The global hosted PBX market is expected to more than double by 2023, growing from more than $4.7 billion this year to $9.5 billion, according to a new report by MarketsandMarkets, which expects a compound annual growth rate (CAGR) of 15 percent.
Factors driving growth include an increasing need for enterprise mobility, and rising adoption of the cloud and UC. Also driving growth are the increasing necessity to upgrade from traditional PBX to cloud-based PBX, as well as low capex and total cost of ownership.
Among regions, North America is projected to hold the largest share and continue to dominate the market. The region has witnessed the emergence of trending technologies, such as cloud, the Internet of Things (IoT), mobility and UC, which drive the need for reliable connectivity and communication. Enterprises and industries are adopting hosted PBX as a part of their business operations and strategies to strive competently in the market and increase their productivity.
And according to a new report by Transparency Market Research, the global cloud telephony service market is expected to reach nearly $42 billion by 2026, registering a CAGR of more than 17 percent.
Key players include 8×8, BroadSoft, Cisco, MegaPath, Microsoft, Mitel, NetFortris, RingCentral, Vonage and others.
Increasing demand for enterprise mobility, a mobile workforce and the multiple benefits offered by cloud telephony services are encouraging higher adoption, according to the report. Also, rising penetration of mobile devices is boosting global demand.
Adoption of cloud telephony services in SMEs is increasing mainly due to cost efficiency, as well as the limited capital investment required for deploying network systems as compared to traditional network services. The advancements in technology and addition of multiple features to IP phones have attracted business customers to migrate to IP networks.
There is high demand from multiple industry verticals including banking, financial services and insurance (BFSI), telecom and IT, health care, retail, government, media and entertainment, education and others. The IT and telecom segment held a prominent share in the market last year and also is expected to expand substantially through 2026.