February 2, 2022
The cloud PBX market is expected to grow substantially, from more than $5.1 billion in 2020 to nearly $14.8 billion by 2028. That’s a compound annual growth rate (CAGR) of more than 14%.
Expect Vonage, Microsoft and Cisco to be sizeable contenders in the market. Other major players will include Nextiva, Comcast Business, RingCentral, Avaya and AT&T. This is according to a report by Verified Market Research, a global research and consulting firm.
RingCentral, Avaya Partnership
The report’s analysts highlight the 2020 partnership between RingCentral and Avaya as significant. Coming out of that partnership was Avaya Cloud Office by Ring Central. It delivers team messaging, video meetings and cloud PBX with the goal of making cloud communications easier. The report’s researchers noted the technology as a model for what’s to come.
“Technological advancement and growing adoption of cloud computing, the growing number of startups and SMEs, and the application of cloud PBX across various industries are some of the factors expected to drive the cloud PBX Market,” the analysts wrote.
Technology Catching Up to Demand
The increasing adoption of cloud-based technology is driving the demand for hosted PBX. However, the increasing number of SMEs is also pushing demand. Cloud PBX has several advantages, including scalability, flexibility when using additional hardware, and cost savings. As a result, small and medium-size businesses and large enterprises use it widely. Moreover, it reduces enterprise operating costs by eliminating the need for on-site equipment installation and maintenance. These IT-based offsite communication systems reduce infrastructure costs.
IT companies, the BFSI sector, the government, and the public sector widely use cloud PBX. Rapid technological development has led to new innovations in cloud PBX software. The growing adoption of cloud computing is also driving the development of the cloud PBX market.
Of course, internet-based communication can have its downside. Any issues with internet connectivity can cause redundancy and quality degradation of calls. In addition, the increasing problem of cybercrime puts data at risk. These are some of the restraints on growth of the cloud PBX market.
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