High Definition HD Voice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The High Definition HD Voice market is expected to register a CAGR of 21.5% over the forecast period from 2021 to 2026. HD voice or wideband audio is one of the fastest-growing markets in the IP market. High Definition can sustain all types of applications, including video conferencing, web conferencing, multimedia conferencing, audio broadcast, audio conferencing, and announcement services. With HD voice, the user can experience more transparent natural-sounding voice quality with reduced background noise. The user can talk at the average voice level and be heard even in noisy environments. Conversations will sound more natural, almost as if the person at the other end of the line is sitting right next to the user.

Key Highlights

• Increasing the adoption of 5G services and the VoLTE market will drive the growth of the market. Moreover, HD voice transforms voice communication and collaboration by infusing high fidelity services to smartphones such as telephones. For instance, SK Telecom, one of the largest mobile network in South Korea, has made progress in 5G by conducting the first live TV broadcast using Voice over 5G services. Additionally, Vo5G services can support different applications such as telepresence applications, AR, VR, remote robotics control, and numerous IoT-enabled services.
• Furthermore, the increasing demand for softphone technology, which supports the capability to make calls from a computer using a VoIP service, is fuelling this market's growth. However, the increasing rate of over-the-top (OTT) players and lack of codec interoperability are the major market restraints. For instance, 3GPP has specified that 5G must offer voice/video communication services based on the IMS, i.e., the IMS must be deployed for VoNR, VoeLTE, EPS FB, and RAT FB in 3GPP Release 15. Hence these upgrades not only increase the infrastructure cost but also restrict the growth of this market.
• The phone and carrier supporting HD voice calls sound significantly better than regular calls, but if the user uses a Bluetooth headset to make those calls, one does not get any of the benefits of HD voice because those devices don't support that codec. In January 2020, Qualcomm announced aptX Voice, an evolution of its existing aptX codec, to bring high-quality calls to your Bluetooth devices. AptX Voice is available on the Snapdragon 865 and 765 mobile platforms and will become available for accessories based on Qualcomm's upcoming range of Bluetooth Audio SoC that will launch in 2020.
• With the outbreak of COVID-19, video and audio conferencing have become the daily routine for work, and social life as people worldwide stay at home to avoid spreading the virus. This is expected to positively impact the HD Voice market as affordable HD Voice also improves worker productivity with more transparent communication, translating into more productive work experience. HD Voice also enhances the overall audio experience and encourages people to collaborate on the phone more efficiently and more often during the pandemic, especially across geographies where regional accents can cause fatigue and misunderstanding for those on both ends.

Key Market Trends

Voice Over 5G/LTE is Expected to Significantly Drive the Market

• The advantages which Vo5G offers would play an essential role in driving the market’s growth. The benefits of such technology include ultra-high definition (UHD) voice/audio for both voice-only calls and integration with applications and content such as music, conferencing, and announcements, among others. Vo5G would also provide improved support for real-time communications. For instance, US-based AT&T offers voice services to its customers in more than 200 countries, and in 2020 Cisco and AT&T jointly launched Webex Calling with expanding access to cloud-based phone capabilities.
• Vo5G utilizes video or voice-over NR infrastructure in coordination with voice or video over enhanced LTE (LTE), EPS, and RAT fall-back. Additionally, Vo5G is expected to take VR/AR experiences to the next level, which can be used for different applications such as AR, VR, remote robotics control, and numerous IoT-enabled services. In 2019, Erricson completed its strategic agreement with MediaTek to provide 5G based voice services. Therefore the service providers will be able to offer voice services on 5G voice-capable devices and enhanced mobile broadband (eMBB) services through its VoNR on SA architecture.
• The expansion of 5G network coverage and maturity of the terminal ecosystem prompt the carriers to evaluate the prospects of fast-tracking the widespread deployment as a priority. 5G is expected to utilize 4G voice architecture and the IP multimedia subsystem (IMS), to provide voice services. Additionally, the 5G standards support ultra-HD voice and video to develop new applications that rely on voice communication, such as telepresence. In April 2019, a Spanish carrier, Orange Spain, and ZTE completed their voice and data call over a standalone 5G network in Europe with speeds at 876 Mbps with a single user handset and 3.2 Gbps for 12 handsets.
• In November 2019, Orange Romania became the first country within the Orange Group’s footprint to commercially launch 5G. The customers will benefit from access to the highest 5G speed in Romania, coupled with unlimited internet, mobile roaming within the EU, unlimited voice calls and SMS nationally, and roaming. The company is also researching the first HD Voice Plus solution in Romania, which offers significantly improved voice calls quality. This service would only be available to orange customers.

Asia Pacific Region to Hold the Largest Market Share

• The Asia Pacific is one of the largest markets for the HD voice market due to its large customer base and rapidly developing telecommunication industries. Additionally, the region is increasingly investing in 5G,4G, and IoT services. Countries under this region like China, India, Japan, Australia, Singapore, and South Korea are increasingly investing in the development of the domestic 5G market, which is also expected to drive the region's studied market.
• According to the Ericsson Mobility Report, the mobile subscription for 5G services in the Asia-Pacific region is expected to increase from 10 million in 2019 to 1823 million in 2025, which is expected to impact the market positively. Moreover, China has invested in a 5G national action plan to organize its industry R & D and deployment efforts through the central government's support. Hence this increasing investment in recent technology will drive the growth of this market.
• Additionally, the Asia Pacific has the highest number of VoLTE operators and subscribers such as Vodafone, Airtel, Reliance Jio, Digi, U Mobile, Yes 4G. These operators are heavily investing in advanced VolTE technology to provide better services to its customers. For instance, in 2019, Airtel completed the strategic agreement with Ericsson to deliver VoLTE services onto a customer data center. This solution enabled high-definition voice (HD voice) and offered modern communication services experiences across different devices such as LTE, WiFi, etc.
• In December 2019, Airtel launched its WiFi calling service in India, while Reliance Jio is still testing it in some circles and is expected to announce it very soon. The WiFi calling service uses the broadband network's high-speed internet connection to allow users to make and receive high definition (HD) voice calls. Similar to the voice calling apps, WiFi calling will enable users to make phone calls, but it doesn't require them to install an application for it. The service also doesn't charge the user and utilizes very minimal data.

Competitive Landscape

The major players for this market are AT&T Inc. Orange AG, Deutsche Telekom AG, CISCO Systems, Inc, Verizon Communication, Inc. Telefonaktiebolaget LM Ericsson etc. The competitive rivalry for this market is high due to the less presence of any dominant player. Hence the market concentration for this market is low.

• March 2020 - Deutsche Telekom AG and Orange International carrier had connected their networks to provide HD voice services for its customers. This HD voice services will enhance callers’ voices with a more vibrant, transparent, natural tone and is also capable of reducing background interference, which can deliver unique voice services to its customers.
• Jan 2020 - AT&T will equip Nellis with 5G infrastructure to support wireless data and voice services to more than forty thousand Air Force personnel, their families, and retirees. It will provide wireless high-speed external and in-building connectivity across Nellis’ flight line, facilities, and dormitories.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support