Global Communication Platform as a Service Market By Component (Solution, and Service), By Organization Size (Large Enterprises and SMEs), By End-User (BFSI, IT & Telecom, Retail & E-commerce, Transportation & Logistics, Travel & Hospitality, and Other End-User), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: June 2023
- Report ID: 99559
- Number of Pages: 298
The Global Communication Platform as a Service Market size is expected to be worth around USD 121 Billion by 2032 from USD 10.9 Billion in 2022, growing at a CAGR of 28% during the forecast period from 2023 to 2032.
Communication Platform as a Service (CPaaS) is an on-demand cloud-based model that enables developers to easily incorporate real-time communication capabilities into their applications, websites, or services. CPaaS providers often provide communication services such as SMS, voice, video, and chat that can be integrated into applications or websites using application programming interfaces (APIs) or software development kits (SDKs). Developers can quickly and easily add real-time communication capabilities to their applications without having to start from zero. CPaaS solutions are applicable across a range of industries and applications such as customer service, e-commerce, healthcare, and education. By facilitating real-time communication between businesses and customers, businesses can improve customer engagement and deliver superior service.
Rising Advancements in Digital Technologies Drive the Market Potential
CPaaS providers provide a suite of services such as messaging, voice, and video communication that enable individuals and businesses to stay in touch in real-time. Due to the rapid advancements in digital technologies, people are seeking faster, more convenient, and more efficient ways to communicate. Cloud-based communication services have become increasingly popular owing to their flexibility, scalability, and cost efficiency. CPaaS providers deliver cloud-based communication solutions that can be seamlessly integrated into existing applications and systems, making it simpler for businesses to manage their communication requirements. CPaaS providers deliver application programming interfaces (APIs) that let developers seamlessly incorporate communication services into their applications. Businesses now can add real-time communication capabilities to their applications without needing to build out their own infrastructure.
Security Breaches and Data Leaks Threat Among Public
Real-time communication services can be vulnerable to security breaches and data leaks, which could tarnish a business’s reputation and result in financial losses. CPaaS providers need to guarantee their communication services are secure and meet regulatory compliance requirements; which is no easy feat. Integrating communication services into existing applications and systems requires expertise and time; some businesses may even find it difficult to integrate existing systems seamlessly with CPaaS offerings.
Different CPaaS providers utilize different APIs and protocols, which may restrict interoperability between their services. This makes switching between providers or using multiple providers difficult for businesses. Real-time communication depends on internet connectivity that may be unpredictable or subject to downtime; businesses must have contingency plans in place so communication continues uninterruptedly in case of internet outages.
Increasing Adoption of CPaaS Solutions in Emerging Sectors
CPaaS providers have the potential to expand their services into new sectors like finance, healthcare, and education. These industries have particular communication requirements that CPaaS solutions can address through telehealth, remote learning, and financial transactions. CPaaS providers can integrate their communication services with cutting-edge technologies like artificial intelligence (AI), IoT (Internet of Things), and blockchain giving businesses the power to improve efficiency and automate their communication processes. CPaaS providers can collaborate with other businesses, such as system integrators, software vendors, and telecommunications service providers. Through partnerships, CPaaS providers are able to expand their customer base and access new markets. CPaaS providers can innovate in user experience by offering features like chatbots, interactive vocal response (IVR), and video conferencing. These enhancements boost user engagement which in turn leads to higher adoption rates and customer loyalty.
The Omnichannel Communication Encourages the Expansion of CPaaS Services
CPaaS providers are increasingly incorporating artificial intelligence (AI) and chatbot technology into their platforms. This enables businesses to create intelligent, conversational interfaces that can interact with customers in a more personalized and efficient manner. The trend toward omnichannel communication is fueling the expansion of CPaaS services. Businesses are increasingly searching for ways to stay in touch with customers across multiple channels, such as SMS, voice, video, and social media. Cloud-based CPaaS solutions are becoming more and more popular, as they provide greater scalability, adaptability, and cost efficiency compared to on-premise options. This is especially pertinent for businesses that must rapidly scale their communication infrastructure to meet changing customer demands. Healthcare providers and educational institutions alike are turning to CPaaS for remote consultations and telemedicine, while CPaaS allows them to deliver online learning and virtual classrooms. In response, these CPaaS providers have implemented robust security and compliance measures such as encryption and secure data storage to safeguard sensitive customer information.
COVID-19 Impact Analysis
Due to the rise of remote work and social distancing measures during the pandemic, businesses have had to find new ways to communicate with employees and customers. This has created a surge in demand for cloud-based communications platforms (CPaaS) that enable this type of remote collaboration, such as video conferencing, messaging, and other collaboration tools. The pandemic has accelerated the pace of digital transformation across many industries, as businesses must quickly adjust to new ways of working and engaging with customers. This has spurred a rise in the adoption of CPaaS solutions, which let businesses quickly and easily add new communication channels and capabilities. Unfortunately, certain industries such as travel and hospitality have suffered disproportionately due to the pandemic; this has had an adverse effect on some providers in the CPaaS market, who experienced decreased demand from these sectors.
The Solution Component is Dominant
Based on components, the market for communication platforms as a service is segmented into solution and service. Among these components, the solution segment is the most lucrative in the global communication platform as a service market, with a projected CAGR of 26.7%, and the total revenue share of solution-type communication platforms as a service is 86.4% in 2022. The solution segment is again classified into message, voice, and video. This segment’s growth can be attributed in part to its improved programmable video capabilities that allow for more humanized digital interactions. Built-in video with APIs to integrate workflow will also be a key component of CPaaS’s overall value proposition. Whereas, the service segment is anticipated to grow at the highest CAGR of 34.3% in 2022. The service segment is further divided into managed services and professional services. For instance, Banks and other financial institutions combine conversational AI platforms with APIs to automate customer service interactions.
Organization Size Analysis
The Large Enterprises Segment is Dominant in the Market
By organization size, the market is further divided into large enterprises and SMEs. The large enterprises segment is estimated to be the most lucrative segment in the global communication platform as a service market, with a market share of 57.3% and a projected CAGR of 25.3% in 2022. The rapidly growing digital engagement with the customer is expected to boost the demand for communication platforms as a service in large industries. This will likely fuel the communication platform as a service market growth, as these companies increase IT investments to improve customer service on digital platforms. Whereas, the small and medium enterprises (SMEs) segment is anticipated to expand at a CAGR of 31.6% over the forecast period due to the increasing awareness of technology by entrepreneurs and the affordability of cloud communication services.
The IT & Telecom Segment is Dominant
Based on end-user, the market is divided into BFSI, IT & Telecom, Retail & E-commerce, Transportation & Logistics, Travel & Hospitality, and Other End-User. Out of these end users, IT & Telecom is expected to be the most lucrative segment in the global communication platform as a service market with an estimated revenue share of 20.6% and projected CAGR of 29.3% during 2022-2031; having been one of the early adopters of communication solutions and continuing its growth within this industry to maintain customer engagement. Travel & hospitality will experience higher expansion with a CAGR of 31.2% from 2022-2031 due to increasing demands for customer service levels within this segment.
Key Market Segments:
Based on Component
- Managed Services
- Professional Services
Based on Organization Size
- Large Enterprises
Based on End-User
- IT & Telecom
- Retail & E-commerce
- Transportation & Logistics
- Travel & Hospitality
- Other End-User
North America is Dominant Region in the Global Communication Platform as a Service Market
North America dominated the market in the global communication platform as a service market boasting a market share of 32% and is forecast to experience a CAGR of 29.2% over the forecast period. It boasts an impressive technology infrastructure and many tech-savvy businesses are early adopters. Additionally, factors like its high level of research & development (R&D), established telecom market, and presence of many CPaaS businesses all lend to its attractiveness. The region also possesses a highly developed technological infrastructure that will propel market expansion. Asia Pacific is projected to experience a CAGR of 34.1% during the forecast period. This can be attributed mainly to the expansion of end-use industries like retail, e-commerce, and IT & telecom.
Key Regions and Countries Covered in this Report:
- North America
- The US
- Western Europe
- The UK
- Rest of Western Europe
- Eastern Europe
- The Czech Republic
- Rest of Eastern Europe
- South Korea
- Australia & New Zealand
- Rest of APAC
- Latin America
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
- United Arab Emirates
- Rest of MEA
Market key players are focused on a variety of strategic policies to develop their respective businesses in foreign markets. Several communication platforms as a service market companies are concentrating on expanding their existing operations, and R&D facilities. Whereas, businesses in the CpaaS market are developing new products, and portfolio expansion strategies through investing in emerging technologies such as cloud, and AI and mergers and acquisitions which is boosting the target products’ growth.
Market Key Players:
Listed below are some of the most prominent communication platforms as service industry players.
- TWILIO INC.
- Avaya Inc.
- Vonage America, LLC
- Infobip ltd.
- Plivo Inc.
- Telnyx LLC
- Bandwidth Inc.
- Other Key Players
- In January 2022, Bandwidth Inc. did a partnership with a global cloud company Genesys, engaged in customer experience relevance, for enterprise contact center development. The company offers better flexibility to consumers by adoring advanced DuetSM solutions.
- In March 2021, ValueFirst, an India-based CPaaS firm get acquired by Twilio Inc. The acquired firm helps in connecting businesses with consumers over telecom and internet channels. The ultimate aim of this acquisition is to expand the CPaaS solution offerings and to make a relevant presence in India.
Report Features Description Market Value (2022) USD 10.9 Bn Forecast Revenue (2032) USD 121 Bn CAGR (2023-2032) 28% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Component (Solution(Message, Voice, and Video), Service(Managed Services and Professional Services), By Organization Size (Large Enterprises and SMEs), By End-User (BFSI, IT & Telecom, Retail & E-commerce, Transportation & Logistics, Travel & Hospitality, and Other End-User) Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; the Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape TWILIO INC., Avaya Inc., Vonage America, LLC, MessageBird, Infobip Ltd., Plivo Inc., Telnyx LLC, TEXTUS, Voximplant, Bandwidth Inc., Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)
Frequently Asked Questions (FAQ)What is Communication Platform as a Service Market Cagr During the Forecast Period?
The Communication Platform as a Service Market CAGR of 28% during the forecast period from 2023 to 2032.What is Communication Platform as a Service Market size in 2032?
The Communication Platform as a Service Market size is expected to be worth around USD 121 Billion by 2032.What was the Communication Platform as a Service Market Size in 2022?
The Communication Platform as a Service Market size was USD 10.9 Billion in 2022, growing at a CAGR of 28% during the forecast period from 2023 to 2032.
- TWILIO INC.
- Avaya Inc.
- Vonage America, LLC
- Infobip ltd.
- Plivo Inc.
- Telnyx LLC
- Bandwidth Inc.
- Other Key Players
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