Market Size for VOIP phone system in 2026 [Example]

The total available market (TAM) for VOIP phone systems globally encompasses businesses, individuals, and organizations seeking affordable communication solutions. With the rise of remote work and digital communication needs, we estimate approximately 200 million potential users worldwide, based on a sizable segment of businesses and consumers who currently rely on traditional phone systems. Average annual spending on VOIP services is around $250 per user, which results in a TAM of $50 billion annually.

The serviceable addressable market (SAM) narrows down to the businesses and consumers that can be realistically targeted by a small to medium-sized VOIP provider. Assuming our product caters to small businesses and solopreneurs, this group constitutes about 14% of the TAM. With an estimated average annual budget of $250 for VOIP services, this leads to a SAM of approximately 28 million users, resulting in $7 billion in annual potential revenue.

The serviceable obtainable market (SOM) refers to the portion of SAM that can realistically be captured within the first year of operation. Considering aggressive yet realistic marketing strategies and the competitive landscape, we estimate a reachable market of around 1% of the SAM, which translates to about 280,000 users. The anticipated annual revenue from this market share would amount to approximately $70 million, reflecting a modest and achievable goal for a new VOIP provider.