Cloud PBX Market Size, Share And Forecast By 2030

Cloud technology is considered an accelerator for businesses these days as it offers solutions that are more agile and affordable. Communication, which is one of the foundations of a business, is also leveraging cloud technology by using solutions like cloud PBX. This post will walk you through the ongoing Cloud PBX market trends, the growth drivers, restraints, and opportunities that will influence this segment.

What is a Cloud PBX (Private Branch Exchange)?

Hosted-PBXA Cloud PBX or also called a ‘cloud-based phone system’ is a phone system that works entirely over the internet. The maintenance is done over the cloud which means there is no on-site infrastructure required which further cuts down the cost overhead. In simple words, it is an easy, quick, efficient and cost-effective alternative to traditional phone systems that work on fixed lines. Businesses can purchase a cloud-based PBX service from a service provider by paying them on subscription basis.

Cloud-Based Private Branch Exchange – Current Trends

Cloud PBX Market Growth Rate

Growing at a CAGR of 14%, the global Cloud PBX market is forecasted to reach USD 25.93 Bn by the year 2025. Furthermore, by 2030, it is likely to touch the value of US$ 68.3 Bn.

Prominent Region

Cloud PBX Market Prominent RegionNorth America is the top player in the category of regional domain because of the widespread implementation of cloud technology across various industries and is sharing more than 40% share in the global cloud PBX market.

Dominant Sector

Talking about the prominent sectors in this market, it is found that the Healthcare sector is taking the command but by the year 2025 almost all the sectors including Banking & Finance, IT, real estate, etc. are expected to implement the Cloud-based PBX technology.

Key Players

Organizational segmentation

As far as the competition landscape is concerned, some of the key players operating in the global cloud PBX market are Cisco Systems Inc., AT&T Inc., Microsoft Corporation, Ring Central, etc. With big names already present in the market, it becomes evident that the competition level is highly intense, and it is surely going to rise in the coming time.

Impact of COVID-19 Pandemic

The outbreak of the COVID-19 Pandemic in December 2019, at first, negatively affected the global cloud PBX market. Lockdown was imposed which led to shutting down of businesses in various countries. Companies minimized or closed few offices to cut down on expenses thus decreasing the demand for cloud-based PBX. On the other hand, enforcement of remote working or working from home due to the COVID-19 outbreak also led to rise in demand for hosted cloud PBX services. Considering the cost advantage of cloud PBX systems in overall up-front costs and that businesses are restarting, it is anticipated that the cloud PBX market will recover again as things have started getting normal.

Growth Drivers in the Cloud PBX Market

Significant Cost Savings

The cost of infrastructure is a key factor that determines the profitability of a business. With the business phone systems being on cloud, geographical limitations are eliminated. Businesses are able to maintain their global presence by adopting cloud by being virtually present.

Easy Scalability

The growing needs of a business makes it essential to choose a scalable solution. Cloud-based phone systems accommodate with the needs of businesses by facilitating addition or removal of users as per the requirement. In traditional phone systems, scalability was a big concern as it required additional investment in hardware and was limited to the location.

High Reliability

Since data helps organizations to establish baselines, set benchmarks and create goals to keep moving forward. Today, no business wants to loose such a precious asset. That’s why disaster proof technologies are in high demand and this is where cloud gains an advantage. Cloud systems are highly reliable with dedicated resources and servers which ensures that data recovery process is quite easy wherever disaster happens.

Rising Adoption of Cloud Solutions

Companies around the globe from different industry segments such as healthcare, BFSI, retail, real estate, and government have already started switching to cloud PBX solutions. This rise in adoption certainly paves the way to growth of cloud PBX market.

What are the major Restraints in the Cloud PBX Market?

Data Security

Since everything runs and resides over the internet and cyber attackers are ever-ready with their modern-day attacking techniques, security becomes a major concern in the cloud PBX market. Cloud systems are more susceptible to cyber-attacks and breaches as compared to that of traditional phone systems. Service providers need to put the latest security measures in order to protect user data. Endpoint security, network security and toll fraud management are some key areas where the work needs to be done.

High-Speed Internet

The quality of calls over the cloud phone systems is determined by the speed of the internet. Only with a strong internet connection, these systems can work well and deliver as per the user’s expectations. It is thus crucial to hire services of only reliable internet service providers.


Acceptance towards new technology by the staff is another hurdle. Businesses need to train their teams so that they can work upon the cloud PBX systems. With this, the need to create systems that are intuitive and user-friendly comes into the picture. Certainly, service providers are likely to work in this area as well.

Upcoming Trends in the Cloud PBX Market?

Integrated Platforms

Collaboration SolutionsIntegrated communication platforms could be the next big thing in the PBX market. Software development companies are integrating Cloud PBX with different sets of communication tools to create an integrated platform within a single package. Several Hosted PBX providers such as KloudTalk are gaining recognition for their integrated cloud-based PBX systems. Also, companies are coming up with innovative collaboration features in the cloud PBX systems that would allow users to get real-time access to data that would help in tracking and analyzing business activities.

Quality of Service

It is every business’s top priority. It is expected that more and more service providers will invest in R&D to enhance voice communication by offering better compression rates and high internet speed.

Pandemic Continuity

Even when things tend to normalize and offices are reopening, several countries are still juggling in controlling the pandemic and with the incoming of new variants of COVID-19, it is expected that work-from-home and work-from-anywhere culture will be the new normal for a long time. With this, it will be necessary for companies to upgrade from traditional PBX to cloud-based PBX.

Unified Communication

UCaaSAccording to Statista, “In 2020, the worldwide unified communications as a service (UCaaS) subscriber growth rate rose by 41 percent.” The trend of the UCaaS model is gaining momentum owing to its cost-effectiveness. Businesses demand technologies that can streamline their communication and cloud technology certainly promotes unified communication. For e.g. Integration of IVR i.e. Interactive Voice Response helps in the expansion of business reach and improve their brand image.


To put it simply, there’s a lot of potential in the cloud PBX market as service providers are already benefitting from it. Exploring hidden opportunities and bringing innovative features and services can help in reaping much more.

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