Communication Platform As A Service Market Size, Share & Trends Analysis Report By Component, By Enterprise Size (Large Enterprise, SMEs), By End-use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global communication platform as a service market size was valued at USD 8.9 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 31.1% from 2022 to 2030. The ability of CPaaS to embed communication and collaboration into business applications & processes and enterprise digital transformation requirements are driving the market growth. Moreover, the increasing adoption of Omni channel communication models by enterprises offers significant growth opportunities. The COVID-19 pandemic had a positive impact on the communication platform as a service market. The need to work from home dramatically increased and highlighted the need for dynamic and efficient cloud-based communication solutions for remote working. In addition, during the COVID-19 pandemic, companies switched to digital channels to support customer communications.

During the pandemic messaging app and video calling emerged as a key tool for connectivity, productivity, and commerce. The education sector adopted video communication channels to carry out and handle tuition, assessments, admission, 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 education institutes to carry out classes online in February 2020.

The current communication platform as a service market revenue is driven by wholesale suppliers providing solutions and services directly through system integrators (SIs) or indirectly through independent software vendors (ISVs). The enterprise market is growing by adopting the voice and SMS API technologies.  However, the majority of communication platform as a service (CPaaS) vendors are not yet prepared to use self-sign-up (SSU) or portal sales channels to provide services in a consumable manner for the B2B or enterprise market.

Component Insights

The solution segment held the maximum revenue share of 87.5% in 2021 and is expected to register a CAGR of 29.9% over the forecast period. The growth of the segment can be attributed to the improved programmable video capabilities enabling better humanized digital interactions. Moreover, built in-app video with APIs for integrated workflow is expected to improve the overall value proposition of CPaaS businesses.

The services segment is projected to expand at the highest CAGR of 37.6% over the forecast period.  The growing integration of Artificial Intelligence (AI) and Machine Learning (ML) for agent augmentation, speech recognition, automation, emotion analysis, and call analytics is driving the professional and managed services demand in the market. For instance, banks and other financial institutions use conversational AI platforms in combination with APIsto automate customer service interactions and to improve customer experience.

Enterprise Size Insights

The large enterprises segment accounted for the largest revenue share of 58.6% in 2021 and is projected to expand at a CAGR of 28.2% over the forecast period. Large enterprises from different industries use CPaaS for different enterprise communication channels. The most common industries using communication platform as a service (CPaaS) solutions are accounting, finance, education, healthcare, insurance, retail, travel & hospitality, transportation & logistics, among others.

The Small and Medium Enterprises (SMEs) segment is likely to expand at the highest CAGR of 34.5% over the forecast period. SMEs are leveraging CPaaS solutions for various use cases such as marketing and sales, customer engagement, customer experience, query handling, payments, etc. Dwelo, Inc., a smart apartment technology platform, uses Twilio Wireless to offer connectivity to their smart hub to control home automation to owners, tenants, and property managers of multi-family rental neighborhoods.

End-use Insights

The IT and telecom segment accounted for the largest revenue share of 19.2% in 2021 and is projected to expand at a CAGR of 31.7% over the forecast period. Telecom companies adopting CPaaS solution to integrate SMS, video, location through APIs to solve customer problem fasters.

The healthcare segment is likely to expand at the fastest CAGR of 35.5 over the forecast period. This can be attributed to the growing adoption of CPaaS by the healthcare industry for different use cases such as remote diagnostic, scheduling, virtual patient-doctor visits, and appointment reminders, among others.  For instance, NYU Langone Health, a leading academic medical center, uses the CPaaS platform to deliver data-driven health messages to millions of patients.

Regional Insights

North America dominated the market with a share of 30.1% in 2021 and is anticipated to expand at a CAGR of over 30.0% over the forecast period. Factors such as high research & development (R&D) expenditure, established telecom service market, and the presence of numerous CPaaS companies are driving the market growth in the region. Moreover, the region has a developed technological infrastructure, aiding market growth in the region.

Asia Pacific is expected to expand at the highest CAGR of 34.1% during the forecast period. The market growth across the region can be attributed to growth of end-use industries such as retail and e-commerce, IT & telecom, BFSI, healthcare, transportation & logistic, and education, among others.

Key Companies & Market Share Insights

The competitive landscape of the communication platform as a service market is fragmented, having numerous local and global communication platform as a service provider. The key participants are adopting strategic initiatives such as acquisition, expansion, and product launches.

In October 2020, TWILIO INC. acquired Segment.io,Inc., a leading customer data platform solutions provider. Twilio entered into a definitive agreement to acquire Segment for approximately USD 3.2 billion. The acquisition was aimed to create an impactful, personalized, and timely customer engagement experience across product and sales, marketing, customer service, and analytics with Twilio’s existing customer engagement platform. Some of the prominent players in the communication platform as a service market include:

• TWILIO INC.

• Avaya Inc.

• Vonage America, LLC

• MessageBird

• Infobip ltd.

• Plivo Inc.

• Telnyx LLC

• TEXTUS

• Voximplant

• Bandwidth Inc.

Communication Platform As A Service Market Report Scope

Global Communication Platform As A Service Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global communication platform as a service market report based on component, enterprise size, end-use, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Solution

    • API Platform

      • Messaging API

      • Voice API

      • Video API

      • Others

    • SDK Platform

  • Service

    • Managed Services

    • Professional Services

• Enterprise Size Outlook (Revenue, USD Million, 2017 - 2030)

  • Large Enterprises

  • Small and Medium Enterprises (SMEs)

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • IT & Telecom

  • Retail & E-commerce

  • Healthcare

  • Transportation & Logistic

  • Travel & Hospitality

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa