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The Growth in the SIP Market Remains Strong to 2020

Surveys indicate that SIP growth is becoming stronger

The Growth in the SIP Market Remains Strong to 2020

According to recent results from a study conducted by the Eastern Management Group in their “SIP forecast”, the growth for SIP Trunk and phone solutions in 2017 should beat IT, and continue to beat it right the way through to 2020. This information comes from a survey of over 3,500 global IT managers.

Currently, the global areas with the largest amount of growth are the Middle East, Africa, and Asia Pacific. The growth rate within these areas is far stronger than in Europe or the US. However, though these areas are still maturing, they still exceed the projected levels for the complete IT market during the forecasted period by around 50%.

Strength Continues for SIP

During the first and second quarters of 2017, the global market for SIP services in 2017 have remained strong. Since the last study from Eastern Management Group in 2013, the market has seen a number of changes driving SIP trunking and VoIP phones. For instance, cost is a large driver of SIP sales, as trunking costs around 50% less than standard networks. Additionally, prices for SIP are dropping by around 5-7% each year.

Drivers of SIP Sales

Though there are many factors driving SIP sales besides cost, here, we’ll outline just eight of them:

  1. Managed services: These solutions offer profit and incremental revenue for SIP providers, and video, LAN, security, and managed WAN are all complementary to SIP offers.
  2. Ecosystem partners: These partners may offer products that are complementary to a SIP provider, as well as providing differentiation.
  3. Full-service providers: Thanks to the growth of SIP competitions and new services, full service providers offer a broader selection of services, products, and software to the SIP customer.
  4. Go-to-market solutions: Since the Eastern Management Group began developing SIP provider channel strategies, we’ve seen new growth in go-to-market solutions. This means there’s a greater number of provider solutions than ever.
  5. Collaboration: Today, Real-time collaboration is crucial, around 62% of IT managers consider collaboration technologies to be essential to their business by 2018.
  6. Unified Communication: There are eight different UC solutions playing a role in the growth of SIP, including chat, VoIP, Unified messaging, fixed-mobile-convergence, single reach numbers, conferencing, and out-of-area numbers.
  7. Reduction of proprietary phones: Most proprietary IP phones no longer work at the standards that are required today.
  8. Hosted and Cloud PBX: Now, hundreds of providers are in the VoIP market. The growth rate of hosted PBX has sales for VoIP phones soaring, and SIP Trunks complement cloud applications.

These important drivers, among others, are beginning to develop SIP sales at a new level, while many end-users have some manner of SIP implementation today. It may be a long time before SIP demand starts to fall.

 

 

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3 Comments
  • AvatarMichael Bell 11:05, 19 May 2017

    I see further development of Qubits towards more secure communications. As all communications become more global, security will play a very strong part in shaping the next generation of protocols. SIP (SRTP) is still weak in security.

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  • AvatarRob Scott 11:05, 19 May 2017

    The world of #AI and #IoT is moving into the UC space faster than we could have ever imagined – SIP will inevitably become commoditised in the short-term (if it hasn’t already), followed closely by video. Virtual reality ingrained into UC would be my best bet.. what do you think Michael?

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AvatarMichael Bell 10:05, 19 May 2017

Rebecca, Good read, but what’s after 2020? It’s really not that far down the road.

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