Asia-Pacific Communication Platform-As-A-Service Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Asia-Pacific Communication Platform-As-A-Service Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Asia-Pacific Communications Platform-as-a-Service market is expected to show significant growth of 30.45% CAGR during the forecast period (2022 - 2027) on the back of growing work-at-home (WAH) promotions by major vendors as a preferred mode of carrying operations with the outbreak of COVID-19. For instance, as of April 2020, Teleperformance reached its work-at-home solutions target, with a 66% of operational staff penetration rate in its core business, or more than 155,000 agents working from home in April.

• Further, the low cost of ownership of cloud-based communication platforms and the rising adoption of pay-as-you-go cloud business models are expected to drive market growth. CPaaS is a cloud-based platform that helps customers by offering API-driven communications and microservices to their real-time application processes. CPaaS can be integrated into various applications without utilizing backend infrastructure and interfaces, owing to no upfront hardware (IT infrastructure) or software costs involved at the time of implementation of CPaaS. Moreover, CPaaS allows customers to develop communication features in existing on-premise communication systems such as telephony or media servers, thereby allowing customers to add new cloud-based functionality. In addition, CPaaS pricing is also available with pay per use structure, which is affordable for small-scale and micro industries. All these factors are expected to drive the growth of the Asia Pacific CPaaS market.
• COVID-19 has significantly disrupted almost all industries, including infrastructure, transportation, oil and gas, manufacturing, and others. Most countries have implemented lockdown restrictions, which are now being eased slowly on a phase-wise and industry-wide basis. Furthermore, many companies are providing the work-from-home option to employees to constrain the spread of coronavirus. The COVID-19 outbreak resulted in the rise in remote devices accessing the enterprise network infrastructure. The increase in work-from-home trends has enabled enterprises to deploy communication platforms as service solutions during the pandemic. The recent COVID-19 pandemic positively impacted the market for communication platforms as a service solution.

• The rapidly changing consumer trends and increasing demand have resulted in an improved shopping and service experience across all channels that cater to innovative communication tools which automate customer service and retail business operations. This shift in consumer preferences and behavior prompted efficient communication platforms to improve customer experience. The integration of AI-based chatbots and CRM software are helping retail businesses give individualized solutions to customers, decode customer queries, and redirect them to respective departments for clarification.
• Furthermore, the retail tech companies are helping retail sectors with advanced communication platform integration that increases the proliferation of virtual and voice assistants, which will likely create demand for CPaaS in the retail industry. The chatbots and automated marketing platforms that help reply to customers' concerns are helping e-commerce businesses. This resulted in increased investment by companies in areas such as customer service, where AI plays a vital role.

• Asia-Pacific CPaaS can serve companies of all sizes with a back-end communication infrastructure sold as a vendor service. Next to many smaller companies in the market are the more well-known vendors, which include Salesforce, SAP, and Microsoft. The CPaaS market is expected to diversify as telecom carriers intensify their activity in this segment.
• Large enterprises dominated the Asia-Pacific CPaaS market due to their extensive investment spectrum, large customer base, and greater urge to streamline their operational activities. The large enterprises in BFSI, IT & ITeS, Retail E-Commerce, etc., are increasingly planning to leverage API-enabled CPaaS as a strategic skillset to enhance their digital visibility. Moreover, these organizations are embedding conversational AI in their applications to improve customer retention & satisfaction. The data privacy regulations, customization or personalization of marketing campaigns, etc., are a few other factors boosting large enterprises' investments in CPaaS.

Asia-Pacific Communications Platform-as-a-Service (CPaaS) Market is competitive, primarily due to multiple small and large vendors in the market conducting business in domestic and international markets. The market appears fragmented, with key vendors adopting major strategies like product innovation, mergers, and acquisitions to widen their product functionality and stay competitive. Some of the recent developments in the market are:

• June 2022: Tanla Platforms Limited, a CPaaS provider, and Kore.ai, an enterprise conversational AI software platform and solutions company, have announced a partnership in five countries (India, United Arab Emirates, Indonesia, Vietnam, and the Philippines). This partnership would offer the ability to upraise the digital experiences of their key stakeholders: customers, partners, and employees through best-in-class conversational artificial intelligence (AI) based Natural Language Processing (NLP) system. This effectively translates into digital interactions truly becoming intuitive and meaningful for the users.
• June 2022: Kaleyra closes acquisition of mobile messaging solution provider mGage to become a Tier-1 messaging provider. The combination would put Kaleyra among the top-5 global CPaaS platforms with strong positions in the Americas, Europe, and APAC.

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