The major factors driving the voice-over internet protocol (VoIP) software market is the increasing demand for these solutions from small and medium enterprises (SME) and rising focus of businesses on enhancing their productivity. As a result, the revenue generated from the subscription and licensing of these solutions is projected to surge from $15,114.3 million in 2019 to $30,441.5 million by 2025, at a 13.4% CAGR during 2020–2025 (forecast period). Such software allows people to make telephone calls via the internet cable.

The medium segment of the VoIP software market is bifurcated into mobile and fixed, of which the fixed bifurcation held the larger share in 2019. This is because the VoIP technology is presently majorly used in contact centers, where the software is installed on the computers assigned to the employees. During the forecast period, the higher CAGR will be experienced in the mobile bifurcation. This is attributed to the implementation of the bring-your-own-device (BYOD) policy in offices that allows employees to bring their laptops to work.

Residential, IT telecom, education, retail, banking, financial services, and insurance (BFSI), healthcare, government, and others are the categories of the industry segment. The IT telecom category dominated the VoIP software market during 2014–2019 (historical period), and it will grow the fastest till 2025. This is ascribed to the rising demand for high-speed internet, which is prompting this sector to use voice-over long-term evolution (VoLTE) and 5G technologies for managing bandwidth issues.

The major trend in the VoIP software market is the rapid shift to the hosted public branch exchange (PBX) VoIP from managed PBX VoIP. Hosted PBX VoIP uses the cloud technology to offer cost-effective voice solutions that are replete with features. Additionally, these cloud-based solutions eliminate the requirement for expensive IT hardware, allow companies to scale up or down their storage without much modifications in the configuration, and enable users to manage their communications more effectively and easily.

In this regard, one of the strongest factors aiding in the advance of the VoIP software market is the growing adoption of these solutions in SMEs. VoIP solutions are easy to install, use, and troubleshoot, and they allow companies to make calls at significantly lower rates than traditional phone lines. In addition, VoIP solutions enable employees to be mobile, as they can simply install the software on their systems and not worry about having lengthy and complex cables, which is why this technology also reduces the risk of fire associated with wires.

The increasing demand for smart office systems with VoIP software could offer lucrative opportunities to the market in the coming years. Offices are becoming smart by using VoIP solutions to leverage simple voice commands to turn electrical appliances on and off and reorder supplies. Another emerging application of this technology is smart locks that can be scheduled to open and close at the specified time. As the software can be installed on computers, laptops, tablets, and smartphones and it offers fast data transmission, it is rapidly becoming popular in smart offices.

Asia-Pacific APAC) has been the highest-revenue-generating region in the VoIP software market till now, and it will also witness the fastest growth during the forecast period. This would be a result of the huge number of contact centers here, as APAC is a preferred outsourcing destination for European and North American companies. This is because the region has no dearth of skilled contact center employees, who can be hired at low salaries, which allows companies to cut costs.

Hence, with the growth of the contact center sector, the demand for VoIP software will continue increasing.