The global hosted PBX market size was USD 11.28 billion in 2023, calculated at USD 13.17 billion in 2024 and is expected to be worth around USD 62.20 billion by 2034. The market is slated to expand at 16.79% CAGR from 2024 to 2034.
The global container security market size is worth around USD 13.17 billion in 2024 and is anticipated to reach around USD 62.20 billion by 2034, growing at a CAGR of 16.79% over the forecast period 2024 to 2034. The North America container security market size reached USD 4.29 billion in 2023.The increasing demand for the hosted PBX by industries to improve the quality of internet calls in organizations is driving the growth of the market.
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The U.S. hosted PBX market size was exhibited at USD 3.21 billion in 2023 and is projected to be worth around USD 17.96 billion by 2034, poised to grow at a CAGR of 16.94% from 2024 to 2034.
North America dominated the market with the largest share in 2023. The growth of the market is attributed to the rising development of industrial development and the demand for the modern medium for telecommunications for efficiency in the overall communications operations in the organizations, which are driving the growth of the hosted PBX market. The rising penetration and continuity in the remote and hybrid work culture by several large, medium, and small organizations are also contributing to the adaptation of the hosted PBX network. The strong availability of broadband plays an important role in the efficient operations of cloud-based communications, and the increasing penetration of high-speed internet users accelerates the growth of the market. Additionally, the development of IT infrastructure is boosting the growth of the hosted PBX market.
Asia Pacific is expected to have significant growth during the forecast period. The growth of the market is attributed to the rising development of IT infrastructure, and other industrial developments are driving the growth of the market. The rise in the remote and hybrid work culture during and post-pandemic is accelerating the growth of the hosted PBX market. Hosted PBX is the technology that enhances the overall telecommunications in organizations and boosts the growth of the market in the region.
Hosted PBX, also known as the private branch exchange, is hosted by the private service provider. The increasing demand for an efficient medium of communication between employees and clients is driving the adoption of the hosted PBX, which helps make and receive calls via the Internet. The hosted PBX plays an important role in replacing the traditional PBX networks that use landline phones and PBX. The hosted PBX has various beneficial features that improve the quality of communication in the organizations. Many IT and other industries are adopting the hosted PBX over the traditional PBX due to the cost reduction, accessibility to telecommunications, and maintain their operations. There are several major tech giants and other industries are shifting from traditional, on-premise PBX to hosted PBX due to the lower setup cost, low operational costs, no downtime, lower cost of maintenance, enhanced telephonic features, ability to connect to remote workers, and enhanced flexibility. Several businesses are gaining benefits from the hosted PBX, including call centers, startups, remote employees, and multiple offices. Thus, the rising industrialization is boosting the growth of the hosted PBX market.
How Artificial Intelligence is transforming the hosted PBX market?
Integrating artificial intelligence with private branch exchange systems offers enhanced features like call forwarding, voicemail, and conference calling in modern business communications. AI-driven PBX systems improve the ways of handling customer queries by identifying their tones and needs and providing suitable assistance services. AI-powered virtual assistants and chatbots aid in managing routine tasks and offering 24/7 support through voice calling or text messaging features.
Predictive analytics can identify customer behavioral patterns and estimate call volumes, which ultimately helps improve customer engagement plans and decisions. Biometric authentication is also enabled by AI-powered voice recognition to optimize security levels through customers' unique voice patterns. AI-driven real-time translation for effective business communication supports overcoming the language barriers between people from different countries with enhanced connectivity and productivity.
Report Coverage | Details |
Market Size by 2034 | USD 62.20 Billion |
Market Size in 2023 | USD 11.28 Billion |
Market Size in 2024 | USD 13.17 Billion |
Market Growth Rate from 2024 to 2034 | CAGR of 16.79% |
Largest Market | North America |
Base Year | 2023 |
Forecast Period | 2024 to 2034 |
Segments Covered | Component, Application, Industry Verticals, and Regions |
Regions Covered | North America, Europe, Asia-Pacific, Latin America and Middle East & Africa |
The rising number of remote workforce employees
The adoption of the remote working pattern in the pandemic and post-pandemic by several organizations is boosting the demand for the internet-based communication system for coordinating with the remote workers that drive the growth of the hosted PBX market. Many organizations are still adopting fully remote and hybrid working in their working pattern. The adoption of a remote and hybrid work culture minimizes infrastructural expenses and cuts the other overhead tasks. Telecommunication technologies are essential elements in remote working. The hosted PBX simplifies the communication process with internet accessibility. The hosted PBX is essential to keep the remote workforce connected and further promote collaboration with traditional office environments.
The hosted PBX has properties such as cost-effectiveness, user-friendliness, and a number of other features that make it a perfect fit for remote workers to stay connected, productive, and collaborate in organizations. The hosted PBX is beneficial for remote workers in several ways, such as enhancing their productivity, flexibility, mobility, and control over employees, customers, and companies. Thus, continuing remote work in organizations is driving the growth of the hosted PBX market.
Data security
Data privacy and security is the major concern in the hosted PBX network due to the availability of the vast amount of data associated with the employees and organization, and the increasing cases of cyberattacks, hacking, or data breach cases that have become one of the potential threats in the expansion of the hosted PBX network. Additionally, the quality of services, such as poor-quality video and audio calls, poor troubleshooting tools, and the inability to resolve issues, are some of the factors that also negatively impact the growth of the hosted PBX market.
Rise in mobile connectivity
The increasing adoption of the hosted PBX in mobile devices is driving growth opportunities in the market. Mobile devices are continuously growing in their communication and working capabilities. Remote workers are increasingly adopting mobile devices to receive and make calls and access all the hosted PBX features on mobile phones. Thus, the hosted PBX in mobile devices is essential for remote workers and on-the-go business operations. The advancements in mobile technologies over the period, as the evolution of smartphones, enable the seamless integration of the hosted PBX in mobile devices and allow users to access calls, voicemail, and conferencing through mobile phones. The increasing 5G infrastructure is also one of the impacting factors in the growing installation of the hosted PBX in mobile devices that drives the opportunities in the growth of the hosted PBX market.
The solution segment dominated the market with the largest market share of 56% in 2023. This is due to the hosted PBX solutions play a key role in providing comprehensive and integrated systems for businesses. These solutions provide various features, such as video conferencing, call routing, unlimited calling, call recording, and SMS/MMS texting, facilitating seamless communication between teams from remote locations. Cloud PBX system provides real-time data recording and is easy to integrate, scalable, and cost-effective, thus boosting the segment.
The services segment is expected to grow at a CAGR of 17.2% during the forecast period. The rising demand for hosted PBX services by several end-use industries is driving segmental growth. Professional and managed services help integrate PBX systems with essential business tools. These services ensure that communication tools work in harmony with other software, thus enhancing data flow and operational efficiency. They also monitor and optimize PBX performance, significantly avoiding disruptions in communication.
The unified communication and collaboration segment dominated the hosted PBX market and is expected to hold the largest market share during the forecast period. The increasing demand for unified communication and collaboration by several organizations owing to its several benefits is driving the demand for the segment. The hosted unified communication and collaboration overcome the challenges of telecommunication in businesses. It allows the employees to have overall access to all the communication channels, including video chat, web conferencing, phone calls, and messaging. Organization IT departments can maintain every communication channel easily, and employees are required to learn how to use the system.
Unified communication and collaboration help the organization's IT teams manage and maintain the security of their employees with a single platform instead of managing several services and applications. The unified communication and collaboration deployment in the organization improves efficiency, reduces operational costs, rapid upgrades and provisioning, requires less space, and can be operated without installing on-premise. There are the basic foundations hosted by unified communication and collaboration, including unified messaging, cloud infrastructure, voice over IP (VoIP), and real-time communications. Additionally, there are several benefits associated with unified communication and collaboration, such as enhanced productivity and performance, easier project tracking, simple document management, and access to expertise from anywhere.
The healthcare and life sciences segment is expected to be the fastest-growing segment in the hosted PBX market during the anticipated period. The increasing adoption of the hosted PBX by several healthcare and life science institutions for getting timely assistance, high-quality telecommunication systems, and reliable sources of communication during medical emergencies are boosting the growth of the hosted PBX in the healthcare industry. The hosted PBX is gaining rapid popularity in several industries. The hosted PBX helps in covering the several communication challenges that come with manual or traditional types of communication technologies. There are some advantages that rely on the adoption of the hosted PBX in the healthcare industry, such as providing real-time response, enhancing customer satisfaction and scalability, reducing costs, increasing staff productivity, and increasing communication and collaboration. The rising advancements in healthcare technologies and trends like telehealth that provide medical services remotely are highly contributing to the expansion of the hosted PBX market in the healthcare and life sciences industry.
Segments Covered in the Report
By Component
By Application
By Industry Verticals
By Geography
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Hosted PBX Market
5.1. COVID-19 Landscape: Hosted PBX Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Hosted PBX Market, By Component
8.1. Hosted PBX Market Revenue and Volume, by Component, 2024-2034
8.1.1 Solution
8.1.1.1. Market Revenue and Volume Forecast (2021-2034)
8.1.2. Services
8.1.2.1. Market Revenue and Volume Forecast (2021-2034)
Chapter 9. Global Hosted PBX Market, By Application
9.1. Hosted PBX Market Revenue and Volume, by Application, 2024-2034
9.1.1. Unified communication and collaboration
9.1.1.1. Market Revenue and Volume Forecast (2021-2034)
9.1.2. Call center
9.1.2.1. Market Revenue and Volume Forecast (2021-2034)
9.1.3. Mobility
9.1.3.1. Market Revenue and Volume Forecast (2021-2034)
9.1.4. Other applications
9.1.4.1. Market Revenue and Volume Forecast (2021-2034)
Chapter 10. Global Hosted PBX Market, By Industry Verticals
10.1. Hosted PBX Market Revenue and Volume, by Industry Verticals, 2024-2034
10.1.1. Banking, Financial Services, and Insurance (BFSI)
10.1.1.1. Market Revenue and Volume Forecast (2021-2034)
10.1.2. Retail and eCommerce
10.1.2.1. Market Revenue and Volume Forecast (2021-2034)
10.1.3. Manufacturing
10.1.3.1. Market Revenue and Volume Forecast (2021-2034)
10.1.4. Healthcare and life science
10.1.4.1. Market Revenue and Volume Forecast (2021-2034)
10.1.5. IT & ITeS
10.1.5.1. Market Revenue and Volume Forecast (2021-2034)
10.1.6. Telecom
10.1.6.1. Market Revenue and Volume Forecast (2021-2034)
10.1.7. Travel and hospitality
10.1.7.1. Market Revenue and Volume Forecast (2021-2034)
10.1.8. Education
10.1.8.1. Market Revenue and Volume Forecast (2021-2034)
10.1.9. Government and public sector
10.1.9.1. Market Revenue and Volume Forecast (2021-2034)
10.1.10. Other verticals
10.1.10.1. Market Revenue and Volume Forecast (2021-2034)
Chapter 11. Global Hosted PBX Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.1.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.1.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.1.4. U.S.
11.1.4.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.1.4.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.1.4.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.1.5.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.1.5.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.2. Europe
11.2.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.2.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.2.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.2.4. UK
11.2.4.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.2.4.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.2.4.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.2.5. Germany
11.2.5.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.2.5.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.2.5.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.2.6. France
11.2.6.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.2.6.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.2.6.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.2.7.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.2.7.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.3. APAC
11.3.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.3.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.3.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.3.4. India
11.3.4.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.3.4.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.3.4.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.3.5. China
11.3.5.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.3.5.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.3.5.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.3.6. Japan
11.3.6.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.3.6.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.3.6.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.3.7.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.3.7.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.4. MEA
11.4.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.4.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.4.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.4.4. GCC
11.4.4.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.4.4.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.4.4.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.4.5. North Africa
11.4.5.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.4.5.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.4.5.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.4.6. South Africa
11.4.6.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.4.6.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.4.6.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.4.7.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.4.7.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.5. Latin America
11.5.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.5.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.5.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.5.4. Brazil
11.5.4.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.5.4.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.5.4.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Volume Forecast, by Component (2021-2034)
11.5.5.2. Market Revenue and Volume Forecast, by Application (2021-2034)
11.5.5.3. Market Revenue and Volume Forecast, by Industry Verticals (2021-2034)
Chapter 12. Company Profiles
12.1. Verizon Communications
12.1.1. Company Overview
12.1.2. Product Offerings
12.1.3. Financial Performance
12.1.4. Recent Initiatives
12.2. AT&T
12.2.1. Company Overview
12.2.2. Product Offerings
12.2.3. Financial Performance
12.2.4. Recent Initiatives
12.3. Cisco Systems
12.3.1. Company Overview
12.3.2. Product Offerings
12.3.3. Financial Performance
12.3.4. Recent Initiatives
12.4. RingCentral
12.4.1. Company Overview
12.4.2. Product Offerings
12.4.3. Financial Performance
12.4.4. Recent Initiatives
12.5. Comcast Corporation
12.5.1. Company Overview
12.5.2. Product Offerings
12.5.3. Financial Performance
12.5.4. Recent Initiatives
12.6. Sangoma Technologies
12.6.1. Company Overview
12.6.2. Product Offerings
12.6.3. Financial Performance
12.6.4. Recent Initiatives
12.7. Mitel networks
12.7.1. Company Overview
12.7.2. Product Offerings
12.7.3. Financial Performance
12.7.4. Recent Initiatives
12.8. Lingo Telecom
12.8.1. Company Overview
12.8.2. Product Offerings
12.8.3. Financial Performance
12.8.4. Recent Initiatives
12.9. Telesystem
12.9.1. Company Overview
12.9.2. Product Offerings
12.9.3. Financial Performance
12.9.4. Recent Initiatives
12.10. Ozonotel
12.10.1. Company Overview
12.10.2. Product Offerings
12.10.3. Financial Performance
12.10.4. Recent Initiatives
Chapter 13. Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
Chapter 14. Appendix
14.1. About Us
14.2. Glossary of Terms
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