Global VoLTE Market 2015-2019

December 09, 2015
Market forecast and growth prospects of VoLTE through 2019. The global VoLTE market is analyzed with an in-depth study on VoLTE service providers and equipment vendors. Market shares of the leading vendors include APAC, Americas, and EMEA. The leading vendors analyzed in the report include AT&T, KT, LG Uplus, SK Telecom, and T-Mobile US.

Market overview of VoLTE

Voice over LTE (VoLTE) is a major advancement in long-term evolution (LTE) technology that brings both voice and data onto the same radio layer. VoLTE is a part of voice over mobile broadband (VoMBB). The VoMBB market is one of the most emerging markets globally. With the increased deployment of high speed package access (HSPA) and LTE networks, most telecom operators are entering into this exciting marketplace.

VoMBB allows telecom service providers to manage the flow of mobile Voice over internet protocol (VoIP) traffic generated by over the top (OTT) applications such as Skype and YouTube. This relationship between telecom carriers and OTT application service providers opens a new business model for telecom operators to generate revenues from VoMBB services.

                                                                                                                                                             Source: Technavio Research

Market forecast and outlook of VoLTE services

The global VoLTE subscriber base was close to 24 million in 2014 and Technavio’s market research analysts predict the market to grow at a CAGR of over 100% until 2019.

The VoLTE market is expected to gain significant traction during the forecast period. In the emerging regions of MEA and APAC, the market is experiencing a moderate growth rate in the adoption of the VoLTE ecosystem, specifically in regards to compatible handsets, ubiquitous LTE coverage, and complex and expensive installations. Some major players in the market are taking suitable measures to overcome these impediments and the market is expected to pick up pace post 2016.

Emerging trends, drivers and challenges to the global VoLTE market

The integration between mobile operator's cellular voice service and Wi-Fi calling service is an emerging trend in this market. Since, the call set-up necessary for VoLTE and voice over Wi-Fi (VoWi-Fi) are similar, once VoLTE network is fully deployed, it helps network operators offer VoWi-Fi in areas where licensed spectrum is either limited or unavailable. For instance, T-Mobile and Sprint uses Wi-Fi to handle voice calls and to manage data traffic.

With the increasing deployment of LTE networks in developed and developing economies, the unit shipment of LTE-enabled devices across different geographies is expected to increase rapidly. In terms of countries, South Korea, Japan, the US, and China are the major countries where LTE-based handsets are in high demand. This trend is likely to continue during the forecast period and foster the growth of this market.

However, the VoLTE market is experiencing strong competition from OTT VoIP services. OTT applications such as Skype, WhatsApp, Google Voice, Viber, online video games, and movies (Netflix and Pandora) create a challenge for the global VoLTE market.

Leading vendors analyzed in the report

  • AT&T    
  • KT          
  • LG Uplus             
  • SK Telecom        
  • T-Mobile US

Other prominent vendors of this market are A1 Telekom, Bell Mobility, Bharti Airtel, Bouygues Telecom, Celcom Axiata, DNA, DTAC, Kcell, KPN, Magyar Telecom, Mavenir Systems, Mobile TeleSystems, Mobitel, Netcom, Orange, Rogers Wireless, Saudi Telecom, SFR, Si.Mobil, Smart Communications, Swisscom, Tata DoCoMo, TDC, Telekom Austria, Telenor, Telstra, TELUS, Turkcell, VIPNet, and Vodafone.

Geographical segmentation of the global VoLTE market

  • APAC
  • Americas
  • EMEA

In 2014, T-Mobile had a VoLTE coverage in 16 markets across the Americas, with more 100 million customers. AT&T also launched its HD voice feature in Illinois, Minnesota, Indiana, and Wisconsin.

Although, the device selection is limited with these operators, they are aiming to further expand the service in the near future. Verizon is also poised for the transition and is updating the devices to support VoLTE. In 2019, it is expected that Americas constitute 40-42% VoLTE subscribers to the global VoLTE market.

Key questions answered in the report

  • What are the key factors driving the global VoLTE market?
  • What are the key market trends impacting the growth of the global VoLTE market?
  • What are the various opportunities and threats faced by the vendors in the global VoLTE market?
  • Trending factors influencing the market shares for EMEA, APAC, and Americas?
  • Key outcome of the five forces analysis on the global VoLTE market?
  • Growth forecast of the global VoLTE market until 2019?

Technavio also offers customization on reports based on specific client requirement.

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