Hosted PBX

Hosted PBX

Hosted PBX, also known as Cloud PBX, refers to a telephone system that is hosted in the cloud rather than on-premises. This means that the hardware and software for the phone system are provided and managed by a third-party provider, rather than being installed and maintained on-site. The Hosted PBX market has been growing rapidly in recent years due to the increasing demand for cost-effective communication solutions.

The Hosted PBX Market was valued at 7.0 billion in 2022 and is expected to grow at a steady rate of around 13.3% in the forecasted period (2023-2030) owing to the Increasing demand for cloud-based services. Also, Hosted PBX offers unparalleled scalability and flexibility, making it an attractive option for businesses of all sizes. Whether a company has 5 or 500 employees, Hosted PBX easily scales up or down to meet changing business needs. This means that businesses can quickly add new users, locations, or features as needed, without having to invest in expensive hardware or software. Additionally, Hosted PBX provides a range of features that can be tailored to meet specific business requirements, such as call forwarding, call recording, and automated attendants. This flexibility allows businesses to customize their communication solution to fit their unique needs, which is driving the growth of the Hosted PBX market. According to the General Services Administration (GSA) report, in 2020, 75% of federal agencies had adopted hosted PBX systems, up from 58% in 2015.

• Based on components, the market is bifurcated into solutions, and services. The services segment is further segmented into network service, security service, managed service, and others. Among these, the network service segment is leading the market due to its critical role in providing a reliable and secure communication infrastructure for businesses. With Hosted PBX, companies enjoy a high-quality network service that is scalable, flexible, and cost-effective. Moreover, network services offer advanced features such as call forwarding, call recording, and automated attendants, which enhance productivity and customer experience. Additionally, network services are often seen as a fundamental component of a company's IT infrastructure, making them an essential aspect of their operations. As a result, the demand for network services is driving the growth of the Hosted PBX market.
• Based on applications, the market is categorized into BFSI, healthcare, government, retail, manufacturing, and others. Among these, the healthcare segment is anticipated to hold a considerable share of the market. Healthcare providers require reliable and secure communication systems to ensure the best possible care for their patients. Hosted PBX solutions offer advanced features such as call forwarding, call recording, and automated attendants, which enhance patient care and streamline clinical workflows. Furthermore, the healthcare industry is subject to strict regulations, and Hosted PBX solutions can help organizations maintain compliance with these regulations. As a result, the healthcare segment is expected to continue dominating the Hosted PBX market in the coming years.
• For a better understanding of the market adoption of Hosted PBX, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. The Hosted PBX market in North America has been experiencing robust growth, driven by increasing demand for cloud-based services, cost savings, scalability, and advanced features. For instance, in the United States, the Federal Communications Commission (FCC) reports that Hosted PBX adoption has been growing rapidly, with over 60% of businesses using some form of Voice over Internet Protocol (VoIP) technology. Additionally, the FCC notes that small and medium-sized businesses are driving much of this growth, as they seek out cost-effective and flexible communication solutions. Overall, government data suggests that Hosted PBX is becoming increasingly popular in the North American region and is expected to continue growing in the coming years. According to a report by the United States Government Accountability Office (GAO), the federal government spent approximately $2.3 billion on telecommunications services in fiscal year 2020. Of this amount, $654 million was spent on hosted voice services, representing a 25% increase from the previous year.
• Some of the major players operating in the market include RingCentral, Inc.; Nextiva; AT&T; BT Group; 8x8, Inc.; DIALPAD, INC.; NovoLink Communications, Inc.; TPx Communications; InterGlobe Communications; Mitel Networks Corp.