SIP Trunking Market Size, Growth, Share by 2031
The SIP Trunking Market size is projected to reach US$ 36.74 billion by 2031 from US$ 13.87 billion in 2023. The market is expected to register a CAGR of 12.9% in 2023–2031. An increase in the usage of Bring Your Own Devices (BYOD) globally is likely to remain a key SIP trunking market trend.
SIP Trunking Market Analysis
The need for SIP trunking is being driven by the increasing usage of unified communication (UC) solutions in enterprise contexts, a notable decrease in phone expenses, and a quick Return on Investment (ROI) made possible by the trunking services. The demand for SIP trunking services increased because they removed the need for businesses to purchase extra public switched telephone network (PSTN) gateways. The demand for SIP trunking is being driven by the need to increase service reliability through the addition of VoIP services and the provision of different digital streaming capabilities. Nonetheless, growing end-user security concerns are impeding the expansion of the SIP trunking business. On the other hand, growing SIP trunking use in vertical industries, including healthcare, hospitality, and restaurants, is anticipated to present a number of opportunities for SIP trunking market growth.
SIP Trunking Market Overview
A communications service provider's service, known as "SIP trunking," employs the session initiation protocol (SIP) to provide voice-over IP (VoIP) access between a public switched telephone network (PSTN) and an on-premises phone system. SIP trunking service is used for call establishment, administration, management, and teardown. Hosted and on-premises SIP trunking services are the two primary categories. With a hosted private branch exchange (PBX), users can make use of PBX functions like voicemail, call transfer, automated attendant, and automatic call distribution without having to manage or own all of the necessary hardware on-site.
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SIP Trunking Market: Strategic Insights
Market Size Value in US$ 13.44 Billion in 2019 Market Size Value by US$ 30.22 billion by 2027 Growth rate CAGR of 10.8% from 2020 to 2027 Forecast Period 2020 - 2027 Base Year 2020
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SIP Trunking Market: Strategic Insights
| Market Size Value in | US$ 13.44 Billion in 2019 |
| Market Size Value by | US$ 30.22 billion by 2027 |
| Growth rate | CAGR of 10.8% from 2020 to 2027 |
| Forecast Period | 2020 - 2027 |
| Base Year | 2020 |
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SIP Trunking Market Drivers and Opportunities
Enterprises are increasingly using unified communication.
The Internet Telephony Service Provider (ITSP) offers a service called SIP trunk that facilitates communication between the ITSP and the corporate Private Branch Exchange (PBX). SIP trunk enables businesses to offer Public Switched Telephone Network (PSTN) connectivity using an IP network, such as the Internet, in contrast to traditional telephony services, which involve a service provider delivering bundles of physical wires to a business. This is motivating businesses to implement Unified Communication (UC) solutions in order to save phone expenses and increase return on investment, with the help of the SIP trunking. The global market for SIP trunking is expanding due to this factor.
Public switched telephone network usage is decreased via SIP trunking services.
Since SIP trunking service edge devices are often less expensive per line than the same traditional PSTN gateway system, installing one in an organization's communication network provides a less expensive route for adding new lines. The SIP trunking services market greatly optimizes bandwidth use, increasing network efficiency by delivering both voice and data over the same link. The market for SIP trunk services is being driven by the ability of a company to make international calls for the cost of a local call by using the SIP trunking service. Thus, public switched telephone network usage is decreased via SIP trunking is anticipated to present new opportunities for the SIP trunking market players during the forecast period.
SIP Trunking Market Report Segmentation Analysis
Key segments that contributed to the derivation of the SIP trunking market analysis are deployment type, enterprise size, and end user.
- Based on deployment type, the SIP trunking market is bifurcated into on-premises and cloud. The cloud segment held a larger market share in 2023.
- By enterprise size, the market is segmented into small & medium businesses and large enterprises.
- Based on end users, the SIP trunking market is segmented into education, IT & telecom, retail, media & entertainment, BFSI, healthcare, and government.
SIP Trunking Market Share Analysis by Geography
The geographic scope of the SIP trunking market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. In terms of revenue, North America accounted for the largest SIP trunking market share. These unexplored markets present enormous possibilities for SIP service providers. SIP Trunking services are being adopted by wholesale carriers and businesses in these locations as a dependable and affordable substitute for traditional phone systems in order to obtain dependable connectivity within organizations, regardless of geography.
SIP Trunking Market Report Scope
SIP Trunking Market News and Recent Developments
The SIP trunking market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for speech and language disorders and strategies:
- In August 2021, 8x8, Inc. signed a new distribution agreement with SYNNEX Corporation to give access to 8x8 XCaaS to SYNNEX's partner community of traditional Value-Added Resellers (VARs), system integrators, and Managed Service Providers (MSPs).
(Source: 8x8, Inc, Press Release)
SIP Trunking Market Report Coverage and Deliverables
The “SIP Trunking Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, Application, End User
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The global SIP trunking market was estimated to be US$ 13.87 billion in 2023 and is expected to grow at a CAGR of 12.9% during the forecast period 2023 - 2031.
Enterprises are increasingly using unified communication, and public switched telephone network usage is decreased via SIP trunking services are the major factors that propel the global SIP trunking market.
The increase in usage of Bring Your Own Devices (BYOD) globally is anticipated to play a significant role in the global SIP trunking market in the coming years.
The key players holding majority shares in the global SIP trunking market are CenturyLink, AT&T, Bandwidth, Mitel, and Net2Phone.
The global SIP trunking market is expected to reach US$ 36.74 billion by 2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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