According to an estimate, the global hosted PBX market size will witness a considerable gain over 2021-2027. The expanding footprint of remote work culture has set the precedence for hosted PBX services across businesses of all sizes. With cost-efficiency and reliability, hosted PBX components and solutions will continue to remain growth enablers.
Enterprises are likely to bank on the burgeoning number of internet users, especially in emerging economies. According to the International Telecommunication Union (ITU), China and India witnessed 939.8 million and 624 million internet users in January 2021, respectively. Besides, the trend for BYOD will provide impetus to the industry outlook.
With a cloud-based future on the cards, hosted PBX network is redefining global comm
unication. Industry leaders are likely to infuse funds into these regional trends, focusing on North America, Europe and the Asia Pacific:
1. Managed services to accelerate revenue in Europe
To realize the full potential of hosted PBX, managed services are likely to reshape the business landscape. Prominently, demand for cloud computing technologies and hosted telephony solutions has become pronounced in the U.K., France and Germany. The service has become paramount to negate the need for additional software components and reduce OPEX. The Europe hosted PBX market size is forecast to surpass USD 2 billion by 2027 and could witness the managed services segment grow at a 10% CAGR during the period.
2. BFSI sector to exhibit profound demand in the U.K. and Germany
The influx of investments in digitization, along with the growth of Industry 4.0, has fueled the adoption of hosted PBX across banks and financial institutions. With the freedom to customize and integrate calls and products, the service has become pivotal in reducing operational costs. Notably, the BFSI sector in the U.K. is exhibiting an inclination to automate mundane activities, fueling the trend for hosted PBX products and services. The BFSI hosted PBX segment in the Europe market could grow at a robust CAGR of 5% through 2027.
3. North America to witness traction from the retail sector
The penetration of the retail sector has become palpable in the U.S. and Canada in the backdrop of the thriving e-commerce industry. Given that hosted PBX solutions underpin smartphone and cell phone integration, retail companies have furthered their foothold across the region. As retailers seek services to boost brand image, hosted PBX services are likely to help enhance customer experience (CX) and efficiency. Retail businesses are likely to serve customers looking for accessibility and convenience through cloud computing, bolstering communication between suppliers, warehouses, stores and sales teams. These dynamics suggest North America hosted PBX market size could surpass USD 2.5 billion by 2027.
4. Hosted PBX becomes trendier in American SMEs
SMEs have become one of the major markets for hosted PBX as the demand for advanced communication services has become pronounced across the region. SMEs have emphasized cost-effective PBX solutions to boost workflow management. Factors such as easy maintenance, deployment and administration have boded well for the solution providers. North America hosted PBX industry share from SMEs segment will expand at a healthy CAGR of more than 10% through 2027.
5. Government sector is a prime driver of Asia Pacific hosted PBX market
Government agencies across China, Australia, Japan and India have exhibited a profound inclination for hosted PBX services. An emphasis on bringing a paradigm shift in modernizing communications infrastructure to enhance reliability will drive product adoption in the public sector. The government segment in the APAC-hosted PBX industry is likely to observe a 15% CAGR through 2027. Prominently, governments are prioritizing cloud-based services to drive responsiveness and availability through integration solutions, fostering mobility, collaboration and efficiency. These trends indicate the Asia Pacific hosted PBX market is poised to touch USD 3 billion by 2027.
6. Healthcare sector to prosper in APAC
Amidst an unprecedented strain during the COVID-19 pandemic, the healthcare sector has potentially become a hub for emergency contact systems and effective communication, particularly in the APAC industry. IP-based communication and remote work access solutions have brought a seismic shift in the healthcare landscape. The cloud-hosted and VoIP PBX are likely to drive healthcare workers to communicate seamlessly. The healthcare segment in the APAC hosted PBX market is expected to capture more than 30% share by 2027, flourishing at a growth rate of around 10% during the period.
7. What has the China market in-store?
While China was reeling under the pressure of the COVID-19 outbreak in 2020, governments, BFSI and the healthcare industries witnessed a sudden surge in the demand for hosted PBX solutions. It was partly attributed to a surge in internet penetration and the growth of low latency architecture that leverages remote connection. China hosted PBX market revenue share will be pronounced in the coming years, with the latest cloud technology gaining prominence.
Overcoming challenges from the COVID-19 pandemic
The economic fallout of the COVID-19 outbreak brought both opportunities and challenges—the healthcare sector cashed in—and so did the large enterprises. Hosted PBX suppliers witnessed unprecedented demand from a slew of end-use sectors. However, SMEs were hardly hit by the pandemic, leading to shutdown or a temporary halt of their production plants.
Given the prevailing trends globally, hosted PBX solutions could prove to be a vital proposition to handle high call volumes, drive a collaborative environment and integrate solutions with flexible communication systems. Moreover, niche markets are likely to provide IP-based PBX solutions and count on the trend for 5G networks. Besides, large enterprises will provide impetus with the early adoption of state-of-the-art communication technologies. These organizations will witness an exponential adoption of cloud technology, bolstering operations and better customer relationship management.