The benefits of VoIP access and SIP trunking services are prompting enterprise customers to transition to fully converged, IP-based networks, without having to overhaul existing IT networks, according to Frost & Sullivan.
The research firm forecasts that market revenue will grow at a compound annual growth rate (CAGR) of 21.5% from 2015 to 2020, and a user base at a CAGR of 18.1%.
Businesses aiming to lower operational expenditure and obtain significant returns on investments are being drawn to SIP trunking's attractively priced services, layered with value additions such as voicemail, mobility and collaboration tools.
Disruptive pricing, packaging, feature/functionality and business models within the existing VoIP access and SIP trunking market, as well as the emerging Communications Platform as a Service (CPaaS) space, are accelerating adoption among enterprises and heating up competition among service providers.
"There are significant opportunities for providers of IP-based voice access to build on current successes and branch out into the emerging CPaaS arena," said Frost & Sullivan Digital Transformation Industry Analyst Michael Brandenburg.
"CPaaS offerings are emerging as an on-demand alternative to traditional communications services, prompting companies to build, buy or partner, to enable an application program interface (API)-level integration with voice services.”
While the current adoption of CPaaS is largely limited to app developers and aggressive startups, customer demand for multiple ways to communicate with businesses, including voice, video and text messages will drive adoption among larger enterprises as well.
"This is the right time for service providers to penetrate the emerging CPaaS arena through mergers and acquisitions that add breadth and depth to the existing portfolio and customer base," noted Brandenburg.
"Targeting competitors such as start-up CPaaS providers and API developers will provide complementary network footprint and service capabilities, helping the market grow significantly.”