Communications Platform As a Service (CPaaS) Market Size, Share & Trends Analysis Report 2020-2027
The global CPaaS market size was estimated at USD 5.52 Billion in 2020 and it is anticipated to reach USD 14.12 Billion by 2027, growing at a CAGR of 18.41% over the forecast period. Growing demand for contextual communication platform from the enterprises for improving customer service is driving the market growth. The communication platform as a service (CPaaS) market report published by UpGraph Research provides detailed information related to the global and regional market size, share & trends analysis. The report also incorporates detailed competitor analysis and comprehensive company profiles of key CPaaS market leaders. As per the research
CPaaS is a cloud-based platform that enables application developers to integrate voice, video & messaging features into their application or website without the need to deploy any back-end infrastructure. The CPaaS generally includes the following ready-made application, sample code, Software Development Kits (SDKs), software tools, Application Programming Interfaces (API). These solutions enable the customer support team to provide customer services in real-time using voice, messaging, or video calls. The customers’ contextual information enables the support agent to provide a customized solution to each customer based on their particular requirements.
Traditionally most of the businesses were dependent upon the real-time communication Technologies which serve similar functions as CPaaS. The main problem that lies in the development of such a communication application is the time energy and manpower utilized to develop and deploy such applications on existing systems; however, CPaaS offers readymade SDK i.e. software development kits, a complete development framework to develop and deploy communication software on any website or application. The CPaaS vendors offer complete support and documentation for the development and deployment of such applications. Few vendors also provide separate libraries for application development for mobile and desktop separately.
Platform providers have made the overall process development and deploying of applications so easy that most of the small and medium businesses can easily use the communication platform without any prior technical knowledge. Pricing flexibility is also one of the key advantages offered by CPaaS vendors, where the developers are provided with the option to pay only for the services that they require and opt for.
CPaaS providers offer a cloud-based platform to companies of any size for developing & deploying the communication platform for their businesses. This helps the companies to save on time, human resources, and infrastructure. CPaaS is affordable for most of the small & medium businesses, it offers a secure environment and tech support so that developers can focus on the key developmental activities.
The market has been segmented based on the type into standard & customized. The standard CPaaS market accounted for the largest market size in 2019, as these solutions are affordable & easy to be deployed by small & medium enterprises, have captured greater market share.
The customized CPaaS solution segment is anticipated to gain considerable growth in upcoming years. Businesses are utilizing CPaaS for enhancing their customer interaction by using solutions such as a cloud-based call center, a chatbot system, or an Interactive Voice Response (IVR) system.
The companies are moving from traditional omnichannel communication system that used to account huge expenses in managing the system by hiring staff for different departments working as an individual system, CPaaS has however eliminated the need to hire communication specialists for different roles and helps in deploying all the features in a single solution.
Based on the end-user segment the market has been segmented into small-medium enterprises and large organizations. The large organization segment accounts for the largest market size in 2019 and it is expected that the market will continue to grow at a moderate growth rate for the forecast period.
Small and Medium Enterprise segment is the highest potential market for CPaaS solutions, as the business is are going online rapidly, they need a concrete solution to enhance their communication and User experience, therefore, most of the sea pass vendors are targeting on capturing the SME segment to gain greater market share over the forecast period.
The North America CPaaS Market accounted for greater than 30% market share in 2019. The U.S. has the presence of a large number of CPaaS vendors, it is also one of the largest consumers of these services. India is the global IT outsourcing hub, particularly for customer support, IT development & call centers. Therefore, the Indian CPaaS market holds a huge market potential between 2020 to 2027.
The CPaaS market can be diversified into software vendors, system integrators, service providers, and equipment providers. Software vendors account for the highest market share among different players followed by service providers and system integrators. Software-based solution providers such as Twilio, Nexmo, Plivo are among the top CPaaS vendors. Whereas companies such as Alcatel Lucent Enterprise (ALE), IntelePeer, Plum Voice, and Ytel are key CPaaS enterprise solution providers. There are many mergers and acquisition activities happening in the CPaaS ecosystem, For instance, in 2016 Nexmo, one of the top vendors in the CPaas market was acquired by Vonage.
Many CPaaS vendors tend to offer support services to developers throughout the development process. Most of the companies operating in this market tend to compete based on the pricing model, they offer pricing flexibility to customers by allowing them to pay as you go, model, wherein customers will pay only for services that they avail. Such a pricing model is specifically attracting start-ups and small businesses to opt for different CPaaS services while saving a large portion of the operational expenses spent on customer support tech.
Artificial intelligence is expected to play a crucial role in CPaaS market growth. AI helps in offering unified customer experience through data unification, AI enables chat-bots & automation. AI also provides enterprises with crucial analytics & real-time insights that can be used to offer better user-centric solutions.
Brands are aiming to deploy unified communication solutions that offer consolidated experience across multiple channels. CPaaS solutions are anticipated to emerge as a multi-solution platform for customer care as well as team collaboration.
Chatbots offer communication flexibility to customers as well as companies. AI-based chatbots are widely deployed by many industries such as BFSI for automated chatting with customers for general queries. There are several options available such as video chat, voice call, multimedia sharing, and messaging.
|Base year for estimation||2019|
|Actual estimates/Historical data||2017 – 2019|
|Forecast period||2020 – 2027|
|Market representation||Revenue in USD Billion & CAGR from 2020 to 2027|
|Regional scope||North America, Europe, Asia Pacific, Latin America, Middle East & Africa|
|Country scope||U.S., Canada, UK, Germany, France, China, India, Japan, South Korea, Taiwan, Brazil, Mexico, UAE, and KSA|
|Report coverage||Market size estimates and forecast, company market share analysis, competitive landscape, market dynamics, drivers, restraints, opportunities & challenges, qualitative analysis and trends|
|25% free customization scope (equivalent to 9 analysts working days)||Do you have any additional requirements? We can incorporate the same at no extra cost.|
For the purpose of this report market research has segmented the Global CPaaS market based on type, end-user, and the region as mentioned below:
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