US Voice-over LTE (VoLTE) - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2024)

The US Voice-over LTE Market size is estimated at USD 20.80 billion in 2024, and is expected to reach USD 148.46 billion by 2029, growing at a CAGR of 48.14% during the forecast period (2024-2029).

Voice over LTE (VoLTE) technology has enhanced voice communication by transmitting voice calls over the LTE/4G network, offering superior voice quality and more efficient network use compared to traditional circuit-switched methods. The widespread deployment of LTE networks drives the VoLTE market, the ongoing transition to 5G, and the increasing demand for high-quality voice services in the United States.

Key Highlights

• According to Ericsson, 5G adoption in North America witnessed immense growth, with 260 million subscriptions by the end of 2023. Fixed Wireless Access (FWA), which provides high-speed internet to homes and small businesses, remains the primary technology driving fixed broadband growth. 5G is also expanding in the enterprise segment, supporting wireless Wide Area Networks (WAN) for branch office locations and serving mobile professionals. By 2029, it is projected that there will be around 430 million 5G subscriptions, accounting for 92% of all mobile subscriptions.
• The rise of 5G necessitates the phasing out of existing 2G and 3G networks. There are plans to repurpose their spectrum for more advanced services. To facilitate this transition, the US telco industry is exploring alternatives to traditional 2G/3G services, particularly circuit-switched voice calls. VoLTE and VoLTE roaming services are pivotal substitutes. Embracing VoLTE not only replaces outdated voice services but also streamlines network operations, paving the way for enhanced efficiency and the deployment of spectrum in innovative 5G applications.
• A National Spectrum Strategy that includes a spectrum pipeline for 5G, 6G, and beyond is critical to maintaining US wireless leadership and US technological and economic security. US conformance with globally harmonized band allocations can strengthen US leadership in the global telecommunications ecosystem. It is recommended that 1.5-2.2 gigahertz of additional wideband spectrum is needed in suitable mid-band frequencies that can be repurposed for commercial networks. VoLTE offers greater spectrum efficiency than both GSM and WCDMA, meaning that spectrum utilization can be optimized by network operators so more traffic can be carried.
• The convergence of voice-over LTE (VoLTE) with the Internet of Things (IoT) represents an emerging trend with significant implications for the industry. VoLTE integration can enhance IoT applications by offering high-quality voice interaction capabilities for devices requiring two-way communication, such as security systems and medical alert devices.
• In industrial settings, voice-over LTE (VoLTE) facilitates reliable machine-to-machine (M2M) communication, enabling the monitoring and control of machinery and processes. This leads to enhanced operational efficiency and safety measures. The integration of Internet of Things (IoT) technology has brought about a revolution in various industries, particularly manufacturing, giving rise to the concept of Industrial IoT (IIoT). IIoT is transforming manufacturing plants by connecting intelligent devices through Supervisory Control and Data Acquisition (SCADA) systems, leading to the establishment of fully digitalized facilities. VoLTE systems play a crucial role in providing wireless connectivity and transmitting data in real time. The United States is experiencing growth in smart and connected factories.

US Voice-over LTE (VoLTE) Market Trends

5G Deployment is Expected to Drive the Market

• The United States has solidified its position as a global frontrunner in deploying and embracing fifth-generation (5G) mobile technology. 5G, the latest in mobile tech, surpasses its predecessor, 4G, with a slew of enhancements. Most notably, its pioneering download speeds have captivated audiences, facilitating rapid 4K content streaming and the smooth delivery of home broadband services through fixed wireless access (FWA).
• According to Ericsson, the US is rapidly adopting 5G; subscriptions are expected to hit 405.4 million by 2028. Projections suggest that by 2030, over 90% of US connections will be 5G, aligning the nation with Canada and South Korea and surpassing Germany, the United Kingdom, and Japan.
• Verizon, a US-based telecommunications giant, declared that its 5G Ultra Wideband network covered over 200 million individuals, encompassing approximately 60% of the US populace. Its ambitious target is to extend this coverage to 250 million by 2024. In a parallel move, AT&T reported that its 5G low-band network reached 290 million, with the mid-band serving 150 million.
• In July 2023, responding to escalating demand, UScellular unveiled its mid-band 5G network, which was expected to span ten states: Illinois, Iowa, Maine, Missouri, Nebraska, Oklahoma, Oregon, Virginia, Washington, and Wisconsin. The company aimed to reach over a million households with its mid-band 5G signal by the end of 2023; it has a target of three million households by the end of 2024.
• In the United States, live video streaming to smartphones is on the rise. Major players like Apple, Major League Baseball, Amazon Prime, Netflix, and various OTT platforms, alongside social media giants like YouTube, are fueling the need for robust internet connections. Noteworthy streams range from sports and music to gaming. This surge in online activity is poised to propel the VoLTE market in the US.

Commercial Activities and Development of High Speed Internet are Expected to Drive the Market

• The convergence of voice-over LTE (VoLTE) with the Internet of Things (IoT) represents an emerging trend with significant implications for the market. VoLTE integration can enhance IoT applications by offering high-quality voice interaction capabilities for devices requiring two-way communication, such as security systems and medical alert devices. In industrial settings, voice-over LTE (VoLTE) facilitates reliable machine-to-machine (M2M) communication, enabling the monitoring and control of machinery and processes.
• For instance, in May 2024, Ericsson hosted an exclusive event at its US 5G Smart Factory located in Lewisville, Texas. During the event, attendees were given a tour of the facility and engaged in programming aimed at unveiling the inner workings of the 5G Smart Factory. Ericsson announced an additional investment of USD 50 million, supplementing the initial USD 100 million investment, to further expedite local production. This initiative aims to meet the increasing demand for 5G infrastructure made in the US in compliance with the Build America Buy America Act (BABAA).
• In 2023, US manufacturing firms significantly ramped up their automation efforts, with industrial robot installations surging by 12% to reach a total of 44,303 units. The automotive sector led the charge as the primary adopter, closely trailed by the electrical and electronics industries, as reported by the International Federation of Robotics. According to GSMA, robotic systems require very high speeds and a robust internet connection. These speeds are usually above 100 Mbps with latency not more than 1 ms. The rise in smart factories, connected systems, automation, and Industry 4.0 in the region will exponentially boost the demand for 5G/4G VoLTE networks.
• In order to boost and expand its high-speed internet connection, the US government is making significant investments. For instance, in June 2023, the Biden-Harris Administration unveiled plans to inject USD 930 million into bolstering America's high-speed internet networks. Additionally, it committed a substantial USD 42.5 billion to ensure universal high-speed broadband access for all Americans by the end of the decade. These initiatives, focusing on bolstering infrastructure with components like fiber optics, routers, and data centers, are poised to significantly enhance the region's VoLTE network.
• As technology advances and the demand for reliable, high-quality communication in IoT applications increases, the adoption of VoLTE in the US is set to grow. The ongoing rollout of 5G networks will amplify the capabilities of VoLTE, offering greater bandwidth, reduced latency, and enhanced reliability. The US market is witnessing rapid growth in VoLTE product launches by various companies.

US Voice-over LTE (VoLTE) Industry Overview

The US voice-over LTE (VoLTE) market is fragmented, with the presence of major players like AT&T, Verizon, Orange, T-Mobile, etc. Players in the market are adopting strategies such as partnerships, agreements, innovations, and acquisitions to enhance their service offerings and gain sustainable competitive advantage.

• February 2024: Kyndryl, an IT infrastructure services provider, unveiled a global strategic partnership with Hewlett Packard Enterprise (HPE). Collaborating with Athonet, a subsidiary of Hewlett Packard Enterprise, Kyndryl is set to co-create and roll out LTE and 5G private wireless services on a global scale. By merging Athonet's private LTE/5G expertise with HPE Aruba Networking's enterprise campus wired and Wi-Fi 6 solutions, Kyndryl aims to empower enterprises with seamless integration of private 5G and Wi-Fi networks. This tech fusion promises heightened security, expanded connectivity, and enhanced business agility, ensuring a superior experience for enterprises spanning various sectors.
• November 2023: Jazz, Pakistan's leading digital operator, launched voice-over LTE (VoLTE) roaming services in collaboration with AT&T to provide seamless connectivity to customers traveling to the US. The initiative ensures superior voice quality and faster call setup times for Jazz customers while roaming in the United States.

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