The Future of VoIP: Key Trends to Watch in 2023

The predecessor of VoIP, InternetPhone allowed users to call other users through connected speakers and microphones using specialized software in 1995. By 1998, InternetPhone paired with Microsoft Netmeeting for internet voicemail applications. Fast forward to 2003, Skype allowed users to use the software to call landlines and cell phones alike for a nominal call rate. Users had to purchase credits that they could use to place calls using Skype. Around this time period, the term Voice over Internet Protocol (VoIP) was coined. Gradually, they added new features that granted users instant messaging capabilities, free peer-to-peer calling, and over gradual updates, started support for video calling and conferencing options. 

Meanwhile, in 2005-2006, initial steps towards mobile VoIP were being taken with introduction of C1250i, first ever mobile phone with WiFi connectivity by Calypso Wireless and TruPhone, the first mobile VoIP app. However, true mainstream adoption of VoIP telephone began in 2010 with 17% growth yearly by 2012. By 2015, many businesses started transitioning to VoIP voice calls and by 2018, VoIP has become a  $20 billion industry .

With customization in mind, businesses gradually started exploring custom VoIP development as well as white-labeling services to enjoy exclusive features and make it their primary business communication channel. In fact, the current global VoIP market is expected to grow to $102.5 billion by 2026. As it might be evident, VoIP is a growing industry dictated by innovations and trends resulting from these innovations that are becoming VoIP news.

Let’s predict the future and list out the key VoIP trends to watch out for in 2023

Increased adoption of Remote Working

The recent pandemic forced people to social distance and remain inside their houses in an effort to control the spread. While most businesses reached a standstill, it also allowed people to work remotely. Team collaboration and communication became a bottleneck that was worked around by implementing VoIP systems. Teams could quickly jump on a conference call or switch to a video conferencing for collaborating better. In fact, 40% of workers believe they’ve been more productive while working at home during the pandemic, as opposed to the office.

Additionally, companies use VoIP phone service to conduct virtual meetings, online seminars, skill training sessions, and conferences. Remote operations also benefit companies in saving infrastructure costs, better utilizing production hours, boosting loyalty, and hiring top skills irrespective of geographical location. VoIP systems also allow software development companies to offer augmented staff hiring services to fill the temporary resource gaps other companies might be facing. 

IoT based VoIP

IoT devices have been becoming increasingly popular. The connected devices can ‘talk’ with other devices to automate a lot of common tasks. Such interconnectivity paired with VoIP technology can revolutionize VoIP industry as it can lead to smart offices. Compatibility and connectivity issues will become a thing of the past as IoT means the devices will have specialized protocols for intercommunication. For example, different endpoints, such as cameras and microphones, can communicate with each other for a better video conferencing experience. Similarly, the workspace collects data from the office equipment on the floor and provides insights on the call volume frequency, employee productivity, attendance, etc.

Since internet is the communicating channel for IoT, VoIP can come in clutch for data exchange for more sophisticated features. Car companies can have VoIP calling enabled in their cars for making and attending emergency calls. Warehouses can use VoIP solutions for security, safety, surveillance, access control, environmental monitoring, and communication purposes. Combining the device data with call analytics and reporting software can contribute to business intelligence development.

Improved VoIP security

VoIP platforms are comparatively secure than PSTN systems, but it’s not completely impregnable. Cyberattacks are becoming more common as internet becomes more accessible and VoIP devices such as PBX, conferencing systems, IP phones, and cameras are the most commonly attacked elements in a VoIP system. Infact, Lumen Technologies reported a whopping 315% increase in the DDoS attacks over the first quarter of 2022 and 475% increase over Q3 2021.

While it is important to remain a step ahead, patching out vulnerabilities is a tedious process. However, VoIP service providers are now taking VoIP security seriously and the trends predict increase in demand for higher levels of encryption, tailored security packages, and more comprehensive firewalls. Check out the importance of firewalls in VoIP systems. Moving forward, businesses looking for VoIP service would opt for the one with the correct security measures and fallback strategies in place. Additionally, VoIP service providers also will need to submit measures they are taking to combat cyber vulnerabilities and any DDoS attacks.

Better AI adoption

The recent launch of ChatGPT and Dall.E demonstrated the capabilities of Artificial Intelligence. While AI is still in its infancy, future integrations of AI with VoIP systems are a great possibility. As per the Global Artificial Intelligence Market report, the AI market size is expected to reach $641.30 billion by 2028. AI can be greatly used for optimizing call traffic handling and customer interaction. Creating smarter IVR systems that process voice prompts and sense the urgency level are already being developed. This opens up the doors for intelligent or skills-based call routing.

Pairing with the previous point, AI can also be used for detecting fraudulent calls and repeated offenders. Running the incoming call against the previous call logs, AI can flag any suspicious calls or ban them. Additional use cases for AI in VoIP systems are automating certain tasks such as intelligent or skills-based call routing, reducing background noises, provide real-time transcribe, or even providing the users with real-time sentiment analysis and relevant prompts to keep the conversation going and close any sales deals effectively.

Increased mobile device adoption

It is projected that there are almost 15.96 billion mobile phone users globally in 2022, predicted to grow to 16.8% by 2023. Pairing this information with the gradual adoption of the 5G internet protocols globally, there is soon going to be a surge in the demand for mobile VoIP developments. Since most VoIP service providers already provide hosted or cloud-based PBX servers and VoIP billing solutions, businesses may see a paradigm shift in terms of business phone systems becoming the centerpiece of a company’s device ecosystem.

When comparing IP deskphone versus softphones, softphones offer more features, especially mobility through mobile dialer applications. The UI is almost similar to a regular telephone interface, and supports SMS/MMS profiles that allows for a more unified form of communication. Moreover, scalability is also easy when using mobile devices as primary VoIP communication devices. 

Wider Adoption of VoIP for Small and Medium-sized businesses

A common misconception about VoIP is that it is expensive to adopt or migrate to. While the initial setup might be costly, the calling rates are comparatively cheaper, and the features & benefits that VoIP brings to the table can counter the argument with savings in the long run. Integral features such as seamless voice services, remote operations with cloud access, and scalability options make hosted VoIP services viable for small and medium-sized businesses focussing on improving their sales, support, and end-client communications. 

Wrapping Up

A lot has changed over the course of the past decade, especially in the VoIP and business communication domain. The global VoIP market is seeing exponential growth, and we have listed out the most predictive trends that will dominate the near future. To be better prepared for the future, Vindaloo Softtech’s VoIP development services are at your disposal. We offer custom VoIP solutions and white-labeling services at the most affordable rates.