The cloud PBX and UC market will reach $12 billion in 2018 with 62.6 million seats in service, said Infonetics Research.
Hosted PBX and unified communications (UC) services are a growth market with revenue on track to grow 13 percent this year and positive activity in every major geographic region.
Infonetics Research said hosted services seats grew more than 20 percent worldwide in 2013.
“While sales of premises-based PBX systems have been stagnant to declining over the past few years, the market for cloud services continues to expand with businesses worldwide seeking out hosted alternatives,” said Diane Myers, principal analyst for VoIP, UC, and IMS at Infonetics Research.
The challenges for businesses evaluating hosted solutions are the wide variety of options available and inconsistent billing structures across the industry.
Hosted VoIP services are experiencing broad adoption among small, medium, and large enterprises.
Interest from large enterprises in hosted VoIP services is escalating, with more companies evaluating and choosing providers.
The landscape for business services is highly fragmented, with an increasing number of PBX and unified communications vendors, enterprise agents, system integrators, and resellers expanding into the market along with traditional service providers.
Vendors are pitching hosted PBX and UC services alongside SIP trunking as more multi-site businesses need hybrid solutions.