2010 PBX and IP PBXSales in North America Surged 16 % Reports Eastern Management Group
Opportunities for Manufacturers in the Small Business Market
June 22, 2011 – Global technology industry research firm Eastern Management Group today announced the findings of its study of the 2010 North America PBX market. The PBX market size was was 13.6 million lines sold in North America for the year. According to Eastern Management, 2010 proprietary PBX sales were up 16% year over year, and represented a breath of fresh air following a rancid 2009.
Some manufacturers experienced startling growth in 2010 including Avaya, ShoreTel and Cisco. Yet they were not alone as numerous manufacturers got an uptick in sales for the year.
PBX and IP PBX Market Share by Manufacturer - North America 2010
Aastra 0.50%
Alcatel-Lucent 0.51%
Avaya 23.33%
Cisco 34.76%
Iwatsu 0.48%
Mitel 6.68%
NEC 8.30%
Panasonic 4.07%
ShoreTel 2.75%
Siemens 1.50%
Toshiba 3.44%
Vertical 3.80%
Other 9.09%
The catalyst behind much of the PBX market growth came from IT managers who replaced PBXs as a means to improve employee productivity and reduce business operating expenses. Just 9% of the PBX systems sold in North America during the year came from companies that relocated or opened branches.
Eastern Management found that PBX manufacturers did not drop prices much below 2009 levels to be successful in 2010. Street prices fell less than 2% and list prices declined by only a negligible amount. Eastern Management observed that marketing promotions increased at a blistering pace in 2010 with a surge in financing and dealer rebates. Individual manufacturers averaged 11 simultaneous promotions, changing them each 30-90 days. Eastern Management found a greater reliance on promotions in 2010 than other years.
The small PBX market, accounting for 40% of sales, underperformed the broader market in 2010. Eastern Management found that with few affordable IP PBX options, small offices were less inclined to replace older systems to contain operating costs. Eastern Management anticipates an increase in manufacturers targeting the small PBX market with affordable IP PBX systems in 2011 and 2012 to meet market demand.
About Eastern Management
The Eastern Management Group is one of the world’s premier strategic research companies. We operate at the center of the global technology industry. By delivering product research, market research and analytical tools to clients, Eastern Management facilitates decision making by IT Professionals and IT Vendors. Visit us at www.easternmanagement.com