Workplace Collaboration MetriCast 2024: SIP Trunking Market Share & Forecast 3Q24

The most common means of PSTN connectivity today is via SIP trunking, and businesses obtain these services in various ways. SIP trunking providers may offer APIs to support number provisioning and management. Additional options include integrated third-party tools for administration management, security capabilities such as toll-fraud detection and protection against SIP-based attacks, emergency call management, SMS/MMS, encryption, and performance management to guarantee voice quality.Few businesses are all-in with one form of PSTN connectivity, especially large enterprises that may have multiple calling and contact center platforms, in addition to special-use single phone line requirements. Metrigy’s Workplace Collaboration MetriCast 2024 study for SIP trunking shows that 46.8% of respondents utilize SIP trunks to on-premises PBXs, 35.7% bring their own SIP to UCaaS services. However, 43.9% simply obtain PSTN connectivity as a bundled offering from their UCaaS provider.This SIP trunking analysis focuses on the SIP services for which businesses contract on their own. These include connectivity for on-prem PBXs, as well as BYOC for UCaaS. The report provides details on SIP trunking spending, market size and forecast, and vendor selection, along with segmentation by size and global region. Highlights of the study include the following:

• The global market size for SIP trunking was $11.4 billion in 2023, up 8.6% year over year (YoY). Metrigy forecasts the market to grow at a 6.7% CAGR from 2023 to 2028, reaching $15.8 billion by 2028. SIP connectivity is a relative commodity, which suppresses revenue growth.
• Businesses using Microsoft Teams Phone primarily connect to the PSTN through Microsoft Calling Plans (57.0%), followed by Microsoft Direct Routing (28.0%) and Operator Connect (12.0%) offerings.
• SIP trunking providers offer a few options on how they bill for services, the most common one is a fixed rate per trunk, with 44.9% of businesses using this with unlimited calling for SIP to UCaaS and 40.0% for SIP to PBXs. The second most-common option is fixed rate per trunk with a metered rate for calling minutes; 26.9% of businesses favor this for SIP to UCaaS and 31.7% for SIP to PBXs.
• SIP trunking is a highly fragmented market comprising a handful of global providers plus regional and local providers. The largest portion of businesses use the larger, incumbent providers, including AT&T, BT, Orange, and Verizon. Another wave of providers includes a mix of Microsoft Teams specialists and local providers, including Bandwidth, BCM One, CallTower, Fusion Connect, Gamma, Liquid, Lumen, and NuWave.
• The most important factor for businesses evaluating SIP trunking providers for PBX deployments is performance and administration management, while for SIP trunking to UCaaS it is service reliability.