- The healthcare sector is expected to be the fastest growing market in terms of adoption of SIP trunking services, according to a report by MarketsandMarkets.
Session Initiation Protocol (SIP) trunking provides communications services over an existing IP network, replacing traditional telephone lines. Through a SIP trunk, voice-over-IP (VoIP) users can make calls directly to any phone by connecting to a compatible hosted PBX system.
The need for communication and collaboration among healthcare staff members is critical to deliver urgent care and is a major driving factor for the adoption of SIP trunking services in hospitals and other healthcare facilities.
Cloud-based telecommunications, such as VoIP, enables medical professionals to stay connected with their patients and centers of operations from a variety of locations at any time of the day.
MarketsandMarkets forecasts the global SIP trunking services market to surpass $12 billion by 2023, expanding at a compound annual growth rate (CAGR) of 10.7 percent.
Drivers for the SIP trunking services market include the reduction in the total cost of ownership by using the pay-as-you-go model, increasing adoption of cloud and unified communications (UC), and integration with private branch exchange (PBX) systems.
According to MarketsandMarkets, major providers in the U.S. SIP trunking services market include AT&T, 8x8, Bandwidth, CenturyLink, Fusion, GTT Communications, IntelePeer, Net2Phone, Nextiva, Sprint, Twilio, Verizon, Vonage, Voyant Communications, West Corporation, and Windstream.
Small businesses are also adopting SIP trunking services over traditional TDM circuits because SIP trunking services are available at a lower cost and with varied pricing models. The need to enhance collaboration among remote and mobile workers is a driving factor for the growing adoption of SIP trunking services among small businesses.
North America is expected to hold the largest market size in the global SIP trunking services market. The United States and Canada dominate the global SIP trunking market, enabling vendors to invest in research and development activities for the development of new technologies, according to MarketsandMarkets.
A report by Transparency Market Research (TMR) forecasts a more aggressive CAGR of 18.6 percent for the SIP trunking services market, reaching $20.7 billion by 2024.
The TMR report forecasts that hosted SIP trunking services will overtake on-premise services by 2024. The hosted SIP trunking services segment is projected to see a CAGR of 25.3 percent through 2024.
SIP trunking services provide companies with greater capacity by adding more channels over existing trunks.
“Several established players are taking initiatives to shift their customers to IP networks owing to the benefits of SIP trunking over traditional telephony services,” the TMR study observed.
Healthcare organizations could reduce their telecom expenses by 50 percent and develop new communications models by adopting SIP trunking services, according to a DoubleHorn blog post.
Many healthcare facilities are retiring their onsite PBX and moving to a hosted PBX solution. This cuts the need to manage the system while using up fewer IT resources. Having the right infrastructure in place is important, but also key is the change process and design associated with the new technology. The call system should enhance workflow, not slow it down, noted DoubleHorn, an SIP trunking services provider.
One of the most significant advantages of SIP trunking is its ability to combine data, voice, and video in a single line, eliminating the need for separate physical media for each mode. The result is reduced overall cost and enhanced reliability for multimedia services, the blog post related.
According to DoubleHorn, SIP trunking services enables healthcare organizations to:
- Reduce costs by eliminating the need to purchase separate voice and data circuits while leveraging existing IP PBX investment
- Optimize bandwidth by employing voice compression and dynamic bandwidth allocation
- Use a single nationwide communications provider
- Boost productivity and mobility by providing enhanced features and functionality
“SIP Trunking has tremendous possibilities for Healthcare from single site hospitals to largely integrated service providers. Healthcare is slowly waking up to the incredible expenses in managing PBX and TDM circuits,” the blog post observed.