BOSTON, Mass. -- Boosted by blazing hot sales of IP PBXs, the worldwide PBX/KTS market grew 8% to $1.7 billion between 3Q04 and 4Q04, and jumped 16% between 4Q03 to 4Q04, according to Infonetics Research's Enterprise Telephony quarterly worldwide market share and forecast report.

Annual PBX/KTS system revenue broke the $6 billion barrier this year, growing 11% between 2003 and 2004, from $5.5 to $6.1 billion, and is expected to grow to $9.1 billion by 2008, representing a five-year CAGR of 10%. The number of PBX/KTS lines shipped worldwide grew to 26.6 million in 2004, 19% higher than in 2003.

"2004 was a great year for the PBX market," said Infonetics Research's Matthias Machowinski, directing analyst for enterprise voice and data. "Not only is the overall market growing at larger than expected rates, but the IP PBX segment is growing ferociously, with 50%-plus growth between 2003 and 2004. Successful vendors are recognizing the shifts in the market and have moved their products from TDM into the IP realm. The TDM segment, which one year ago still accounted for half the market, is now less than a third."

Market Highlights

The Enterprise Telephony report tracks TDM PBX/KTS systems and hybrid and pure IP PBX systems in North America, EMEA, Asia Pacific, CALA, and worldwide. Companies tracked in this service include 3Com, Aastra, Alcatel, Avaya, Cisco, EADS, ESI, Mitel, NEC, Nortel, ShoreTel, Siemens, Sphere, Swyx, Toshiba, Vertical Networks, Zultys, and others.

Infonetics Research Inc.