Global SIP Trunking Market, By Deployment Type (On-premise and Hosted), Enterprise Size (Small & Medium Businesses and Large Enterprises), End User (Education, IT & Telecom, Retail, Media & Entertainment, BFSI, Healthcare, and Government) - Industry Trends and Forecast to 2031.
SIP Trunking Market Analysis and Size
Companies are progressively integrating mobile technologies while diminishing reliance on desktop-to-desktop communication. This trend fuels the uptake of robust communication platforms such as Unified Communications-as-a-Service (UCaaS), providing an array of cloud-based collaboration and communication services. UCaaS primarily encompasses audio and video conferencing, VoIP, and instant messaging/chat functionalities.
Data Bridge Market Research analyses that the global sip trunking market which was USD 12.43 billion in 2023, would rocket up to USD 33.04 billion by 2031, and is expected to undergo a CAGR of 11.48% during the forecast period.
In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.
Report Scope and Market Segmentation
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2022 (Customizable 2016-2021)
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Quantitative Units
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Revenue in USD Billion, Volumes in Units, Pricing in USD
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Segments Covered
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Deployment Type (On-premise and Hosted), Enterprise Size (Small & Medium Businesses and Large Enterprises), and End User (Education, IT & Telecom, Retail, Media & Entertainment, BFSI, Healthcare, and Government)
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Countries Covered
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U.S., Canada, Mexico, Brazil, Argentina, Rest of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E, South Africa, Egypt, Israel, and Rest of Middle East and Africa
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Market Players Covered
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8x8, INC. (U.S.), AT&T Inc. (U.S.), RINGCENTRAL INC. (U.S.), PLIVO INC. (U.S.), Telstra Corporation Limited (Australia), VERIZON COMMUNICATIONS INC. (U.S.), VONAGE (U.S.), TWILIO, INC (U.S.), CENTURYLINK (U.S.), and BANDWIDTH INC. (U.S.) among other
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Market Opportunities
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Market Definition
Session Initiation Protocol (SIP) trunking services are digital telephony services that replace traditional analog phone lines with an internet connection. These services use the SIP protocol to initiate, manage, and terminate voice, video, and messaging sessions over IP networks. This allows businesses to make and receive calls using their existing internet infrastructure, eliminating the need for separate phone lines and circuits.
SIP Trunking Market Dynamics
Drivers
- Cost Savings and Efficiency
SIP trunking offers significant cost savings compared to traditional telephone systems. It eliminates the need for physical phone lines and associated maintenance costs. This cost-efficiency is a major driver for businesses looking to reduce their communication expenses.
- Scalability and Flexibility in Communication Infrastructure
With SIP trunking, businesses can easily scale their communication infrastructure up or down based on fluctuating demand. This flexibility allows organizations to adapt to changing business needs, accommodate growth, and efficiently manage communication resources without costly infrastructure overhauls .
Opportunities
- Growing Adoption of Cloud-Based Communication Systems
The growing adoption of cloud-based communication systems presents a significant opportunity for the market. As businesses increasingly migrate to cloud-based applications, SIP trunking services offer a cost-effective and scalable solution to connect these applications with traditional telephone networks. This trend not only drives demand for SIP trunking services but also underscores their importance in facilitating seamless communication across various platforms..
- Rising Demand for Unified Communications and Collaboration (UCC) Solutions
The rising demand for Unified Communications and Collaboration (UCC) solutions represents another key opportunity for SIP trunking providers. Businesses are recognizing the benefits of integrating voice, video, and data communications into a unified platform for enhanced collaboration and productivity. SIP trunking services play a vital role in enabling UCC solutions by providing reliable and efficient voice connectivity, thus positioning providers to capitalize on this growing market demand.
Restraints/Challenges
- SIP Trunking vulnerabilitiy to Cyber Threats
A notable challenge facing the Global SIP Trunking Market is ensuring robust security measures to protect against potential cyber threats and data breaches. As SIP trunking relies on internet connectivity, it introduces vulnerabilities that malicious actors could exploit. Addressing these security concerns and implementing effective measures to safeguard communication networks is imperative to foster trust and wider adoption of SIP trunking solutions in the market.
- Initial Infrastructure Costs
One significant restraint in the Global SIP Trunking Market is the initial infrastructure investment required for transitioning from traditional telephony systems to SIP-based solutions. Businesses may hesitate due to the costs associated with upgrading hardware, software, and network infrastructure. This initial investment can deter some organizations, especially smaller ones, from embracing SIP trunking, thereby slowing down market growth.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, the impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the variable frequency drive market contact the Data Bridge Market Research for an Analyst Brief, our team will help you make an informed market decision to achieve market growth.
Recent Development
- In January 2022, TWILIO INC. signed an agreement with Teleperformance to bring the next generation of cloud contact centre solutions to companies around the world. This partnership will help to enhance company’s service portfolio and also will give customer the access to deliver market leading cloud solutions
- In November 2021, Fusion Connect, Inc. expanded its service guarantee covering voice and data services, including Unified Communications (UCaaS) and SD-WAN. This had further helped the company to enhance its service portfolio in the premium market.
SIP Trunking Market Scope
The market is segmented on the basis deployment type, enterprise size, and end user. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
By Deployment Type
- On-premise
- Hosted
Enterprise Size
- Small & Medium Businesses
- Large Enterprises
End User
- Education
- IT & Telecom
- Retail
- Media & Entertainment
- BFSI
- Healthcare
- Government
SIP Trunking Market Region Analysis/Insights
The global SIP trunking market is analyzed and market size insights and trends are provided by region, deployment type, enterprise size, and end user as referenced above.
The countries covered in the market are U.S., Canada, Mexico, Brazil, Argentina, the Rest of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E, South Africa, Egypt, Israel, and Rest of Middle East and Africa.
North America is expected to dominate the market due to the presence of highest number of consumers as well as manufacturing bases in varied countries such as U.S. and Canada.
Asia-Pacific is expected to show significant growth in the market due to rapidly increasing smartphone penetration and mobile data usage, coupled with growing awareness of the benefits of SIP trunking services.
The region section of the report also provides individual market-impacting factors and changes in regulation in the market domestically that impact the current and future trends of the market. Data points like downstream and upstream value chain analysis, technical trends, and Porter’s five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and the challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the region data.
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Competitive Landscape and SIP Trunking Market Share Analysis
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, regional presence, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to market.
Some of the major players operating in the market are:
- 8x8, INC. (U.S.),
- AT&T Inc. (U.S.),
- RINGCENTRAL INC. (U.S.),
- PLIVO INC. (U.S.),
- Telstra Corporation Limited (Australia),
- VERIZON COMMUNICATIONS INC. (U.S.),
- VONAGE (U.S.),
- TWILIO, INC (U.S.),
- CENTURYLINK (U.S.),
- BANDWIDTH INC. (U.S.)
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