Session Border Controller Market Trends

Growth Drivers

• Rising preference for cloud-based services and remote work: The steady shift towards cloud-based services and rising preference for remote work has accelerated the demand for SBCs. According to a report by the Bureau of Labor Statistics published in October 2024, the average number of people working remotely increased from 15% in 2020 to approximately 27% in 2023. Cloud-based SBCs offer flexibility and scalability, making them an ideal choice for businesses and enterprises adopting these trends.
• Increasing demand for fast networks: The 5G networks with low latency and high-speed voice and video communications have gained immense popularity in recent years for real-time applications such as video conferencing, online gaming, and IoT communications. This has resulted in the rising need for SBCs to manage traffic and security. Moreover, several telecom providers are investing in fiber broadband, leading to increasing demand for VoIP and SIP-based communications.

Challenges

• Complex interoperability: Though session border controllers are rapidly gaining traction, the complex interoperability with the product is one of the factors that is limiting its adoption to a certain extent. Many enterprises use hybrid communication networks that involve legacy PBX and cloud-based UCaaS. Thus, ensuring seamless interoperability among different vendors can be challenging.
• High product pricing and competitive market: Enterprises with lower budgets might opt for alternative cost-effective solutions like open-source SBCs instead of commercial SBCs. This can affect the overall sales of SBCs, hampering market growth. In addition, the market is dominated by industry giants, making it difficult for smaller vendors to compete.