SIP Trunking Services Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Enterprise Size (Small, Medium, Large), By End-User (Communication And Technology, Healthcare, Retail, BFSI, Government, Others), And By Geography - Forecasts From 2022 To 2027

SIP trunking services market was valued at US$13.216 billion in 2020 and is anticipated to grow at a CAGR of 13.16% to reach US$31.401 billion in 2027.

Session Initiation Protocol (SIP) trunking is a method by which voice and other unified communication services are sent over the internet. The rising adoption of IP-based services over traditional PSTN services is projected to boost the market growth during the forecast period. Factors such as increasing usage of cloud computing, rapid adoption of cloud, and unified communication systems by enterprises are expected to increase the demand for SIP trunking services, thus boosting the overall market growth. The SIP trunking services market has been segmented based on enterprise size, end-user, and geography. Based on enterprise size, the market has been segmented into small, medium, and large. By end-user, the market has been segmented into communication and technology, healthcare, retail, BFSI, government, and others.

SIP Trunking Services Market Drivers 

• Growing adoption of unified communication in enterprises

In traditional telephone services, the service provider delivers a bundle of physical wires to a business, whereas SIP trunks allow companies to use Public Switched Telephone Network (PSTN) connectivity through an IP network such as the internet, due to which enterprises are adopting unified communication solutions which reduce their telephony costs and generate ROI facilitated by the SIP trunking service. The growing adoption of UC in enterprises is driving the growth of the global SIP trunking service market across various countries worldwide. For instance, Matrix launched SARVAM UCS – Unified Communication Server for Modern Enterprises, which is designed to eliminate barriers that have traditionally separated voice calls, email, instant messaging, and conferencing in all forms. UCaaS is changing the deployment and management of businesses and making it easy to adopt and scale UCC within an enterprise which makes it easier for enterprises to manage costs while scaling up and down new services. Tata Communications and West collaborated to combine a global leader in UCC with one of the world’s largest communications providers to give enterprises rapid access to UCC platforms and better connectivity.

• Increased demand for SIP Trunking Services from BFSI

One of the prime factors driving the growth of the SIP trunking services market is its growing demand from the BFSI sector. The companies operating in the BFSI sector are under continuous pressure to offer maximum network connectivity to customers and value chain partners by maintaining low operational costs and communication timing. SIP trunking services help the BFSI sector to simplify communication management as they offer customized inbound call routing for fast and efficient call processing, provides full integration with existing and new external paging systems, offers integration between smartphones and cell phones, interconnection of various branches, and seamless call transfers between locations. Due to the various benefits offered by the SIP trunking services, their demand is high across the BFSI sector, which is expected to impact the overall market growth positively.

Asia-pacific is expected to dominate the SIP Trunking Services market.

APAC region provides various opportunities to vendors of SIP trunking services during the forecast period owing to the growing adoption of mobile and internet, developing economies, and increasing pressure to achieve greater business agility. Moreover, rapid advancements in ICT infrastructure, cloud computing, and technologies such as AI and IoT have encouraged many enterprises to adopt SIP trunking services across various developing countries in the Asia Pacific region. Many IT organizations in Asian pacific countries plan to use SIP trunking services in their business environment to improve operational efficiency and reduce costs.

COVID-19 Insights

COVID-19 pandemic doesn’t have any negative impact on the market growth. The pandemic has enhanced the use of digitization, IoT, and AI. It has also increased the adoption of ICT and cloud computing services which in turn has increased the demand for several SIP trunking services across various countries worldwide, which has positively contributed to the overall market growth in 2020.

SIP Trunking Services Market Scope:

Report Metric	Details
Market size value in 2020	US$13.216 billion
Market size value in 2027	US$31.401 billion
Growth Rate	CAGR of 13.16% from 2020 to 2027
Base year	2020
Forecast period	2022–2027
Forecast Unit (Value)	USD Billion
Segments covered	Enterprise Size, End-User, And Geography
Regions covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies covered	CenturyLink, CISCO, Legacy VoIP, Verizon, GTT Communications, Inc., AT&T, TWILIO   INC., VOYANT COMMUNICATIONS, Fusion Connect, Inc., Rogers Communication
Customization scope	Free report customization with purchase

Market Segmentation:

• By Enterprise Size
  • Small
  • Medium
  • Large
• By End-User
  • Communication and Technology
  • Healthcare
  • Retail
  • BFSI
  • Government
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Others

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Frequently Asked Questions (FAQs)

Q1. What are the growth prospects for the SIP trunking services market?
A1. The SIP trunking services market is anticipated to grow at a CAGR of 13.16% during the forecast period.

Q2. What will be the SIP trunking services market size by 2027?
A2. The global SIP trunking services market is anticipated to reach a market size of US$31.401 billion by 2027.

Q3. What is the size of the global SIP trunking services market?
A3. SIP Trunking Services Market was valued at US$13.216 billion in 2020. 

Q4. Which region holds the maximum market share in the SIP trunking services market?
A4. Asia-pacific is expected to dominate the SIP Trunking Services market owing to the growing adoption of mobile and internet, developing economies, and increasing pressure to achieve greater business agility.

Q5. What factors are anticipated to drive the SIP trunking services market growth?
A5. The rising adoption of IP-based services over traditional PSTN services is projected to boost the SIP trunking services market growth.

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