Global Hosted PBX Market (2021-2026) by Component, Services, Organization Size, Vertical, Geography, Competitive Analysis and the Impact of COVID-19 with Ansoff Analysis

The Global Hosted PBX Market is estimated to be USD 5.7 Bn in 2021 and is expected to reach USD 11.3 Bn by 2026, growing at a CAGR of 14.5%.

Hosted PBX allows employees to work from home and still be connected to the office telephone system. The initiative of work from home due to the Covid-19 pandemic is driving the market growth for Hosted PBX. Due to the significant cost savings offered by Hosted PBX in telecom infrastructures, such as installation, operation, and maintenance costs, there is an increase in the demand among organizations for the installation of hosted PBX. Hosted PBX provides add-on benefits that authorize organizations to extend their telephone lines virtually with the use of softphones, thereby eliminating the need for dedicated hardware or device and the costs involved.

Conversely, the security and privacy concerns are likely to hinder the market growth. As voice quality and connectivity depend on Internet bandwidth, any disruptions on the internet results in loss of phone service. Furthermore, the unfamiliarity of hosted PBX users with VoIP technology and support problems from hosted PBX service providers pose challenges in the growth of the market.

Market Dynamics

Drivers

• Rising Need for Enterprise Mobility
• The significant Cost Savings in Telecom Infrastructure
• Rising Adoption of the Cloud and Unified Communications
• The necessity to Upgrade From Traditional PBX to Cloud-Based PBX

Restraints

• Security and Privacy Concerns

Opportunities

• Rising Adoption of the Telco Cloud
• Advent of Webrtc
• Growing Trend of Network Convergence and UC Applications

Challenges

• Growing Concerns About QOS

Segments Covered

By Component, the Services segment is expected to hold the largest market share during the forecast period. Services are evolving as an important aspect, as vendors are offering integrated service packages along with IP telephony solutions to their clients. In addition, it delivers secure, reliable phone service to an organization through the already installed Internet connection instead of a privately managed call controller or server. Hence hosted PBX services contribute to the maximum market share.

By Services, the Virtual Deployment and Setup segment holds the largest market share. This service enables deploying and setting up IP telephony to the enterprises by providing virtual support and assistance via the internet. Thus organizations save all the set-up and installation costs required for conventional PBX.

By Organization Size, Large Enterprises holds the maximum market share. Almost all large enterprises have increased the purchases of hybrid cloud systems. This growth will be likely to contribute to the maximum market share for hosted PBX. Also, the increased reliability of cloud communications among large enterprises is likely to boost market growth.

By Vertical, Healthcare vertical is estimated to hold the largest market share. The Healthcare sector is increasingly adopting hosted PBX solutions and associated services, as these solutions and services provide an easy way to communicate with the patients and provide the necessary care. To provide immediate care after communication among staff members, healthcare verticals actively adopt hosted PBX and UCaaS.

By Geography, North America is projected to lead the market. There are huge investments in wireless technologies, and the rapid adoption of advanced technologies, such as cloud, IoT, mobility, and UC, drive the market growth in this region. Due to the low TCO and OPEX required for hosted PBX as compared to the traditional PBX or telephony system, enterprises in this region are adopting hosted PBX. Asia Pacific (APAC) has witnessed an advanced and dynamic adoption of new technologies and is a lucrative region for a hosted PBX market in the past few years.

The Global Hosted PBX Market is segmented further based on Component, Services, Organization Size, Vertical, and Geography.

Company Profiles

Some of the companies covered in this report are At&T, Cisco, BT Group, 8*8, Avaya, MegaPath, Polycom, Ringcentral, Ozonetel, Comcast Business, Bullseye Telecom, Telesystem, Mitel Networks, 3CX, etc.

Competitive Quadrant

The report includes a Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.

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• The report offers a comprehensive evaluation of the Global Enterprise File Synchronization and Sharing (EFSS) Market.
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• The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
• The report includes in-depth market analysis using Porter’s 5 force model and the Ansoff Matrix. The impact of Covid-19 on the market is also featured in the report.
• The report also contains the competitive analysis using Competitive Quadrant, the analyst's proprietary competitive positioning tool.

Report Highlights:

• A complete analysis of the market, including parent industry
• Important market dynamics and trends
• Market segmentation
• Historical, current, and projected size of the market based on value and volume
• Market shares and strategies of key players
• Recommendations to companies for strengthening their foothold in the market