and UCaaS Adoption

The rise of cloud communication and the UCaaS market is a significant driver, as businesses shift to cloud-based VoIP systems for scalability and cost-effective telephony. Hosted PBX and unified communications as a service (UCaaS) platforms, like 8x8’s XCaaS, integrate voice, video, and messaging, reducing infrastructure costs. Cloud communication enables seamless integration with virtual PBX and SIP trunking, supporting remote and hybrid work models. IPFone’s acquisition of Joon expanded cloud-based VoIP offerings, enhancing flexibility for businesses. This trend drives demand for VoIP equipment that supports cloud deployments, as enterprises prioritize agile, scalable solutions. The focus on cloud adoption accelerates market growth by enabling cost-efficient, integrated communication systems that align with global digital transformation initiatives.

Voice over Internet Protocol (VoIP) Equipment Market Restraints:

• VoIP Security Trends and Cybersecurity Risks

VoIP security trends highlight a major restraint, as cybersecurity risks like DDoS attacks, eavesdropping, and toll fraud challenge market adoption. VoIP systems, reliant on internet connectivity, are vulnerable to breaches without robust encryption and security protocols. Ribbon Communications enhanced its session border controllers to address these threats, incorporating advanced encryption for secure VoIP traffic. However, the complexity and cost of implementing secure systems deter smaller businesses, limiting market growth. The need for continuous updates to counter evolving cyber threats further strains resources, particularly for organizations with limited IT expertise. This restraint slows adoption in security-conscious sectors, as concerns over data privacy and call integrity hinder confidence in VoIP equipment, despite advancements in cloud communication and AI-powered VoIP.

• Network Reliability Issues in VoIP Deployment

Network reliability issues pose a significant restraint, as VoIP equipment performance depends on stable, high-speed internet connections. In areas with poor broadband infrastructure, call quality suffers from latency, jitter, and packet loss, impacting user experience. Grandstream notes that inconsistent networks can degrade VoIP functionality, particularly for mobile VoIP and 5G VoIP solutions. This challenge limits market penetration in developing regions or rural areas with limited connectivity, where traditional PSTN systems remain prevalent. Businesses reliant on remote work communication face disruptions without reliable networks, slowing VoIP adoption. The need for costly infrastructure upgrades to ensure quality of service (QoS) further restricts scalability, as organizations weigh the benefits of cost-effective telephony against the challenges of maintaining consistent network performance, hindering market growth in underserved regions.

Voice Over Internet Protocol (VoIP) Equipment Market Segmentation Analysis:

• By Device: IP Phone / VoIP Phone

IP Phone / VoIP Phone dominates the VoIP equipment market due to its widespread use in enterprise and residential communication, offering advanced features like video calling, conferencing, and integration with cloud communication platforms. These devices, equipped with codecs like G.711 for high-quality audio, support AI-powered VoIP functionalities such as call analytics. Yealink introduced the T54W IP Phone, integrating with Microsoft Teams for enhanced remote work communication. IP phones are preferred for their plug-and-play compatibility with SIP trunking and virtual PBX systems, making them essential for businesses adopting UCaaS market solutions. Their versatility and user-friendly interfaces drive demand, particularly in large enterprises, ensuring seamless connectivity and supporting digital transformation initiatives across industries like IT and healthcare.

• By End-User: Large Enterprises

Large Enterprises lead the VoIP equipment market, driven by their need for scalable, integrated communication systems to support global operations and remote work communication. These organizations adopt VoIP equipment like IP phones, session border controllers, and softswitches to enable cost-effective telephony and unified communications. 8x8’s XCaaS platform, tailored for large enterprises, integrates voice, video, and chat, enhancing productivity in hybrid work environments. The adoption of 5G VoIP solutions and cloud communication further fuels demand, as enterprises leverage high-speed networks for real-time collaboration. Large enterprises, particularly in IT, finance, and healthcare, prioritize AI-powered VoIP for analytics and automation, with Cisco’s Webex Calling gaining traction for its robust integration capabilities. This segment’s dominance stems from its investment in advanced VoIP infrastructure to meet complex communication needs.

Voice Over Internet Protocol (VoIP) Equipment Market Geographical Outlook:

• By Geography: North America

North America dominates the VoIP equipment market, driven by advanced telecommunications infrastructure, high cloud adoption, and widespread digital transformation. The United States leads with significant investments in UCaaS market platforms and 5G VoIP solutions, supporting enterprise and residential demand. AT&T expanded its 5G-enabled VoIP offerings, enhancing connectivity for businesses adopting remote work communication. Canada’s robust IT sector and growing adoption of virtual PBX systems further strengthen the region’s leadership. The presence of major players like Cisco and RingCentral, coupled with strong demand for IP Phone / VoIP Phone and SIP trunking solutions, drives market growth. Zoom’s AI-enhanced Zoom Phone platform gained traction in North America, improving enterprise communication. The region’s focus on innovation and reliable broadband infrastructure positions it as the global leader in VoIP equipment adoption.

List of key companies:

• Cisco Systems, Inc.
• Avaya Inc.
• Poly (Polycom, Inc.)
• Yealink Network Technology Co., Ltd.
• Grandstream Networks, Inc.
• 8x8, Inc.
• RingCentral, Inc.

Voice Over Internet Protocol (VoIP) Equipment Market Key Developments:

• In June 2025, HP, under its Poly brand, announced a new collaboration solution called HP Dimension with Google Beam at InfoComm. This product is a 3D, AI-powered video communication solution designed for immersive meetings without the need for wearables. It uses multiple cameras and AI to create a realistic 3D video of participants, with spatial audio and adaptive lighting, to foster more natural and engaging virtual interactions. The solution is targeted at transforming small meeting spaces.
• In December 2024, Zadarma, a European cloud communication provider, acquired VoIPVoIP, a US-based VoIP operator. The acquisition of VoIPVoIP was a strategic move to expand Zadarma's footprint and market presence in North America. The deal allows VoIPVoIP's existing customers to gain access to Zadarma's full suite of advanced platform features, including virtual phone numbers, a cloud PBX, speech recognition, and various CRM integrations.
• In November 2024, Mitel introduced Mitel CX, a new AI-powered customer experience platform. This platform leverages Generative AI to enhance customer interactions with features like virtual agents, agent assistants, transcription, and real-time translation. The new platform is designed to provide next-step recommendations for live agents, enabling them to focus on more complex customer engagements. Mitel CX aims to integrate with its existing unified communications solutions to provide a more cohesive experience.

Voice over Internet Protocol (VoIP) Equipment Market Scope:

Voice over Internet Protocol (VoIP) Equipment Market Segmentation:

• By Device
• VoIP Gateway
• VoIP Server
• IP Phone / VoIP Phone
• Softphone
• Modem
• Session Border Controller
• Others
• By End-User
• Large Enterprises
• Small and Medium Enterprises (SMEs)
• Residential Users
• Government and Public Sector
• Call Centers / BPOs
• By Geography
• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

Table Of Contents

1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. GLOBAL VOICE OVER INTERNET PROTOCOL (VOIP) EQUIPMENT MARKET BY DEVICE

4.1. Introduction

4.2. VoIP Gateway

4.3. VoIP Server

4.4. IP Phone / VoIP Phone

4.5. Softphone

4.6. Modem

4.7. Session Border Controller

4.8. Others

5. GLOBAL VOICE OVER INTERNET PROTOCOL (VOIP) EQUIPMENT MARKET BY END-USER

5.1. Introduction

5.2. Large Enterprises

5.3. Small and Medium Enterprises (SMEs)

5.4. Residential Users

5.5. Government and Public Sector

5.6. Call Centers / BPOs

6. GLOBAL VOICE OVER INTERNET PROTOCOL (VOIP) EQUIPMENT MARKET BY GEOGRAPHY

6.1. Introduction

6.2. North America

6.2.1. USA

6.2.2. Canada

6.2.3. Mexico

6.3. South America

6.3.1. Brazil

6.3.2. Argentina

6.3.3. Others

6.4. Europe

6.4.1. Germany

6.4.2. France

6.4.3. United Kingdom

6.4.4. Spain

6.4.5. Others

6.5. Middle East and Africa

6.5.1. Saudi Arabia

6.5.2. UAE

6.5.3. Others

6.6. Asia Pacific

6.6.1. China

6.6.2. Japan

6.6.3. India 

6.6.4. South Korea 

6.6.5. Thailand

6.6.6. Taiwan

6.6.7. Indonesia

6.6.8. Others

7. COMPETITIVE ENVIRONMENT AND ANALYSIS

7.1. Major Players and Strategy Analysis

7.2. Market Share Analysis

7.3. Mergers, Acquisitions, Agreements, and Collaborations

7.4. Competitive Dashboard

8. COMPANY PROFILES

8.1. Cisco Systems, Inc. 

8.2. Avaya Inc. 

8.3. Poly (Polycom, Inc.) 

8.4. Yealink Network Technology Co., Ltd. 

8.5. Grandstream Networks, Inc. 

8.6. 8x8, Inc. 

8.7. RingCentral, Inc.

Companies Profiled

Cisco Systems, Inc. 

Avaya Inc. 

Poly (Polycom, Inc.) 

Yealink Network Technology Co., Ltd. 

Grandstream Networks, Inc. 

8x8, Inc. 

RingCentral, Inc.

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