4 min
According to a new market research report, published by MarketsandMarkets™, the size of SIP Trunk’s global market is expected to grow from 7.63 billion dollars reported in 2018 to 12.70 billion dollars in 2023, with a compound annual growth rate (CAGR) of 10.7% during the forecast period.
What is the SIP Trunk?
The SIP Trunk consists of a data connection that is made over the Internet through IP to connect a physical switchboard of a customer with the outside. That is, it replaces the physical lines with an IP communication. IP telephony or VoIP is like traditional telephony; only it works through the network. With an Internet connection you can start the SIP Trunk.
IP telephony is capable of transforming the voice into data packets so that it can be transmitted through the network. What a SIP trunk does is to act as a link between an IP telephony service and a public telephony network. That is, it is the link between the company and the network.
For a company to start up this online service, it is not necessary to have additional wiring. All you need is a bandwidth that allows you to support the transfer of data, as well as the hiring of the necessary IP telephony channels.
What Factors Will Drive The Growth Of SIP Trunk, In Addition To Cost Savings?
1) Sales Of PBXs Hosted In The Cloud
Hundreds of service providers are now in the hosted VoIP market. The remarkable growth rate of virtual switchboards has increased sales of VoIP phones. SIP Trunking complements cloud applications, so the growth of sales in the cloud is driving demand.
2) Unified Communications
Eight unified communications applications play an important role in the creation of SIP demand. These are VoIP, unified messaging, instant messaging / chat, presence, fixed-mobile convergence, video conferencing, unique reach number and out-of-area numbers. Demand will increase for these and other UC applications until 2020. This will help boost SIP’s growth.
3) Collaboration
The collaboration in real time is increasing. According to a study by Eastern Management Group, 62% of IT managers say that collaboration technologies are important for their business. Collaboration, including video, thrives in SIP.
4) Full Service Providers
The intensity of SIP competition, erosion margins and new services has created a demand for full-service SIP providers. While many of them can use another provider’s network, this is often not important to the customer. The full service providers offer a wide portfolio of products, services and software of value for the SIP client.
5) Ecosystem Partners
These partners may not be in the SIP business per se, but may offer products that complement those of a SIP provider, as well as offer differentiation and new sources of income to the SIP provider.
6) Managed Services
These annuities are incremental revenues and profits for the SIP provider. Managed WAN, LAN, security and video are complementary to the offers of SIP providers.
All these factors are taking SIP sales to new levels. While most end users have at least some SIP elements today, it can take 10 years or more before the demand for SIP decreases. During this continuous evolution, the market will change. This will give way to more providers, and SIP solutions, in a constant movement effect.
The Small Business Segment Will Have The Highest Growth Rate
In the SIP Trunk service market by organization size, the small business segment is expected to register the highest growth rate until 2023. SMEs are adopting SIP Trunking services through division multiplexing circuits. Time, since these services are available at a lower cost and with different price models. The need to improve collaboration between remote and mobile workers is an important factor for the increasing adoption of SIP Trunking services among this type of organizations.
Vertical Health Care Will Grow With The Highest CAGR
Analyzing the SIP Trunking market by verticals, medical care is expected to grow at a higher compound annual growth rate over the next 4 years. For hospitals, communication and collaboration among staff members are essential to provide urgent care, in hospitals and other health centers. Cloud-based telecommunications, in the form of Voice over Internet Protocol (VoIP) telephony, allow medical professionals to stay connected with their patients and operations centers from various locations, at any time.
North America Will Have The Largest Market Size Between 2018 And 2023
North America is expected to have the largest share of the global SIP trunk service market. Both the United States and Canada will dominate the global SIP Trunk market with developed economies and in a mature market, which will allow them to make heavy investments in R & D activities for the development of new technologies.
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