by The Communication Platform-As-A-Service (CPaaS) Market is estimated to be valued at US$ 9841.3 Mn in 2023 and is expected to exhibit a CAGR of 28.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The CPaaS (Communication Platform-As-A-Service) Market provides cloud-based communication and collaboration services for developers to build, integrate and manage communication capabilities such as voice, video, messaging, and mobile workflows into their applications and workflows. CPaaS bridges the gap between enterprise communications infrastructure and new technologies.
Market Overview:
The Communication Platform-As-A-Service (CPaaS) market offers communication APIs that enable developers to embed voice, video, SMS and OTT messaging capabilities in their applications and solutions. Through CPaaS, developers can add real-time communication features like text messaging, video calling and more within their own apps. This helps businesses enhance customer engagement and experience through personalized communication using various channels.
Market key trends:
One of the key trends propelling the Global Communication Platform-As-A-Service (Cpaas) Market Size is adoption of unified communication solutions. Unified communications (UC) combines the various communication modes like voice, video, SMS, chat, and more into a common point of access. It provides organizations a centralized platform to manage all communication needs using the same set of tools. UC enables teams to collaborate across multiple devices instantly through video meetings, messaging, calling and screen sharing features. This improves productivity, decision making and customer service. Many CPaaS providers are integrating their solutions with UC platforms to help enterprises simplify communications and enhance cross-department collaboration.
Porter’s Analysis
Threat of new entrants: Low barrier of entry due to availability of communication APIs but established players have the advantage of customized product offerings and large customer base.
Bargaining power of buyers: Buyers have high bargaining power due to availability of various CPaaS vendors providing substitutable services. Buyers can switch between vendors based on pricing and customization needs.
Bargaining power of suppliers: CPaaS vendors face less threat from suppliers as they control the platform and work with telecom network providers.
Threat of new substitutes: Threat of substitution is moderate as various communication channels like messaging, voice, video etc. are offered as substitutes. However, integration of channels makes CPaaS irreplaceable.
Competitive rivalry: Intense competition between established vendors to acquire more customers and new players with disruptive technologies.
SWOT Analysis
Strength: API based platform allows easy integration with various applications. Scalable real-time communication services.
Weakness: Heavy reliance on telecom providers for connectivity. New technologies can make existing solutions redundant.
Opportunity: Growing demand for omnichannel customer engagement. Increased adoption of cloud-basedcommunication across industry verticals.
Threats: Security and privacy concerns around data transmission. Increased compliance requirements in regulated domains.
Key Takeaways
The global Communication Platform-As-A-Service (CPaaS) Market is expected to witness high growth at a CAGR of 28% over the forecast period, due to increasing demand for omnichannel customer engagement solutions. The CPaaS market size for 2023 is US$ 9841.3 Mn.
Regional analysis: North America holds the largest share in the global CPaaS market owing to concentration of key players and large tech companies in the US and Canada adopting CPaaS solutions. The Asia Pacific region is expected to grow at the fastest rate during the forecast period assisted by increasing digital transformation initiatives in countries like China, India.
Key players operating in the CPaaS market are EnableX.io (VCLOUDX PTE. LTD), Twilio Inc., Infobip Ltd., Vonage Holdings Corp, M800 Limited, MessageBird BV, Iotum Inc., Plivo Inc., Voxbone SA, Snich AB, Telestax, Voximplant (Zingaya Inc.), Mitel Networks Corporation, 8×8 Inc., AT&T Inc., Voxvalley Technologies, Avaya Inc., Bandwidth Inc. (Bandwidth.com), Wazo Communication Inc., and IntelePeer Cloud Communications. Twilio dominates the market due to its wide range of communication APIs and high brand visibility globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
