COVID-19 Fueling Major Virtual PBX Market Growth

Industries and vertical markets throughout the world have been transformed as a result of the COVID-19 pandemic. The virtual PBX market is one area that is experiencing tremendous growth, driven by the high demand for unified communications and collaboration for a growing number of remote workers as well as individuals.

The cloud-based PBX market alone will grow by $23.89 billion through 2024, according to a new report from Technavio. That massive growth will be largely fueled in the immediate future, propelled by new opportunities and the market impact of the coronavirus.

MMR Research predicts the global hosted PBX market is poised to reach $13.02 billion by 2026, boosted by revenue impacts from COVID-19. The company's report cites a rising need for enterprise mobility, low CAPEX and TCO and growing adoption of the cloud and UC as driving factors in adoption.

According to a Fortune Business Insights report, reduction in the total cost of ownership is a major factor driving growth in the virtual PBX market. Massive uptake of cloud services and infrastructure, which has been further propelled by COVID-19, is also boosting adoption. Many companies are also trying to improve efficiency and boost optimization while containing costs during the pandemic.

“Factors such as high operational flexibility of cloud-based PBX, and the convergence of VoIP, PBX, and UC for effective communication will have a significant impact on the growth of the cloud-based PBX market value during the forecast period [2020-2024],” said a senior analyst at Technavio.

Technavio research also indicates that the growing popularity of VoLTE among enterprises is fueling virtual PBX growth. VoLTE, which enables HD voice calling services, can be easily integrated with PBXs to enable UC applications like messaging, videoconferencing and corporate presence.

For additional information about how COVID-19 is impacting global communications and technology markets, visit TMC's new Pandemic Tech News site.