SIP trunking services present a strong opportunity for the channel as the global market is expected to reach $12.7 billion by 2023.
That’s according to a new report by MarketsandMarkets, which expects a compound annual growth rate (CAGR) of 10.7 percent. The current market is worth about $7.6 billion.
Key players include such companies as AT&T, 8×8, CenturyLink, Fusion, Mitel, Nextiva, Sprint, Verizon, Vonage and Windstream, the report notes.
Major market drivers include reduced cost of ownership via a pay-as-you-go model, increasing adoption of cloud and UC, and easy integration with PBX systems.
The small-businesses segment is expected to grow the fastest through 2023. Small businesses are adopting SIP trunking services over time-division multiplexing (TDM) circuits as SIP trunking is available at a lower cost and with varied pricing models. Also, the need to enhance collaboration among remote and mobile workers is a major factor.
Among verticals, health care is expected to register the highest CAGR during the forecast period. For hospitals, communication and collaboration among staff members are critical to deliver urgent care. Cloud-based VoIP allows medical professionals to stay connected with their patients and centers of operations from various locations, at any time of the day.
North America, including the United States and Canada, is expected to hold the largest chunk of the market through 2023. These countries dominate in developed economies, allowing them to invest strongly in research and development activities to develop new technologies, according to MarketsandMarkets.