SIP Trunking Market Size, Share | Global Forecast 2022, 2027

SIP Trunking Market Forecast to 2027 - COVID-19 Impact and Global Analysis By Deployment Type (On-premise and Hosted), Enterprise Size (Small & Medium Businesses, Large Enterprises), and End User (Education, IT & Telecom, Retail, Media & Entertainment, BFSI, Healthcare, Government)

  • Report Code : TIPTE00002281
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 166
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The SIP trunking market was valued at US$ 13.44 billion in 2019 and is projected to reach US$ 30.22 billion by 2027. The SIP trunking market is expected to grow at a CAGR of 10.8% during the forecast period of 2020 to 2027.

Telecommunication networks are getting evolved at a rapid rate as business are transforming toward globalization. International business calling services is gaining traction as communicating with other country clients, investors, and distributors has become simple and faster. Supporting infrastructure development of communication and logistic network is boosting the IP based call services ratio. Increasing use of smartphones, laptops, and cloud platforms with supporting infrastructural growth inexorably transformed the telecommunication industry. Advent of 5G, fiber optic, and other connectivity services enhanced the growth of Internet services in developed as well as developing nations. Rising development in Internet-based voice calling services is accelerating the SIP trunking market growth. Growing competition in voice carrying business has increased pressure on market players.

Increasing adoption of internet-based calling apps and services is getting supported by the growing sale of smartphones and other network connected devices. The global SIP trunking market is segmented in terms of deployment type, end user, organization size, and geography. Based on deployment type, the market is segmented into on-premise and hosted. In terms ofend user, the market is segmented into education, IT &telecom, retail, media &entertainment, BFSI, healthcare, and government. Based on organization size, the market is segmented into small &medium businesses and large enterprises. Based on region, the market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East &Africa (MEA), and South America (SAM).

Impact of COVID-19 Pandemic on SIP Trunking Market

The COVID-19 pandemic has hampered the economic growth of almost every country. Office premises, public places, schools, and transportation remained closed, which declined market growth owing to low communications over voice. The telecommunication industry took several hits as the demand for business communication services decreased. The revenue model for voice has declined as no operations were carried during the lockdown period. On other hand, post lockdown, the market is emerged with a new growth model as businesses shifted toward remote working and work from home models. Communicational channel evolved with SIP trunking technology with supporting software and apps for laptops and smartphones. For instance, according to the i3forum, international voice traffic increased by 20% in March 2020, compared to the same month in 2019.

Lucrative Regions in SIP trunking Market

Lucrative Regions in SIP trunking Market
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

SIP trunking Market Insights

Rising Penetration of IP(Internet Protocol)-based Services

Change in telecommunication network system is inevitable, as technology is evolving at a rapid rate with increasing competition in the market for improving the service quality. Customers always adopt services that offer greater benefits at low cost; similarly, SIP trunking offers enhanced benefits for voice calling over traditional PSTN (public switched telephone network) based telephones. SIP trunking has improvised the international voice communication by reducing call charges by almost 70%, which were otherwise charged exorbitantly over traditional telephones. Also, strong infrastructure development to support Internet growth has helped SIP trunking to increase its market footprint. Various supporting factors, such as faster Internet service, low cost, and rise in 5G,are accelerating the SIP trunkingmarket growth.

Deployment-Based Market Insights

Internet service providers and users are growing at an exponential growth rate due to the supporting infrastructural growth and demand from the market. Internet traffic, specifically voice, is increased at a significant rate with rise in international voice calling from retailers, businesses, and personal customers. Telecom operators are adhered to provide high quality service for the customers to sustain and grow in a competitive market. Carrier service providers consistently monitor the traffic to assure the highest quality of IP-based voice calling services. Growing demand for low-cost solutions from small and medium businesses has highlighted the importance of hosted SIP trunking solution deployment in the market. In terms of deployment type, the SIP trunking market is segmented into on-premise and hosted.

SIP trunking Market, by Deployment Type– 2019 and 2027

SIP trunking Market, by Deployment Type– 2019 and 2027
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Organization Size-Based Market Insights

In terms of organization size, the market is segmented into large enterprises and small & medium businesses. Small businesses are adopting digital technologies and are more concerned toward cost saving solutions. SIP trunking solutions offer low-cost communication portal for businesses which suffice the urge of small and medium businesses to expand business footprint in various regional markets. On the other hand, large enterprises already have offices, customers, and employees located at different places worldwide, hence to form strong communication channel at lower cost, SIP trunking solution is widely used.

End User-Based Market Insights

Based on end user, the market is segmented into education, IT &telecom, retail, media &entertainment, BFSI, healthcare, and government. BFSI is adopting the SIP trunking solution at higher rate as maintaining customer trust and strong relationship is of utmost importance, for which advanced communication technology is a crucial element. SIP trunking offers wider benefits for BFSI sector, such as cost saving, availability of direct inward dialing as per requirement, and streamlining the management of network.

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SIP Trunking Market: Strategic Insights

SIP Trunking Market

  • CAGR (2019 - 2027)
    10.8%
  • Market Size 2019
    US$ 13.44 Billion
  • Market Size 2027
    US$ 30.22 Billion

Market Dynamics

GROWTH DRIVERS
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FUTURE TRENDS
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OPPORTUNITIES
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Key Players

  • 8X8, INC.
  • AT&T Inc.
  • RINGCENTRAL, INC.
  • PLIVO INC
  • Telstra Corporation Limited
  • VERIZON COMMUNICATIONS, INC.
  • VONAGE
  • TWILIO INC
  • CENTURYLINK
  • BANDWIDTH INC

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

Deployment Type
  • On-premise and Hosted
Enterprise Size
  • Small & Medium Businesses
  • Large Enterprises
End User
  • Education
  • IT & Telecom
  • Retail
  • Media & Entertainment
  • BFSI
  • Healthcare
  • Government
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Players operating in the SIP trunking market focus on strategies, such as market initiatives, acquisitions, and product launches, to maintain their positions in the SIP trunking market. A few developments by key players of the SIP trunking market are:

In November, 2020,Vonage declared a strategic reseller partnership of Vonage Contact Center with Evolution to offer services across Spain. This agreement reinforces Evolution’s position as a leading independent cloud-based service provider in the region.

In 2019, Verizon Enterprise Solutions introduced voice services to let its customers combine with a Microsoft unified communications platform. The collaboration service integrates direct routing and SIP trunk connectivity, and helps Verizon’s network customers embed their voice infrastructures in the Microsoft Teams platform. Verizon’s Session Border Control as a Service powers the new service.

SIP trunking Market – Deployment Type

  • On-premise
  • Hosted

SIP trunking Market – by End User

  • Education
  • IT &Telecom
  • Retail
  • Media &Entertainment
  • BFSI
  • Healthcare
  • Government


SIP trunking Market – by Organization Size

  • Small &Medium Businesses
  • Large Enterprises


SIP trunking Market – by Geography

  • North America

    • US
    • Canada
    • Mexico
  • Europe

    • UK
    • Germany
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific (APAC)

    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of APAC
  • Middle East &Africa (MEA)

    • Saudi Arabia
    • UAE
    • South Africa
    • Rest of MEA
  • South America (SAM)

    • Brazil
    • Argentina
    • Rest of SAM


SIP trunking Market – Company Profiles

  • 8x8, INC.
  • AT&T Inc.
  • RINGCENTRAL INC.
  • PLIVO INC.
  • Telstra Corporation Limited
  • VERIZON COMMUNICATIONS INC.
  • VONAGE
  • TWILIO, INC
  • CENTURYLINK
  • BANDWIDTH INC.

SIP Trunking Market Report Scope

Report Attribute Details
Market size in 2019 US$ 13.44 Billion
Market Size by 2027 US$ 30.22 Billion
Global CAGR (2019 - 2027) 10.8%
Historical Data 2017-2018
Forecast period 2020-2027
Segments Covered By Deployment Type
  • On-premise and Hosted
By Enterprise Size
  • Small & Medium Businesses
  • Large Enterprises
By End User
  • Education
  • IT & Telecom
  • Retail
  • Media & Entertainment
  • BFSI
  • Healthcare
  • Government
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • 8X8, INC.
  • AT&T Inc.
  • RINGCENTRAL, INC.
  • PLIVO INC
  • Telstra Corporation Limited
  • VERIZON COMMUNICATIONS, INC.
  • VONAGE
  • TWILIO INC
  • CENTURYLINK
  • BANDWIDTH INC
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    Type, Application, End User

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

    Frequently Asked Questions


    Which factor is driving the SIP Trunking market?

    Internet services and number of users are increasing at an exponential rate owing to growing supporting infrastructure and demand from the market. Internet traffic has been increased with the rise in international voice calling from retailer, businesses, and personal customers. The organizations are demanding enhanced solution for domestic as well as international calling application. SIP trunking is a prominent solution for the business operators to manage their calls at lower cost. SIP trunking is a virtual version of analog phone line that uses internet protocol to offer high quality communication along with cost saving, flexibility, and security for the customers. Traditional telephony services are getting replaced with internet protocol-based voices services for faster and secure communication in domestic as well as international market. Businesses are seeking new technologies, which can support them to expand their business worldwide. Adoption of digital technologies is increasing as companies are remotely operating their offices. The importance of remote monitoring has been enhanced due to the COVID-19 pandemic, which is augmenting the demand for advanced communication solutions. The willingness to expand services at international level as well as to adopt new technologies is the major factor propelling the market growth. It is predicted that SIP trunking can save up to 70% cost spent for traditional telephony services.

    Which deployment led the SIP Trunking market?

    The hosted segment led the market in 2019 with highest share and is expected to continue its dominance during the forecast period. Hosted SIP trunking is gaining momentum in the small and medium sized enterprises as they are shifting toward IP based voice calling services. Internet voice calling services are supporting small businesses to expand their reach in global market. Offering international call at lowest price is a prominent factor that will drive small enterprises to expand their business operation at international level. Hosted SIP trunking is mainly preferred by small and medium enterprises as it eliminates the cost of hardware installation, maintenance, and additional IT overheads. Third-party SIP trunking service providers manage all the installation and maintenance operation, which offers affordability for small and medium sized enterprises.

    What factors are providing opportunities for SIP Trunking market?

    SIP trunking is gaining momentum in the small and medium sized enterprises as they are shifting toward IP based voice calling services. Internet voice calling services are supporting small businesses to expand their reach in the global market. Lower cost of international call is a prominent factor that drives small enterprises to enhance their business operation in international level. Hosted SIP trunking is mainly preferred by small and medium enterprises as it eliminates the cost of hardware installation, maintenance, and additional IT overheads. Third-party SIP trunking service providers manage all the installation and maintenance operation, which offers affordability for small and medium sized enterprises.

    The List of Companies  - SIP Trunking Market to 2027

    1. 8X8, INC.
    2. AT&T Inc.
    3. RINGCENTRAL, INC.
    4. PLIVO INC
    5. Telstra Corporation Limited
    6. VERIZON COMMUNICATIONS, INC.
    7. VONAGE
    8. TWILIO INC
    9. CENTURYLINK
    10. BANDWIDTH INC

    The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

    1. Data Collection and Secondary Research:

    As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

    Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

    1. Primary Research:

    The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

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    Below is the breakup of our primary respondents by company, designation, and region:

    Research Methodology

    Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

    1. Data Analysis:

    Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

    • 3.1 Macro-Economic Factor Analysis:

    We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

    • 3.2 Country Level Data:

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    • 3.3 Company Profile:

    The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

    • 3.4 Developing Base Number:

    Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

    1. Data Triangulation and Final Review:

    The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

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