Virtual PBX providers have reason to feel optimistic as the global market is expected to exceed $14.3  billion by 2026.

That’s according to a new report by Transparency Market Research, which anticipates a compound annual growth rate (CAGR) of 15.3 percent through 2026. The virtual PBX market is in an emerging stage and is expected to expand rapidly in the next few years.

Leaders in the market include such companies as Mitel Networks, RingCentral, BroadSoft (Cisco), 8×8, Digitcom, Birch Communications and Nextiva.

Growth of the market is attributed to increasing demand for virtual PBX and an increase in adoption of cloud-based deployment models to offer quality services to clients. The Americas is anticipated to lead the global market, followed by Asia Pacific and Europe.

The United States is the major market for virtual PBX solutions in the region. Virtual PBX offerings also are gaining popularity in Canada and the rest of Americas. The market in Europe and Asia Pacific also is expected to expand at a rapid pace during the forecast period.

Savings through reduced phone and fax charges, eliminating PBX hardware requirements and reduced administration costs are driving the market, as all businesses experience cost pressure. Hosted PBX helps in reducing total cost of ownership by 25-30 percent.

Based on business size, small and micro enterprises have deployed virtual PBX the most and have contributed significantly to the growth of the market, according to the report.