March 10, 2015

Technology market research firm Infonetics Research, now part of IHS Inc. (NYSE: IHS), today reported that the global enterprise telephony and unified communications (UC) market closed down 4 percent in 2014, to $8.7 billion, as businesses continue to hold off new purchases and upgrades of PBX equipment despite improving worldwide economic conditions.

The overall market decline masks the health of the evolving UC applications segment, which jumped 20 percent in 2014, energized by the demand for tools to increase workforce productivity.

The data comes from Infonetics' fourth quarter 2014 (4Q14) and year-end Enterprise Unified Communications Voice Equipment market share, size and forecast report, which tracks PBX phone systems, voice over IP gateways, UC applications and IP phones.

"The enterprise telephony market continues to be tough. Just as we see one area begin to improve, it's offset by slowdowns in geographies or market segments. Underscoring the declines are not only slowing businesses purchases but also competitive pricing, which has created unpredictable swings," said Diane Myers, principal analyst for VoIP, UC, and IMS at Infonetics Research, now part of IHS. "The move to the cloud is having an impact in certain markets, particularly North America."


  • Globally, PBX revenue, including TDM (time-division multiplexing) and IP PBXs, dropped 6 percent in 2014 from 2013, and dipped 1 percent in 4Q14 from 4Q13
  • PBX line shipments declined 3 percent in 2014 from 2013; In 4Q14, line shipments were up 4 percent year-over-year, driven by pure IP PBX
  • Vendors remain in a battle to gain customers and hold onto existing ones as enterprises migrate to IP and UC solutions: In 2014, the top four PBX revenue market share leaders were, in alphabetical order,Avaya, Cisco, Mitel and NEC
  • Microsoft continues to see strong sales on the UC front, solidifying its position atop the unified communications market share leaderboard

Clients: Log in to join analyst Diane Myers' PBX market outlook, live Friday, March 13 at 11:00 AM ET or on-demand:

Infonetics' quarterly enterprise telephony report provides global and regional market size, vendor market share, forecasts through 2019, analysis, and trends for TDM PBXs, hybrid and pure IP PBXs, IP PBXs by system size, VoIP gateways, unified communications, and IP desk phones and softphones. Vendors tracked: Alcatel-Lucent Enterprise, Audiocodes, Avaya, Cisco, Ericsson-LG Enterprise, Microsoft, Mitel, NEC, Polycom, Samsung, ShoreTel, Toshiba, Unify, Yealink, others. To purchase the report, contact Infonetics: