Workplace Collaboration MetriCast 2024: On-Prem PBX Market Share & Forecast 3Q24

Published on: January 23, 2025

Author: Diane Myers, Senior Research Director, Metrigy
The Workplace Collaboration MetriCast 2024 market study shows continued decline for on-premises PBXs. For features beyond calling, businesses now typically bolt on collaboration services such as meetings and messaging from the cloud, while some continue to utilize legacy on-premises conferencing and collaboration applications. As with declining markets, the on-prem PBX business has collapsed to just a few vendors. In order of share, Cisco, Mitel (including acquired Unify), Avaya, Alcatel-Lucent Enterprise (ALE), and NEC hold the bulk of the market. Cisco HCS and Microsoft Skype for Business, both dedicated hosted platforms, are no longer available; however, the installed base for both remain. Microsoft has announced end of support for Skype for Business Server as of Oct. 14, 2025 . A few other vendors and open-source options comprise the remaining business. Of the five with on-prem PBXs, only Cisco and ALE have their own UCaaS offerings, placing them in a unique position of having the potential to keep those calling customers on their own platforms as they migrate to cloud.This report provides in-depth details on dedicated PBX spending, market shares, market size and forecast, and vendor selection, along with segmentation by size and global region. Highlights of the study include the following:
  • While the market for PBXs has been on decline since 2012, it is still a billion-dollar market globally. The global market size for PBXs was $2.0 billion in 2023, down 9.9% year over year (YoY). Metrigy forecasts the market to decline at a 7.4% CAGR from 2023 to 2028, ending at $1.3 billion by 2028. The market decline is due to the transition to UCaaS and businesses holding onto PBX assets for 20+ years, with limited reason to upgrade core telephony solutions. Metrigy measures PBX manufacturing revenue only; it does not include revenue from management systems, service, or support in the forecast.
  • PBXs are deployed worldwide, but 47.9% of revenue ($950.6 million) comes from North America in 2023. Companies with over 10,000 employees represent the largest spend on PBXs in 2023, at $790.4 million, or 39.8% of the total.
  • Global PBX revenue from 1Q24 through 3Q24 is $1.4 billion, putting the market on track for $1.8 billion in 2024.
  • Based on 2023 PBX revenue, Cisco is the global market share leader at 47.1% share, followed by Avaya (17.6%), and Mitel (16.6%).
  • Cisco remains the market share leader through 3Q24, gaining 4.6 percentage points of market share in 3Q24 (at 51.7%) from 2023.
  • Among companies using on-premises PBXs, 51.6% have no plans to replace their primary vendor. Lacking AI and analytics capabilities are the top reasons for those looking to make a change, followed by replacement parts no longer being available.
  • The criteria that businesses value most with a PBX is platform reliability, followed by security and technical features.



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