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SIP Trunking Growth to Continue

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May 29, 2014

SIP Trunking Growth to Continue

By TMCnet Staff


Communications over IP has introduced new levels of efficiency and flexibility that allows individual users and businesses to use many features which in the past would have been too expensive. With VoIP services, SMBs can now compete with large enterprises when it comes to comprehensive communications solutions without breaking the bank. This has resulted in more businesses of all sizes choosing VoIP as their preferred communication service.

A recent forecast conducted by Infonetics (News - Alert) has revealed the VoIP and unified communications (UC) service market is set to grow to $88 billion by 2018, with the business VoIP sector accounting for $35 billion of that total.

Businesses are adopting VoIP because it provides packaged solutions that lets companies pay only for what they need and use. Additionally the technology is scalable on either direction with minimal CAPEX, making it the ideal platform for startups and SMBs as well as large enterprises.

"Business VoIP services have moved well beyond early stages to mainstream, strengthened by the growing adoption of SIP trunking and cloud services worldwide. Hosted unified communications are seeing strong interest up market as mid-market and larger enterprises evaluate and move more applications to the cloud, and this is positively impacting the market," notes Diane Myers, principal analyst for VoIP, UC, and IMS at Infonetics Research (News - Alert).

Some of the key metrics from the forecast include:

  • Global overall market for business VoIP services in 2013 grew 11 percent with revenues of $24 billion
  • Sales of hosted PBX (News - Alert)  and unified communication (UC) services rose 13 percent in 2013 over 2012, and seats grew 35 percent due to continued demand for enterprise cloud-based services
  • Session Initiation Protocol (News - Alert) (SIP)  trunking rose 50 percent in 2013 from the prior year, driven primarily by North America; EMEA is projected to be a strong contributor in 2014
  • Managed services are benefitting from the continued adoption of IP PBXs: Roughly 10–20 percent of new IP PBX lines sold are part of a managed service or outsourced contract

According to Myers cloud solutions will play a great role in the future of VoIP, but public switched telephone network (PSTN) still makes up more than 50 percent of the connection for businesses.

The global market is very disparate with the US accounting for the largest growth in adoption of this technology. According to the report the competitive and regulatory environment in the US makes it the ideal place for this industry to grow. The growth is also driven by a strong adoption of IP services, UC and SIP connectivity.

Edited by Stefania Viscusi

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