Global Communication Platform as a service (CPaaS) Market Ascends at a Noteworthy CAGR of 34.4%

Introduction

Currently, many industries have shifted their work culture from regular to remote working for various reasons. Moreover, these industries are rapidly adopting digital transformation in their operation strategies. Consequently, these industries rely heavily on CPaaS by integrating it into their current process flow. Considering the antiquated contact centers, it is evident that there is a growing demand for network systems that can facilitate effective communications across multiple end-user industries, such as healthcare, retail, and manufacturing.

The rapidly accelerating adoption of Bring Your Own Device (BYOD) and other mobility solutions is anticipated to increase the demand for CPaaS solutions. Bring Your Own Device (BYOD) emerged as a critical trend in this novel era of flexibility and network accessibility, transforming the workplace into more productive. Additionally, CPaaS assists numerous organizations in reducing additional expenses. These cost savings can add up quickly for Small and Medium-Sized Businesses (SMBs) and have the potential to help SMBs protect their bottom line while boosting employee productivity.

Market Dynamics

Increasing Demand for Omni Channel Marketing to Drive the Global Communication Platform as a Service Market

CPaaS market demand is boosted by the rising demand for Omni channel marketing among businesses to retain and attract new customers. Customers in a variety of industries must communicate with companies through a variety of channels. Others prefer live web chat and other standard voice services to the practice of text messaging. CPaaS enables simultaneous access to all popular communication platforms. This positions business in front of the customers these platforms wish to exploit.

In addition, some businesses collaborate with their customers through various channels. This can include live chat, social media, and their website. On the other hand, even if customers are positive and willing to accept varying service levels across channels, they assume that communication will remain constant.

In addition, according to a survey conducted by Oracle titled Customer Experience Impact (CEI), 86% of consumers were willing to pay more for a superior customer experience. Following a negative customer experience, approximately 89% of customers switched to a competitor, according to the same survey. Consequently, enterprises in various end-user industries of the market demand multipurpose, user-friendly, accurate, and quick solutions, thereby driving the expansion of CPaaS.

Technological Revolutions to Provide Opportunities for the Global Communication Platform as a Service Market

Historically, most CPaaS platforms primarily added legacy public switched telephone networks (PSTN) communications such as SMS text messaging and phone calls to applications via application programming interfaces (APIs). CPaaS 2.0 has leveraged the enormous technological advances of the past decade to create an IP-based, seamless communication experience for video, voice, chat, file sharing, and more.

Technological advances have increased the advantages of CPaaS. AI, an innovation poised to revolutionize service- and communication-related technology, is a prime illustration. As machines become more intelligent and approach communicative parity with humans, it is anticipated that cloud-based communications platforms will advance the concept of automated self-service, among other business functions. AI in call centers is an illustration of this.

Innovations in technology have value across multiple industries. Smart shopping assistants will soon be more effective at suggesting purchases based on the user's browsing history. The software will provide precise, real-time translations, eliminating the need for costly multilingual customer service representatives. APIs would offer CPaaS video chat technology and AI capable of facial recognition, transforming any mobile device or webcam into a biometric security checkpoint. Chatbots will also expand in scope and capacity, enabling multiple businesses to deploy entirely bot-based teams of automated customer service representatives. Such technological revolutions offer lucrative market expansion opportunities.

Regional Insights

Region-wise, the global communication platform as a service market is segmented into North America, Europe, Asia-Pacific, and LAMEA. North America holds supremacy in the global communication platform as a service market by grasping the largest market share.

North America holds the most significant market share and is expected to grow at a CAGR of 33.1% during the forecast period. North America dominates the CPaaS market due to the current surge in mobility and the enormous increase in smart mobile device penetration caused by the consumerization of IT. Moreover, with the increasing demand for cost-effective and user-friendly browser-based communication solutions, the leading market players in this region are planning to familiarize themselves with integrated and cohesive CPaaS solutions, resulting in market expansion. Due to a high investment rate in 5G deployment, the United States is one of the leading innovators and investors in the 5G market. To increase the demand for CPaaS in the region and maintain compliance with regional regulations, secure methods have been adopted in response to the possibility of fraudulent and illegal activities resulting from the expansion of CPaaS usage.

Europe holds the second largest market share and is anticipated to reach USD 26.3 billion by 2030 at a remarkable CAGR of 35.1%. Numerous European countries are investing heavily in their digital infrastructures and private. Public initiatives have been launched to fill the skills gap and accelerate the rate of cloud adoption, so it is anticipated that the European region will have a high rate of CPaaS adoption. For example, the governments of Bulgaria, Poland, and Romania have committed to enhancing their digital infrastructures. In contrast, the government of Ukraine is well ahead of its goal and has doubled spending on ICT research and development in 2021. The regional government focuses on assisting these businesses by pressuring telecom providers, such as Vodafone and EE, to accelerate the deployment of 5G infrastructure. In Germany, for instance, Vodafone is implementing 5G by connecting more than 20 cities and towns to its next-generation service. The company activated its first 5G base stations in 2019. It is anticipated that the substantial increase in smartphone penetration and mobile phone connections will further boost the region's telecom industry, thereby creating significant opportunities for CPaaS.

Asia-Pacific is the third largest region due to its rapidly developing telecom industry and vast customer base. Additionally, the region is investing gradually in 5G services. Countries such as China, India, Japan, Australia, Singapore, and South Korea are progressively capitalizing on domestic 5G market development, resulting in market expansion in the region. The increasing efforts of the Chinese government, telecom operators, and vendors to deploy 5G as quickly as possible are anticipated to create additional growth opportunities in the market under study. Huawei is one of the country's largest telecom 5G infrastructure providers. In addition, the region is anticipated to expand due to the investments of small and medium-sized businesses. SMEs are investing in developing the telecom industry's adoption of cloud-based and technologically advanced solutions. Countries such as China and India present the region with significant growth opportunities.

Key Highlights

• The global communication platform as a service market was worth USD 5.9 billion in 2021. It is estimated to reach an expected market value of USD 85.6 billion at a CAGR of 34.4% during the forecast period (2022-2030).
• Based on end-user, the global communication platform as a service market is further segmented into IT and Telecom, BFSI, Retail and E-commerce, Healthcare, and Others. The retail and e-commerce segment holds the most significant market share among these segments. The retail and e-commerce segment accounted for the largest market share and is expected to grow at a CAGR of 35.2% during the forecast period.

Competitive Players

Competitive Landscape

The primary key players in the global communication platform as a service market are Twilio Inc., Vonage Holdings Corp, MessageBird BV, Plivo Inc., Snitch AB, Voximplant (Zingaya Inc.), 8x8 Inc., Voxvalley Technologies, Bandwidth Inc. (Bandwidth.com), IntelePeer Cloud Communications, Wazo Communication Inc., Avaya Inc., AT&T Inc., Mitel Networks Corporation, Telestax, Voxbone SA, Iotum Inc., M800 Limited, Infobip Ltd, and EnableX.io (VCLOUDX PTE. LTD)

Recent Developments

Market News

• March 2022- Vonage Holdings Corp Enhanced Video Capabilities for its UCaaS and CCaaS Solutions with its Video API
• February 2022- Sinch AB implemented a new operating model with the acquisition of Inteliquent, MessageMedia, and Pathwire.
• June 2022- 8x8 Launched New Channel Program for Microsoft Gold Partners with Exclusive Purpose-built Edition for Organizations Adopting Microsoft Teams.
• June 2022- Bandwidth Inc and Alianza Announced Partnership to Accelerate Cloud Migration for Communications Service Providers.
• April 2022- Mitel Network Corporations announced an expanded range of Digital Enhanced Cordless Technology (DECT) handsets built with plastics protected with BioCote® antimicrobial technology.

Segmentation

Global Communication Platform as a Service Market: Segmentation

By End-user Vertical

• IT and Telecommunication
• BFSI
• Retail and E-commerce
• Healthcare
• Others

By Region

• North America
• Europe
• Asia-Pacific
• LAMEA