United States
US 31264038 | Procurement

Hosted PBX Services in the US Procurement Price, Data and Insights

IW
IBISWorld Research Department
Analyst New York
Hosted private branch exchange (PBX) services, also known as virtual or cloud PBX services, are a type of communication service. A service provider operates and maintains an entire office telecommunications system remotely using Voice over Internet Protocol (VoIP) technology, which allows users to make calls over the internet. Services primarily involve call management, but they can also include functions such as call recording and an automated call-routing attendant (or auto attendant). Buyers are small and midsize firms or companies that have mobile employees (e.g. real estate firms and consulting firms). Suppliers are telecommunication solution providers and hosted PBX specialists.

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What’s included in this market coverage

IBISWorld's research coverage on the Hosted PBX Services procurement and pricing environment in the United States includes market dynamics, buyer power scores, supply chain vendors with pricing trends and forecasts.

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About this Market

What’s this procurement report about?

This procurement coverage of the Hosted PBX Services market in the United States includes Hosted PBX Services, Software Support and Software Training. Standard coding in this coverage includes ISIC-619-Other telecommunications activities, NACE-61.90-Other Telecommunications Activities, NAICS-517810-All Other Telecommunications and UNSPSC-81161712-Network voice service.

What common market terminology is included?

Common market terminology included in the Hosted PBX Services procurement coverage includes Auto Attendant (An automated call-routing attendant.), Internet Protocol (IP) Phone (A phone that is compatible with Voice over Internet Protocol (VoIP) and can receive calls directly from the internet.), Analog Phone (A traditional phone used on a landline.), Softphone (Software on a computer used to make telephone calls over the internet.) and Voice over Internet Protocol (VoIP) (A group of systems used to deliver voice and multimedia over the internet.).

What companies are included as top suppliers?

The top companies covered in the Hosted PBX Services procurement report as suppliers are 8X8, Inc., Logmein, Inc., Ziff Davis, Inc, Fusion Connect, Inc. and Plantronics, Inc..

Opportunity Assessment

What’s included in the Opportunity Assessment chapter?

The Opportunity Assessment chapter provides a comprehensive market analysis of the Hosted PBX Services market in the United States category, including buyer power scoring, market pricing trends, vendor landscape, cost structure, and strategic negotiation levers.

The market pricing trends include the Market Price (2026) per user per month, a five year price forecast and a supply chain risk score. Vendor coverage includes a market share and cost structure breakdown.

Analysis includes a comprehensive SWOT analysis of and recent developments impacting the Hosted PBX Services market environment.

Buyer Power Score

What’s included in the Buyer Power Score chapter?

The Buyer Power Score chapter assesses key components impacting Hosted PBX Services procurement including the recent price trend, forecast price trend, availability of substitutes, switching costs, product specialization, average vendor risk, market share concentration, supply chain risk, price driver volatility and recent price volatility.

These components generate a Buyer Power Score that ranges from -5 (strongly favoring sellers) to +5 (strongly favoring buyers) plus a recommended strategy for procurement specialists.

Price Environment

What’s included in the Price Environment chapter?

The Price Environment chapter covers detailed pricing analysis and datasets on Hosted PBX Services market environment. This includes insights into market pricing Market Price (2026), price forecasts, volatility, specialization, substitutes and switching costs.

Datasets in the Price Environment chapter include vendor cost structure, breakdowns of wage rates by geography and specialty, key external economic and labor drivers impacting the market and market pricing models.

Supply Chain & Vendors

What’s included in the Supply Chain & Vendors chapter?

The Supply Chain & Vendors chapter covers the concentration, risk and diversity of the Hosted PBX Services market. This includes datasets on the market’s top suppliers, detailed analysis on the key sourcing risks and supply chain dynamics, with environmental, social and governance (ESG) considerations and scores.

Business Requirements

What’s included in the Business Requirements chapter?

The Business Requirements chapter covers vendor relationships, qualifications, service level agreements and key performance indicators. These inputs provide insight into the planning process through the buying lead time, vendor relationship and vendor qualifications. The sourcing process include key RFP elements like an organizational overview, project budget, selection criteria, project schedule, proposal format, inventory control, cost containment, regulation, quality control, distribution and key contract clauses.

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Frequently Asked Questions

What is the current market price for Hosted PBX Services?

The 2026 benchmark market price for Hosted PBX Services is $28.56 per user per month. Prices have increased at a CAGR of 2.57 from 2023-26.

Who are the top vendors in the Hosted PBX Services market?

The top vendors in the Hosted PBX Services market include 8X8, Inc., Logmein, Inc., Ziff Davis, Inc, Fusion Connect, Inc. and Plantronics, Inc..

What industries supply the Hosted PBX Services market?

The top industries supplying the Hosted PBX Services market are Computer & Packaged Software Wholesaling in the US, Computer Manufacturing in the US, Internet Service Providers in the US, Transmission Line Construction in the US, Software Publishing in the US, Intellectual Property Licensing in the US, Telecommunication Networking Equipment Manufacturing in the US and Semiconductor & Circuit Manufacturing in the US.

What is the supply chain risk for Hosted PBX Services?

Low market concentration boosts buyer leverage and price competition. The hosted PBX market is fragmented, with numerous small telecommunications and IT companies competing to provide services. This low concentration fosters aggressive price-based competition and prevents dominant suppliers from dictating terms. Buyers gain leverage by being able to switch providers easily, which keeps prices competitive. Procurement teams should maximize this advantage by benchmarking contracts regularly and encouraging competitive bidding to secure favorable terms and service packages.

What factors affect the price of Hosted PBX Services?

The duration of a hosted PBX service contract significantly impacts pricing, as longer commitments often result in lower per-user monthly costs due to provider incentives. A business opting for a three-year contract may receive up to a 20% discount compared to a month-to-month plan, making long-term agreements a cost-effective choice for companies seeking stable communication solutions.

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