The global small and medium business (SMB) segment for PBX (IP and TDM) is set to reach US $6.7 billion this year - from about US $5.5 billion in 2005. Between 2005 and 2010, the cumulative growth rate will cross 11%, according to the latest study by Access Market International (AMI) Partners Inc.
“In particular, the IP-PBX segment is forecasted to grow at a spectacular 33% on a cumulative basis for the next five years,” says Sanjeev Aggarwal, AMI-Partners’ New York-based Vice President for SMB Infrastructure Solutions. “This market segment for SMBs is becoming fiercely competitive as vendors are developing and implementing solutions specifically designed for SMBs.”
The market opportunity for IP-PBX solutions for SMBs is huge - and so is the competition, which is increasing with participation from global enterprise voice vendors and enterprise IT vendors, regional voice and IT vendors, hosted VoIP and broadband VoIP vendors, as well as from software vendors.
There are many drivers that are influencing SMBs to adopt IP-PBX, including a single converged network for voice and data, and affordable purpose-built solutions that meet the needs of SMB customers.
“Unified Communications provides improved communications, collaboration, coordination, mobility and accessibility across the extended SMB enterprise,” Mr. Aggarwal says. “All this leads to a user experience that increases productivity, business value and adoption and thereby accelerates the IP telephony adoption curve.”
AMI-Partners has just published two Telecom/IP Communications focused reports – “IP Telephony on a rapid growth trajectory: Worldwide SMB (IP and TDM) forecast” and “Cashing in on the SMB VoIP technology upgrade cycle: Worldwide and US SMB TDM and IP PBX market share analysis”. These reports provide a comprehensive five-year market forecast and vendor market analysis of the worldwide PBX (IP and TDM) market for SMBs.
Some key findings from the reports:
Worldwide SMB PBX (IP and TDM) segment is set to grow at a CAGR of over 11% between 2005 and 2010.
Worldwide IP-PBX segment is forecast to grow at a spectacular CAGR of about 33% on a cumulative basis up to 2010.
In 2007, SMB IP-PBX revenue and shipments will be more than TDM-PBX (including key systems) systems.
In 2005, the leading vendors (based on end-user revenue) in the SMB PBX (TDM and IP) market were Avaya, Nortel and Alcatel.
In 2005, the leading vendors (based on end-user revenue) in the SMB IP-PBX systems were Avaya, Cisco and Nortel.
Microsoft’s Unified Communications announcement in June 2006 will have significant implications on the voice communications market over the next 2-3 years.
With the breadth of SMB focused solutions available in the market now, SMBs don’t need to postpone evaluation and acquisition of IP telephony solutions.