March 1, 2025 – Exact Ventures reported that the global Session Border Controller (SBC) market demonstrated robust growth in the fourth quarter of 2024, with total market revenues increasing by 14% sequentially to reach $369 million. This growth was driven by a 20% surge in the Service Provider SBC (SP-SBC) segment and a 3% rise in the Enterprise SBC (E-SBC) market. However, compared to the same period in 2023, the total market saw a slight decline of 1%, as an 11% drop in E-SBC sales offset a 3% increase in SP-SBC revenues.

For the full year of 2024, the SBC market achieved modest growth of 1%, with SP-SBC revenues rising by 3%, effectively counterbalancing a 2% decline in E-SBC sales.

Looking ahead, the total SBC market is forecasted to grow by 6% in 2025, reaching $1.37 billion. Key drivers include:

                  •               E-SBC Growth: Expected to rise by 7% as enterprises adopt SIP trunks and SBC-as-a-service solutions integrated with Unified Communications (UC) and call center service agreements.

                  •               SP-SBC Growth: Anticipated to grow by 5%, fueled by investments in IMS and VoLTE modernization for supporting advanced 5G services such as IMS data channel-enabled “5G New Calling.”

The SP-wireless segment is projected to grow by 7% in 2025, reaching $710 million, reflecting continued upgrades of legacy IMS equipment to virtual and cloud-native systems. Meanwhile, the SP-wireline segment is expected to remain flat at $230 million as declining wireline voice net additions are offset by replacement market activity supporting VoBB, SIP access services, and interconnect applications.

Q4 E-SBC Market Trends

In Q4 2024, the E-SBC market grew by 3% sequentially but declined by 11% year-over-year to $105 million. Economic challenges such as budget cuts and staff reductions have impacted demand. However, growing adoption of hosted UCaaS and CCaaS solutions requiring SIP trunks for PSTN integration is helping to offset these challenges. Additionally, as more employers require employees to return to offices, demand for SIP trunks may stabilize despite workforce reductions.

The SBC market continues to evolve with increasing adoption of cloud-based solutions and modernization initiatives across service provider and enterprise segments. These trends position the industry for growth in the coming years.

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About Exact Ventures:

Exact Ventures is a market intelligence firm that provides in-depth analysis and strategic insights for the telecommunications and networking industries. With a focus on emerging technologies and market trends, Exact Ventures helps clients make informed decisions in rapidly evolving technology and communications markets.