VoIP Equipment Spells Opportunity in the $430 billion Voice Market

Worldwide VoIP equipment revenue will surge at  CAGR of 24.7% to reach $11.9 billion in 2010, from $3.95 billion in 2005, according to the latest iSuppli report on VoIP.

Worldwide VoIP Equipment Revenue

  2005 2010 Growth- CAGR
Residential VoIP Subscribers 15.8 million 151.2 million 57.8%
Residential VoIP Equipment $1.1 billion $4.1 billion 31.1%
PBX/Enterprise VoIP Equipment  $1.8 billion $5.6 billion 25.8%
Service Providers Equipment  $1.0 billion $2.2 billion 14.9%
Total VoIP Equipment  $3.9 billion $11.9 billion 24.7%
Source: iSuppli Corp. October 2006
Among the three segments of the VoIP market,  at the end of 2005, the PBX segment accounted for 46% of VoIP equipment revenue, while infrastructure and residential gear each took a 27% share. PBX/enterprise equipment sales will rise to $5.6 billion in 2010, increasing at a CAGR of 25.8% from $1.8 billion in 2005, maintaining its status as the largest VoIP equipment market through 2010.

As the number of residential VoIP subscribers worldwide is increases to 151.2 million by 2010, rising at a CAGR of 57.1% from 15.8 million in 2005, revenues in the residential segment of VoIP gear, which includes residential gateways and IP phones, are projected to grow at a CAGR of 31.1%, rising to more than $4.1 billion in 2010, up from $1.1 billion in 2005.

Telecom service providers are aggressively targeting the residential segment in an attempt to maintain their share of the $430 billion annual voice market and to offer so-called triple-play services - video, audio communications and broadband Internet access.

More details about iSuppli's VoIP report: "V-o-I-P Spells Equipment Opportunities Now" are  available at: http://www.isuppli.com/catalog/detail.asp?id=8173

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