SIP Trunking Services Market to expand at a CAGR of 18.6% till 2024 - TMR

Posted by surendra choudhary on March 26th, 2020

SIP (Session Initiation Protocol) Trunking Services market is set to see a steady CAGR (Compound Annual Growth Rate) of 18.6% during the forecast period 2016 to 2024, as per a Transparency Market Research (TMR) study. It would translate to market opportunities worth USD 20.75 bn.  It is primarily owing to their cost benefits over traditional telephony systems.

The use of SIP Trunking services in BFSI, Telecom and IT, Healthcare, Retail, Government, transportation, media and entertainment and many other sectors will propel the global SIP Trunking Services market. These sectors are set to create numerous growth opportunities.

The prominent players in the global SIP trunking services market include Flowroute, Inc., 3CX Ltd., Nextiva, Inc., XO Communications LLC, Twilio, Inc., 8X8, Inc., and KPN International N.V.

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The Asia Pacific (APAC) Region to Be a Lucrative Market in the Forecast Period

North America will dominate the market owing to high level of adoption by businesses and the presence of an established network infrastructure. Besides the high concentration of IT and Telecom organizations in the region will also contribute positively. But, on the other hand, it is Asia Pacific that will generate a reservoir of untapped opportunities in the global SIP Trunking Services market. The reason for the lucrativeness of this region is attributable to countries like Japan that are technologically advanced and are leading to greater adoption of SIP trunking. Also, countries like China, India and the Philippines are anticipated to drive the market forward with the increase in investment in the commercial sector and infrastructural development projects. Besides, the increase in BPO units is in this region will propel market growth. It will be the fastest growing regional segment in the global SIP trunking services. Therefore, it comes as no surprise that vendors are now focusing on areas like Hong Kong, India, the Philippines, Australia, and Singapore. The TMR analyst observes that for the market as a whole, “Hosted SIP trunking services, however, are anticipated to overtake on-premise services by 2024 to account for a share of over 51%.”

Initiatives to Resolve Security and Interoperability Issue to Drive Market Forward

One of the primary factors behind growth of SIP trunking services in Europe, North America and Asia Pacific is the migration of telecom companies to IP (Internet Protocol) en masse. “Several established players are taking initiatives to shift their customers to IP networks owing to the benefits of SIP trunking over traditional telephony services,” the author of the TNR study notes. For example, in 2014, Slovak Telekom, which is a part of Deutsche Telekom Group, migrated the whole customer base to IP. And, it is not the safety aspect of it that it covers. It also allows for scalability so that companies can include more channels in extant trunks. All this favors market growth. “Data breach and interoperability issues are some of the key challenges that the SIP trunking services market is faced with in North America, Europe, and Asia Pacific,” the TMR analyst observes.

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Differences among service providers to hinder functionality

The hindrance in seamless operability is created by differences among service provides. It issue is also sometimes created by differences among edge devices and IP-PBX vendors. But, to fix the situation, IP phone vendors as well as SIP trunking services vendors are now undertaking interoperability tests. Therefore, it won’t be wrong to say that by the end of the forecast period, the market would have done extremely well, generating plenty revenue for market players.

This review is based on the findings of a TMR report titled “SIP Trunking Services Market - North America, Europe, Asia Pacific Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”