Workplace Collaboration MetriCast 2024: Enterprise SBC Market Share & Forecast: 4Q24 & CY2024

Metrigy’s Workplace Collaboration MetriCast 2024 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. An 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 or wish to centralize PSTN connectivity for multiple UC and contact center platforms. The use of an eSBC as a branch appliance for remote survivability also has the potential of helping drive new opportunities. This report provides in-depth details on eSBC adoption, market size and forecast, and market shares, along with segmentation by size and global region. Highlights of the study include the following:

• The global market size for eSBCs was $512.4 million in 2024, down 6.7% year-over-year (YoY). Metrigy forecasts the market to decline at a 2.4% CAGR from 2024 to 2029, reaching $454.7 million by 2029. The decline is due to slowing of shipments and pricing drops. eSBC session shipments contracted 4.3% in 2024 to 38.5 million. eSBC sessions will decline 1.3% CAGR from 2024 to 2029, dropping to 36.1 million sessions in 2029. The market slows as businesses transition from dedicated appliances managed on premises to SBCs in the cloud managed as a service (the SBCaaS model).
• eSBCs are in use worldwide; adoption rate is highest in North America, where 44.4% of businesses had an eSBC in use in 2024 when surveyed for this MetriCast study. Companies with 2,501 to 10,000 employees utilize eSBCs more so than smaller businesses or the very large enterprises, 54.0% of businesses in that band.
• Based on 2024 eSBC revenue, Oracle is the global market share leader at 18.3% share, followed by AudioCodes (13.9%) and Cisco (13.8%). AudioCodes and Ribbon are well positioned with Microsoft Teams calling, which represents the largest opportunity for new SIP connections today.
• Among those using eSBCs, 61.8% have no plans to replace their primary vendor. Product roadmap is the number one reason for those looking to make a change, followed by cost and moving to SBCaaS.
• 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.