The hosted PBX market is likely to register favorable growth over the forthcoming time period owing to extensive proliferation of VoIP technology and cloud infrastructure, favorable government initiatives to improve industrialization and telecommunication infrastructure, increasing need for effective and wireless communication infrastructure across factory locations, and growing demand for cloud-based telephony across retail workforce.

A hosted PBX or virtual Private Branch Exchange is referred as a cloud-based phone system, since it is hosted off-site as well as over the internet instead of the physical location of the business, resulting in limited maintenance and cost-savings. It allows users to make, receive, as well as manage calls affordably and easily. This system also enables companies to use and take full advantage of their phone system's feature set like conferences, automated greetings, faxing, voicemail and others.

Apart from cost savings, hosted PBX offers numerous benefits that are likely to drive the market growth over the coming years. This system is often easy to use as there is no end-user management. In comparison to other traditional phone system, hosted PBX is considered as one of the easiest to use. Hosted PBX also eliminates office boundaries. Employees could work from anyplace with a virtual office phone system. It is generally best for salespeople and homeworkers who are continuously on the move.

The hosted PBX market is segmented in terms of component, organization size, industry vertical, and regional landscape.

With respect to component, the hosted PBX market is classified into solution and service. The service segment is further classified into managed service, security service, and network service. Among these, managed service segment will witness more than 13.0% CAGR over the forecast time period. This anticipated growth is ascribed to the extensive emphasis on outsourcing of enterprise communication infrastructure.

In terms of application, the overall hosted PBX market is categorized into manufacturing, retail, government, healthcare, BFSI, and others. Among these, retail application segment is expected to grow at a respectable CAGR of around 10.0% over the forecast time period owing to the growing demand for cloud-based telephony across retail workforce.

Meanwhile, manufacturing segment is anticipated to witness a growth rate of above 8.8% CAGR over the forthcoming time period. This estimated growth is attributed to the increasing need for effective and wireless communication infrastructure across factory locations.

From a regional frame of reference, Latin America hosted PBX will witness a respectable CAGR of about over 13% over the projected time period owing to favorable government initiatives to improve telecommunication infrastructure and industrialization.