VoWiFi market set for massive double-digit growth
A report by P&S Intelligence finds that due to the increasing number of Wi-Fi hotspots around the world, the global voice over Wi-Fi (VoWiFi) market is predicted to witness massive growth, of 24.5%, between 2020 and 2030.
At this high CAGR, the industry size would increase from $2,035.3 million in 2019 to $22,801.2 million by 2030. From 124 million in 2017, the number of public community and wireless local-area network (LAN) hotspots is set to rise to 550 million by 2022, according to the report.
LAN hotspots will work as a growth factor for the VoWiFi market, as, with an increasing number of people being able to access wireless internet, the demand for voice over Wi-Fi services will rise. For instance, Asia-Pacific (APAC) is projected to have 261 million, Brazil 15 million, and the U.S. 77 million public hotspots by 2022.
The COVID-19 pandemic is fueling the advance of the VoWiFi market, as, with people confined indoors, the usage of Wi-Fi at homes is rising constantly. Moreover, a large number of companies have shifted to the work-from-home (WFH) model, which has further led to a greater usage of voice over Wi-Fi solutions, for better internet call connectivity and quality.
The highest CAGR in the VoWiFi market, of 28.0%, will be experienced in the direct-access-based architecture, in the immediate future. This would be because this architecture can directly connect the devices of users to the IMS over the internet, via the usage of IP security (IPSec) tunnel to a security gateway.
In the past, smartphones dominated the VoWiFi market, due to the burgeoning uptake of such communication devices. In the coming years, APAC is set to account for a significant smartphone-using population – for instance, in 2019 itself, India crossed the U.S. to become the second-largest smartphone market, with 158 million units shipped that year.
Currently, the most productive VoWiFi market is North America, owing to the high number of users as well as higher per-customer-average revenue that service providers receive here. In the coming years, APAC is predicted to observe the fastest advance, to become the largest market by 2030. This is attributed to the rising demand for better connectivity and expanding area under internet coverage. Japan and South Korea account for the highest penetration of the VoLTE technology, while they, along with China, have also adopted VoWiFi fairly early.
To expand their customer base and revenue channels, players in the VoWiFi market are engaging in agreements and partnerships, as these measures give them the opportunity to:
- To integrate IMS in the VoLTE and VoWiFi technologies deployed at data centers;
- Decrease operational costs and offer comprehensive multimedia services via LTE, Wi-Fi, and 5G;
- Gain the core network for Wi-Fi calling and VoLTE services;
- Provide VoWiFi and VoLTE, as a managed service;
- Deploy a fully integrated cloud-native core network.
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