Hosted Private Branch Exchange Market Report 2025

The hosted private branch exchange (PBX) market size has grown rapidly in recent years. It will grow from $14.44 billion in 2024 to $16.81 billion in 2025 at a compound annual growth rate (CAGR) of 16.4%. The growth during the historic period can be attributed to rising demand for centralized communication, increasing reliance on internet-based business operations, growing adoption of OPEX-based telephony models, the need for simplified telecom infrastructure, and a stronger focus on reducing hardware maintenance and upgrade costs.

The hosted private branch exchange (PBX) market size is expected to see rapid growth in the next few years. It will grow to $30.54 billion in 2029 at a compound annual growth rate (CAGR) of 16.1%. The growth during the forecast period is expected to result from increasing adoption of 5G technology for enhanced voice quality, rising demand for hybrid work communication solutions, greater emphasis on seamless multi-device connectivity, growing demand for unified communications as a service, and expanding use of cloud-based communication solutions. Key trends in this period include advancements in AI-driven voice assistants and call routing, innovations in real-time call analytics and reporting, improvements in cloud security for communication systems, development of mobile-first PBX applications, and integration of video conferencing features.

The growing adoption of cloud-based solutions is expected to drive the expansion of the hosted private branch exchange (PBX) market. Cloud-based solutions deliver computing power, storage, and applications over the internet, eliminating the need for on-site hardware. Their adoption is increasing due to the rise of remote and hybrid work models, which create demand for flexible, accessible, and scalable communication tools that can be used from any location. Cloud-based solutions support hosted PBX by providing affordable, remotely accessible communication services without relying on physical infrastructure. For example, according to Eurostat, 45.2% of EU enterprises purchased cloud computing services in 2023, up from 41% in 2021, reflecting steady growth in cloud adoption. The increasing use of cloud-based solutions is therefore fueling growth in the hosted PBX market.

Companies in the hosted PBX market are focusing on AI-driven contact center integration to enhance communication efficiency. This approach uses artificial intelligence to connect communication channels, automate customer interactions, and provide real-time insights, improving operational performance and customer experience. In November 2023, RingCentral, Inc., a US-based provider of cloud communications and collaboration solutions, launched RingCX, an AI-first contact center platform that unifies voice, video, messaging, and other channels. The platform applies AI to automate interactions, guide agents with real-time insights, and evolve traditional telephony into a comprehensive, intelligent communication system, enhancing hosted PBX capabilities.

In September 2024, Gamma Communications Plc, a UK-based provider of unified communications services, acquired Placetel, a Germany-based provider of cloud-based telephony, hosted PBX, VoIP solutions, and unified communications for SMEs. The acquisition strengthens Gamma Communications’ presence in the German cloud communications market by leveraging Placetel’s brand, customer base, and technology, while expanding its European footprint and accelerating growth through integration with its unified communication offerings.

Major players in the hosted private branch exchange (PBX) market are Microsoft Corporation, AT&T Inc., Cisco Systems Inc., Verizon Communications Inc., Comcast Business Communications LLC, Zoom Video Communications Inc., RingCentral Inc., Mitel Networks Corporation, Avaya LLC, 8x8 Inc., GoTo Group Inc., Dialpad Inc., Nextiva Inc., Vonage Holdings Corp., Intermedia Cloud Communications Inc., Sangoma Technologies Corporation, Ooma Inc., Broadvoice LLC, Exotel Techcom Private Limited, Atlantech Online Inc., Windstream Communications LLC, and ClearlyCore Inc.

North America was the largest region in the hosted private branch exchange (PBX) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in hosted private branch exchange (PBX) report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the hosted private branch exchange (PBX) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

A hosted private branch exchange (PBX) is a cloud-based telephone system where all hardware and management are handled by an external service provider, enabling businesses to access a fully functional phone system without on-site equipment. This setup allows organizations to efficiently manage calls, use features such as call forwarding, voicemail-to-email, and automated attendants, and scale communication capabilities as the business grows.

The main components of hosted PBX include solutions and services. These systems operate through public, private, or hybrid cloud deployments and support organizations of all sizes, from SMEs to large enterprises. Applications include unified communication and collaboration, file sharing, remote collaboration, fax-on-demand, mobility, contact centers, call routing and queueing, and call recording and monitoring. End users span sectors such as banking, financial services, and insurance (BFSI), healthcare, government, manufacturing, energy and utilities, IT and telecom, travel and hospitality, and others.

The hosted private branch exchange (PBX) market research report is one of a series of new reports that provides hosted private branch exchange (PBX) market statistics, including hosted private branch exchange (PBX) industry global market size, regional shares, competitors with a hosted private branch exchange (PBX) market share, detailed hosted private branch exchange (PBX) market segments, market trends and opportunities, and any further data you may need to thrive in the hosted private branch exchange (PBX) industry. This hosted private branch exchange (PBX) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The hosted private branch exchange (PBX) market includes revenues earned by entities by providing services, such as disaster recovery and call continuity services, centralized call recording and storage, fax over IP (FoIP) integration, time-based call routing, and multi-location support. The market value includes the value of related goods sold by the service provider or included within the service offering. The hosted private branch exchange market also includes sales of cloud private branch exchange systems, analytics and reporting tools, and conferencing and collaboration tools. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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