SIP Trunking Market Size, Share, Trends, Growth 2032

SIP Trunking Industry Prospective:

The global SIP trunking market size was evaluated at $14 billion in 2023 and is slated to hit $37 billion by the end of 2032 with a CAGR of nearly 13% between 2024 and 2032.

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SIP Trunking Market: Overview

SIP trunking is a modern telecommunications system enabling voice delivery, video streaming, and delivery of various unified communications over the internet through the use of session initiation protocol. Reportedly, it helps various businesses in making and receiving phone calls over the Internet.

For the record, SIP trunking makes use of session initiation protocol (SIP), which is a signaling protocol used in multimedia communication, for connecting a firm’s phone system to a public switched telephone network.

Key Insights

• As per the analysis shared by our research analyst, the global SIP trunking market is projected to expand annually at the annual growth rate of around 13% over the forecast timespan (2024-2032)
• In terms of revenue, the global SIP trunking market size was evaluated at nearly $14 billion in 2023 and is expected to reach $37 billion by 2032.
• The global SIP trunking market is anticipated to grow rapidly over the forecast timeline owing to swift acceptance of cloud services and the introduction of new digital transformation initiatives, which are driven by the need for scalable communication tools.
• In terms of deployment type, the cloud-based segment is slated to register the highest CAGR over the forecast period.
• Based on organization size, the large enterprises segment is predicted to contribute majorly towards global industry surge in the ensuing years.
• On the basis of end-user, the IT & telecom segment is likely to maintain segmental domination in the forthcoming years.
• Region-wise, the Asia-Pacific SIP trunking industry is projected to register the fastest CAGR during the assessment timespan.

SIP Trunking Market: Growth Factors

Rapid popularity of cloud-based solutions is likely to prop up the global market expansion over 2024-2032

Swift acceptance of cloud services, as well as the introduction of new digital transformation initiatives owing to the need for scalable communication tools, will drive the growth of the SIP trunking market over the forecast timeline. Furthermore, an increase in remote work has transformed into a humungous demand for SIP trunking solutions, thereby driving global market trends.

Escalating use of VoIP solutions along with technological innovations will prop up the global market surge. In addition to this, the growing need for cost savings, along with the need for reducing telecom expenses & capital expenditure is likely to expedite the expansion of the market globally. Reportedly, SIP trunking integrates with unified communications tools to provide a seamless experience to the end-users. This, in turn, will steer the expansion of the global market.

SIP Trunking Market: Restraints

High security concerns & lack of expert availability can obstruct the global industry surge

A prominent increase in infrastructural costs and the need for technical expertise are likely to restrict the expansion of the global SIP trunking industry. Growing security issues and concerns related to web connectivity have made SIP trunking susceptible to cyber-attacks such as eavesdropping and distributed denial of service. This, in turn, can obstruct the expansion of the global industry.

SIP Trunking Market: Opportunities

Huge product usage in small & medium-scale enterprises to create new facets of growth for the global market

Integration of IoT and AI creates new communication experiences, which will open new growth avenues for the global SIP trunking market. Furthermore, the development of value-added solutions, including tailored and bundling solutions, will steer the expansion of the global market. Growing product demand in small & medium-sized firms will propel the market expansion over forecast period.

SIP Trunking Market: Challenges

Surging interoperability problems associated with SIP trunking to challenge the global industry over forecast period

Growing interoperability issues and inconsistencies witnessed in internet connectivity are some of the major factors that can prove detrimental to the expansion of the global SIP trunking industry. Furthermore, implementing SIP trunking can prove to be a complex procedure that requires careful planning & execution, thereby hindering the global industry surge.

SIP Trunking Market: Report Scope

SIP Trunking Market: Segmentation

The global SIP trunking market is divided into deployment type, organization size, end-user, and region.                   

In terms of deployment type, the SIP trunking market across the globe is segmented into cloud-based and on-premise segments. Apparently, the cloud-based segment, which garnered nearly two-thirds of the global market proceeds in 2023, is projected to record the fastest CAGR in the next couple of years as a result of the surging demand for scalability and flexibility along with ease of managing cloud-based solutions.  

Based on organization size, the global SIP trunking industry is sectored into small & medium-sized firms and large enterprises segments. Furthermore, the large enterprise segment, which dominated the global industry size in 2023, is likely to contribute noticeably towards the global industry elevation over 2024-2032. This can be due to the use of SIP trunking by large firms for reducing telecom costs along with the necessity of integrating SIP trunking with ERP tools, CRM tools, and other business tools for enhancing their operational efficiency.

On the basis of end-user, the global SIP trunking market is segregated into financial services, retail, education, healthcare, government, IT & telecom, and manufacturing segments. Moreover, the IT & telecom segment, which dominated the segmental surge in 2023, is predicted to retain a segmental leadership position in the forecasting timespan owing to firms in the IT & telecom segment being early adopters of new tools such as SIP trunking. Furthermore, humungous demand for new communication features such as video conferencing and high-quality voice tools as well as strong security is expected to boost the segmental growth.

SIP Trunking Market: Regional Insights

North America is projected to maintain leading position in the global market over the projected timespan

North America, which accounted for about 67% of the global SIP trunking market size in 2023, is expected to establish a leadership post in the global market during the forecasting timeframe. In addition to this, the regional market elevation in the coming eight years can be credited to the presence of key SIP trunking service providers in countries such as Canada and the U.S. Furthermore, access to strong technological infrastructure and acceptance of cloud-based solutions in small, medium, and large firms will steer the regional market growth. A rise in work-from-home activities will embellish the market expansion in the region.

The Asia-Pacific SIP trunking industry is anticipated to register the highest CAGR in the expected timeline. The swift elevation of the industry in Asia-Pacific can be ascribed to the surging acceptance of cloud computing coupled with rising web penetration. Supportive government schemes in countries such as India, South Korea, China, and Japan will multiply the size of the industry in the region.

SIP Trunking Market: Competitive Space

The global SIP trunking market profiles key players such as:

• AXA Group
• Chubb Limited
• American International Group Inc.
• Allianz SE
• Allstate Insurance Company
• The Travelers Indemnity Company
• Liberty Mutual Insurance Company
• Berkshire Hathaway Homestate Companies (BHHC)
• Zurich Insurance Group
• Progressive

The global SIP trunking market is segmented as follows:

By Deployment Type

• Cloud-Based
• On-Premise

By Organization Size

• Small & Medium-Sized Firms
• Large Enterprises

By End-User

• Financial Services
• Retail
• Education
•  Healthcare
• Government
• IT & Telecom
• Manufacturing

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa