Workplace Collaboration MetriCast 2023: Enterprise SBC Size and Spending Forecast

Published on: September 28, 2023

Author: Diane Myers, Principal Analyst
This year’s Workplace Collaboration MetriCast 2023 market size and forecast report for eSBCs shows modest adoption rates as businesses continue migration to cloud-based UCaaS and Contact Center-as-a-Service (CCaaS) offerings. eSBC may not be necessary if customers purchase PSTN connectivity as part of their UCaaS or CCaaS service. Alternatively, UCaaS and CCaaS customers may purchase separate PSTN connectivity via providers that offer eSBC functionality as a cloud-hosted service (SBC as a Service, or SBCaaS), eliminating the need for on-premises eSBCs. Organizations (especially larger ones) that connect their on-premises UC or contact center platforms to SIP trunking providers are still adopting eSBCs. As a primary example, companies using Direct Routing as a PSTN connectivity option for Microsoft Teams are likely to require eSBC deployment if they have a multi-carrier environment. This report provides in-depth details on eSBC 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 eSBCs was $597.8 million in 2022, up 14% year-over-year (YoY). Metrigy forecasts the market to grow at a 2% CAGR from 2022 to 2027, reaching $662.4 million by 2027. The market slows as businesses transition from dedicated appliances managed on premises to SBCs in the cloud managed as a service (the SBCaaS model).
  • SBCs are in use worldwide, with 25.5% of businesses today in North America representing the largest adoption rate. Companies with 251 to 10,000 employees utilize eSBCs more so than smaller businesses or the very large enterprises, by a small margin.
  • A handful of eSBC vendors have varying positions of strength: AudioCodes, Avaya, Cisco, Ingate, Oracle, and Ribbon. AudioCodes and Ribbon are well positioned with Microsoft Teams calling, which represents the largest opportunity for new SIP connections today.
  • Among those using eSBCs, 46% have no plans to replace their primary vendor. Moving to SBCaaS is the number one reason for those looking to make a change, followed by the cost and product roadmap.
  • We track the percentage of each vendor’s customers that plan to stay with that provider, as well as the percentage that are evaluating or planning a switch to new vendors. Oracle and Cisco are the top vendors with customer retention and under evaluation for businesses looking to make a change.

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