According to Verified Market Research, the Global cloud PBX market was valued at USD 5.12 Billion in 2020 and is projected to reach USD 14.76 billion by 2028, growing at a CAGR of 14.17% from 2021 to 2028.

The increasing adoption of cloud-based technology and the increasing number of SMEs are driving the demand for the Cloud PBX market. Cloud PBX has several advantages, including scalability, flexibility when using additional hardware, and cost savings. Therefore, they are widely used in small and medium-sized enterprises and large enterprises. It reduces enterprise operating costs by eliminating the need for on-site equipment installation and maintenance. These are completely IT-based offsite communication systems that reduce infrastructure costs.

Cloud PBXs are widely used in IT companies, the BFSI sector, the government, and the public sector. Rapid technological development has led to new innovations in cloud PBX software, and the growing adoption of cloud computing is driving the development of the Cloud PBX market. On the contrary, as cloud PBX is entirely internet-based, any issues with the internet connectivity can cause redundancy and quality degradation of the calls. Besides that, increasing issues of cybercrime possess security threats to the data that are restraining the growth of the Cloud PBX market.

Also important, forward-looking businesses are evaluating UCaaS in the context of broader digital transformation projects and are looking to align communications upgrades with broader business goals. Providers with flexible application programming APIs and communications platforms as a service (CPaaS) will be better equipped to help businesses integrate their communications solutions with important workflows and thus boost the return on their communications investments.

To execute effectively, providers need to modernize their architectures, improve operational efficiencies, optimize internal processes, nurture effective partner channels, develop customer migration and UCaaS adoption services, enable hybrid architectures within customer organizations; provide flexible APIs and consider the use of artificial intelligence (AI), augmented reality (AR), virtual reality (VR) and other advanced technologies to create superior user experiences.

The North American hosted IP telephony and UCaaS markets remain highly fragmented despite ongoing mergers and acquisitions. New product launches by a variety of technology developers, as well as the increasing popularity of wholesale services and private-label UCaaS offerings, are likely to perpetuate market fragmentation in the foreseeable future.

Key Players

The major players in the market are Vonage, Microsoft, Cisco, ShoreTel Inc., Nextiva, Mega Path, Comcast, Ring Central, Avaya, and AT&T, Inc.

RingCentral, Inc. is a leading provider of business cloud communications and contact center solutions based on its powerful Message Video Phone™  (MVP®) global platform. More flexible and cost-effective than the legacy on-premises PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral offers three key products in its portfolio including RingCentral MVP™, a Unified Communications as a Service (UCaaS) platform including team messaging, video meetings, and cloud phone system; RingCentral Video®, the company’s video meetings solution with team messaging that enables Smart Video Meetings™; and RingCentral cloud Contact Center solutions. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.