Europe Hosted PBX Market size surpassed USD 1 billion in 2020 and is expected to register a growth of 10% from 2021 to 2027. Increasing commercialization of 5G and rapidly growing use of VoIP networks will boost the market demand.
Moreover, the market growth can be attributed to increasing internet penetration and remote workforce. The wide coverage of the 5G LTE network across the region is another factor supporting the market expansion. The leading companies across the region are focusing on strategic partnerships to expand their presence. For instance, in February 2020, Avaya partnered with RingCentral Inc. to launch the UCaaS Solution in five economies in Europe. This partnership helped the company to expand its Avaya Cloud Office presence in 12 countries across Europe.
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The network service segment is projected to record over 7% CAGR in the Europe hosted PBX market till 2027, owing to the industrial transitions from traditional PSTN infrastructure to modern IP-based network. The IP network is a communication network that uses Internet Protocol (IP) to send and receive messages. As one of the most recommended global networks, the IP network is implemented in Internet networks, Local Area Networks (LAN), and enterprise networks.
The large enterprises segment is expected to grow substantially during the forecast timeline, due to the early adoption of advanced communication technologies along with rising infrastructure digitization activities across established enterprises. The adoption rate of hosted PBX solutions across large enterprises has increased exponentially, as large enterprises have instructed their employees to work remotely from home during the COVID-19 pandemic.
The BFSI sector in the Europe hosted PBX market is predicted to attain a growth rate of 5% through 2027. The growing digitization has transformed these financial institutions to adopt digital services. Banks and financial institutions are engaged in huge amounts of feedback calls, EMI reminders via calls, and SMS daily. All these activities can be automated with the help of hosted PBX to reduce manual efforts.
Germany held more than 20% Europe hosted PBX market share in 2020. Increasing adoption of sophisticated communication services in response to the growing demand to reduce expenditure attributed to the telecom infrastructure will fuel the market revenue. companies operating in the market are proactively focusing to launch innovative solutions to strengthen its position in the market. For instance, In September 2020, RingCentral, Inc. launched its unified communications platform including team messaging, video meetings, and cloud phone system in Germany. This launch helped the company to expand its geographic presence.
Some of the leading companies operating in the market include AT&T, Inc, Blackberry Inc, BT Group Plc, CenturyLink, Inc, Cisco Systems, Inc, Comcast Corporation, NEC Corporation, Nextgen, Inc, and OneConnect Services, Inc.