Virtual PBX Market
Virtual PBX Market (Enterprise Size - Small & Micro Enterprises, Medium Enterprises, Large Enterprises) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2018 - 2026
Virtual PBX Market - Snapshot
The global Virtual PBX market is projected to be driven by the fact that it helps in the reduction of total cost of ownership. A hosted PBX system helps reduce the total cost of ownership by minimizing capital expenditure as the system requires only the yearly phone fee unlike an on-premise PBX solution which requires PBX server, annual maintenance, and in-house IT staff. There are numerous additional benefits apart from the quantifiable benefits of a hosted PBX solution that are hard to quantify, such as freeing up staff time who would have been managing on-premise PBX, increased employee productivity, and improved customer satisfaction. Also, by paying monthly subscription charges, companies could convert their capital expenditure into operational expenditure. Cost savings through reduced phone and fax charges, eliminating PBX hardware requirements, and reduced administration costs is driving the Virtual PBX market.
However, incompatible hardware and equipment is one of the main reasons for interruptions in the Virtual PBX service. Many old routers cannot support Virtual PBX systems and data transfer. Other network hardware such as switches could also run into compatibility issues with Virtual PBX protocols. Any obsolete network that still utilizes old and improper hardware could be a major and continuing issue and these act as restraints of the market. The global Virtual PBX market is anticipated to reach US$ 14,368.4 Mn by 2026 at a CAGR of 15.3% during the forecast period from 2018 to 2026.
Companies spend on Virtual PBX to increase efficiency, optimization, and speed and timing of logistic services, thereby increasing customer satisfaction and revenue. Amidst a range of rapid technological evolutions and in an increasingly digital environment where digital transformations are affecting the industry, most senior management members of various companies appreciate cloud based solutions (to engage with customers, and optimize production and operations) as major areas of investment.
A cloud-based PBX system offers cost advantage as the main cost factor of a cloud-based system is its service charge, while eliminating the cost of upgrading hardware and software, phone lines, and reassigning staff to other tasks in the business. Virtual PBX helps lighten the cost burden. Administration and operations count for major cost savings for a cloud-based PBX over an on-premise PBX. It reduces network complexity, allowing cloud service providers to host several virtual networks and also reduces the implementation and activation time. Due to the rising adoption of telco cloud, small and medium sized businesses are deploying more and more Virtual PBX, which creates ample opportunities for service providers to capture more market share.
Several strategies and approaches have been established to increase the efficiency of companies over the years. Cloud based solution is considered to be one of the most promising factors in these strategies. Startups as well as leading players in the market are prepared to collaborate with each other and complement their offerings. Collaboration of offerings encourages collaborative working, allowing key players to retain their dominance. The deal becomes a win-win for the two companies as the new player gets easy access to the market which might not be welcoming and the market leaders increase their efficiency and develop new business models, such as shared networks.
Growth in mobile telecommunication technology has enabled people to remain connected to the Internet from anywhere in the world. This has created the need to develop specialized solutions for mobile operating systems such as Android and iOS. Companies in the Virtual PBX market are also working on maximizing the bandwidth speed. The VoIP system makes use of a variety of codecs to decompose and compress voice data, which is further allowed to travel over the internet. Hence, growth in mobile telecommunication technology is also boosting the Virtual PBX market growth.
The global Virtual PBX market has been segmented based on enterprise size and region. In terms of enterprise size, the market has been classified into small & micro enterprises, medium enterprises, and large enterprises. Growing adoption of hosted PBX across enterprises is expected to fuel the decrease in the price of PBX hardware and license/ subscriptions across all the regions in the coming years.
In terms of region, Americas is projected to lead the global Virtual PBX market with most of the contribution from the U.S., during the forecast period. Virtual PBX requires active and flexible IT support, which is provided by the majority of companies in the region, leveraging the IT infrastructure of the region. Americas dominates the global Virtual PBX market primarily due to increase in adoption of cloud solutions. The market in Asia Pacific is anticipated to expand at a rapid pace due to rising use of internet and cloud solutions. Furthermore, the market in Europe, MEA, and South America are expected to witness strong growth during the forecast period.
The research study of the global Virtual PBX market includes profiles of leading companies operating in this market. Key players profiled in the report include 3CX Ltd., Alpha Telecom Services Inc., Mitel Networks Corporation, RingCentral, Inc., BroadSoft, Inc., BCE Inc., TELUS, TeraGo Networks Inc., 8x8, Inc., Digitcom, AllStream, Inc., Voysis IP Solutions Inc., AstraQom, Introtel, Birch Communications, Inc., and Nextiva, Inc.
Virtual PBX Market: Overview
This report on the Virtual PBX Market by Transparency Market Research analyzes and forecasts the data at the global and regional levels. The report provides an analysis of the industry trends in each of the segments from 2016 to 2026, wherein 2018 to 2026 is the forecast period and 2017 is the base year. The global Virtual PBX market report provides an in-depth and accurate analysis of market investment across segments covered in the scope. It also highlights various drivers, restraints, and opportunities expected to influence market growth during the forecast period. The study provides a complete perspective about the Virtual PBX market and its expansion throughout the research study in terms of value (US$ Mn) across North America, Asia Pacific, South America, Middle East & Africa, and Europe. Moreover, the study explains the penetration of each market segment within various regions and how these segments have accelerated the growth of the market.
The Virtual PBX market report covers all the major trends and technologies playing a major role in market growth from 2018 to 2026. The study provides a complete perspective of the evolution of the global Virtual PBX market during the forecast period in terms of revenue (US$ Mn) and subscribers (Mn).
The overview section of the report analyzes market dynamics such as drivers, restraints, and opportunities that influence the current nature and future status of this market, key indicators, integration challenges, end-user adoption analysis, and trends of the market. A market attractiveness analysis for every segment has also been included in the report to provide a thorough understanding of the overall scenario in the Virtual PBX market. The report also provides an overview of various strategies adopted by the key players in the market.
Global Virtual PBX Market: Scope of the Report
In terms of enterprise size, the report segments the market into small & micro enterprises, medium enterprises, and large enterprises. The report provides in-depth segment analysis of the global Virtual PBX market, thereby providing valuable insights at the macro as well as micro levels.
The report also highlights the competitive landscape of the market, positioning all the major players according to their presence in different regions of the world and key developments initiated by them in the global Virtual PBX market. The comprehensive market estimates are a result of in-depth secondary research, primary interviews, and in-house expert panel reviews. These market estimates have been analyzed taking into account the impact of different political, social, economic, and technological factors along with the current market dynamics affecting the expansion of the Virtual PBX market.
The report provides all the essential information required to understand the key developments in the global Virtual PBX market and expansion trends of each segment and region. It also includes strategies and financial information under the company profiles section. Additionally, the report provides insights related to trends and their impact on the regional market. Porter’s Five Forces analysis provides analysis of bargaining power of buyers, bargaining power of suppliers, threat of new entrants, threat of substitutes, and degree of competition in the global Virtual PBX market. This study provides a comprehensive ecosystem analysis of the global Virtual PBX market, explaining the various participants including software & third-party vendors, system integrators, and distribution channels of the value chain operating in the market.
Global Virtual PBX Market: Research Methodology
The research methodology is a combination of primary research, secondary research, and expert panel reviews. Secondary research sources such as annual reports, company websites, broker reports, financial reports, SEC filings and investor presentations, national government documents, internal and external proprietary databases, statistical databases, relevant patent and regulatory databases, market reports, government publications, statistical databases, World Bank database, and industry white papers are usually referred.
Primary research involves telephonic interviews, e-mail interactions, and face-to-face interviews for detailed and unbiased reviews on the global Virtual PBX market, across regions. Primary interviews are conducted on an ongoing basis with industry experts and participants in order to get the latest market insights and validate the existing data and analysis. Moreover, the data collected and analyzed from secondary and primary research is again discussed and examined by our expert panel.
Global Virtual PBX Market: Competitive Dynamics
The research study includes profiles of leading companies operating in the global Virtual PBX market. Key players profiled in the report include 3CX Ltd., Alpha Telecom Services Inc., Mitel Networks Corporation, RingCentral, Inc., BroadSoft, Inc., BCE Inc., TELUS, TeraGo Networks Inc., 8x8, Inc., Digitcom, AllStream, Inc., Voysis IP Solutions Inc., AstraQom, Introtel, Birch Communications, Inc., and Nextiva, Inc.
The global Virtual PBX market is segmented as below:
by Enterprise Size