Hosted Private Branch Exchange (PBX) Market size is set to surpass USD 11 billion by 2027, according to a new research report by Global Market Insights Inc.
The hosted private branch exchange market growth is attributed to rapid shift of businesses from traditional PBX systems to cloud-based PBXs as these platforms deliver a comprehensive set of features such as messaging, call queuing, and front office functions. Hosted PBXs are paving the foundation for enterprise mobility as they enable organizations to easily expand their offices to new locations or add new lines that can support voice communications at minimal costs.
The cost benefits offered by hosted PBX over traditional PBX are driving the market expansion
Various benefits offered compared to the traditional PBX system such as elimination of expensive hardware infrastructure, software, and training will fuel the market revenue. Hosted VoIP reduces the initial investments into the phone system hardware and setup and significantly decreases the maintenance & training requirements. Small as well as large enterprises are increasingly relying on hosted VoIP, enabling them to manage and monitor their phone systems while gaining access to advanced communication features such as call queuing, messaging, and auto attendants.
Browse key industry insights spread across 270 pages with 341 market data tables and 28 figures & charts from the report, “Hosted Private Branch Exchange (PBX) Market Size, By Component (Solution, Service[Network Service, Security Service, Managed Service]), By Organization Type (SMEs, Large Enterprises), By Industry Vertical (BFSI, Government, Retail, Manufacturing, Healthcare), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Growing need for improving the enterprise communication is supporting the hosted PBX market value for network services
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The network service will observe substantial growth rate of more than 10% till 2027 due to the increasing market demand to maintain the seamless enterprise communication. The network services help in managing the performance of a variety of network components that are essential for the enterprise communication. Large-scale adoption of hosted PBX solutions is observed in several industry verticals, such as BFSI, hospitality, IT & telecom, and retail, where organizations are using IP phones and availing affordable subscription-based plans to support their mobility requirements. The IP phones require proper network connectivity for their operations. This factor is supporting the industry growth of network services.
Cost effectiveness of hosted PBX solutions is spurring the segment growth
The SME segment is estimated to attain a CAGR of 12% through 2027 owing to cost effectiveness, scalability, and reduced infrastructure complexity offered by hosted PBX solutions. The SMEs largely focus on leveraging cost-effective solutions and limited capital expenditure. Moreover, unlike large enterprises, SMEs lack sophisticated IT teams to monitor the infrastructure and functional processes; thus, the industry demand for PBX across SMEs is growing.
Need to modernize and secure communication across financial institutions is propelling the market revenue for BFSI sector
The BFSI sector held the hosted PBX market share of over 20% in 2020 led by rising adoption of cloud computing technology across banks and financial institutions. They are rapidly moving from on-premise platforms to cloud technology to support growing mobility and collaboration demands. The use of hosted PBX solution enables them to streamline operations and communicate with several stakeholders and customers to improve productivity and deliver enhanced banking services. The hosted PBX vendors, such as Vonage, Mitel, and Nextiva, are offering their VoIP solutions including IP phones and domestic & international calling plans to enable these institutions to fully utilize their communications infrastructure to foster team collaboration.
Wide adoption of cloud technology across North America is boosting the regional growth
The North America hosted private branch exchange market accounted for 25% in 2020. The broad acceptance of cloud services, increasing remote workforce, and migration toward packet-based network are supporting the market growth. The enterprises are looking for reliable solutions to manage the remote workforce at a lower cost. VoIP is enabling enterprises to deploy cloud-based communication network between mobile and remote workers without any hurdle in their work. The enterprises are acquiring subscribers who are looking for the replacement of traditional wireline services.
The major market players are emphasizing on strategic partnerships to develop innovative-hosted PBX solutions
Some of the key companies operating in the market are 3CX, 8x8, Inc., AT&T, Inc., Avaya, Inc. BT Group, BullsEye Telecom, CenturyLink, Inc., Cisco Systems, Inc., Comcast Corporation, Datavo, Megapath (Fusion Connect, Inc.), Mitel Networks Corporation, NEC Corporation, NexGen Technology Group, NovoLink Communications, Inc., OneConnect Services, Inc., Ozonetel, Plantronics, Inc., RingCentral, Inc., and TPx Communications, Inc. Industry leaders are focusing on strategic partnerships to deliver advanced PBX solutions.
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