Sip Trunking Service Market Research Report By Deployment (On-premises, Cloud-based), By Organization Size (Small and medium-sized enterprises (SMEs), Large enterprises), By Application (VoIP, Unified communications (UC), Contact center, Video conferencing), By Industry (Financial services, Healthcare, Retail, Manufacturing, Information Technology) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032.

Sip Trunking Service Market Overview

The Sip Trunking Service Market Size was estimated at 47.83 (USD Billion) in 2022.The Sip Trunking Service Market Industry is expected to grow from 54.41(USD Billion) in 2023 to 173.4 (USD Billion) by 2032. The Sip Trunking Service Market CAGR (growth rate) is expected to be around 13.75% during the forecast period (2024 - 2032).

Key Sip Trunking Service Market Trends Highlighted

Key market drivers fueling the growth of the SIP trunking service market include the increasing adoption of cloud-based communication solutions, rising demand for cost-effective and flexible communication channels, and the need for enhanced security and reliability in business communications. Enterprises are recognizing the benefits of SIP trunking, such as lower costs, improved call quality, and increased flexibility compared to traditional phone lines.

Opportunities in the SIP trunking service market are centered around the expansion of cloud communications, integration of advanced technologies such as artificial intelligence (AI), and the growth of remote working. AI-powered SIP trunking services can offer enhanced call routing, fraud detection, and personalized customer experiences. Remote working trends have driven demand for secure and reliable communication solutions, making SIP trunking an attractive option for businesses.

Recent trends shaping the SIP trunking service market include the adoption of hybrid work models, increasing usage of video conferencing, and the rise of unified communications as a service (UCaaS). Hybrid work models have led to a growing need for seamless communication between on-premises and remote employees. Video conferencing has become essential for remote collaboration, and SIP trunking services offer high-quality videoconferencing capabilities. UCaaS platforms combine SIP trunking with other communication tools, providing a comprehensive solution for businesses. 

Figure1: Sip Trunking Service Market, 2018 - 2032 (USD Billion)

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Sip Trunking Service Market Drivers

Rising Adoption of Cloud-Based Communication and Collaboration Tools

The increasing adoption of cloud-based communication and collaboration tools, such as unified communications (UC) and video conferencing, is driving the growth of the  Sip Trunking Service Market Industry. These tools enable businesses to connect with customers, partners, and employees from anywhere, at any time, on any device. Sip Trunking services provide a cost-effective and flexible way to connect these cloud-based tools to the PSTN, making them more accessible and affordable for businesses of all sizes.The shift towards remote and hybrid work models has further accelerated the adoption of cloud-based communication and collaboration tools. As more businesses adopt these tools, the demand for Sip Trunking services is expected to continue to grow.  In addition, the growing popularity of bring-your-own-device (BYOD) policies is also contributing to the demand for Sip Trunking services. BYOD policies allow employees to use their personal devices for work purposes, which can lead to increased flexibility and productivity.However, BYOD policies can also pose security challenges, as personal devices may not be as secure as corporate-issued devices. Sip Trunking services can help to mitigate these security risks by providing a secure connection between personal devices and the corporate network.  Overall, the rising adoption of cloud-based communication and collaboration tools, the shift towards remote and hybrid work models, and the growing popularity of BYOD policies are all driving the growth of the  Sip Trunking Service Market Industry.

Increasing Demand for Unified Communications Solutions

The growing demand for unified communications (UC) solutions is another key driver of the  Sip Trunking Service Market Industry. UC solutions integrate multiple communication and collaboration tools, such as voice, video, instant messaging, and presence, into a single platform. This provides businesses with a more efficient and streamlined way to communicate and collaborate, both internally and externally.  Sip Trunking services play a vital role in enabling UC solutions.By connecting UC platforms to the PSTN, Sip Trunking services allow businesses to make and receive phone calls, send and receive faxes, and participate in video conferences from anywhere, at any time, on any device.  The demand for UC solutions is being driven by a number of factors, including the rising adoption of cloud-based communication and collaboration tools, the shift towards remote and hybrid work models, and the growing need for businesses to improve their customer service.As the demand for UC solutions continues to grow, the demand for Sip Trunking services is also expected to increase.

Growing Adoption of Mobile Devices

The growing adoption of mobile devices is also contributing to the growth of the  Sip Trunking Service Market Industry. Smartphones and tablets are becoming increasingly popular for both personal and business use. This is leading to a growing demand for mobile-friendly communication and collaboration tools.  Sip Trunking services can be used to connect mobile devices to the PSTN, enabling users to make and receive phone calls, send and receive faxes, and participate in video conferences from anywhere, at any time.This is making Sip Trunking services increasingly attractive to businesses that have a mobile workforce or that want to provide their employees with the flexibility to work from anywhere.

Sip Trunking Service Market Segment Insights

Sip Trunking Service Market Deployment Insights 

The two main segments of the  Sip Trunking Service Market are deployment and vertical. The deployment segment is further divided into on-premises and cloud-based. The cloud-based segment is expected to dominate the market in the coming years, owing to its various advantages such as scalability, cost-savings, and easy deployment. The share of the on-premises segment decreased in. The cloud-based segment accounts for 60% of the overall market share, and the on-premises segment accounting for the remaining s. The cloud-based segment is expected to grow at a CAGR of nearly 15% in the forecast period.The overall growth of the deployment segment of the  Sip Trunking Service Market is attributed to the growth of the cloud-based sub-segment, which will drive the growth of the market. The reasons for the increasing popularity of the technology are as follows Scalability Cloud-based Sip Trunking services can be scaled up and scaled down for businesses to increase or decrease the number of converted phone lines. As such, it is an appropriate technology for businesses that experience rapid growth and high call traffic, and for businesses that make or receive differing numbers of calls month to month.It is also a great option for businesses that require the calling volume to be kept under schedules for a specific period of time.    Reduced costs Cloud-based Sip Trunking services are cheaper than on-premises Sip Trunking solutions in most cases. Businesses do not have to incur the huge cost of acquiring new networking hardware or IP desk phones. The technology uses the public telephone system, meaning that you can place calls through your cloud provider.    Easy Deployment . Businesses can easily and quickly deploy the technology because businesses do not have to deploy new hardware, software, or firmware.Implementation of Vendor SBC and a pre-configured device can easily take as few as 30 minutes. The deployment segment of the  Sip Trunking Service Market will experience massive growth in the coming years. 

Figure2: Sip Trunking Service Market, By Deployment, 2023 & 2032 (USD billion)

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Sip Trunking Service Market Organization Size Insights  

The  Sip Trunking Service Market is classified as per organization size into Small and medium-sized enterprises  and Large enterprises. The large enterprise segment contributed to a higher share in revenues generated in the  Sip Trunking Service Market 2023. The large enterprises are adopting cloud-based communication solutions to ensure efficient collaboration and pathways for productivity. However, the sme segment has been forecasted to outpace the growth in terms of CAGR during the forecast period. The SME segment’s share in the Sip Trunking Service Market revenue is expected to reach a considerably higher share by the year 2025.The growth is expected owing to the growing adoption of cloud-based communication solutions by the SME segment to reduce their operational cost and improve flexibility. The SME segment is also implementing cloud-based communication solutions to ensure a seamless non-disruptive scale of their communication capabilities.

Sip Trunking Service Market Application Insights  

The  Sip Trunking Service Market segmentation by Application is broadly divided into VoIP, Unified communications (UC), Contact center, and Video conferencing. Among these, the VoIP segment is expected to account for the largest revenue share in 2023, owing to its extensive adoption in enterprises for cost-effective and reliable voice communication. The Contact center segment is estimated to exhibit the highest growth rate during the forecast period, driven by the increasing demand for cloud-based contact center solutions that offer enhanced customer experience and improved agent productivity.Unified communications (UC) and Video conferencing segments are anticipated to witness significant growth due to the rising adoption of integrated communication and collaboration solutions within organizations.

Sip Trunking Service Market Industry Insights  

The  Sip Trunking Service Market is segmented into various industries, including Financial services, Healthcare, Retail, Manufacturing, and Information Technology. Among these, the Financial services industry held the largest market share in 2023, accounting for approximately 28.5%. The growth of the Sip Trunking Service Market in this industry is driven by the increasing adoption of cloud-based communication and collaboration solutions, as well as the need for secure and reliable communication channels for financial transactions. The Healthcare industry is another major segment, with a market share of around 22.3% in 2023.The demand for Sip Trunking Service in healthcare is driven by the need for efficient and cost-effective communication between healthcare providers, patients, and other stakeholders. The Retail industry is also a significant segment, with a market share of approximately 19.1% in 2023. The growth of e-commerce and the increasing adoption of omnichannel retailing are driving the demand for Sip Trunking Service in the retail sector. The Manufacturing and Information Technology industries are also expected to contribute to the growth of the Sip Trunking Service Market in the coming years.

Sip Trunking Service Market Regional Insights  

The  Sip Trunking Service Market is segmented into North America, Europe, APAC, South America, and MEA. North America held the largest market share in 2023 and is expected to continue its dominance during the forecast period. The growth in this region can be attributed to the increasing adoption of cloud-based services and the presence of major service providers such as AT, Verizon, and CenturyLink. Europe is expected to be the second-largest market, followed by APAC. The rising demand for cloud-based services and the growing adoption of Unified Communications (UC) solutions are driving the growth in these regions.South America and MEA are expected to experience significant growth during the forecast period, owing to the increasing penetration of mobile devices and the growing adoption of cloud-based services. 

Figure3: Sip Trunking Service Market, By Regional, 2023 & 2032 (USD billion)

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Sip Trunking Service Market Key Players And Competitive Insights

The Sip Trunking Service Market industry’s leading major players are constantly vying for the best strategies to gain a competitive edge such as mergers and acquisitions, partnerships, and product launches. Accordingly, the best sip trunking companies are heavily investing in research and development with the aim to pursue better product offerings and expand their market footprint. The sip trunking development sector is characterized by an extremely high degree of dynamism with new contenders and established leaders that are too eager to expand their technical capabilities, as is notably the case with partnerships. As such, the companies that are recognized as the players to be watched in the sip trunking development sector are outlined as follows.

Among a number of players in the Sip Trunking Service Market, 88, Inc. is notably an established major player in the market with its cloud-based communications and collaboration solutions product offering. Its innovation-centric and customer-focused approach has allowed the company to establish a high degree of market penetration and market share. The company continues to enhance its platform by heavily investing in both technology capabilities and product expansion. Its strategy to foster a frictionless, yet robust communications experience is making the company into a leading player in the Sip Trunking Service Market.One of the major players in the Sip Trunking Service Market is Vonage, is a pioneering company in the cloud communications field with its training in delivering strong customer services for businesses. The company’s offer is based on a solid product range that serves businesses of any given size. Vonage continues to invest in its network capabilities and development plans by partnering with major market players.

Key Companies in the Sip Trunking Service Market Include

• Tata Communications


• Comcast


• Orange SA


• AT


• Vodafone Group


• NTT Communications


• Telefonica SA


• SoftBank


• CenturyLink


• Bharti Airtel


• KDDI


• Verizon


• Deutsche Telekom


• BT Group

Sip Trunking Service Market Industry Developments

The  Sip Trunking Service Market is projected to reach a valuation of USD 173.4 billion by 2032, exhibiting a CAGR of 13.75% during the forecast period (2024-2032). The market is driven by the increasing adoption of cloud-based communication solutions, rising demand for unified communications, and growing popularity of remote work. Recent developments include the launch of new services by major players such as Microsoft Teams Phone, Zoom Phone, and Google Voice. Additionally, the integration of artificial intelligence (AI) and machine learning (ML) technologies is expected to further enhance the capabilities of SIP trunking services. Key market players are focusing on strategic partnerships, acquisitions, and product innovations to gain a competitive edge.

Sip Trunking Service Market Segmentation Insights

Sip Trunking Service Market Deployment Outlook

• On-premises


• Cloud-based

Sip Trunking Service Market Organization Size Outlook

• Small and medium-sized enterprises (SMEs)


• Large enterprises

Sip Trunking Service Market Application Outlook

• VoIP


• Unified communications (UC)


• Contact center


• Video conferencing

Sip Trunking Service Market Industry Outlook

• Financial services


• Healthcare


• Retail


• Manufacturing


• Information Technology

Sip Trunking Service Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa