SIP Trunking Market Growth, Size, Share, Trends, Key Players Analysis, and Forecast 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

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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 Regional Insights

The regional trends and factors influencing the SIP Trunking Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses SIP Trunking Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

SIP Trunking Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The SIP Trunking Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the SIP Trunking Market are:

1. CenturyLink
2. AT&T
3. Bandwidth
4. Mitel
5. Net2Phone
6. GTT Communications

Disclaimer: The companies listed above are not ranked in any particular order.

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