Hosted PBX Market Size & Share 2021 to 2027
Market Size by Component (Solution, Service [Network Service, Security Service, Managed Service]), Organization Size (Large Enterprises, SME), Industry Vertical (BFSI, Healthcare, Government, Retail, Manufacturing), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast.
Report ID: GMI2883
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Published Date: January 2021
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
Hosted PBX Market Size
Hosted PBX Market size exceeded USD 5 billion in 2020 and is poised to grow at over 12% CAGR between 2021 and 2027.
The hosted PBX industry is witnessing a significant disruption with increasing commercialization of 5G and rapidly growing use of VoIP networks. Increasing dependence on cloud-based unified communications and transition from legacy systems are promoting the adoption of hosted PBX services. The prices of hosted network services have also declined substantially.
Hosted PBX services have gained traction amid the ongoing COVID-19 pandemic as majority of the industries have switched to remote working protocols. As per the June 2020 press release by Ericsson, the duration of voice call sessions increased by up to 70% during the lockdown phase. This has spurred the adoption of hosted PBX services as enterprises ensure they are well dimensioned to handle the unprecedented amount of call traffic generated by remote employees.
Hosted PBX Market Analysis
The hosted PBX market is witnessing rapid growth in the adoption of sophisticated communication services to address the need for reducing telecom equipment expenditure. Enterprises are increasingly inclining toward the purchasing of hosted PBX services to improve CAPEX and OPEX as hosted services require minimum hardware investment, creating new avenues for market expansion.
In France, the solution segment held over 40% market share in 2020, driven majorly by the gradual shift of enterprises from traditional voice & data services to high-quality hosted PBX services. As traditional hosted services suffer from regular system downtime & lagged response time and cause a disruption in business continuity, hosted PBX solutions are proving to be a profitable avenue for the market growth. The French telecom industry shift to IP has further opened new opportunities for the market players.
With rapid growth in the French unified communications landscape, demand for cloud-hosted solutions is increasing exponentially. For instance, AstraQom France, a hosted communication provider in France, has expanded its PBX solutions with over 60 new features, ranging from USD 7.34 to USD 37.92 per month. The regional market demand will also be impelled by increasing broadband penetration and regional offers.
In Japan hosted PBX market, the large enterprises segment is predicted to attain a growth of over 13% through 2027 due to the increasing dependency of large enterprises on hosted PBX services for high uptime. As reliable communications are of utmost importance to large enterprises to increase collaboration and productivity, the demand for hosted PBX solutions and services has picked up pace across the country. Furthermore, the rising need for high-quality VoIP calling has created new market opportunities for the segment.
In Brazil, the government segment is anticipated to register around 15% growth rate till 2027, attributed to the increasing use of modern telephony systems by federal agencies to deliver quick and reliable digital services to citizens. Furthermore, the growing demand for VoIP to counter the higher cost of traditional voice calling technologies is a major factor boosting the market revenue. Hosted PBX services are enabling Brazilian federal agencies to substantially reduce overhead costs whilst providing improved connectivity.
Asia Pacific hosted PBX market held a significant revenue share of nearly 25% in 2020 owing to an increase in the number of internet users and a growing startup ecosystem. Small to medium-sized companies in the emerging economies including China and India are looking for cost-effective communication solutions to manage their remote workforce, creating new avenues for market expansion.
In addition, several nations including Singapore, Taiwan, and Malaysia have witnessed a spike in the demand for IP-based voice calling. The region has also witnessed rising penetration of smartphones and increased demand for international voice calls.
Hosted PBX Market Share
The global hosted PBX industry is characterized by large-scale investments in VoIP technologies to meet low latency and real-time communication demands. For instance, My Country Mobile, a leading VoIP voice provider, has aggressively added new features to its voice services. The company has also invested heavily in setting up over 500,000 retail outlets globally and partnering with over 1,000 global telecom operators.
The market has also witnessed several strategic alliances between key players to launch new products with added functionalities to maintain their revenue share and profitability. For instance, in April 2020, Tampa Bay DSL, Inc. partnered with Cisco to provide its UC-One Remote WorkStation application free for all users until June 2020, amid the ongoing pandemic. The partnership helped Tampa Bay DSL strengthen its foothold amongst local businesses and increase its competitiveness.
Some of the prominent companies operating in the market are :
The hosted PBX market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:
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Market, By Component
Market, By Organization Size
Market, By Industry Verticals
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
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Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
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Verified data sources
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GMI archive
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Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →