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A47370 | Pages: 232 | Charts: 63 | Tables: 133 |
The global communication platform-as-a-service (cpaas) market was valued at USD 10.2 billion in 2021, and is projected to reach USD 80.2 billion by 2031, growing at a CAGR of 23.1% from 2022 to 2031.
Growing trend of mobility and BYOD as well as demand for personalized and streamlined customer interaction to achieve high customer satisfaction is boosting the growth of the market. In addition, increase in use of chat bot sales in communication platform as a service positively impacts the communication platform-as-a-service market growth. However, internet bandwidth & technical glitch issues and increasing security concerns are hampering the communication platform as a service market growth. On the contrary, increase in use of technological advancement is expected to offer remunerative opportunities for expansion of the communication platform as a service market during the forecast period.
The CPaaS market is a cloud-based platform that is used to enhance the customer communications platform by delivering connectivity between applications, people, and objects. Communication platform as a service is leading the way to enhance the new age of connectivity. With the integration of APIs, the delivery model enables the addition of messaging features, voice, and video to the existing business software. CPaaS market is deployed by business enterprises that are looking to include communication in their business applications.
[COMPONENTGRAPH]
In terms of of component, the solution segment holds the highest communication platform-as-a-service market share, owing to rapidly growing consumer base across all communication channels. However, the service segment is expected to grow at the highest rate during the forecast period, as it helps to increase organizational efficiency, reduce cost, and enhance customer engagement.
[REGIONGRAPH]
Region-wise, North America in 2021 dominated the market size . The region is expected to retain its position during the forecast period, owing to the presence of various smartphone companies resulting in the easy availability of smartphones at a lower price. This is expected to drive the market for communication platform as a service technology within the region during the forecast period. Asia-Pacific is also expected to witness significant growth during the forecast period, owing to a rise in demand for advanced consumer electronics combined with high adoption in the entertainment and gaming industries.
The growing awareness among enterprises related to bring your own device (BYOD) and mobility techniques to gain importance among enterprises to stay connected with employees as the landscape of the traditional office changes dramatically. Moreover, mobility is increasing the business opportunities thus enterprises have already accepted this trend along with communication platform as a services solution to increase productivity and reducing costs. For instance, in 2020, in UK approximately 50% of the workforce is expected to work remotely and the number is continuously increased as companies discover the productivity and efficiency benefits offered by remote working environment through unified communication. As the workplace environment continues to shift, communication platform services are empowering these new digital workers. Such demands are driving the growth of the CPaaS market.
Increasing demand for personalized and streamlined customer interaction to achieve high customer satisfaction by creating good brand image and retaining and acquiring customers, enterprises focus on offering customized and personalized customer interaction. In addition, personalized customer interaction improves the overall customer satisfaction levels and build loyalty, enabling organizations to maintain a strong foundation in respective market place.
Moreover, the adoption of communication services to improve customer engagement and customer satisfaction through NPS surveys, CSAT score, and CES surveys is increasing considerably across communication platforms, which in turn is driving the growth of the market. Moreover, personalization strategy enables businesses to closely understand customers, to understand the customer journey and customer sentiments to deliver customized answers and personalized marketing strategies. This type of rich information on each customer better prepares businesses to handle customer queries across platforms in the future, which provides opportunities for market growth.
The communication platform as a service market is segmented on the basis of component, enterprise size, industry vertical, and region. On the basis of the component, the market is categorized into solutions and service. By enterprise size, it is classified into large enterprises and SMEs. As per industry vertical, it is divided into BFSI, IT & telecom, government & public sector, manufacturing, retail & consumer goods, education, healthcare & life science, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players that operate in the CPaaS industry are Accenture, 8x8 Inc., ALE International, Avaya Inc., Bandwidth Inc., Infobip Ltd., IntelePeer Cloud Communications LLC, Plivo Inc., Sinch, Twilio Inc., and Vonage America, LLC. These players have adopted various strategies to increase their market penetration and strengthen their position in the communication platform as a service market.
The communications platform as a service (CPaaS) market is experiencing tremendous growth owing to the rising users of mobile and smartphones across the globe. Additionally, the market benefits from the increase in social communication brought on by the success of OTT messaging platforms like Facebook, WhatsApp, WeChat, and others. Moreover, the growing demand for contextual communication in business enterprises is one of the primary demands that tend to upsurge in market growth. The business will obtain better benefits and a higher return on investment by implementing the communication platform as a service while retaining time and cost efficiency, which will increase access to more competitive features. Consequently, there's a growing demand for communication platform as a service around the globe which will eventually help to drive the growth of this market during the forecast period.
Communication platform as a service or internet-based phone services are one such solution providers who make use of the latest network infrastructure like LTE (Long Term Evolution) and WCDMA (Wideband Code Division Multiple Access) for establishing reliable voice call services over wireless data networks instead of using traditional circuit-switched telephone lines used by PSTN (Public Switched Telephone Network). The biggest benefit of this technology is that it can be used on smartphones, tablets, and computers.
Moreover, the communication platform as a service market is an opportunity to increase revenue and create relationships with companies that want to grow beyond traditional telephony applications. For companies, a communication platform as a service is an opportunity to develop custom applications and business processes at a cheap rate. Furthermore, the fast-changing consumer purchasing trends have emerged in a changing shift in the retail industry from the more immediate single point of communication to omnichannel communications through the web or social media. The increasing demand from consumers has generated the demand for an enhanced shopping and service experience over all the channels.
With an increase in competition, major market players have started partnering with companies to expand their market penetration and reach. For instance, in January 2022, to implement banking services through WhatsApp using communication platform as a service tools, Route Mobile worked with the State Bank of India and the Bank of Maharashtra.
Due to technological advancements across the world and the rise in demand for communication platform-as-a-service industry, various companies have expanded their current product portfolios and innovations with increased diversification among customers. For instance, in November 2022, Cisco was recognized as a 2022 Gartner® Peer Insights™ Customers’ Choice for Meeting Solutions for the Webex Suite. For instance, in February 2020, Huawei launched its Mate X2 latest communication platform as a service in China. Like Samsung Galaxy Fold, the company ditched the outward folding design and moved to an inward folding design.
For instance, in March 2022, iBASIS, the leading provider of communications solutions for operators and digital players partnered with Mavenir to launch Carrier Communications Platform-as-a-Service. Growing investment from smartphone manufacturers drives demand in the communication platform as a service market. For instance, in August 2021, Microsoft Corporation and Avaya, Inc. collaborated to integrate Microsoft Azure Communication solutions into Avaya OneCloud communication platform as a service. Through this partnership, Microsoft’s communication solutions were to be improved by the addition of SMS, video, voice, and chat capabilities.
Moreover, with an increase in competition, major market players have started acquiring companies to expand their market penetration and reach. For instance, in October 2019, 3CX acquired WP-Live Chat. This strategic decision is likely to help the corporation boost its market position.
All well-governed industries should be able to demonstrate due diligence to ensure regulatory compliance in applicable fields, including IT. Organizations are increasing adoption of advance electronics heavily influenced by COVID-19. In addition, federal and state governments are improving their track plans for various privacy laws, which are applicable for data that are involved in their operations. For instance, the Gramm-Leach-Bliley Act not only covers banks but also securities firms and insurance companies, and companies providing many other types of financial products and services.
For instance, in March 2022, U.S. and European Commission announce New Trans-Atlantic Data Privacy framework to put in place new safeguards to ensure that signals surveillance activities are necessary and proportionate in the pursuit of defined national security objectives. Furthermore, the GDPR Act imposed by the European Government mitigates the risk of cyber security and any potential data breaches. Emerging countries of Asia-Pacific are developing stringent regulations, which comprise privacy, government regulatory environment, and intellectual property protection.
The study provides an in-depth analysis of the communication platform-as-a-service market forecast along with current trends and future estimations to explain the imminent investment pockets.
Information about key drivers, restraints, and opportunities and their impact analysis on communication platform-as-a-service market trends is provided in the report.
Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
The communication platform-as-a-service market analysis from 2022 to 2031 is provided to determine the market potential.
Key Market Segments
Key Market Players