Vo5G Market Size (2024 - 2029)

The Vo5G market is poised for significant growth, driven by the evolution of voice services through the fifth generation of mobile technologies. This market expansion is fueled by the need for enhanced voice solutions as 5G commercialization progresses, alongside the increasing deployment of Voice over LTE (VoLTE). Despite potential challenges from free over-the-top services impacting traditional voice revenues, the transition to 5G-enabled infrastructures presents new revenue opportunities for telecom operators. The upgrade from circuit-switched networks to all-IP core networks, along with advancements in IoT-enabled voice assistant products, further supports the market's expansion.

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Market Size of Vo5G Industry

1
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 98.90 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

Vo5G Market Major Players

*Disclaimer: Major Players sorted in no particular order

Voice-over-5G Market Analysis

The Voice-over-5G (Vo5G) Market was valued at USD 2.15 billion in 2020, and it is expected to reach USD 145.99 billion by 2026, registering a CAGR of 98.9% during the forecast period (2021-2026). 'Voice over 5G' or 'Vo5G' refers to the voice services accessed through the fifth generation of mobile technologies. Although data services drive 5G evolution, voice/video communication-based solutions still account for a sizable portion of telecom operators' services. Apart from supporting the Internet of Things (IoT), cloud, and AR/VR services, the rising adoption of 5G network is also expected to redefine the voice services architecture for telecom service providers and their customers.

Vo5G is expected to help telecom service providers offer substantially improved voice capabilities, along with extra features, like ultra-high-definition (HD) voice communications, to their customers.

  • The evolution of VoNR, the need for voice solution at the initial stage of 5G commercialization, and the accelerating VoLTE deployments are some of the major driving factors of the studied market.
  • According to the Ericsson Mobility Report (November 2019), there are around 2.1 billion VoLTE subscriptions, and this number is expected to reach 6.4 billion by 2025, accounting for over 85% of combined LTE and 5G subscriptions.
  • Many industry experts claim that due to more flexible and free OTT services, voice revenues for mobile operators may decline over the next five years. However, establishing a 5G-enabled IP Multimedia Subsystem infrastructure for VoLTE is likely to generate new revenue streams for mobile operators, thus, creating an opportunity for the studied market.
  • With legacy networks shut down, circuit-switched voice networks are expected to be upgraded to all-IP core networks using the voice over LTE (VoLTE) technology. Developments in IoT-enabled voice assistant products are facilitating the development of voice communications with 5G commercialization.

Voice-over-5G Industry Segmentation

Voice over 5G (Vo5G) means that voice calls can be made over IP. Vo5G requires New Radio to support all voice capabilities. It can also use 4G voice/video communication architecture (VoLTE) based on IP Multimedia Subsystem.

The report on the Vo5G market covers the deployment type, in terms of on-cloud and on-premise deployments, end-user industries for Vo5G, and geographical analysis, during the forecast period.

By Service Deployment
Cloud-based
On-premise
By End-user Industry
IT & Telecommunication
Retail (Digital Ecommerce)
BFSI
Transportation
Media & Entertainment
Other End-user Industries
Geography
North America
Europe
Asia-Pacific
Rest of the World
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Vo5G Market Size Summary

The Voice-over-5G (Vo5G) market is poised for significant growth, driven by the transition to fifth-generation mobile technologies. Vo5G, which encompasses voice services over 5G networks, is expected to enhance telecom operators' offerings with features like ultra-high-definition voice communications. This evolution is supported by the development of VoNR and the increasing deployment of Voice over LTE (VoLTE) technologies, which are crucial for the initial stages of 5G commercialization. Despite potential challenges from over-the-top (OTT) services impacting traditional voice revenues, the establishment of a 5G-enabled IP Multimedia Subsystem infrastructure presents new revenue opportunities for mobile operators. The shift from circuit-switched to all-IP core networks, facilitated by VoLTE, is set to redefine voice service architectures, aligning with advancements in IoT-enabled voice assistant products.

The Asia-Pacific region emerges as a significant market for Vo5G, fueled by a rapidly developing telecom sector and substantial investments in 5G infrastructure. Countries such as China, India, Japan, and South Korea are at the forefront of these developments, with China expected to lead globally in 5G market growth. The region's increasing end-user applications and strategic collaborations, like China Unicom's partnership with Intel for smart applications, further bolster market expansion. The competitive landscape of the Vo5G market is moderately dynamic, with new entrants anticipated as 5G infrastructure advances. Notable industry players, including Huawei, Ericsson, and AT&T, are actively involved in enhancing 5G capabilities, as evidenced by successful VoNR and standalone 5G network tests.

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Vo5G Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Growing Need for High Bandwidth With Ultra-Low Latency Over IP Multimedia Subsystem (IMS)

      2. 1.2.2 Increasing Application of IoT & Immersive Technology Services Among End-user Industries

    3. 1.3 Market Restraints

      1. 1.3.1 High Infrastructure Setup Cost During the Initial Rollout Phase

      2. 1.3.2 Lack of User Handheld Devices Compatible to 5 GNR Infrastructure

    4. 1.4 Industry Attractiveness - Porter's Five Force Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Technology Snapshot

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service Deployment

      1. 2.1.1 Cloud-based

      2. 2.1.2 On-premise

    2. 2.2 By End-user Industry

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 Retail (Digital Ecommerce)

      3. 2.2.3 BFSI

      4. 2.2.4 Transportation

      5. 2.2.5 Media & Entertainment

      6. 2.2.6 Other End-user Industries

    3. 2.3 Geography

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia-Pacific

      4. 2.3.4 Rest of the World

Vo5G Market Size FAQs

The Vo5G Market is projected to register a CAGR of 98.90% during the forecast period (2024-2029)

Huawei Technologies Co. Ltd., Deutsche Telekom AG, AT&T Inc., Telefonaktiebolaget LM Ericsson and SK Telecom Co. Ltd. are the major companies operating in the Vo5G Market.

Voice-over-5G Market Report Snapshots

Vo5G Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)