Communication Platform as a Service (CPaaS) Market Forecasts to 2028 – Global Analysis By Component (Solutions and Services), Organization Size (Large Enterprises and Small and Medium-sized Enterprises (SMEs)), End User (Banking, Financial Services, and I

Communication Platform as a Service (CPaaS) Market Forecasts to 2028 – Global Analysis By Component (Solutions and Services), Organization Size (Large Enterprises and Small and Medium-sized Enterprises (SMEs)), End User (Banking, Financial Services, and Insurance (BFSI), Retail & eCommerce, IT & Telecom and Other End Users) and By Geography

According to Stratistics MRC, the Global Communication Platform as a Service (CPaaS) Market is accounted for $12.25 billion in 2022 and is expected to reach $36.76 billion by 2028 growing at a CAGR of 20.1% during the forecast period. A cloud-based service called communications platform-as-a-service (CPaaS) enables developers to include real-time communication features like voice, video, and messaging in their applications, services, and business procedures. In turn, this aids businesses in enhancing customer communication channels, managing appointments, automating reminders, and promoting in-app calling and broadcast.

According to projections from Telecom Advisory Services, the United States produced 51.55 million exabytes of internet traffic per month in 2020. It is projected that this number will rise to 98.64 million exabytes per month in 2023.

Market Dynamics

Driver

Rising abandonment of conventional and nearby models by organizations

Real-time communication technologies, which work similarly to CPaaS, are what most businesses use currently. On existing systems, however, it takes labor, time, and effort to develop and implement such communication solutions. Software development kits (SDK) are pre-made and available through CPaaS solutions. These serve as a comprehensive development framework for creating and implementing communication software on any application or website. Thus, as more businesses switch from conventional and adjacent models to these solutions, demand for CPaaS is rising. This is then anticipated to accelerate market growth over the course of the projection period.

Restraint

Government oversight of data usage to limit the market's pace

Over the forecast period, regulatory worries about user data are expected to restrain the growth of the global communication platform-as-a-service market. As the use of CPaaS spreads into more industries, including healthcare, several governments are enforcing strict regulations related to data use and privacy. However, these regulations are making it difficult for CPaaS solutions to be adopted.

Opportunity

Growing usage of chat-bots in various industries

The use of chatbots in the food industry, government initiatives, transportation platforms like Abhi Bus, and educational platforms like Duolingo will spur the market for communication platforms as a service to grow. Inquiries, table reservations, booking changes, cancellations, corporate banking, product and price information, language selection, and table reservations are just a few of the services offered by the businesses. The use of cloud-based video conferencing and contact center systems, as well as other digital communications, is driving the growth of the CPaaS market.

Threat

Concerns about public cloud security

The public cloud has many advantages, but before implementing it, businesses should weigh these against some security-related concerns. Multi-tenant environments include the public cloud. Due to this, security threats are constant; multitenancy may enable a hacker to view the data or assume the identity of another client to access the data. Organizations also understand the compliance rules that must be adhered to. Since the majority of CPaaS solutions are deployed on the public cloud, security issues related to the public cloud are therefore anticipated to act as a restraint in the CPaaS market.

Covid-19 Impact

The communication platform as a service market benefited from the COVID-19 pandemic. The requirement for working remotely has dramatically increased, emphasizing the demand for flexible and effective cloud-based communication solutions. Additionally, businesses shifted to digital channels to support customer communications during the COVID-19 pandemic. Video calling and messaging apps became important tools for connectivity, productivity, and commerce during the pandemic. The adoption of video communication channels by the education sector for the administration of exams, assessments, admission, and tuition greatly boosted the market during this period.

The retail & ecommerce segment is expected to be the largest during the forecast period

In 2021, the global Communication Platform as a Service (CPAAS) market was dominated by the retail and e-commerce segments, and this trend is anticipated to continue during the forecast period. The retail industry has undergone a significant transformation since moving from a single interaction location to omnichannel interactions via the web or social media, primarily as a result of rapidly changing consumer purchasing preferences. A better shopping and service experience has become well established across all channels as a result of increasing consumer demand. Therefore, it is supported by highly developed communication systems that mainly automate customer service and retail business operations.

The services segment is expected to have the highest CAGR during the forecast period

An increase in the demand for services like customized services and a need for real-time assistance are driving the CPaaS industry. Due to these factors, the services segment is expected to witness the highest growth during the forecast period. With their ability to have multiple conversations at once, cost effectiveness, the elimination of repetitive tasks, and personal assistants, chatbots are becoming more and more popular. Due to technological interventions in consumer interaction and communication services like chatbots, many businesses in the service sector are changing their business models, which is responsible for the growth of the services segment in the coming years.

Region with largest share

During the forecast period, the North American Communication Platform as a Service (CPaaS) market is anticipated to hold the largest market share. The CPaaS market is likely to increase due to the rapid growth of cloud-based software. Due to its rapidly expanding customer base across all communication channels, the U.S. is expected to gain the largest market share during the forecast period. Additionally, the need for affordable and user-friendly browser-based communication solutions is growing quickly in the area. As a result, market participants are launching unified and integrated CPaaS solutions throughout the region.

Region with highest CAGR

Due to increasing government investments in digital transformation, the Asia Pacific region is expected to experience significant growth during the forecast period. China is expected to increase its market share during the prediction period. China is the world's second-largest market for cloud computing, according to McKinsey's report titled The Outlook for 2025. Tencent is the major player in the nation, with the largest customer base in the market. India is anticipated to grow significantly over the course of the forecast period as a result of the rise in small and medium-sized businesses.

Key players in the market

Some of the key players profiled in the Communication Platform as a Service (CPaaS) Market include 8x8, Inc, Alcatel-Lucent Enterprise, Avaya Inc, Bandwidth Inc, IMIMobile Limited, Infobip Ltd, IntelePeer, Kaleyra, MessageBird BV, Mitel Networks Corporation, MOBtexting, Plivo Inc, Sinch AB, TeleSign Corporation, Telnyx, Twilio Inc, Vonage Holdings Corp and Yellow Messenger.

Key Developments

In March 2022, Mitel delcared the launch of subscription-based solutions across all flagship platforms in its universal portfolio, including MiVoice 5000, MiVoice Business, MiVoice MX-ONE, and MiVoice Office 400. These subscription models are anticipated to provide customers with the flexibility to access the latest cloud-based technologies and respond promptly to the ever-changing market needs and demands.

In February 2022, Radisys Corporation, a global provider of open telecom solutions, declared the availability of the Radisys Engage Digital Platform (EDP). It is an open cloud communication platform that ushers in a completely new generation of programmable communications services involving conversational AI applications, video-based customer care, hyper-personalized social engagements, and Industry 5.0 applications allowing human-machine collaboration.

Components Covered
• Solutions
• Services

Organization Sizes Covered
• Large Enterprises
• Small and Medium-sized Enterprises (SMEs)

End Users Covered
• Banking, Financial Services, and Insurance (BFSI)
• Retail & eCommerce
• IT & Telecom
• Government
• Healthcare
• Education
• Manufacturing
• Other End Users

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities,Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements