Global SIP trunking market overview

According to Technavio’s analysts, the global SIP trunking market value is anticipated to grow rapidly and post a CAGR of more than 18% during the forecast period. The rising adoption of cloud-based solutions will drive the growth prospects for the global SIP trunking market for the next four years. One of the major factors responsible for the growing rate of adoption of SIP trunking is the increasing awareness among the business units about the technology's inherent flexibility towards an operation that enables the purchase of additional bandwidth. Also, with the growing technological innovations and accessibilities, cloud-based business solutions are stimulated to allow the transition from on-premises systems to unified communications (UC), which can be now achieved in an easier and an affordable manner. Moreover, since larger carriers can cater to more companies in various locations with SIP services in cloud-based UCs, the enterprises are now driving more businesses for vendors of SIP trunking.

In terms of geography, the Americas accounted for the majority market share during 2016 and will continue to dominate the market until the end of 2021. Some of the major factors responsible for the market’s growth in the region includes large-scale deployment of long-term evolution (LTE) network infrastructure and the evolution of new business models in the telecom space.

Competitive landscape and key vendors

The global SIP trunking market is highly competitive and diversified due to the presence of a large number of regional and international vendors across the globe. It has been observed that these vendors are increasingly competing against each other based on factors such as the volume of business or count of subscribers, quality of service, and price tariffs. Furthermore, they are also increasingly focusing on differentiating their offerings based on factors such as interoperability, security, reliability, and pricing.

Key vendors in this market are -

• AT&T
• CenturyLink
• Verizon
• XO Communications

Other prominent vendors in the market include 2600Hz, 3CX, 8x8, Comcast, Cox Communication, Digium, FairPoint Communications, Flowroute, Fusion, IntelePeer, KPN International, Level 3, MegaPath, Nextiva, NTT Communications, Sangoma, ShoreTel, Sprint, Star2Star, Twilio, West IP Communications, Windstream, and Zayo.

Segmentation by deployment of services and analysis of the SIP trunking market

• On-premise SIP trunking
• Hosted SIP trunking

The on-premise SIP trunking services segment accounted for the majority market share during 2016 and will continue to dominate the market for the next four years.  One of the major factors responsible for the market segment’s growth is the ability of on-premise private branch exchange (PBX) session initiation protocol trunk to get lower cost calls.

Segmentation by end user and analysis of the SIP trunking market

• SMEs
• Large enterprises

The small- and medium-sized enterprises (SMEs) segment accounted for the majority market share during 2016 and will continue to dominate the market during the forecasted period. One of the major factors responsible for the increasing adoption of SIP trunking is to increase business productivity. Also, with the growing adoption of unified communication (UC) systems and voice over internet protocol (VoIP), the SIP trunking is witnessing a uniform growth with SMEs.

Key questions answered in the report include

• What will the session initiation protocol (SIP) trunking market size and the growth rate be in 2021?
• What are the key factors driving the global session initiation protocol (SIP) trunking market?
• What are the key market trends impacting the growth of the global session initiation protocol (SIP) trunking market?
• What are the challenges to market growth?
• Who are the key vendors in the global session initiation protocol (SIP) trunking market?
• What are the market opportunities and threats faced by the vendors in the global session initiation protocol (SIP) trunking market?
• What are the trending factors influencing the market shares of the Americas, APAC, and EMEA?
• What are the key outcomes of the five forces analysis of the global session initiation protocol (SIP) trunking market?

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