SIP Trunking Services Market: Growth Trajectory and Future Projections
The Global SIP Trunking Services Market, valued at USD 11.96 billion in 2021, is poised for substantial growth, projected to reach USD 43.74 billion by 2031, advancing at a robust CAGR of 14.1% from 2022 to 2031. The increasing adoption of Voice over Internet Protocol (VoIP) services and the resultant decrease in telephony costs are primary drivers of this market expansion.
Key Market Drivers
The adoption of SIP trunking services is accelerating due to several factors:
- Cost Efficiency: SIP trunking significantly reduces the total cost of ownership by minimizing capital expenditures. By eliminating the need for PSTN gateway capacity across enterprises, businesses can achieve considerable cost savings.
- Demand for Long-Distance and International Calls: As the need for efficient and affordable long-distance communication grows, VoIP trunking services, which offer lower rates compared to traditional Time-division Multiplexing (TDM), are gaining traction.
- Shift to Cloud/Virtual PBX Systems: Businesses are increasingly adopting cloud/virtual PBX systems to reduce operational costs, and SIP trunk providers are responding by launching localized cloud communication solutions to expand their regional presence.
Market Insights
SIP trunking services utilize VoIP or PSTN to connect a Private Branch Exchange (PBX) to the Internet, facilitating communication with both fixed and mobile telephone subscribers. This technology enables businesses to transmit data and voice services over VoIP and PSTN lines, offering a modern, affordable, and versatile alternative to traditional landline connections. The rise in mobile technology usage and the adoption of Unified Communications-as-a-Service (UCaaS) platforms are further propelling the market.
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Leading Market Players
Key players profiled in the market report include 8×8, Inc., Avoxi, Bandwidth, Inc., Colt Technology Services, DID Logic, DIDWW Ireland Limited, Flowroute (part of Intrado), Inteliquent, Lumen Technologies, MessageBird B.V., Net2Phone, Inc., Orange S.A., Plivo Inc., RingCentral, Inc., Sinch AB, SIPSRUS, Tata Communication, Telkom SA, Telstra Corporation Limited, Twilio Inc., VoIP Innovations, and Vonage Holdings Corp.
Key Developments in Global SIP Trunking Services Market
- In August 2021, 8×8, Inc. signed a new distribution agreement with SYNNEX Corporation to provide access to 8×8 XCaaS to SYNNEX's partner community of traditional Value-Added Resellers (VARs), system integrators, and Managed Service Providers (MSPs)
- In March 2021, RingCentral, Inc. acquired the technology and engineering team at Kindite, a developer of cryptographic technologies. The new technology would be incorporated into RingCentral's global communications platform, providing customers with enhanced security capabilities including end-to-end encryption.
- In November 2020, Net2Phone, Inc. launched its fully localized cloud communications solution nationwide in Peru and announced plans to expand to six new cities in Brazil
- In June 2020, Sinch AB acquired ACL Mobile Limited, a provider of cloud communications services in India and Southeast Asia
Regional Outlook
- North America: Dominated the market in 2021 due to extensive SIP trunking service adoption and the increasing prevalence of cloud-based solutions in large enterprises.
- Europe: Second in terms of revenue share, driven by digital transformation initiatives aimed at achieving top-line growth.
- Asia Pacific: Expected to witness significant growth, fueled by the expansion of small and medium enterprises.
- Middle East & Africa: Growth driven by the emphasis on high-quality process outcomes and reduced operational costs.
Market Segmentation
The SIP trunking services market is segmented based on enterprise size (small & medium enterprises, large enterprises), end-user (BFSI, IT & telecom, government, healthcare, education, retail & ecommerce, travel & hospitality, others), and regions (North America, Europe, Asia Pacific, Middle East & Africa, South America).
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