According to our latest market study on “US Cloud PBX Market Forecast to 2027 – COVID-19 Impact and Analysis by Enterprise Size (Small Enterprises and Medium Enterprises) and End User (IT & Telecom, BFSI, Healthcare, Retail, Manufacturing, and Others,” the market was valued at US$ 1,299.0 million in 2019 and is projected to reach US$ 3,262.0 million by 2027; it is expected to grow at a CAGR of 10.8% from 2020 to 2027.
The advantage of developed economies and highly advanced technologies gives ample opportunities to SMEs to better fulfill the requirement for their operations. The software industry is expanding, and their growth is rising at a decent pace. Moreover, with a rise in usage of Internet-based applications in various departments due to ease of operation, the adoption of cloud solutions by companies is increasing exponentially. This has raised the scope of cloud-based PBX as well. Cloud PBX allows organizations to connect globally at an ease. Other factors contributing to the cloud PBX growth in US include strategic shift in the businesses regarding communications solutions to cloud in order to enhance their operating efficiencies, and need for the SMEs to leverage their technology to stay competitive in the market, which in response is expected to foster the demand for outsourced communications technology.
There are around 2.9 million small offices/home offices and over 2.7 million SMEs with up to 250–300 employees in the US. Moreover, these SMEs employ over 58 million people, and majority of these businesses are still caught on time-division multiplexing. Also, as per FCC’s data, majority of the US landlines are VoIP overall, business lines still lag the overall market; just 40% of business lines are VoIP. This would provide a great opportunity to the cloud PBX players in the near future as these businesses are highly adopting cloud technologies.
Companies adopt inorganic market strategies to expand their footprints across the world and meet the growing demand. The Cloud PBX market players mainly focus on the acquisition strategy to expand their business and maintain their brand name globally. For instance, in 2020, Cisco acquired BabbleLabs. This acquisition helped enhance video meeting experience with noise removal and speech enhancement technology.
Impact of COVID-19 on Cloud PBX market
The complete lockdown and “work from home” trend in the US have significantly demanded collaboration through online platforms. The cloud PBX market is gaining high traction during the coronavirus outbreak. The demand for cloud PBX solutions is increasing as employees are working from remote locations. Coordination with the employees and availability of advanced telecommunication infrastructure is the key factor creating the demand for cloud PBX solutions during the pandemic in the US. Moreover, it is expected to witness high demand for communication platform due to the presence of a large number of SMEs in the country. Vendors are highly focused on tapping the market opportunities during the pandemic.
The report segments the US cloud PBX market as follows:
Cloud PBX Market – by Enterprise Size- Small Enterprises
- Medium Enterprise
- IT & Telecom
- BFSI
- Healthcare
- Retail
- Manufacturing
- Others