North America Session Initiation Protocol (SIP) Trunking Services Market – Industry Trends and Forecast to 2031

North America Session Initiation Protocol (SIP) Trunking Services Market, By Type (Hosted, On Premise), Organization Size (Large Enterprises and Small and Medium-Sized Enterprises (SMEs), Application (Voice, Video, Streaming Media, Web Conferencing, and 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, and Others)  – Industry Trends and Forecast to 2031.

North America Session Initiation Protocol (SIP) Trunking Services Market Analysis and Size

The session initiation protocol (SIP) trunking services market allows businesses to easily adjust their communication capacity based on fluctuating needs through its scalability. SIP trunking enables seamless expansion or contraction of channels and resources without the need for physical infrastructure changes, offering a flexible and cost-effective solution. This scalability empowers businesses to efficiently manage communication demands, whether scaling up during peak periods or downsizing during quieter times, ultimately enhancing operational agility and resource optimization.

North America session initiation protocol (SIP) trunking services market size was valued at USD 5.17 billion in 2023 and is projected to reach USD 13.44 billion by 2031, with a CAGR of 12.7% during the forecast period of 2024 to 2031. 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       

Market Definition

Session initiation protocol (SIP) trunking services are a communication technology that allows businesses to make and receive telephone calls over the internet instead of traditional phone lines. SIP trunking consolidates voice, video, and data into a single network connection, enabling cost savings, scalability, and enhanced flexibility in managing communications infrastructure.

Session Initiation Protocol (SIP) Trunking Services Market Dynamics

Drivers

• Migration to IP-Based Communication Increases the Adoption of SIP Trunking Services

As businesses transition from traditional telephony systems to IP-based solutions, SIP trunking offers a seamless and cost-effective means of leveraging the benefits of this transition. Enabling voice communication over IP networks, SIP trunking eliminates the need for separate voice and data infrastructures, resulting in reduced costs and simplified management. This shift towards IP-based communication also aligns with broader trends in digital transformation, driving increased adoption of SIP trunking services among organizations seeking scalable, flexible, and future-proof communication solutions.  

• Growing Integration with Unified Communications (UC) Solutions Offers Seamless Convergence

SIP trunking facilitates the interoperability between UC applications and traditional telephony networks, enabling businesses to leverage advanced communication features while retaining existing infrastructure. This integration enhances productivity, streamlines communication workflows, and reduces complexity for organizations seeking to adopt comprehensive communication solutions. As businesses prioritize efficiency and collaboration, the demand for SIP trunking services grows, driving market expansion in tandem with the evolution of UC ecosystems.

For instance, Sangoma Technologies, a voice and unified communications solution provider, acquired StarBlue Inc. from Star2Star Holdings, LLC to strengthen its cloud-native communication solutions and expand its SIP trunking services and UC offerings. This acquisition aligns with the growing demand for SIP trunking services and UC integration, enhancing Sangoma's ability to deliver advanced communication features and cloud-native containers as a service (CaaS) to its customers.

Opportunities

• Adoption of SIP Trunking Services Increases due to Growing Remote Work Trends

As organizations embrace remote work models, there is a heightened need for reliable, scalable, and cost-effective communication solutions to connect geographically dispersed teams. SIP trunking enables seamless integration of remote workers into unified communication systems, providing them with access to voice, video, and messaging capabilities from any location. Its ability to support remote collaboration tools and ensure business continuity makes SIP trunking an essential enabler of modern remote work practices, thus fueling its adoption in the market.

• Growing Regulatory Environment results in the expansion of SIP Trunking Services

Favorable regulatory policies that encourage competition, deregulation, and the adoption of IP-based communication technologies can stimulate market growth. Regulatory changes that promote interoperability, number portability, and network neutrality can facilitate the expansion of SIP trunking services by reducing barriers to entry and enhancing market access for service providers. The regulatory environment significantly influences the adoption, growth, and evolution of SIP trunking services within the telecommunications industry.

For instance, TRAI's rejection of the DoT's stance on cloud services indicates a move towards a less restrictive regulatory approach in India. This shift could reduce entry barriers for SIP trunking providers, fostering increased competition and innovation in the market. Ultimately, it aligns with the global trend of promoting IP-based communication solutions, and fuels the growth in the SIP trunking services sector.

Restraints/Challenges

• Legacy Infrastructure limits the Growth of SIP technology

Many businesses still rely on traditional telephony systems, such as TDM (Time Division Multiplexing) or ISDN (Integrated Services Digital Network), which can be difficult and costly to integrate with SIP technology. Upgrading or replacing existing infrastructure to support SIP trunking requires significant investment in both time and resources, which may deter organizations from making the switch. Concerns about compatibility, interoperability, and the disruption of existing operations further exacerbate the challenges of migrating away from legacy systems to SIP-based solutions. This inertia in upgrading infrastructure can impede the growth of the SIP trunking services market, particularly among businesses with entrenched legacy systems.

• Increasing Security Concerns Limits the Adoption of SIP trunking services

SIP trunking relies on the internet for communication, businesses face potential vulnerabilities such as unauthorized access, interception of sensitive data, and denial-of-service attacks. Ensuring the confidentiality, integrity, and availability of communications over SIP trunks is paramount, requiring robust security measures and protocols. Organizations may hesitate to adopt SIP trunking solutions if they perceive these security risks as too high or if they lack confidence in the ability to adequately safeguard their communication infrastructure.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, 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 market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Developments

• In December 2021, 8X8, Inc. bolstered its cloud contact center and phone solutions to better cater to multinational enterprises operating in the Philippines. This move aimed to extend the company's cloud-based service capabilities across the market, enhancing its support for businesses with diverse operational needs
• In November 2021, Fusion Connect, Inc. expanded its service guarantee to encompass voice and data services, including Unified Communications (UCaaS) and SD-WAN. Enhancing its service portfolio in the premium market segment, the company aimed to provide customers with increased reliability and performance across their communication and networking needs
• In March 2021, Sangoma Technologies Corporation, a Canadian-based provider of voice and unified communications solutions, acquired StarBlue Inc. from Star2Star Holdings, LLC. This strategic acquisition, conducted for an undisclosed amount, aimed to strengthen Sangoma's position in the market by integrating StarBlue's offerings into its portfolio, thereby expanding its range of solutions and capabilities

Session Initiation Protocol (SIP) Trunking Services Market Scope

The market is segmented on the basis of type, organization size, application and vertical. 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.

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

North America Session Initiation Protocol (SIP) Trunking Services Market Region Analysis/Insights

The market is analyzed and market size insights and trends are provided by region, type, organization size, application and vertical, as referenced above.

The countries covered in the market report are the U.S., Canada, and Mexico in North America.

The U.S. dominates the market in technological adoption, propelled by its robust infrastructure and the widespread integration of advanced technologies across industries. Additionally, the presence of key service providers further solidifies its dominance, with established companies driving innovation and setting industry standards. This leadership position affords the U.S. a competitive edge, attracting businesses and investments seeking access to cutting-edge solutions and a thriving market ecosystem. As a result, the nation remains at the forefront of technological advancements, influencing trends and shaping the trajectory of the regional market landscape.

The country section of the market 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 consumption volumes, production sites and volumes, import export analysis, price trend analysis, cost of raw materials, down-stream and upstream value chain analysis 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 domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Session Initiation Protocol (SIP) Trunking Services Market Share Analysis

The market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, regional presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the companies' focus related to the market.

Some of the major players operating in the market are:

• BT (U.K.)
• 8x8, Inc.  (U.S.)
• Verizon (U.S.)
• 3CX (U.S.)
• Colt Technology Services Group Limited (U.K.)
• GTT Communications, Inc. (U.S.)
• IBM Corporation (U.S.)
• IntelePeer Cloud Communications LLC. (U.S.)
• net2phone (U.S.)
• Nextiva (U.S.)
• Rogers Communications Inc.(Canada)
• Telstra  (Australia)
• TWILIO INC. (U.S.)
• Vonage (U.S.)
• VOYANT COMMUNICATIONS (U.S.)