Communication Platform as a Service (CPAAS) Market Size was valued at USD 12.8 Billion in 2022. The Communication Platform as a Service (CPAAS) Market industry is projected to grow from USD 16.7 Billion in 2023 to USD 140.50 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 30.50% during the forecast period (2023 - 2032). The growing demand for easily manageable network systems facilitating effective communication spans across various end-user industries such as healthcare, retail, and manufacturing. Additionally, healthcare providers, often facing constraints in IT budgets, have increased their utilization of cost-effective cloud-based solutions are expected to be a significant market driver for the communication platform as a service (CPAAS) market.
Figure 1: Communication Platform as a Service (CPAAS) Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for Communication Platform as a Service (CPAAS) is being driven by the fast-growing uptake of the BYOD trend and other mobility solutions. In this era of flexibility and network accessibility for employees across various firms, BYOD has emerged as a significant trend, contributing to increased office productivity. According to Cisco, businesses with a BYOD strategy save an average of USD 350 per employee annually. Moreover, proactive initiatives and programs can enhance these savings to USD 1,300 per employee per year. These cost savings are particularly beneficial for Small to Medium-Sized Businesses (SMBs), contributing to better financial stability while boosting staff productivity.
During the pandemic, messaging apps and video calling became essential tools for connectivity, productivity, and commerce. The education sector embraced video communication channels for conducting and managing tuition, assessments, admissions, and exams. According to the World Economic Forum (WEF), approximately 730,000 K-12 students in Wuhan province attended online classes after the government instructed educational institutes to conduct classes online in February 2020.
The current revenue of the Communication Platform as a Service (CPaaS) market is driven by wholesale suppliers offering solutions and services directly through system integrators (SIs) or indirectly through independent software vendors (ISVs). The enterprise market is growing by adopting voice and SMS API technologies. However, most CPaaS vendors are not yet fully prepared to use self-sign-up (SSU) or portal sales channels to provide services in a consumable manner for the B2B or enterprise market.
As a result, it is anticipated that throughout the projection period, demand for the Communication Platform as a Service (CPAAS) Market will increase due to the fast-growing uptake of the BYOD trend and other mobility solutions. Thus, driving the Communication Platform as a Service (CPAAS) Market revenue.
The Communication Platform as a Service (CPAAS) Market segmentation, based on Components includes Solutions and Services. The services segment dominated the market, accounting for 58% of market revenue (7.4 Billion). the adoption of CPaaS was primarily led by on-demand economy players, over-the-top (OTT) firms, and cloud companies. However, in recent years, a significant number of traditional enterprises have also embraced CPaaS software solutions and services.
Figure 2: Communication Platform as a Service (CPAAS) Market, by Component, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Communication Platform as a Service (CPAAS) Market segmentation, based on Enterprise Size includes Large Enterprise and SMEs. The large enterprise segment dominated the market, accounting for 58% of market revenue (7.4 Billion). Large enterprises, managing extensive communication volumes and often operating on a scale, benefit from the scalability provided by CPaaS platforms. These solutions enable organizations to adjust and expand their communication infrastructure in alignment with their evolving needs, and the adaptable nature of CPaaS solutions is well-suited to the dynamic requirements of large enterprises.
The Communication Platform as a Service (CPAAS) Market segmentation, based on Industry Vertical includes IT and Telecom, BFSI, Government and Public Sector, Manufacturing, Retail, Education, Healthcare, and Others. The healthcare segment dominated the market, accounting for 60% of market revenue (7.4 Billion). Effective communication plays a crucial role in the healthcare sector, impacting patient care quality, operational efficiency, and overall patient satisfaction. The healthcare industry has witnessed a transformative shift with the integration of Communication Platform as a Service (CPaaS), bringing forth a diverse set of communication tools. These tools enable smooth and secure interactions among healthcare providers, patients, and other stakeholders.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The anticipated expansion of the Communication Platform as a Service (CPAAS) market in North America can be attributed to several key factors. The increasing adoption of CPaaS comes with concerns about fraudulent and illegal activities, prompting the implementation of secure methods to meet demand and comply with regional regulations. In September 2020, Numeracle, Inc., specializing in Verified Identity for communications, collaborated with Fonative, the Compliant Communications Company, to support enforcement efforts by the Federal Trade Commission (FTC) and the State of Ohio against service providers facilitating illegal call traffic. Fonative integrated Numeracle's Verified Identity solution into its RegReady CPaaS platform, reinforcing its commitment to regulatory compliance and risk management for call centers.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: COMMUNICATION PLATFORM AS A SERVICE (CPAAS) MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Communication Platform as a Service (CPAAS) Market accounts for the second-largest market share as the regional focus on supporting businesses includes urging telecom providers like Vodafone and EE to enhance their 5G infrastructure deployment efforts. For example, Vodafone is actively expanding its 5G service in Germany, connecting over 20 towns and cities. The company activated its first 5G base stations in 2019. With substantial growth in smartphone penetration and mobile phone connections, the telecom industry is poised for significant expansion, creating substantial opportunities for CPaaS in the region. Further, the German Communication Platform as a Service (CPAAS) Market held the largest market share, and the UK Communication Platform as a Service (CPAAS) Market was the fastest-growing market in the European region
The Asia-Pacific Communication Platform as a Service (CPAAS) Market is expected to grow at the fastest CAGR from 2023 to 2032. Over the years, companies in the Asia-Pacific region have taken substantial steps to transform the area from being primarily a manufacturing center into a hub for technology and innovation. Trends in interconnection solutions and the adoption of cloud and IT infrastructure persist, with digital leaders intensifying expansion plans despite cautious sentiments and disruptions caused by the pandemic.
According to the latest GTTS, approximately 82 percent of IT leaders in the Asia-Pacific region have expressed their intentions to expand in the next 12 months. This data suggests that leaders in Asia-Pacific are not significantly affected by economic uncertainties. Moreover, China’s Communication Platform as a Service (CPAAS) Market held the largest market share, and the Indian Communication Platform as a Service (CPAAS) Market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Communication Platform as a Service (CPAAS) market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Communication Platform as a Service (CPAAS) industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Communication Platform as a Service (CPAAS) industry to benefit clients and increase the market sector. In recent years, the Communication Platform as a Service (CPAAS) industry has offered some of the most significant advantages to businesses. Major players in the Communication Platform as a Service (CPAAS) Market, including Bandwidth Inc., Sinch, Plivo Inc., IntelePeer Cloud Communications LLC, ALE International, Avaya Inc., Vonage America, LLC, Twilio Inc., Infobip Ltd., 8x8, Inc are attempting to increase market demand by investing in research and development operations.
Bandwidth Inc (Bandwidth) is a cloud-based communications CPaaS (Communications Platform-as-a-Service) services provider. The company's solutions portfolio includes a wide range of software APIs (Application Programming Interfaces) for voice, text messaging, and emergency services communications. Bandwidth offers services such as phone number solutions, messaging, voice, 911, SIP trunking, data resale, and over-the-top voice-over-internet protocol (VoIP). Its clientele comprises large, small- and medium-sized businesses, emerging technology companies, communication services providers, conferencing, contact centers, and other enterprises.
Additionally, the company provides unified communications as a service, advanced monitoring, analytics and reporting, dedicated operating teams, and personalized support services. Bandwidth operates in the US, Asia-Pacific, North America, and Europe, with its headquarters located in Raleigh, North Carolina, USA. In June 2022, Bandwidth Inc. announced a partnership with Alianza to expedite cloud migration for Communications Service Providers.
Sinch AB (Sinch) is a cloud-based technology service provider, offering a range of services, including short message services messaging, rich communication services messaging, personalized messaging, voice calling, verification, signaling firewall, and Sinch Engage. The company facilitates businesses of all sizes to connect with customers through a network of mobile operators. Sinch also provides personalized messaging, verification, number masking, value-added services, fraud and security solutions, a business support system, number lookup, and revenue assurance. Operating in various regions, including Sweden and the US, Sinch is headquartered in Stockholm, Sweden. In February 2022, Sinch AB adopted a new operating model with the acquisitions of Inteliquent, MessageMedia, and Pathwire.
Sinch
Intel
ePeer Cloud Communications LLC
ALE International
Avaya Inc
Twilio Inc
Infobip Ltd
8x8, Inc
March 2022: In March 2022, Mitel announced the launch of subscription-based solutions across its entire flagship portfolio, which includes MiVoice Office 400, MiVoice Business, MiVoice MX-ONE, and MiVoice 5000. These subscription models are expected to give customers the flexibility to access the latest cloud-based technologies and quickly adapt to changing market demands.
January 2022: In January 2022, Bandwidth partnered with Genesys, a cloud company specializing in customer experience orchestration, to develop an enterprise contact center. The company is also expanding its range of advanced DuetSM solutions, providing enhanced flexibility to customers.
Solutions
Services
Large Enterprise
SMEs
IT and Telecom
BFSI
Government and Public Sector
Manufacturing
Retail
Education
Healthcare
Others
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 12.8 Billion |
| Market Size 2023 | USD 16.7 Billion |
| Market Size 2032 | USD 140.50 Billion |
| Compound Annual Growth Rate (CAGR) | 30.50% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Component, Enterprise Size, Industry Vertical, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Bandwidth Inc., Sinch, Plivo Inc., IntelePeer Cloud Communications LLC, ALE International, Avaya Inc., Vonage America, LLC, Twilio Inc., Infobip Ltd., 8x8, Inc |
| Key Market Opportunities | Leveraging blockchain technology to enable secure communications |
| Key Market Dynamics | Advancements in API integration and microservices fuelling CPaaS adoption. |
Frequently Asked Questions (FAQ) :
The Communication Platform as a Service (CPAAS) Market size was valued at USD 12.8 Billion in 2022.
The Communication Platform as a Service (CPAAS) Market is projected to grow at a CAGR of 30.50% during the forecast period, 2023-2032.
North America had the largest share of the market
The key players in the market are Bandwidth Inc., Sinch, Plivo Inc., IntelePeer Cloud Communications LLC, ALE International, Avaya Inc., Vonage America, LLC, Twilio Inc., Infobip Ltd., 8x8, Inc
The Services segment dominated the market in 2022.
The Healthcare segment had the largest share of the market.
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