Although flat between Q3 and Q4 of 2003, worldwide IP PBX revenues jumped 33 percent from 2002 to 2003 to reach $256 million, according to Infonetics Research’s Next Gen Voice Products: IP PBXs quarterly worldwide market share and forecast report. Annual revenue will reach $830 million in 2007, representing a CAGR of 34 percent. "IP PBX growth was very healthy last year, especially considering the depressed corporate spending environment in which it happened," said Matthias Machowinski, lead analyst of the report. "New spending cycles are heavily favoring next generation technology as the versatility and flexibility of IP telephony continues to attract buyers. Add an improving economy to this recipe, and we expect to see IP PBX shipments increasing at double-digit annual growth rates for at least the next five years."

2003 IP PBX Market Highlights According to Infonetics Research

• Cisco leads revenue market share as well as lines shipped, followed by Alcatel and Avaya
• IP lines shipped on hybrid platforms were up 52 percent from 2002
• Pure IP lines were up 29 percent from 2002
• Lines shipped on hybrid platforms accounted for 68 percent of all IP lines in 2003

According to another report by the Dell’Oro Group, in the fourth quarter of 2003, worldwide IP PBX line shipments grew 19 percent sequentially. The total PBX market consisting of IP PBX, Traditional PBX and traditional key systems grew slightly in fourth quarter of 2003. When compared to a year ago, IP PBXs have more than doubled their share of the total enterprise voice market, while the other segments are declining. Businesses’ preference for IP PBXs continues to grow worldwide as companies focus on deploying IP PBX multi-site, telecommuting, and application solutions.

"While North America has been an early adopter of IP PBXs, during the fourth quarter of 2003 it was in fact Europe, Middle East and Africa (EMEA); Asia Pacific; and the rest of the world that delivered 89 percent of the Q/Q increase," said Steve Raab, director at Dell’Oro Group. "As IP PBX shipments further align with the regional mix of the total PBX market, the growth opportunities for this technology are broadened."