Africa IP Telephony Market Size
| Study Period | 2019 - 2024 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 116.21 Million |
| Market Size (2029) | USD 176.81 Million |
| CAGR (2024 - 2029) | 8.76 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Africa IP Telephony Market Analysis
The Africa IP Telephony Market size is estimated at USD 116.21 million in 2024, and is expected to reach USD 176.81 million by 2029, growing at a CAGR of 8.76% during the forecast period (2024-2029).
The African IP telephony market is witnessing a steady upsurge, propelled by a rising preference for internet-based communication and a growing appetite for budget-friendly telephony solutions. Businesses and consumers alike are pivoting to IP-based communication systems, drawn by their promise of heightened efficiency and lowered costs.
- With growing internet connectivity across Africa, more users have access to the infrastructure needed for IP telephony, driving market adoption. There are new projects and partnerships for the expansion of the Internet in African countries. With the growing adoption of the internet, the IP telephony market is expected to grow steadily.
- The cost-effectiveness of IP Telephony is another advantage of the technology, benefitting its growth in African countries. IP telephony reduces communication costs compared to traditional PSTN systems, making it an attractive option for businesses looking to cut expenses.
- Internet usage in Africa has surged, fundamentally altering how its people communicate, work, and seek information. This shift is primarily driven by the pervasive use of mobile technology and substantial investments in internet infrastructure, resulting in a rising number of African people entering the digital sphere. With African enterprises venturing into both local and global markets, the demand for dependable and adaptable communication tools, such as IP telephony, is on the rise.
- Enhancements in VoIP technology, such as improved call quality and added features like video conferencing, are driving the uptake of IP telephony. African nations are increasingly favoring VoIP due to its cost-effectiveness and versatility, showcasing their digital progression and dedication to innovative communication.
- However, the inconsistency of internet connection quality may hamper the growth of the market. In June 2024, multiple undersea telecommunication cables reported failures, leading to a significant internet outage in a dozen African countries.
Africa IP Telephony Market Trends
Rising Demand for Audio and Video Conferencing Solutions is Expected to Drive the Market
- Improved internet connectivity and bandwidth in Africa are enabling the widespread adoption of IP-based conferencing tools. With ongoing infrastructure enhancements, these technologies are becoming accessible to a broader range of regions. Over the past decade, the digital terrain in African nations has seen a significant evolution. As per GSMA's 'The Mobile Economy Sub-Saharan Africa 2023' report, it is projected that smartphone users in Africa will reach 600 million by 2025.
- African businesses are increasingly globalizing, underscoring the demand for efficient, scalable communication solutions. IP telephony, coupled with integrated audio and video conferencing features, facilitates real-time interactions with global partners and clients. Notably, Africa has outpaced other regions in bolstering its digital infrastructure in recent years.
- For instance, Interswitch, a Nigerian digital payment service platform, reported that Nigerian consumers and businesses collectively conduct over 300 million digital transactions monthly through various Interswitch-enabled channels. Additionally, Interswitch is eyeing a global listing, potentially valuing the company at a staggering USD 1 billion, positioning it as Africa's next unicorn.
- Audio and video conferencing over IP networks offer substantial cost savings compared to traditional telephony. Businesses are increasingly adopting these solutions to reduce travel and communication expenses, further propelling market growth. According to MyBroadband’s Corporate IT brand survey in March 2024, Vox, Switch Telecom, BitCo, and Euphoria are the preferred voice-over-IP (VoIP) providers for businesses among South Africa’s IT decision-makers.
- High internet prices in Africa pose a significant challenge to the adoption of IP telephony in the region. In 2023, the average cost of one gigabyte of mobile Internet in Sub-Saharan Africa was USD 3.31, ranking among the highest globally, as reported by cable.co.uk. Zimbabwe stood out with the most expensive mobile internet rates in Africa, averaging USD 43.75 per gigabyte, topping the global charts. Several factors contributed to these elevated prices, including high taxation and inadequate infrastructure.
South Africa is Expected to Hold a Major Share
- South Africa boasts Africa's most sophisticated telecommunications infrastructure, marked by extensive broadband coverage and resilient internet connectivity, which are crucial for IP telephony. Meltwater reported that by January 2024, South Africa had 45.3 million internet users, reflecting a rise of approximately 1.8 million from the preceding year.
- South Africa, a pivotal business center, boasts a landscape dotted with multinational corporations and prominent enterprises, often at the forefront of embracing cutting-edge communication technologies, notably IP telephony. The services sector, a key employment generator, thrives, while the corporate realm, historically adept at management, grapples with sluggish productivity growth. Notably, the banking and financial services sector exudes stability, and the Johannesburg Stock Exchange (JSE) stands as one of the premier emerging market bourses globally.
- The South African government is proactively backing digital transformation efforts, creating a favorable landscape for the uptake of IP-based communication solutions. As part of its initiatives, the government aims to link 1.5 million households in rural and township regions to the Internet by year-end, facilitated through the deployment of Wi-Fi hotspots.
- South Africa leads African nations in technology adoption, expediting the widespread implementation of IP telephony solutions. Digital transformations are reshaping South African governance, ushering in a new era of e-government services. In a notable event in September 2023, the South African Department of Communications and Digital Technologies underscored the imperative of fostering an "inclusive digital economy." Its focus was on ensuring accessibility, affordability, and digital literacy for all citizens, emphasizing the importance of universal access to technological progress.
- As of March 2024, Novac Technology Solutions, a digital transformation and cloud solutions firm, was expected to enter the South African market in 2024. This move was a strategic step in their larger plan to target the burgeoning tech markets across approximately 10 African nations. These markets span diverse sectors, including finance, insurance, retail, and digital education. Company representatives highlight the significant opportunities they see in South Africa for their digital and cloud offerings.
Africa IP Telephony Industry Overview
The African IP telephony market is fragmented in nature. Major players in the market include Google, Cisco, Logitech, and Avaya LLC. Players in the market are adopting strategies such as partnerships, agreements, innovations, and acquisitions to enhance their service offerings and gain sustainable competitive advantage.
- May 2024: Radisys Corp., a subsidiary of Reliance Industries Ltd, under the leadership of Ambani, secured a pivotal role in Ghana's Next-Gen InfraCo. Next-Gen InfraCo, slated to launch later this year, is expected to revolutionize Ghana's digital landscape by offering cutting-edge 5G broadband services to both mobile operators and internet service providers.
- April 2024: Airtel Africa's wholesale arm, Airtel Telesonic, completed the first phase activation of the 2Africa submarine cable system. This milestone links Kenya, Tanzania, and South Africa, following Vodafone's cable landing in Bude, UK. Spanning an impressive 45,000 km, 2Africa stands as the world's most extensive subsea cable network, bridging Europe, Africa, and significant portions of South Asia.
Africa IP Telephony Market Leaders
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Cisco Systems, Inc.
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Google Inc.
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Alcatel-Lucent Enterprise (ALE) International
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Avaya LLC
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Logitech South Africa
*Disclaimer: Major Players sorted in no particular order
Africa IP Telephony Market News
- May 2024: Ascend Digital, K-NET, Radisys, Nokia, and Tech Mahindra, in collaboration with the Government of Ghana and MNOs (mobile network operators) AT Ghana and Telecel Ghana, unveiled their joint venture, the Next-Gen Infrastructure Company (NGIC). This strategic partnership aims to democratize 5G mobile broadband services in Ghana. NGIC secured its 5G license and is slated to roll out 5G services nationwide in Ghana by the end of 2024, with plans for subsequent expansion into other African regions.
- April 2024: MTN Group, in collaboration with Huawei, unveiled the Technology Innovation Lab at MTN Group's headquarters. This event signifies a major stride in their continued partnership, especially in the realm of digital technologies. The lab's research and development will focus on pivotal sectors such as 5G and 5G-A technologies, artificial intelligence, big data analytics, cloud computing, FTTH, automation, and digital financial services – all pivotal for shaping Africa's digital landscape.
Africa IP Telephony Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Analysis of Macro-Economic Scenarios (recession, Russia-Ukraine crisis, etc.)
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Rising demand for audio and video conferencing solutions
- 5.1.2 Changing workforce dynamics leading to the emergence of advanced devices of enterprise collaboration
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5.2 Market Challenges
- 5.2.1 Inconsistent quality of internet connection may hamper the communication experience
- 5.2.2 Requirement of high capital investment and complexity in integration
- 5.2.3 Lack of technical expertise
- 5.3 Analysis of pricing models and pricing
- 5.4 Key insights on types of IP telephony devices
- 5.5 Overview of key metrics related to IP telephony in Africa
6. MARKET SEGMENTATION
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6.1 By Enterprise Size
- 6.1.1 Small and Medium-sized Enterprises (upto 500 employees)
- 6.1.2 Large Enterprises (more than 500 employees)
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6.2 By Country ***
- 6.2.1 Nigeria
- 6.2.2 South Africa
- 6.2.3 Kenya
7. COMPETITIVE LANDSCAPE
- 7.1 Market Ranking Analysis for Key Vendors
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7.2 Company Profiles
- 7.2.1 Cisco Systems Inc.
- 7.2.2 Alcatel-Lucent Enterprise (ALE) International
- 7.2.3 Avaya LLC
- 7.2.4 Grandstream Networks Inc.
- 7.2.5 3CX
- 7.2.6 Google Inc.
- 7.2.7 Logitech South Africa
- 7.2.8 Yealink SA
- 7.2.9 Comms Partner (Pty) Ltd
- 7.2.10 AVICOM
- 7.2.11 Unify (Mitel)
- *List Not Exhaustive
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityAfrica IP Telephony Industry Segmentation
Voice-over Internet Protocol (VoIP), also known as IP telephony, refers to a set of technologies and methods used to facilitate voice calls by transmitting voice communication sessions over Internet Protocol (IP) networks, including the Internet.
The African IP telephony market is segmented by enterprise size (small and medium-sized enterprises and large enterprises) and country (Nigeria, South Africa, Kenya, and the Rest of Africa). The report offers market sizes and forecasts in value (USD) for all the above segments.
| By Enterprise Size | Small and Medium-sized Enterprises (upto 500 employees) |
| Large Enterprises (more than 500 employees) | |
| By Country *** | Nigeria |
| South Africa | |
| Kenya |
Africa IP Telephony Market Research FAQs
How big is the Africa IP Telephony Market?
The Africa IP Telephony Market size is expected to reach USD 116.21 million in 2024 and grow at a CAGR of 8.76% to reach USD 176.81 million by 2029.
What is the current Africa IP Telephony Market size?
In 2024, the Africa IP Telephony Market size is expected to reach USD 116.21 million.
Who are the key players in Africa IP Telephony Market?
Cisco Systems, Inc., Google Inc., Alcatel-Lucent Enterprise (ALE) International, Avaya LLC and Logitech South Africa are the major companies operating in the Africa IP Telephony Market.
What years does this Africa IP Telephony Market cover, and what was the market size in 2023?
In 2023, the Africa IP Telephony Market size was estimated at USD 106.03 million. The report covers the Africa IP Telephony Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Africa IP Telephony Market size for years: 2024.
Africa IP Telephony Industry Report
Statistics for the 2024 Africa IP Telephony market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Africa IP Telephony analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
