Hosted PBX Market Size

Hosted PBX Market size was valued at USD 12.26 billion in 2024 and is likely to cross USD 89.27 billion by the end of 2037, expanding at more than 16.5% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of hosted PBX is assessed at USD 13.88 billion.

The growth of the segment can be attributed to growing small sized businesses. In the US, there are about 31 million small businesses, which make up approximately 98% of all enterprises. Hosted PBX eliminates the need for small enterprises to purchase and operate costly on-premises PBX equipment. Instead, the system is managed and maintained by the service provider, lowering the overall cost of ownership.

Moreover, employees may work from any location with an internet connection and yet be linked to the same phone system as a result of hosted PBX, which is perfect for scattered and remote teams. Hence, with the growing employees working the demand for hosted PBX market is growing. The overall cost of ownership is decreased with hosted PBX since staff are no longer required to buy and maintain pricey on-premises PBX equipment. Moreover, hosted PBX companies often have strong security mechanisms in place to guard against data breaches, assisting in ensuring the privacy and security of crucial corporate conversations.