COMMUNICATION PLATFORM-AS-A-SERVICE (CPAAS) MARKET ANALYSIS

The global Communication Platform- As-A-Service (CPaaS) market size was valued at US$ 5960 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 28.50% from 2022 to 2030. The global communication platform as a service market is expected to witness an increase in growth during the forecast period. This growth is driven by increasing demand for real time communication capabilities in various industries. Moreover, the increased adoption of digital communications is also one of the key factors contributing to the growth of the CPaaS market.

Global Communication Platform- As-A-Service (CPaaS) Market: Regional Insights

The global communication platform-as-a-service (CPaaS) market is geographically segmented into North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

North America is expected to gain a dominating share in the global communication platform-as-a-service (CPaaS) over the forecast period. The region is experiencing recent rise in mobility, and significant growth in penetration of smart mobiles devices, owing to consumerization of IT. Along with this, the demand for user-friendly and cost-effective browser-based communication solutions is rapidly increasing in the region. This is leading to market players introducing unified and integrated CPaaS solutions across the region. Thus, these factors are expected to drive growth of the market in North America region.

Moreover, among remaining regions, Asia Pacific is also anticipated to witness substantial growth in the global communication platform-as-a-service (CPaaS) market over the forecast period. Due to the lucrative development of telecom sector and availability of large consumer base in the region, Asia Pacific is witnessing strong growth in the market. Furthermore, the investment in 5G services are rapidly increasing by countries such as Australia, China, Japan, India, South Korea, and Singapore. This in turn is projected to drive growth of the market in Asia Pacific.

Figure.1: Global Communication Platform-As-A-Service (CPaaS) Market Share (%), By Region, 2021

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Global Communication Platform- As-A-Service (CPaaS) Market Drivers:

Rise in shift of organizations from traditional and adjacent models to augment the market pace

Traditionally businesses rely upon real-time communication technologies that functions same as CPaaS. However, developing and deploying such communication solutions require workforce, time, and energy on existing systems. CPaaS solutions offer readymade SDK, which is software development kits. These are a complete development framework for developing and deploying communication software on any application or website. Thus, demand CPaaS is increasing as many companies are shifting towards these solutions from traditional and adjacent models. This in turn is expected to augment growth of the market in the forecast period.

Rise in demand for omnichannel marketing to boost the market growth

The demand for omnichannel marketing is increasingly rapidly among enterprises for retaining and attracting new customers. Customers are required to reach businesses through various methods. Some use live web chat, some use text messaging, and other use standard voice services. The use of communication platform-as-a-service (CPaaS) offers access to all well-known communication platform at the same time. This allows businesses to be on the platforms that customers want to use. Thus, demand for omnichannel marketing is expected to support growth of the global communication platform-as-a-service (CPaaS) market over the forecasts period.

Global Communication Platform- As-A-Service (CPaaS) Market Opportunities:

Increasing technological developments such as lightweight and context-based transaction deployments is expected to create growth opportunities in the global communication platform-as-a-service (CPaaS) market over the forecast period. Due to the rise in technological advancements, benefits of CPaaS are increasing. Ai is a major example, as it is an innovation, which will revolutionized service- and communication-related technology. As machines are becoming smarter and coming closer to communicative parity with humans, cloud-based communication platforms will transform automated self-service, among other functions in businesses. Thus, this in turn will impact adoption of CPaaS lucratively, which is expected to offer business opportunities in the market.

Growing adoption of work from home modules by several companies around the world is also projected to offer growth opportunities in the global communication platform-as-a-service (CPaaS) market over the forecast period. After the Covid-19 pandemic, several companies are adopting permanent work from home or hybrid work culture. Use of CPaaS is anticipated to support this increasing remote workforce. For instance, as per Owl Labs data, the rate of individuals working from home at least once of week is 52% on a global scale. And use of CPaaS will play a major role to enable uncompromised remote work options.

Global Communication Platform- As-A-Service (CPaaS) Market Trends:

Reshaping of CPaaS is a major trend in the market

Reshaping of communication platform-as-a-service is changing the way for several enterprises to perceive communications. Some of them are moving everything to the cloud, while others are showing interest in developing over-the-top solutions that can boost and coexist with their existing communication platforms. The adoption of advanced CPaaS solutions is likely to increase in the coming time, as these solutions can offer the flexibility to adapt to such services at any point in time, without having them to spend larger amount of money. Thus, this trend is anticipated to continue in the global communication platform-as-a-service (CPaaS) market over the forecast period.

Growing focus of major market players on offering highly efficient solutions is a growing trend

Big market players such as Cisco, Microsoft, Google, and Zoom among others are fighting it out in the pandemic-driven remote market, they intend to offer more to love about their application to the end users. For instance, in October 2020, Teams announced that it has upgraded included enhancements to meeting transcriptions and templates intended for facilitating management of projects on Teams. Thus, such offerings by major market players are likely to continue in the market over the coming future, which in turn is expected to support the market growth.

Global Communication Platform- As-A-Service (CPaaS) Market Restraints:

Security concerns related use of CPaaS to hamper growth of the market

The security concerns linked to user data are restraining growth of the market. The deployment of these communication solutions is increasing, which is also leading to increasing cyberattacks. Although cloud-based solutions are the most viable options for different applications, as they offer the computation and storage for cloud users, these solutions still have limitations in terms of security measures to protect data and applications for users having accessibility changing hands. Thus, these factors are expected hinder growth of the market over the forecast period. However, major market players are focused on development and launch of novel and efficient solutions to overcome these shortcomings of CPaaS solutions that are currently in use. This in turn is likely to support the market growth.

Government regulations regarding data usage to restrain the market pace

Regulatory concerns related to user data are restraining growth of the global communication platform-as-a-service market over the forecast period. Several governments are imposing stringent regulation associated with the use of data and its privacy, as deployment of CPaaS is increasing in several sectors including healthcare. These regulations are however creating challenges in adoption of CPaaS solutions. This in turn is expected to hamper growth of the global communication platform-as-a-service (CPaaS) market over the forecast period.

Figure.2: Global Communication Platform-As-A-Service (CPaaS) Market Share (%), By End User Verticle, 2021

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Global Communication Platform- As-A-Service (CPaaS) Market Segmentation:

The global Communication Platform- As-A-Service (CPaaS) market report is segmented into End User Vertical.

Based on End User Vertical, the market is segmented into IT and Telecom, BFSI, Retail and E-commerce, Healthcare, and Other End user Verticals. Out of which, IT and Telecom is expected to dominate the global market over the forecast period and this is attributed to the growing adoption of CPaaS systems in this sector. CPaaS solutions uniquely offer multi-tenancy, accessibility, high security, no CapEx, and affordable Pay-as-you-go pricing models. Ultimately, these platforms enable the several applications, which opens novel opportunities in the telecom industry.

BFSI segment is also expected to witness significant growth in the near future and this is owing to the growing inclination towards app-based methods from traditional methods in the financial world and BFSI industry. This is leading to high demand for CPaaS in this sector, which in turn is likely to support growth of the segment in the near future.

Global Communication Platform- As-A-Service (CPaaS) Market: Key Developments

In July 2021, Twilio Inc., a leading cloud communication platform successfully completed acquisition of Zipwip, a trusted partner for carriers and a providing toll-free messaging in the U.S. The acquisition valued at nearly US$ 850 million and under this acquisition, Zipwhip will be operating as a part of Communication Platform Unit of Twilio.

In April 2021, Vonage Holdings Corp, released a novel visual engagement, omnichannel features, and AI for its Vonage Contact Center (VCC) solution.

In December 2020, Messagebird BV, announced the acquisition of Pusher, a London-based real-time web technologies company. The Pusher product will be helping to bridge a gap in communication platform of MessageBird, which is known to be stronger SMS and messaging-first channels platform.

In August 2020, Plivo Inc., announced the launch of Automatic Speech Recognition with GetInput XML, for configuring engaging, voice-driven experience on Plivo.

Global Communication Platform- As-A-Service (CPaaS) Market: Key Companies Insights

The global Communication Platform- As-A-Service (CPaaS) market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global Communication Platform- As-A-Service (CPaaS) market are EnableX.io (VCLOUDX PTE. LTD), Twilio Inc., Infobip Ltd., Vonage Holdings Corp, M800 Limited, MessageBird BV, Iotum Inc., Plivo Inc., Voxbone SA, Snich AB, Telestax, Voximplant (Zingaya Inc.), Mitel Networks Corporation, 8x8 Inc., AT&T Inc., Voxvalley Technologies, Avaya Inc., Bandwidth Inc. (Bandwidth.com), Wazo Communication Inc., and IntelePeer Cloud Communications.

*Definition:

A communications platform as a service (CPaaS) is a cloud based software product. It allows businesses to integrate real time communication channels with web applications. The platforms offer various features that can be customized to suit the needs of businesses of all sizes.