SIP Trunking Market Size, Trends and Growth Analysis by 2027

The SIP trunking sector was valued at approximately US$ 13.44 billion in 2019 and is anticipated to grow to US$ 30.22 billion by 2027. This market is expected to experience a compound annual growth rate (CAGR) of 10.8% during the forecast period from 2020 to 2027.

The global SIP trunking market is categorized into five primary regions: North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and South America (SAM). In 2019, North America dominated the global SIP trunking market, accounting for 36.7% of the revenue share. This region benefits from a robust infrastructure of advanced telecommunications networks that provide high-speed Internet, alongside a variety of network services including 5G, 4G, and VoLTE.

Conversely, the Asian market is experiencing significant growth in SIP trunking, driven by the increasing adoption of digital technologies and Internet services in rapidly developing nations like India and China. The youthful, tech-savvy population in these countries is contributing to the rising demand for voice services based on SIP trunking. Notably, China holds a substantial share of the SIP trunking market, fueled by its growing embrace of digital technologies and Internet connectivity. Meanwhile, European nations such as the UK, Italy, and France are also transitioning towards digitalization and automation, further propelling market growth.

Within North America, the United States stands out as the most advanced country in terms of technology adoption. As a pioneer in technological advancements, the US presents a significant opportunity for newly developed voice services. The uptake of IP-based voice services in the US surpasses that of other North American countries, prompting SIP trunking service providers to enhance their offerings and service packages.

The Middle East region is expected to witness considerable growth during the forecast period, largely due to the established presence of traditional call switching technologies and favorable government policies that encourage foreign direct investment. Although the oil and gas sector has historically dominated the region, a decline in its growth has led to a shift towards industrialization and digitization. This pivot towards new technologies and industrial development presents a promising opportunity for the SIP trunking market.

The overall size of the SIP trunking market has been determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data pertinent to the SIP trunking market. This approach not only provides a comprehensive overview and forecast of the market across all segments but also offers insights based on the segmentation across the five major regions: North America, Europe, Asia-Pacific, MEA, and SAM.

Additionally, primary interviews were conducted with key industry participants and commentators to validate the data and gain deeper analytical insights into the market. The interviewees included industry experts such as Vice Presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the SIP trunking domain.

In summary, the SIP trunking market is on a robust growth trajectory, driven by advancements in technology and increasing digitalization across various regions. The interplay of market dynamics, regional developments, and technological innovations will continue to shape the future of SIP trunking, making it a critical area for investment and development in the coming years.