Hosted PBX Market Overview
The Hosted PBX Market size is projected to grow from USD 13.57 Billion in 2024 to USD 40.732 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 17.00% during the forecast period (2024 - 2032). Additionally, the market size for hosted PBX was valued at USD 11.6 Billion in 2023.
The hosted PBX market is being driven by market drivers such as the growing popularity of cloud-based unified communication, a shift in emphasis towards workplace mobility, and cost-benefit analysis compared to traditional PBX networks.
Figure 1: Hosted PBX Market Size, 2024-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Hosted PBX Market Trends
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Growing need for corporate mobility is driving the market growth
Market CAGR for hosted PBX is growing due to the growing requirement for workplace mobility, which is being driven by the rise in remote work and the critical need for company agility. Hosted PBX emerges as a crucial option that offers accessibility and flexibility in response to the changing nature of work, where employees are increasingly operating from varied places. Employees can easily participate in business interactions from any device with an internet connection thanks to the system's seamless support for remote workforces. By offering mobile apps that make effective call management and voicemail access on smartphones possible, this flexibility not only guarantees business continuity but also boosts the productivity of the mobile workforce.
Furthermore, without the hassle of large upfront investments in hardware and software, businesses can easily modify their communication infrastructure with hosted PBX systems, accommodating changing workforce sizes and dynamic business requirements. Moreover, the hosted PBX's integration capabilities with different corporate apps promote improved team member cooperation, resulting in a productive and effective work environment.
The open-source WebRTC project is a major force behind the transformation of real-time multimedia applications by providing a plug-in-free web browser environment for file sharing, video chat, and phone calls. By enabling smooth integration into web applications, such as Customer Relationship Management (CRM), this technology goes above and beyond standard installations and fosters a more customer-centric experience. Users can access hosted PBX solutions based on SIP and have direct communication with call centers from their principal web interface by deploying a WebRTC gateway, which also supports cloud services and telephony. By seamlessly integrating video, message, and voice features into any web-based service, vendors can achieve cost reductions and enhance user experiences while providing consumers with on-the-go access to communication services without the need for specialist applications. In addition, WebRTC's efficiency and 5G's increased capabilities complement one another in a symbiotic relationship brought about by the convergence of these two networks.
This convergence fosters a more responsive and engaging communication experience, which creates new opportunities for creative applications and services. WebRTC and 5G networks, taken separately, are potent stimulants that propel the development of real-time communication. When combined, however, they offer a significant chance to expand the functionality and market penetration of hosted PBX solutions within the ever-evolving field of contemporary communication technologies. Thus, driving the hosted PBX market revenue.
Hosted PBX Market Segment Insights
Hosted PBX Offering Insights
The global hosted PBX market segmentation, based on offering, includes Solutions and Services. In 2023, the services segment dominated the market. Patient education and training programs significantly influence intermittent catheter acceptance and successful use. In order to make sure that patients and caregivers are aware of the right procedures for catheterization, good hygiene habits, and potential consequences, healthcare practitioners and manufacturers organize training sessions. Patients with better knowledge are more likely to utilize intermittent catheters appropriately, which lowers the chance of problems and enhances results overall. These elements will increase the segment's demand.
Hosted PBX Application Insights
The global hosted PBX market segmentation, based on application, includes Unified Communication and Collaboration, Mobility, Call Center, and Other Applications. The mobility category generated the most income in 2023. The trend toward remote work has increased the demand for mobility-supporting communication solutions. Regardless of where they are physically located, employees can stay connected and productive using these PBX systems. Because smartphones and other mobile devices are increasingly common, there is a growing need for PBX solutions that work well with them so that users can access voicemail, make and receive calls, and use other capabilities while they are out and about. As a result, the section will grow quickly inside it.
Figure 2: Hosted PBX Market, by Application, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Hosted PBX Enterprise Insights
The global hosted PBX market segmentation, based on Enterprise, includes Banking, Financial Services, & Insurance (BFSI), Retail & e-commerce, Healthcare & Life Sciences, Manufacturing, Telecom, IT & ITeS, Travel & Hospitality, Government & Public Sector, Education, and Other Verticals. The healthcare & life sciences category generated the most income in 2023. This is due to the fact that it is an essential task requiring smooth coordination between several stakeholders, such as physicians, nurses, administrators, and patients. With hosted PBX systems, healthcare organizations can interact safely and efficiently because of their features and capabilities.
Hosted PBX Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American-hosted PBX market area will dominate this market. The efficient functioning of cloud-based communication solutions, like hosted PBX, depends critically on the reliable availability of bandwidth, which greatly improves user experience overall. The broad availability of high-speed internet guarantees that both individuals and enterprises may fully utilize cutting-edge communication technology, which promotes the uptake and growth of hosted PBX services.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: HOSTED PBX MARKET SHARE BY REGION 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe-hosted PBX market accounts for the second-largest market share. The market for unified communications solutions—which combine many channels and technologies for communication—in Europe is growing more and more demanding. As part of unified communications, businesses can communicate via a streamlined and integrated platform thanks to this PBX. With companies looking to improve teamwork and communication effectiveness, this trend is especially pertinent. Further, the German-hosted PBX market held the largest market share, and the UK-hosted PBX market was the fastest-growing market in the European region.
The Asia-Pacific Hosted PBX Market is expected to grow at the fastest CAGR from 2024 to 2032 because of a rise in internet usage and the expansion of the startup community. In the process of exploring new markets, small and medium-sized businesses in growing nations like China and India are searching for affordable communication solutions to manage their remote workforce. Moreover, China’s hosted PBX market held the largest market share, and the Indian-hosted PBX market was the fastest-growing market in the Asia-Pacific region.
Hosted PBX Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the hosted PBX market grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the hosted PBX industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the globally hosted PBX industry to benefit clients and increase the market sector. In recent years, the hosted PBX industry has offered some of the most significant advantages to medicine. Major players in the hosted PBX market are attempting to increase market demand by investing in research and development operations, including D-Link System, BullsEye Telecom, Vonage America, Nextiva, Cisco system, NEC Corporation, RingCentral, Allworx Corporations, Panasonic Corporation, MegaPath, Barracuda Networks, Avaya, and Microsoft Corporation.
Cisco Systems Inc. is a technology integrator that specializes in networking, security, cloud computing, collaboration, and applications. The company sells interfaces, controllers, access points, routers, switches, modules, and wireless equipment. Clients may manage additional users, devices, and items connected to their networks with the use of the company's solutions and technologies. Oil & gas, education, banking, healthcare, government, mining, sports, media, entertainment, retail, utilities, and transportation are just a few of the many industries that Cisco provides services to.
Solutions for network and information technology are offered by NEC Corp (NEC). A wide range of products are offered by the company, including tablet terminals, supercomputers, personal computers, automated teller machines, storage devices, broadcasting video systems, software, fire and disaster prevention systems, computers, and servers for telecommunication carriers. Furthermore, it provides electronic items and components such as LCD panels, lighting equipment, and lithium-ion rechargeable batteries. The services that NEC provides include outsourcing, support, and system integration.
Key Companies in the hosted PBX market include
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D-Link System
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BullsEye Telecom
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Vonage America
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Cisco system
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NEC Corporation
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RingCentral
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Allworx Corporations
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Nextiva
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Panasonic Corporation
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MegaPath
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Barracuda Networks
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Avaya
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Microsoft Corporation
Hosted PBX Industry Developments
October 2023: Microsoft unveiled Teams, its cloud-based platform for collaboration, with a new AI-powered feature that offers real-time transcription and insights into call and meeting statistics. The features are intended to increase effectiveness and productivity. Additionally, they collaborate with Microsoft Viva, an employee experience platform, to provide additional AI-enabled features. The new features can now be utilized.
June 2021: Avaya and RingCentral Inc. also unveiled a plethora of new capabilities for the Avaya Cloud Office by RingCentral Unified Communications as a Service (UCaaS) solution, in addition to a number of Avaya device-specific advancements that make migration easier. Customers may now connect more easily with these capabilities on any device and in any workspace.
Hosted PBX Market Segmentation
Hosted PBX Offering Outlook
Hosted PBX Application Outlook
Hosted PBX Enterprise Outlook
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Banking, Financial Services, & Insurance (BFSI)
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Retail & eCommerce
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Healthcare & Life Sciences
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Manufacturing
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Telecom
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IT & ITeS
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Travel & Hospitality
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Government & Public Sector
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Education
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Other Verticals
Hosted PBX Regional Outlook
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 11.6 Billion |
| Market Size 2024 |
USD 13.57 Billion |
| Market Size 2032 |
USD 40.732 Billion |
| Compound Annual Growth Rate (CAGR) |
17.00% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2019-2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Offering, Application, Enterprise, and Region |
| Geographies Covered |
North America, Europe, Asia-Pacific, and the Rest of the World |
| Countries Covered |
The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
D-Link System, BullsEye Telecom, Vonage America, Nextiva, Cisco system, NEC Corporation, RingCentral, Allworx Corporations, Panasonic Corporation, MegaPath, Barracuda Networks, Avaya, and Microsoft Corporation. |
| Key Market Opportunities |
Focusing more emphasis on workplace mobility and cost-benefits than on PBX networks |
| Key Market Dynamics |
Increasing focus on hosted VolP solutions. Growing acceptance of Unified Communications-as-a-Service (UcaaS). |
Frequently Asked Questions (FAQ) :
The global hosted PBX market size was valued at USD 11.6 Billion in 2023.
The global market is projected to grow at a CAGR of 17.00% during the forecast period, 2024-2032.
North America had the largest share in the global market
The key players in the market are D-Link System, BullsEye Telecom, Vonage America, Nextiva, Cisco system, NEC Corporation, RingCentral, Allworx Corporations, Panasonic Corporation, MegaPath, Barracuda Networks, Avaya, and Microsoft Corporation.
The services category dominated the market in 2023.
The healthcare & life sciences category had the largest share in the global market.
