Residential VOIP to generate $4.1 bln in 2010

Worldwide VoIP equipment revenue will rise to $11.9 bln in 2010, expanding at a Compound Annual Growth Rate (CAGR) of 24.7% from $3.95 bln in 2005, as presented in the figure below and attached. The VoIP market encompasses three user segments: Private Branch Exchanges (PBXs) for enterprises, infrastructure operated by service providers and residential-access equipment.

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. Meanwhile, the number of residential VoIP subscribers worldwide is expected to increase to 151.2 mln by 2010, rising at a CAGR of 57.1% from 15.8 mln in 2005.

The residential segment is the second-largest market for VoIP gear. Equipment in this segment includes residential gateways and IP phones. Equipment makers are vying for a piece of the residential VoIP market, hoping to capture a slice of this growth. Telecom service providers also are aggressively targeting this segment in an attempt to maintain their share of the $430 bln annual voice market and to offer so-called triple-play services, i.e. suites of multimedia offerings consisting of video, audio communications and broadband Internet access. Residential VoIP product revenues are projected to grow at a CAGR of 31.1%, rising to more than $4.1 bln in 2010, up from $1.1 bln in 2005.

Facts and figures, market shares, statistics about information technology on