New research has revealed that the North America, Europe and Asia Pacific Session Initiation Protocol (SIP) trunking market is expected to reach $20.7 billion (£16.3 billion) by 2024.
It would represent a near fivefold rise from the market value in 2015, which stood at $4.47 billion.
According to Transparency Market Research, the market is predicted to grow at a strong compound annual growth rate (CAGR) of 18.6 per cent until then.
SIP trunking has been gaining in popularity in recent years among a variety of sectors largely due to its cost-effectiveness compared to traditional telephony systems.
The service is being increasingly adopted by sectors such as banking and financial services, telecoms and IT, healthcare, retail, government, media and entertainment, education, transportation and manufacturing.
The researchers found that the IT and telecoms sector led the SIP trunking services market in 2015 and that this is expected to continue throughout the forecast period. The rapid growth of the IT sector and the continuous development in business process outsourcing (BPO) have significantly contributed to the widespread application of SIP trunking services across different regions, according to Transparency Market Research.
Researchers also predict that the healthcare, retail and education sectors will present particular growth opportunities for SIP trunking service vendors in the coming years. In terms of the adoption of SIP trunking services, the retail sector is likely to see the fasted expansion, registering a CAGR of 20.6 per cent from 2016 to 2024.
SIP trunking can offer businesses key benefits, including easy management through a mobile app and web portal and tailored business continuity, which means calls will not be missed.