North America Session Initiation Protocol (SIP) Trunking Services Market – Industry Trends and Forecast to 2030

North America Session Initiation Protocol (SIP) Trunking Services Market, By Type (Hosted, On Premise), Organization Size (Large Enterprises and Small and Medium-Sized Enterprises (SMEs), Application (Voice, Video, Streaming Media, Web Conferencing, and Desktop Sharing), Vertical (Banking, Financial Services and Insurance, Healthcare and Life Sciences, Telecommunication and IT, Government and Public Sector, Manufacturing, Consumer Goods, and Retail, Media, and Entertainment, and Others) - Industry Trends and Forecast to 2030.

North America Session Initiation Protocol (SIP) Trunking Services Market Analysis and Size

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Data Bridge Market Research analyses that the North America session initiation protocol (SIP) trunking services market which was USD 4583.99 million in 2022, is expected to reach USD 11903.17 million by 2030, and is expected to undergo a CAGR of 12.7% during the forecast period 2023-2030. This indicates the market value. “Banking, Financial Services and Insurance” is expected to witness high growth in the application segment. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

North America Session Initiation Protocol (SIP) Trunking Services Market Scope and Segmentation

Market Definition

The session initiation protocol (SIP) is an application layer protocol that allows the user to use their phone system over an internet connection instead of traditional phone lines. The backbone of phone lines used by various users that connects to a telephone network is referred to as trunking. SIP trunks connect an on-premise phone system to the public switched telephone network, often known as PSTN, via Voice over Internet Protocol (VoIP). For instance, an office may already have a PBX for phone service. SIP trunks give phone service to the entire office, allowing them to communicate with the rest of the world.

North America Session Initiation Protocol (SIP) Trunking Services Market Dynamics

Drivers

•  Grow in Focus on Reducing Operational Cost

SIP trunking enables businesses to break down barriers between people who use various communication modes, media, and devices to communicate with anyone, at any time, from anywhere. It is the most cost-effective and reliable centralized communication system. Enterprises are moving towards SIP to reduce telecom costs by 30-50 percent. This significant cost reduction is possible because call control assets are centralized, which creates a single network to manage all the calls. Furthermore, unlike traditional integrated digital services network (IDSN) trunks, which require the purchase of a full set of primary rate interface (PRI) channels, SIP trunking allows businesses to acquire only the number of sessions required for their individual needs. With "bursting" options, providers can offer additional call capacity on demand. Also, over-provisioning to address transient surges or volume peaks, as well as its expense, is no longer necessary.

• Increase in Penetration of Internet Services

The internet has reduced the cost of communication. SIP calls use the internet instead of expensive physical phone lines. This cut down the cost of buying local PSTN (Public Switched Telephone Network) gateways or PRI (Primary Rate Interface) lines. Thus, the increase in the penetration of the internet is increasing the demand for SIP trunking services in the market.

Opportunity

• Increase in Various Strategic Decisions

Strategic partnerships and acquisitions help both companies to work for the desired goal. As the marketplace is changing and evolving, the customers are consistently looking for newly developed products and advancements in technology. Meanwhile, the Internet of Things (IoT) and artificial intelligence (AI) are attracting more business investment as attention begins shifting from underlying sensors and connected devices to real-world scenarios driven by advances in IoT technology.  

Restraint/Challenge

• Concerns Over Security and Privacy

The internet-based systems make businesses operations easier. But they also make the business vulnerable to attacks from hackers. A security breach in any of the business systems can damage and can cause operational disruptions. SIP trunking requires the internet which helps to connect communications. This makes the phone system vulnerable to internet attacks. Hackers attack the private branch exchange (PBX) to overload the system by placing costly international calls. This also helps them access to gather all the confidential information of the people.

Recent Developments

• In December 2021, 8X8, Inc. have enhanced cloud contact center and phone solution to support multinational enterprises with operations in the Philippines. This had further helped the company to extend the range of capabilities in the cloud based services across the market
• In November 2021, Fusion Connect, Inc. had expanded service guarantee covering voice and data services, including Unified Communications (UCaaS) and SD-WAN. This had further helped the company to enhance its service portfolio in the premium market

North America Session Initiation Protocol (SIP) Trunking Services Market Scope

The North America session initiation protocol (SIP) trunking services market is segmented on the basis of type, organization size, application and vertical. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Hosted
• On Premise

Organization Size

• Large Enterprises
• Small and Medium-Sized Enterprises (SMEs)

Application

• Voice
• Video
• Streaming Media
• Web Conferencing
• Desktop Sharing

Vertical

• Banking, Financial Services and Insurance
• Healthcare and Life Sciences
• Telecommunication and IT
• Government and Public Sector
• Manufacturing
• Consumer Goods, and Retail
• Media, and Entertainment
• Others

North America Session Initiation Protocol (SIP) Trunking Services Market Region Analysis/Insights

The North America session initiation protocol (SIP) trunking services market is analyzed and market size insights and trends are provided by region, type, organization size, application and vertical , as referenced above.

The countries covered in the North America session initiation protocol (SIP) trunking services market report are the U.S., Canada, Mexico. U.S. dominates the North America region due to high adoption of advanced technology and the presence of major service providers in the region.

The country section of the report also provides individual market-impacting factors and changes in regulation in the market domestically that impact the current and future trends of the market. Data points like downstream and upstream value chain analysis, technical trends, and Porter’s five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of regional brands and the challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the region data.

Competitive Landscape and North America Session Initiation Protocol (SIP) Trunking Services Market Share Analysis

The North America session initiation protocol (SIP) trunking services market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, regional presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the companies' focus related to the North America session initiation protocol (SIP) trunking services market.

Some of the major players operating in the North America session initiation protocol (SIP) trunking services market are:

• BT (U.K.)
• 8x8, Inc.  (U.S.)
• Verizon (U.S.)
• 3CX (U.S.)
• Colt Technology Services Group Limited (U.K.)
• GTT Communications, Inc. (U.S.)
• IBM Corporation (U.S.)
• IntelePeer Cloud Communications LLC. ( U.S.)
• net2phone (U.S.)
• Nextiva (U.S.)
• Rogers Communications Inc.(Canada)
• Telstra  (Australia)
• TWILIO INC. (U.S.)
• Vonage (U.S.)
• VOYANT COMMUNICATIONS ( U.S.)