Global Session Initiation Protocol (SIP) Trunking Services Market, By Type (Hosted, On Premise), Organization Size (Large Enterprises, Small and Medium-Sized Enterprises (SMEs), Application (Voice, Video, Streaming Media, Web Conferencing, Desktop Sharing), Vertical (Banking, Financial Services and Insurance, Healthcare and Life Sciences, Telecommunication and IT, Government and Public Sector, Manufacturing, Consumer Goods, and Retail, Media, and Entertainment, Others) - Industry Trends and Forecast to 2030.
Session Initiation Protocol (SIP) Trunking Services Market Analysis and Size
The session initiation protocol (SIP) is an application layer protocol that allows the user to use their phone system over an internet connection instead of traditional phone lines. The backbone of phone lines used by various users that connects to a telephone network is referred to as trunking. SIP trunks connect an on-premise phone system to the public switched telephone network, often known as PSTN, via Voice over Internet Protocol (VoIP). For instance, an office may already have a PBX for phone service. SIP trunks give phone service to the entire office, allowing them to communicate with the rest of the world.
SIP trunking is mostly used to replace PRI technology. SIP trunking makes use of VoIP technologies to deliver voice and data. Other data, such as instant messages and video conferencing, is also supported by SIP. Thus, SIP trunking is used for call setup, management, and teardown. It is very flexible, reliable, and quite lightweight solution.
Growing focus on reducing operational cost and improving organizational performance is the major driving factor in the market. Lack of skilled work force and technological expertise can prove to be a challenge however increasing investment by government and investors prove to be an opportunity. The restraint is high cost of installation and maintenance.
Data Bridge Market Research analyzes that the global session initiation protocol (SIP) trunking services market which was USD 9,067.82 million 2022, is likely to reach USD 8,021.87 million by 2030, and is expected to undergo a CAGR of 12.5% during the forecast period. “On premise” segment is expected to dominate the global session initiation protocol (SIP) trunking services market. This domination is due to the increased reliability of call connections and services. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
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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2023 to 2030
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Base Year
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2022
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Historic Years
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2021 (Customizable to 2015-2020)
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Quantitative Units
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Revenue in USD Million, Pricing in USD
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Segments Covered
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Type (Hosted, On Premise), Organization Size (Large Enterprises, Small and Medium-Sized Enterprises (SMEs), Application (Voice, Video, Streaming Media, Web Conferencing, Desktop Sharing), Vertical (Banking, Financial Services and Insurance, Healthcare and Life Sciences, Telecommunication and IT, Government and Public Sector, Manufacturing, Consumer Goods, and Retail, Media and Entertainment, Others)
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Countries Covered
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U.S., Canada, Mexico, U.K., Germany, France, Spain, Italy, Netherlands, Switzerland, Russia, Belgium, Turkey, Rest of Europe, China, South Korea, Japan, India, Australia, Singapore, Malaysia, Indonesia, Thailand, Philippines, Rest of Asia-Pacific, South Africa, Saudi Arabia, U.A.E., Israel, Egypt and Rest of Middle East and Africa, Brazil, Argentina and Rest of South America
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Market Players Covered
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3CX (Cyprus), 8X8, Inc. (U.S.), BT (U.K.), CenturyLink (U.S.), Colt Technology Services Group Limited (U.K.), Fusion Incorporated (U.S.), GTT Communications, Inc. (U.S.), Intelepeer Cloud Communications LLC. (U.S.), Mitel Networks Corp. (Canada), NET2PHONE (U.S.), Nextiva (U.S.), ORANGE (France), Rogers Communications (Canada), TELSTRA (Australia), TWILIO Inc. (U.S.), Verizon (U.S.), Vonage (U.S.), Voyant Communications (U.S.), Intrado Corporation (U.S.), IBM Corporation (U.S.)
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Market Opportunities
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Market Definition
Session initiation protocol (SIP) trunking services are a digital telephony service that replaces 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.
Global Session Initiation Protocol (SIP) Trunking Services 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
SIP trunking services provide businesses with the flexibility to scale their communication infrastructure up or down easily. This is particularly important for companies with fluctuating call volumes or those undergoing expansion. SIP allows businesses to add or remove channels as needed, ensuring efficient resource allocation.
Opportunities
- Growing adoption of cloud-based communication systems
The increasing adoption of cloud-based communication systems is driving demand for SIP trunking services as they offer a cost-effective and scalable way to connect cloud-based applications with the public switched telephone network (PSTN).
- Rising demand for unified communications and collaboration (UCC) solutions
Businesses are increasingly seeking UCC solutions that integrate voice, video, and data communications into a single platform. SIP trunking services play a crucial role in enabling UCC solutions by providing reliable and efficient voice connectivity.
Restraints/Challenges
- Security Concerns
Security concerns surrounding voice over IP (VoIP) technology, including call interception and denial-of-service attacks, can deter businesses from adopting SIP trunking services.
- Limited Interoperability
Some SIP trunking services may not be fully compatible with all equipment and software, leading to potential compatibility issues for businesses with diverse communication systems.
Recent Development
- In January 2022, TWILIO INC. have signed an agreement with Teleperformance for bringing 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. had expanded service guarantee covering voice and data services, including Unified Communications (UCaaS) and SD-WAN. This had further helped the company to enhance their service portfolio in the premium market
Global Session Initiation Protocol (SIP) Trunking Services Market Scope
Global session initiation protocol (SIP) trunking services market is segmented into four notable segments which are based on the type, organization size, application and vertical.
Type
- Hosted
- On Premise
Organization Size
- Large Enterprises
- Small and Medium-Sized Enterprises (SMEs)
Application
- Voice
- Video
- Streaming Media
- Web Conferencing
- Desktop Sharing
Vertical
- Banking
- Financial Services and Insurance
- Healthcare and Life Sciences
- Telecommunication and IT
- Government and Public Sector
- Manufacturing
- Consumer Goods and Retail
- Media, and Entertainment
- Others
Global Session Initiation Protocol (SIP) Trunking Services Market Region Analysis/Insights
The session initiation protocol (SIP) trunking services market is analyzed and market size information is provided by the country, voltage rating, shed material type, shed design, product type and application as referenced above.
The countries covered in the session initiation protocol (SIP) trunking services market report are the U.S., Canada, Mexico, U.K., Germany, France, Spain, Italy, Netherlands, Switzerland, Russia, Belgium, Turkey, rest of Europe, China, South Korea, Japan, India, Australia, Singapore, Malaysia, Indonesia, Thailand, Philippines, rest of Asia-Pacific, South Africa, Saudi Arabia, U.A.E., Israel, Egypt, rest of Middle East and Africa, Brazil, Argentina and rest of South America.
North America region is expected to dominate the global market due to the presence of highest number of consumers as well as manufacturing bases in varied countries like 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 country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as new sales, replacement sales, country demographics, regulatory acts and import-export tariffs are some of the major pointers used to forecast the market scenario for individual countries. Also, presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of sales channels are considered while providing forecast analysis of the country data. The session initiation protocol (SIP) trunking services market also provides you with detailed market analysis for every country growth in particular market. Additionally, it provides the detail information regarding the market players’ strategy and their geographical presence. The data is available for historic period 2010 to 2020.
Competitive Landscape and Session Initiation Protocol (SIP) Trunking Services Market Share Analysis
Session initiation protocol (SIP) trunking services 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, production sites and facilities, company strengths and weaknesses, product launch, product trials pipelines, product approvals, patents, product width and breadth, application dominance, technology lifeline curve. The above data points provided are only related to the company’s focus related to session initiation protocol (SIP) trunking services market.
The major players covered in the Session initiation protocol (SIP) trunking services market report are:
- 3CX (Cyprus)
- 8X8, Inc. (U.S.)
- BT (U.K.)
- CenturyLink (U.S.)
- Colt Technology Services Group Limited (U.K.)
- Fusion Incorporated (U.S.)
- GTT Communications, Inc. (U.S.)
- Intelepeer Cloud Communications LLC. (U.S.)
- Mitel Networks Corp. (Canada)
- NET2PHONE (U.S.)
- Nextiva (U.S.)
- ORANGE (France)
- Rogers Communications (Canada)
- TELSTRA (Australia)
- TWILIO Inc. (U.S.)
- Verizon (U.S.)
- Vonage (U.S.)
- Voyant Communications (U.S.)
- Intrado Corporation (U.S.)
- IBM Corporation (U.S.)
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