The convergence of voice and data communications and the shift to packet switching in network infrastructure worldwide will stimulate otherwise slow PBX manufacturing industries in Taiwan and mainland China. Both supply markets have been specializing in traditional, wired PBX systems, which have long reached maturity and whose market has been experiencing sluggish growth in recent years. In the coming months, makers' efforts to catch up with the thriving IP market worldwide, combined with the growing VoIP and wireless industries across Greater China, will contribute to changing the PBX industry landscape.

Industry figures from In-Stat indicated marginal growth in the PBX market. According to the market research firm, worldwide PBX revenue totaled US$8.5 billion in 2004, declining by 5.8 percent from 2003. Forecasts for 2005 point to worldwide revenue further declining by 1.4 percent to total US$8.38 billion.

However, growth is projected for the IP PBX sector. In-Stat reported that traditional PBX systems represented US$4.75 billion of the total revenue for 2004, accounting for 56 percent of the total. Aggregate revenue from sales of IP PBXs and converged PBXs accounted for the rest. IP PBX revenues were twice that of converged PBXs for the same period, according to In-Stat.

In 2005, IP PBX revenue is expected to grow by 10 percent to reach US$1.38 billion. The projected combined sales from IP PBXs and converged PBXs worth US$4.26 billion are expected to exceed the US$4.12 billion revenue projected from traditional PBXs.

In terms of PBX line shipments, In-Stat predicted that IP PBX line shipments will continue to grow at 28.9 percent compound annual growth rate (CAGR) from 2003 to 2008. There were 19.5 million PBX lines exported in 2004. This is projected to climb to 20 million lines in 2005. However, this growth comes at the expense of traditional PBX line shipments, which will continue to decline at a 15.4 percent CAGR over the same period.

To come up with this sourcing report, a Global Sources research team of market analysts carried out on-site interviews and factory tours of the companies featured herein. Where factory tours or interviews were not feasible, phone surveys were conducted. A total of 14 companies profiled in this report were personally interviewed by the Global Sources team at their headquarters in mainland China and Taiwan.

Aside from company and factory data, all the companies visited supplied information about their product development and manufacturing plans. They provided specifications for their popular export models, which are available here in two formats — part of a company profile and another as part of a comprehensive product comparison table.

Taiwan and mainland China supply markets

The PBX manufacturing industries in Taiwan and mainland China mirror worldwide developments. Makers in both supply markets are leaning toward IP PBX systems and are reducing their investments in traditional wired and analog PBXs. R&D, production and export plans revolve mostly around new and emerging PBX trends, especially IP and VoIP.

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All information contained in China Sourcing Reports is the result of exclusive, ground-level and definitive research conducted by Global Sources' analysts. Companies featured in these reports may or may not be clients of Global Sources.