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."
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.