Hosted PBX Market size is expected to reach USD 264 billion by the end of 2036, witnessing around 15% CAGR during the forecast period i.e., 2024-2036. In the year 2023, the industry size of hosted PBX was over USD 63 billion. The growth of the segment can be attributed to growing small sized businesses. In the US, there are about 31 million small businesses, which make up approximately 98% of all enterprises. Hosted PBX eliminates the need for small enterprises to purchase and operate costly on-premises PBX equipment. Instead, the system is managed and maintained by the service provider, lowering the overall cost of ownership.
Moreover, employees may work from any location with an internet connection and yet be linked to the same phone system as a result of hosted PBX, which is perfect for scattered and remote teams. Hence, with the growing employees working the demand for hosted PBX market is growing. The overall cost of ownership is decreased with hosted PBX since staff are no longer required to buy and maintain pricey on-premises PBX equipment. Moreover, hosted PBX companies often have strong security mechanisms in place to guard against data breaches, assisting in ensuring the privacy and security of crucial corporate conversations.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~15% |
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Base Year Market Size (2023) |
~ USD 63 Billion |
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Forecast Year Market Size (2036) |
~ USD 264 Billion |
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Regional Scope |
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End User (BFSI, Healthcare, Government, Retail, Manufacturing)
The BFSI segment is predicted to hold 35% share of the global hosted PBX market during the time period between 2024-2036. The growth of the segment can be attributed to growing financial services, followed by the rising economy. One of the economies in the world with the quickest growth rates was India. Real GDP increased by 7.7 percent annually over the first three quarters of the fiscal year 2022-2023, maintaining its strong overall growth, which is projected to be 6.9 percent for the entire year. During the second half of FY 22/23, there were some indications of moderation. Hosted PBX solutions frequently provide cutting-edge capabilities including call routing, call recording, and voicemail-to-email, which could be very valuable for financial services that largely rely on phone communication.
Organization (Large Enterprises, SMEs)
Hosted PBX market from the SMEs segment is expected to have the significant growth over the forecast period. SMEs frequently lack funding for traditional PBX systems as well as employees and infrastructure in the IT department. As a result, they are more inclined to use hosted PBX systems to gain access to cutting-edge communication technologies, lower expenses, and enhance customer experience. Moreover, for SMEs who depend on mobile and remote workers, hosted PBX systems enable employees to operate remotely or while on the go. This enables them to stay in contact and keep up a high level of production regardless of where they are. Additionally, hosted PBX systems are easy to set up and administer, making them a popular solution for SMEs that don't have dedicated IT employees.
Our in-depth analysis of the global hosted PBX market includes the following segments:
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Component |
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Organization Size |
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End User |
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North America Market Statistics:
The hosted PBX market in North America is projected to have the highest growth of 32% by the end of 2036, backed by surge in cloud adoption. As per a data approximately 48% organizations in United States are currently operating with the help of cloud system. Moreover, natural calamities including hurricanes, tornadoes, and earthquakes are common in North America, and they could interfere with communication infrastructure. Advanced disaster recovery features, such as automatic failover to backup systems, are provided by hosted PBX systems, which could assist businesses in maintaining communication even in the case of a disaster. Additionally, numerous businesses in North America are expanding quickly, and they require communication systems that can keep up with their expansion.
APAC Market Statistics
The Hosted PBX Market in the Asia Pacific is set to grow significantly during the assessment period. Some of the world's fastest-growing economies are found in Asia Pacific, and as a result, many small and medium-sized firms are expanding there. These companies have access to a scalable and cost-effective communication solution with hosted PBX systems. Moreover, in recent years, Asia Pacific has seen tremendous investment in internet infrastructure, with many nations deploying high-speed broadband networks. Additionally, numerous companies in the Asia-Pacific region work in regulated fields including finance, healthcare, and the public sector, which have stringent regulations about compliance.
Author Credits: Abhishek Verma, Hetal Singh
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