Session Initiation Protocol (SIP) Trunking Services Global Market Report 2024

The session initiation protocol (sip) trunking services market size has grown rapidly in recent years. It will grow from $13.91 billion in 2023 to $15.31 billion in 2024 at a compound annual growth rate (CAGR) of 10.0%. The expansion observed in the historical period can be attributed to the increasing adoption of cloud-based applications in small and medium-sized enterprises (SMEs), cost-effectiveness in SIP trunking, technological advancements, and robust economic development in emerging markets.

The session initiation protocol (sip) trunking services market size is expected to see rapid growth in the next few years. It will grow to $22.99 billion in 2028 at a compound annual growth rate (CAGR) of 10.7%. The anticipated growth in the forecast period can be attributed to the rapid realization of instant return on investment, the proliferation of smart cities, the exponential growth in Voice over Internet Protocol (VoIP), the increasing adoption of cloud-based SIP trunking services in developing regions, and the integration of the Internet of Things (IoT). Key trends expected during this period include strategic collaborations with technology players, further developments aimed at enhancing the flexibility and usability of trunking services for existing products, and strategic acquisitions of established or innovative companies within the industry.

The growth of the SIP trunking service market is being fueled by a notable reduction in communication costs. Transitioning to SIP (session initiation protocol) offers businesses various advantages, including lower costs, flexible bandwidth allocation, and improved video and audio quality. According to Atlantech Online, a US-based provider of telephone, internet, and data center services, businesses can save an average of 20% to 60% on communication costs by making the switch to SIP. SIP call charges are notably lower, ranging from $1.67 to $15 per month per channel. This substantial reduction in communication costs is expected to propel the growth of the SIP trunking service market in the foreseeable future.

The market is also poised for growth due to the increasing adoption of cloud-based solutions in developing economies such as India, China, Brazil, and Africa. These regions, marked by limited financial resources and early-stage development, seek cost-effective solutions. Especially during pandemic situations, companies in these areas can benefit from cost savings in IT expenditures by embracing cloud computing services. The ability to utilize on-demand, scalable cloud models for cost efficiency and business continuity provides organizations with the opportunity to accelerate their digital business transformation plans. Gartner's survey indicates that almost 70% of organizations using cloud services plan to increase their cloud spending following disruptions caused by COVID-19. Additionally, the proportion of IT spending on the cloud is expected to rise to 14.2% of the global enterprise IT spending market in 2024, up from 9.1% in 2020. Consequently, the adoption of cloud-based solutions is anticipated to be a significant driver for the SIP trunking service market.

A notable trend gaining traction in the SIP trunking service market is the adoption of cloud-based SIP trunking services. Providers in this space offer cloud-based SIP or VoIP (Voice over IP) that can be procured and maintained virtually with ease. This approach reduces service costs, with the provider taking responsibility for SIP trunks and bandwidth. Moreover, the flexibility of accessing the system from anywhere at any time enhances the appeal of cloud-based SIP trunks. For example, Onsip, a unified communication service provider, notes that small businesses migrating to VoIP may save up to 40% on local calls and 90% on international calls.

Innovation in portals, mobile applications, and web API SIP trunking services is a strategic focus for key players in the global SIP trunking services market. For instance, in March 2021, DIDWW, an Ireland-based provider of cloud communication services, launched a Call Center softphone application that consolidates various components of business VoIP communications into a single mobile application. This application supports multiple SIP accounts under one device and has the capability to manage multiple phone calls. Additionally, providers are introducing new features to existing and new SIP trunking services, offering integration possibilities with other communication platforms such as Microsoft Teams, Zoom, and more.

In March 2021, Sangoma Technologies Corporation, a Canada-based voice and unified communications solution provider, acquired StarBlue Inc. from Star2Star Holdings, LLC, for an undisclosed amount. This acquisition positions Sangoma Technologies to offer a range of cloud-native containers as a service (CaaS) and solutions to the industry. It enhances Sangoma's ability to evolve as a leading cloud service company. Star2Star Communications, the acquired entity, is a US-based company providing telephone voice and data communications services, constantly innovating solutions for improved business communications.

Major companies operating in the session initiation protocol (sip) trunking services market report are AT&T Inc., Verizon Communications Inc., Lumen Technologies, Inc., Twilio Inc., GTT Communications, Inc., BT Group PLC, Vonage, Mitel Networks Corporation, Bandwidth Inc., Sangoma Technologies Corporation, Calncall, SingTel, MyRepublic, Netpluz, AlienVoIP, Invite Communications, VoIP Unlimited, OBM Automation Private Limited, GoVOIP, OnSIP, RingCentral MVP, Sonetel, VND Solutions Limited, Insider Telemax, T-Max, Optimal Technology Ltd., China Mobile Limited, A-Z Telecom, Telnyx, Atos SE, Deutsche Telekom, Babble Cloud, Gamma, Spitfire, TalkTalk Business, Xinix, Zen, Mango Office, AstraQom, Beeline, MCN Telecom, Amazon Web Services, Inc., Microsoft, Apprenda Inc., Red Hat, Inc., Google LLC, Oracle Corporation, DISH Network, Salesforce.com, Inc., Direct Call, Datora, Nvoip, VIVO, Vono, Central IP, Convergia, AVOXI, Net2Phone, Switch2Voip, Cheap SIP Trunking Qatar, Blue lynx, Ooredoo Qatar, Hivoox, 3CX, DIDWW, Telkom Kenya Limited, PBX Kenya, CM.com, ipNX Nigeria Limited, MTN Business, Wanatel South Africa.

North America was the largest region in the Session Initiation Protocol (SIP) trunking services market in 2023. Europe was the second-largest market in the SIP trunking services market. The regions covered in the session initiation protocol (sip) trunking services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the session initiation protocol (sip) trunking services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary types of SIP trunking services are hosted and on-premise. In a hosted Private Branch Exchange (PBX), users can access PBX features such as automated attendant, automatic call distribution, voicemail, and call transfer without the need to own or operate all the necessary equipment on the premises. Calls are directed to extensions through a PBX, enabling the VoIP service provider to handle all essential equipment and software. Organizations of various sizes, including small businesses, mid-sized businesses, and large enterprises, can benefit from SIP trunking. Its implementation spans across various verticals such as BFSI, healthcare, life sciences, telecommunications and IT, government and public sector, manufacturing, consumer goods and retail, media & entertainment, among others.

The SIP trunking service market research report is one of a series of new reports that provides SIP trunking service market statistics, including SIP trunking service industry global market size, regional shares, competitors with a SIP trunking service market share, detailed SIP trunking service market segments, market trends and opportunities, and any further data you may need to thrive in the SIP trunking service industry. This SIP trunking service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The session initiation protocol (SIP) trunking services market consists of revenues earned by entities that are engaged in providing services such as symmetrical trunking and asymmetrical trunking. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.