As demand for VoIP products continues to grow, so will the market for the integrated circuits that make the Internet-enabled voice communication possible.
Research firm In-Stat is forecasting a five-fold increase in VoIP ICs, as VoIP functionality is increasingly integrated into customer premise equipment including modems, routers and residential gateways.
In-Stat pegged the VoIP market for 2004 at $208.7 million, a figure the high tech research firm projects will burst to $1.3 billion in 2009. VoIP ICs will also benefit from growth in wireless handsets.
“By the end of the forecast period, VoIP functionality will be integrated into a high percentage of new wireless handsets,” said Norm Bogen, In-Stat analyst. “From a revenue perspective, the IP Phone sub-segment (wireless and wireline combined) represents the smallest revenue market today, but will be the largest one by 2009. This reversal will occur due to high growth in business-oriented IP PBX/hosted PBX phones and dual-mode wireless handsets.”
Among several trends detailed in In-Stat’s just-released report, “VoIP ICs: Building a Foundation for the Future”:
One potential thorn in the side of VoIP’s burgeoning growth is security concerns. Earlier this month, security experts warned that Internet phone software that makes VoIP possible could pose a threat to corporate networks.