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SIP Trunking $22 Billion Market Worldwide by 2024
There is an unmistakable beauty to SIP trunking, an inexpensive network utility with a Swiss Army knifeful of uses. I won't run down a benefit check list, but the most obvious benefit, as shown below, is the paltry cost of SIP trunks in comparison to PBX and business access lines. Twilio's $0.0085/min to receive and $0.013/min to make a call is a case in point from Eastern Management Group's new report.
Instead, I'll start out by detouring to the as-a-service aspect of SIP trunking -- a perpetual motion machine for getting SIP trunking into the most far-flung world countries, through the delivery model of channel partners.
Eastern Management Group this month introduced the new SIP report, "2018-2024 SIP Global Market 7-Year Forecast and Analysis." Based on interview data from 40,000 IT manager surveys, we analyzed SIP in companies ranging in size from one employee to more than 20,000 employees, across 19 vertical markets, and in every world region. Selected SIP trunk data from the report is discussed here.
Queue the Channel Partners
Large and small communications vendors -- those selling products and services such as PBXs, contact centers, video, routers, switches, security, unified communications, applications, and more -- make a big contribution to worldwide SIP trunk growth. Many providers have up to several thousand channel partners with millions of customers.
Channel partners with applications in the cloud, for example, can plug a SIP trunk into an application platform like communications platform as a service (CPaaS). Partners then run SIP trunks from the platform to customer PBXs and extend connectivity across. If a partner's customer requires service to far-off branch offices, no problem; ditto for other countries. The channel partner model I just described is an accelerant, putting SIP trunks anywhere in the world with regulatory approval.
We can see some effects of a globally focused channel partner ecosystem by looking at the numbers. As the chart below shows, the world doesn't simply have SIP trunking, it oozes with it. Western Europe has the most businesses using SIP. Everywhere else is in the running.
The SIP trunking market is valued at more than $14 billion in revenue. By 2024, SIP trunking sales will reach $22 billion. Today, SIP accounts for almost 60% of all network traffic, worldwide.
SIP trunking's excellent vendor reputation fuels its global growth. Recently, Eastern Management Group did a customer satisfaction study and reported metrics on 31 SIP trunking providers. All vendors had their share of strong points across 10 customer satisfaction measurements we tested. In the important category of "Overall Satisfaction," Flowroute topped the competitors, earning four-stars out of a possible four. It wasn't alone. Customers similarly awarded four-star ratings to Sprint, XO Communications, and Twilio.
We expect SIP traffic to grow 25% over the coming seven years. For providers and customers, this will continue to drive forward communications and business opportunities in practically every country.
This is Eastern Management Group's most recent worldwide SIP market forecast study. More information about the report, "2018-2024 SIP Global Market 7-Year Forecast and Analysis," is available from Eastern Management Group. For questions about the study and report please ask our researchers or email [email protected] directly.